Nigeria Secures Norwegian Solar Investment The Norwegian solar power producer Scatec Solar has partnered with Norway’s investment fund Norfund and in
Nigeria Secures Norwegian Solar Investment
The Norwegian solar power producer Scatec Solar has partnered with Norway’s investment fund Norfund and infrastructure fund Africa50 to develop a $150m solar power plant in Nigeria.
A joint development agreement (JDA) involving the three parties will secure a US$150mn investment into the 100MW Nova Scotia power plant to be built in Jigawa in northern Nigeria.
The solar investment project is supported by the Overseas Private Investment Corporation (OPIC), the Islamic Development Bank and the African Development Bank (AfDB) – the senior debt providers.
The parties are targeting financial close and the start of construction in 2017, with the plant scheduled to begin commercial operations in 2018.
The formation of this consortium is a strong symbol of the Norwegian and Nigerian commitment to invest in clean energy in Nigeria,” says Terje Pilskog, Scatec Solar’s executive vice president. “With the Government of Norway taking a direct investment role through Norfund, significant regional and Nigerian ownership through Africa50, and the track-record of Scatec Solar, this offers one of the most solid partnerships for solar investment projects globally.”
Africa50 is an infrastructure fund supported by more than 20 African governments, the AfDB and institutional investors, with an aim to mobilise private sector funding for infrastructure development in Africa.
According to president of AfDB and chairman of Africa50’s board of directors, Dr. Akinwuni Adesina, the JDA marks the first investment made by Africa50.
Under the agreement, Norfund and Africa50 together will own 50 per cent of the project while Scatec Solar will own the remaining 50 per cent.
Electric power from the plant, about 200,000 MWh per year, will be sold to Nigerian Bulk Electricity Trading (NBET) under a 20-year power purchase agreement signed in July.
The Norwegian Foreign Minister, Børge Brende, participated at the signing seremony in Nigeria on the 16th of December. He shared the following tweet: “Through @norfund_ we are partnering w @ScatecSolar to invest in solar energy in #Nigeria.Good for development & job creation”