Following the challenges plaguing the nation’s power sector, the minister of power, works and housing, Babatunde Raji Fashola, has called on solar power promoters in the country, and other stakeholders, to find lasting solutions to issues hindering the operations of the 16 solar power projects across the country.
These solar power projects are expected to add 1,300 megawatts (mw) to the nation’s generation capacity.
Fsahola gave the charge during a meeting with representatives of the Federal Capital Territory Administration (FCTA), state governments, Nigerian Bulk Electricity Trading Company (NBET), distribution companies (DISCOs) and prospective solar power promoters and investors recently, in Abuja.
In a communiqué issued at the end of the meeting, the participants agreed that the timely addition of all the 16 projects with a total of 1,300mw capacity would be highly beneficial for the country’s energy mix, noting, however, that the projects have been unable to progress because of the lack of bankable power purchase agreements (PPAs).
It noted that government is mindful of the burden of the premium price of solar power in the pricing regime approved by the NBET which the promoters consider difficult in the light of contracting for solar power at the prevailing premium tariff, a development that have made them request for subsidy to cushion the adverse effect on their investment.
The communiqué noted further that the solar sponsors have also expressed concern and frustration that bankable PPAs have not been signed after so many years of negotiations with the NBET and thus, asked the government to work out a way forward.
To this end, the promoters agreed to meet over the next few days to redefine and update the pricing regime as well as make specific suggestions on incentives such as duty waivers, VAT exemptions and access to concessional credit facilities to help bring down the price of solar equipment.
