Pan Africa Solar to develop and deliver 1,000-MW solar projects in Nigeria. The German based utility scale solar energy company has also revealed plans to inject over US$1bn foreign direct investments into the country for the next five years.
On behalf of the Federal Government of Nigeria, Nigeria Bulk Energy Trader (NBET) signed Nigeria’s first ever solar power purchase agreement (PPA) with Pan Africa Solar.
The concluded PPA agreement has paved way for the construction of the 75-MW solar photovoltaic power project. The US$146m project will be executed in Katsina State. The project is expected to be commissioned in 2017 and the generated energy will be sold for 11.5 cents per kWh.
The tariff has been achieved through harnessing lower solar panel prices, lower construction and the commitment of the project’s lender. “This is the start of a solar revolution in Nigeria,” said Justin Woodward of JCM Capital, a Canadian Private Equity firm who are co-developers in the project.
During the 12 month construction period of the project, more than 500 local people will secure employment. Furthermore, from the additional economic activity stimulated by the power plant, over 40,000 employment opportunities will be created.
