• Sunday, June 16, 2024
businessday logo

BusinessDay

FG commits to 20% renewable energy by 2030      

renewable-energy

The Federal Government has said it is committed to the development of 20 percent of the total energy consumed in Nigeria from renewable sources by the year 2030.

Babatunde Fashola, the minister of power, Works and housing, stated this Thursday in Abuja during a signing ceremony of 14 front runner solar power purchase agreements (PPAs) between the Nigerian Electricity Bulk Trading Plc (NBET) and 14 solar energy firms.

Babatunde Fashola, the minister of power, Works and housing
Babatunde Fashola, Nigeria minister of power, Works and housing

“It is the determination of the federal government of Nigeria to ensure that the country’s power sector is no longer dependent on the vulnerability of one energy source,” Fashola stated.

With the signing of the PPAs, paving way for financial closures and eventual commencement of full commercial operations, an estimated $2.5 billion worth of investments are expected to be made by the various companies involved in the development of the 14 solar projects.

The companies are Pan Africa Solar, which is developing a 75mw solar plant in Katsina State, Nigerian Solar Capital Partners (100mw) in Bauchi State, Afrinergia Power Limited (50mw) in Nasarawa State, and Motir Dusable Limited (100MW) in Nasarawa State.

Others are Nova Solar 5 Farm Limited (100mw) in Katsina State, Kvk Power Limited (100mw) in Sokoto State, Middle Band Solar One Limited (100mw) in Kogi State, LR Aaron Power Limited (100mw) in the FCT, and Nova Scotia Power Development Limited (80mw) in Jigawa State.

Also on the list are CT Cosmos (70mw) in Plateau State, En Africa (50mw) in Kaduna State, Oriental Renewable Solutions (50mw) in Jigawa State, Quaint Abiba Power Limited (50mw) in Kaduan State, and Anjeed Innova Group (100mw) also in Kaduna State.

Waziri Bintube, who is the acting managing director/CEO of NBET, said that “gas shortages experienced by gas-fired power plants due to pipeline vandalism have made it imperative for the country to seek alternatives to gas, and that the PPAs signed towards achieving that goal were a culmination of over three years of hard work between NBET and the 14 solar energy firms involved in the 14 projects.”

When these projects that will commence in the last quarter of 2016 are completed in the next 12 to 18 months, a combined 1000 megawatts of electricity will be generated and added to the national grid for public consumption at the cost of 11.5 cents per kilowatt hour, Bintube assured.

For instance, Afrinergia Power Limited, which is working on the construction of a 50mw power palnt at Kokona in Nasarawa State worth $100 million is planning to evacuate energy from its facility into Abuja using the Apo-Akwanaga evacuation line, said Mathew Igbalajobi, the company’s CEO.

Marcus Heal, the CEO of Pan Africa Solar, the company is developing a 1000 megawatt portfolio of solar projects in Nigeria and is planning on bringing more than $1 billion of investments over the next five years.
According to him, company’s currently planned projects valued at about $1.75 million represent the largest single power investments ever in Nigeria.