$10bn joint Nigeria-US renewable energy program set to launch in early 2023

by Vincent Godstime

The United States government will invest up to $10 billion in the construction of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants as part of a deal signed at the US-Africa Business Forum in Washington D.C. last week. The agreement was signed by the Minister of Industry, Trade and Investment of Nigeria, Otunba Adeniyi Adebayo, and the CEO of Sun Africa, Adam Cortese, in the presence of Amos Hochstein, President Joe Biden’s Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment.

The project, which aims to provide clean, reliable, and affordable electricity to more than 30 million people in Nigeria, will be implemented in different phases across the country’s six geopolitical zones and will include the development of grid-connected and mini-grids solar projects as well as the implementation of solar cabins and home systems where mini-grids are not economically viable.

Technical and financial due diligence activities for the first phase of the project, which includes up to 961 MWp of solar and 455 MWh of battery energy storage, have been completed, and financial negotiations for up to $2 billion in funding have been concluded by ING Bank, the US EXIM Bank, the Federal Ministry of Finance, and the Debt Management Office. This project aligns with both the US climate and sustainable energy agenda and the Nigerian government’s Energy Transition Plan, which aims to increase access to clean and reliable energy, create jobs, and transfer knowledge and technology.

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