Henceforth, the Federal Government will give greater attention to providing the enabling environment for investors who are ready to commit funds to generating electric power from renewable sources.
According to officials, twelve investors have just sealed Power Purchase Agreements (PPAs) with the Nigerian Electricity Bulk Trading Company (NBET), a deal that will ensure about 975 megawatts is added to the grid in the next 18 months.
PPA is a Federal Government and World Bank instrument that guarantees that the power supplied will be bought, and gives the investors confidence to approach their financiers.
Officials said at a signing ceremony in Abuja that a total of 975 MWs of electricity would be generated in the next months when construction would have been completed. Between 2 Billion and 2.5 Billion Dollars are expected to be spent on the project.
Acting Managing Director and Chief Executive Officer of NBET, Mr. Waziri Bintube, who signed the deal as the ‘Bulk Trader’, told journalists that discussion with the investors had been on for the past four years and that the necessary feasibility studies and other formalities had been completed for the take-off of the projects.
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“This is the next wave. It is a revolution to diversify the energy mix of this country, especially to resolve this lingering power crisis. It is something that we have been living with in the past 10 to 15 years. But it has become even more acute and critical at this point in time because of the disruptions to the gas supply.
“As you know, this country is currently dependent 86 percent on thermal gas power plant and 15 per cent on hydro. So, it is basically hydro and thermal right now. We don’t have nuclear, we don’t have solar. This is the first wave of renewable energy coming on the grid. It has become much more critical and we are committed to delivering on it to be able to show some results within a maximum of 12-18 months,” he said.
On the total cost of the different projects, he explained: “For the 12 projects, the total costs are between $2 billion and $2.5 billion. This is foreign direct investment coming into the country at this critical time. The economy, as you all know, needs a jumpstart and the spill off effects from this investment in terms of job creation and economic activities can only be imagined.
“The projects are going to be based in eight states. Without any prejudice, the spread of the states is determined by the dynamics. Solar radiation is higher mostly in the Northern part of the country. We have one in Enugu State, one in the Federal Capital Territory, one in Nasarawa State, three in Kastina State, one in Jigawa, one in Sokoto and one in Plateau State. Kaduna has two.”
Source:today news
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