Sunday, 18 December 2022

Nigeria , US Firm Sign $10bn Renewable Power Contract


 

Nigeria and United States’ largest renewable energy company operating in Africa, Sun Africa LLC, have signed a $10 billion agreement for the supply of clean and reliable power to more than 30 million people across the nation’s six geo-political zones.


The signing exercise formed part of the events held at the sidelines of the US-Africa Business Forum (USABF) in Washington, D.C last Wednesday.According to a statement issued yesterday by presidential spokesperson, Mallam Garba Shehu, the federal government and Sun Africa LLC, signed a development and Engineering, Procurement and Construction (EPC) implementation framework agreement for the building of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants.


The agreement was signed on behalf of Nigeria by the Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo and for Sun Africa, the CEO, Adam Cortese in the presence of Amos Hochstein, President Joe Biden’s Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment.The project, the statement said, would be constructed in different phases across the six geopolitical zones and would provide clean, reliable and affordable electricity.


The statement also stressed that the technical and financial due diligence activities for phase one of the project had been completed for the first five selected locations for the grid-connected solar projects of up to 961 MWp of solar and 455 MWh of battery energy storage.


“Subsequently, ING Bank, US EXIM Bank, the Federal Ministry of Finance, and the Debt Management Office (DMO) have concluded all the financial negotiations and are closing the financing terms for up to $2 billion. Construction of phase one is expected to start in the first quarter of 2023,” said Shehu in the statement.The statement added that the transformative solar project is on top of the US climate and sustainable energy agenda and has been prioritised as a strategic lead for the US which is entirely in line with the federal government’s Energy Transition Plan, addressing clean and reliable energy supply, creating jobs and ensuring transfer of knowledge and technology.


President Buhari, in an address last Tuesday in the United States said: “As part of the National Renewable Energy and Energy Efficiency Policy, we set the vision 30:30:30 which aims at achieving 30GW of electricity by 2030 with renewable energy contributing 30% of the energy mix.”Buhari, in the presence of President Biden and other world leaders, sought the United States’ support to achieve it.


Sun Africa, Sterling and Wilson Renewable Energy Limited (S&W), a leading US and international solar EPC company, and the Nigerian government have been working on the development of transformation grid-connected and mini-grids solar projects in multiple locations, including interconnection, electrification and smart meters infrastructure.


To ensure the broadest and most comprehensive approach to access electricity, Sun Africa is also implementing solar cabins and solar home systems where the mini-grids are not economically viable.


Shehu also noted that all the technical and financial due diligence activities for phase 1 of the project had been completed for the first five selected locations for the grid-connected solar projects of up to 961 MWp of solar and 455 MWh of battery energy storage.Subsequently, ING Bank, US EXIM Bank, the Federal Ministry of Finance, and the Debt Management Office have concluded all the financial negotiations and are closing the financing terms for up to $2 billion.


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