Nigeria, one of the largest economies in Africa, is continue to face challenges with energy access and power supply. As the country gears towards increasing employment by providing jobs, and strengthening the economy for youth. The Scatec Solar project has attracted new investors who will support the project with an estimated USD 150 million which will boost the 100 Megawatts Scotia project in Nigeria. Additionally, the project is also targeted to setting Nigeria on their commitment to the Paris Agreement as the project is estimated to prevent 120,000 tons of CO2 emissions every year as a renewable energy power source.
Scatec Solar signed a Joint Development Agreement (JDA) with Africa50, an African Infrastructure Fund sponsored by the African Development Bank and more than 20 African States and Norfund (the Norwegian Investment Fund for Development Countries), and securing investment into the 100 MW (DC) Nova Scotia Power plant located in Dutse in the Northern Nigerian state of Jigawa. This partnership is very strong and exhibit the zeal for both the Norwegian and Nigerian government to approach renewable energy. This is also the first investment being made by Africa50. Chairman of Africa50’s Board of Directors said, “I am pleased that Africa50 is already making its first investment, which fits in squarely with our priority to light up and power Africa.” In addition to this partnership, there are a number of debt providers who will support the project – with the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the African Development Bank anticipated to be the lead debt providers.
The signing pleased the state of Jigawa, the Deputy Governor of the state said that the new local power generation capacity is essential to bring investment to the state, particularly, towards the manufacturing, production, and agricultural processing sector. According to the state, the project has the potential to contribute to their pan to bring USD 2 billion of investments into Jigawa.
Scatec Solar, at the signing mentioned that “The formation of this consortium is a strong symbol of the Norwegian and Nigerian commitment to invest in clean energy in Nigeria. 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.”