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Six major renewable energy deals in Nigeria

Renewable energy options for Nigerians following tariff hike

The Nigerian mini-grid market is expected to generate growing interest from developers in 2022 not just because of the size of its growth opportunities but because of its robust regulatory environment. Here are major renewable energy deals as of November 2o22.

Nigerian Breweries & CrossBoundary

Nigerian Breweries Plc (NB) and CrossBoundary Energy announced the commencement of two renewable energy (solar and battery storage hybrid) projects for NB Plc Ibadan and Ama breweries in Oyo and Enugu States valued at $10 million. This is one of the largest renewable energy projects for a business in Nigeria, the brewing company said.

As part of this deal, CrossBoundary Energy will expand the current renewable energy system at NB’s Ibadan Brewery from a 663 kWp solar PV plant to a hybrid solar-plus-storage facility consisting of a 3 MWp solar PV system and a 2 MW/2 MWh battery energy storage system (BESS). NB’s Ama brewery will receive a 4 MWp solar PV plant and a 2 MW/2 MWh BESS.

Shell & Daystar

Global energy giant, Shell made its first power sector acquisition in Africa with its acquisition of a major renewable energy provider in Nigeria, Daystar Power where Lagos-based private equity firm Verod Capital is a significant shareholder.

Shell, long known for its oil assets, seeks to build out a green energy business that will eventually reduce its dependence on fossil fuels and its purchase of Daystar Power which operates in Nigeria, Ghana and three other countries across west Africa, is a major push in that direction.

Read also: Conoil shareholders approve N1.73bn dividend

CrossBoundary & ENGIE Energy

CrossBoundary Energy Access Nigeria (CBEA) and ENGIE Energy Access Nigeria (ENGIE) signed a project finance agreement last September to build a $60 million portfolio of mini-grids that will connect over 150,000 people to electricity in Nigeria over the next four years.

FG & eight solar companies

Last February, the federal government signed a €9.3 million agreement with eight indigenous companies to provide23 solar mini-grids across 11 states.

The states include Zamfara, Niger, Plateau, Kwara, Kogi, Osun, Ogun, Lagos, Delta, Anambra, and Cross River.

The project, under the interconnected mini-grid acceleration scheme (IMAS), is expected to generate a 5.4-kilowatt peak to connect about 27,600 households and impact over 138,000 Nigerians in two years.

The eight local solar mini-grid developers are Acob Lighting Technology Limited, Gve Projects, Nayo Tropical Technology Limited, Rubitec Nigeria Limited, Darway Coast Nigeria Limited.

Others include Havenhill Synergy Limited, Sosa-Protergia Joint Development Company Limited, and A4&T Power Solutions Limited.

Husk Power System’s Sunshot Initiative

In Q2 2022, Husk Power Systems launched the Sunshot initiative targeted at building 500 microgrids by 2026, the establishment of 400,000 connections that benefit over 2 million people, provision of affordable energy to 8,000 women-led business customers, and the electrification of 700 public health clinics and 200 private hospitals among others.

Beebeejump’s deployment of solar systems

Earlier this month, Beebeejump, a Nigerian-based solar company announced that it has deployed about 500,000 solar systems in rural communities across Nigeria, through the output-based fund (OBF) grant agreement to improve energy access across Nigeria under the World Bank-funded Nigeria Electrification Project (NEP).

The agreement also approved 52,500 of the 75,000 solar home system units to be provided by Beebeejump.