The Federal Government and Sun Africa LLC, signed a development and Engineering, Procurement and Construction (EPC) agreement for the construction of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants for up to $10 billion investment from the US government.
*Phase one begins first quarter of 2023
Deji Elumoye in Abuja
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 by the sidelines of the US-Africa Business Forum (USABF) in Washington, D.C on Wednesday, December 14, 2022.
According to a release issued Friday 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 construction of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants for up to $10 billion investment from the US government.
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 release stated, will be constructed in different phases across the six geopolitical zones and will provide clean, reliable and affordable electricity to more than 30 million consumers.
The Project portfolio location and size of the unity-scale solar include Damaturu (Yobe State)
PV size (MWp)150, Energy Storage (MWh) 70.
Other benefitting states via location, PV size and energy storage include Bauchi (Bauchi State) 143, 68; Gombe (Gombe State) 270, 128; Yola (Adamawa State) 174, 82;
Dutse (Jigawa State) 150, 60; Lafia (Nasarawa State) 350, 166; Makurdi (Benue State) 168, 77;
Geregu (Kogi State) 174, 82; Katsina (Katsina State) 150, 70; Kaduna (Kaduna State) 180, 80;
Kebbi (Kebbi State) 174, 82; Kano (Kano State)
174, 82; Gwagwalada (FCT) 143, 68; Ganmo (Kwara State) 143, 68; Ihovbor (Edo State) 24,
11; Akwa (Anambra State) 143, 68.
Subtotal 2,710, 1,262.
The statement also stressed that the technical and financial due diligence activities for the phase one of the project have 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 as follows:
Location, PV size (MWp), Energy Storage (MWh)
Gwagwalada (FCT)143,68; Gombe (Gombe State)
270, 128; Lafia (Nasarawa State) 350,166;
Geregu (Kogi State) 174, 82; Ihovbor (Edo State)
Total ,961, 455.
The release added that the transformative solar project is on top of the US climate and sustainable energy agenda and has been prioritized 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 Muhammadu Buhari had in an address on Tuesday, December 13, 2022, 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” in the presence of President Biden and the world leaders, and 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.