Nigeria, U.S 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.