Nigeria: Motir DuSable To Set Up 300MW Solar Plant Infrastructure In Nigeria At A Cost Of US$400m

Who: Government of Nigeria; Governor of Enugu State; Motir DuSable Power Investment (US renewable energy investment firm).

What: Motir DuSable is establishing a 300MW solar power plant in Nigeria's southern city of Enugu, capital of Enugu State. The first part of the project is the construction of a 100MW plant which is estimated to cost US$200million and subsequently, the plant will be expanded to produce a further 200MW at an additional cost of US$200million too¹. The company already has operations in Asia and other parts of Africa.

When: Phase I of the project should be completed over the next 12-18months.

Why: Power generation remains a major challenge across Nigeria and Enugu is no exception. The plan is to make Enugu State a hub for energy generation and to create jobs through this venture across the state. The addition of this solar facility will see the government inch closer to reaching this goal, as the state government also seeks to harness the region's coal potential.

Outlook: The Nigerian government, through the Nigerian Bulk Electricity Trading (NBET), which buys power from independent power producers (IPPS) and resells to distributors, has signed 12 power purchase agreements (PPAs) with solar energy firms worth US$2.5billion². The present solar energy projects will generate 975MW,taking advantage of the sunshine intensity with Sokoto, Bauchi, Enugu, Nasarawa, and Plateau States each housing a project. With ten international energy generation companies and just two domestic players having signed PPAs, it is clear that there is more scope for Nigeria's local players to participate in this growing market. As for the Enugu solar project, once complete, it should have a transformative effect ensuring that electricity is taken into 170,000 homes in the state.

Footnotes

1. http://www.nigeriatoday.ng/2016/08/enugu-gets-200m-renewable-energy-projects/

2. http://www.dusablecapital.com/press-releases/2-5bn-solar-projects-to-add-975mw-to-national-grid-in-18-months/

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.