Nigeria, US firm sign agreement on clean, reliable electricity
At the US-Africa Business Forum (USABF) in Washington, D.C on Wednesday, December 14, 2022, the Federal Government and a U.S firm, Sun Africa LLC, the largest US renewable energy company operating in Africa, 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 by Otunba Adeniyi Adebayo, Minister of Industry, Trade and Investment, and Adam Cortese, CEO of Sun Africa, in the presence of Amos Hochstein, President Joe Biden’s Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment.
In his address on Tuesday, December 13, President Muhammadu Buhari had 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.
The project will be constructed in different phases across the six geopolitical zones and will provide clean, reliable and affordable electricity to more than 30 million.
| Project portfolio location and size | |||
| Location | PV size (MWp) | Energy Storage (MWh) | |
|
Utility-Scale Solar | Damaturu (Yobe State) | 150 | 70 |
| 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 | |
Solar mini-grids electrification infrastructure + Smart meters | 360 rural communities across the 36 states | 2,200 | 1,200 |
Total | 4,910 | 2,462 | |
All the technical and financial due diligence activities for the phase 1 of the project have been completed for the first five (5) 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 1 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) | 24 | 11 |
| Total | 961 | 455 |
This 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.
