Scatec Solar has signed a Joint Development Agreement (JDA) with Africa50, securing investment into the 100MW (DC) Nova Scotia Power plant located in Dutse in the Northern Nigerian state of Jigawa. The project has the potential to significantly contribute to the plan of the authorities of the State of Jigawa to attract USD 2 billion of investments into Jigawa.
"New local power generation capacity is a key element to attract sizeable investment into the State and region, especially into new industries such as light manufacturing and agricultural processing" said His Excellency the Deputy Governor.
"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," said Executive Vice President Terje Pilskog who signed the JDA on behalf of Scatec Solar.
"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 Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) and Chairman of Africa50's Board of Directors. Africa50 has been created by African governments, including Nigeria, the African Development Bank and institutional investors to mobilize private sector for funding infrastructure projects in Africa. Alain Ebobisse, Africa50's CEO noted: "Access to reliable energy is one of the most critical needs in Africa, including in Nigeria, where it is a government priority. I look forward to deepening the relationship with the authorities of Nigeria, one of our key shareholder countries, and to supporting more projects in this and other infrastructure sectors."
Apart from the three equity investors, the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the African Development Bank are expected to be senior debt providers for the project. International Finance institutions say the key to successful investment is the Nigerian state's issue of project documents that provides necessary investor confidence and the formulation of a clear roadmap to sustainability in the energy sector.
With an estimated investment of USD 150 million, a production of 200,000MWh of electricity per year and 120,000 tons of CO2 emissions avoided annually.