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Scatec Solar partners Africa50 on 100 MW project in Nigeria

19 Dec 2016, 03:44 pm
Financial Nigeria
Scatec Solar partners Africa50 on 100 MW project in Nigeria

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- A consortium of investors comprising Africa50 and Norfund invested $150 million to help develop the Nova Scotia power plant located in Jigawa State.

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Scatec Solar, a Norwegian solar company, has announced that it has signed a joint development agreement (JDA) with a consortium of investors to develop the 100 MW Nova Scotia power plant located in Jigawa State. The consortium of investors comprises Africa50, an infrastructure investment fund backed by the Africa Development Bank; and Norfund, the Norwegian investment fund for developing countries.

In a statement released on Monday by Scatec Solar, the investment of $150 million by Africa50 and Norfund will help develop the solar plant, which is expected to generate about 200,000 megawatts hour (MWh) of electricity per year, help Nigeria rapidly increase its generation capacity, provide economic opportunities, fight desertification caused by climate change, and contribute to fulfilling President Muhammadu Buhari's commitments to develop renewable energy as part of the Paris Climate Change Agreement.

“The formation of this consortium is a strong symbol of the Norwegian and Nigerian commitment to invest in clean energy in Nigeria,” said Terje Pilskog, the Scatec Solar’s Executive Vice President, who signed the agreement on behalf of the company. “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 PV projects globally.”

In July this year, the Nova Scotia project signed a 20-year power purchase agreement with the Nigerian Bulk Electricity Trading (NBET) to evacuate electricity to the national grid.

Besides the three equity investors in the Nova Scotia plant, Scatec Solar said it expects the US government’s Overseas Private Investment Corporation (OPIC), the Islamic Development Bank and the African Development Bank to serve as senior debt providers for the project. The company said it expects to reach financial close in 2017 with commercial operations starting the following year.

“I am pleased that Africa50 is already making its first investment, which fits in squarely with our priority to light up and power Africa,” said Akinwumi Adesina, President of the African Development Bank and Chairman of Africa50’s Board of Directors. (Africa50, which has $700 million in capital, was created in 2012 by 20 African countries – including Nigeria – the AfDB and institutional investors to mobilize private sector for funding infrastructure projects in Africa).

Headquartered in Oslo, Norway, Scatec Solar builds and operates solar power plants with an installation track record of about 600 MW. The company is currently producing electricity from 404 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras, Jordan, and the United States. (Construction of an additional 22 MW in Jordan is under completion).

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