NBET signs off key deals for a 120 MW solar portfolio in Nigeria

Nigerian Bulk Electricity Trading Plc (NBET) coordinated the signings of Nigeria’s Minister of Power Works and Housing, Babatunde Fashola, with solar developers Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited on two put and call option agreements (PCOAs).

The completed proceedings will help finalize a power-purchase agreement that the federal government signed with 14 PV developers during the summer of 2016 which together will add up to 1,125 MW of solar power capacity and will represent a combined investment of approximately US$2.5 billion. The deals enable Afrinergia Power Ltd and CT Cosmos to proceed with the construction of their projects, located in Nasarawa State (50 MW) and Plateau State (70 MW), respectively, being these the first two of the 14 solar projects mentioned.

Fashola noted:

“Sometimes when the weather gets stormy and cloudy, like it has been a few months back, some of the first people to go are the moving investors as they look for calmer weather. It is the persistence and perseverance and the indomitable spirit of Nigerians who have invested in Nigeria that will help to support the efforts that the President and Vice President and the Nigerian Government are making to rebuild the Nigeria that we want to see.”

He added:

“It sits very well with our Ministry’s plan to deliver 30% of our total energy capacity through renewables by 2030. So it has ticked all of the right boxes; what remains now is to tick the final box to get power to people's’ homes.”

Due to prolonged negotiations on the Partial Risk Guarantees (PRG) for the projects with the World Bank and African Development Bank (AfDB), the signing of the agreements was delayed.