Investment company GreenWish Partners has doubled its planned capacity addition in Nigeria’s solar power market.
GreenWish Partners now plans to set up 200 megawatts of solar power capacity in Nigeria after entering into a long-term agreement for power sales with the Nigerian Bulk Electricity Trading company (NBET). The company is expected to invest $280 million to bring the capacity online.
The company plans to set up a 100 megawatt project in Enugu and two projects of 50 megawatt capacity each in Kaduna and Jigawa. The projects will be funded through 30% equity and 70% debt finance. All three projects are expected to be operational by the first quarter of next year. The 200 megawatt capacity is expected to generate enough electricity for 2.5 million people and offset 1.5 million tonnes of carbon dioxide emissions every year.
The company had signed agreements with NBET last year to set up 100 megawatts of capacity in northern Nigeria. The agreements were part of the more than 1,000 megawatts agreements signed by various independent power producers to set up utility-scale solar power projects across Nigeria.
GreenWish CEO Charlotte Aubin-Kalaidjian stated that the conducive regulatory support and market conditions in Nigeria make it an apt destination for investment in solar power. Only 50% of the Nigerian population has access to electricity and the power sector is heavily dependent on fossil fuels.
Last year, the Nigerian Electricity Regulatory Commission approved feed-in tariff regulations for renewable energy sourced electricity. As per the provisions of the regulations, electricity distribution companies will be required to source at least 50% of their total procurement from renewable energy sources. The Commission has also mandated that the balance 50% electricity would have to be sourced from Nigerian Bulk Electricity Trading Company.