Energy Projects in Nigeria, Cameroon Get $5m Funding

By Obinna Chima with agency report

Quaint Solar Energy from Nigeria and Flatbush Solar from Cameroon will soon see their renewable energy projects fired up by a total of $5-million (R62 million) in new funding as well as expert technical support.
Access Infra Africa announced yesterday that the two firms shared first prize in the inaugural Access Co-Development Fund (ACF) competition.

According to African News Agency (ANA), Access, a developer, owner and operator of power assets in Africa, launched the competition in April in a bid to bridge the gap between early-stage African renewable energy projects and the expertise and funding they require to become operational.
Quaint Solar Energy’s winning Abiba solar project is a 50mw solar development that will utilise photovoltaic technology to help bridge the country’s power deficit. The Maroua solar project won by Flatbush Solar in Cameroon is a 20mw solar plant designed to serve the energy needs of the city of Maroua and neighbouring towns and villages.

The ACF had received 55 submissions from 18 African countries – including Kenya, South Africa, Morocco, Ghana, Rwanda and Tanzania – covering a range of technologies including solar, wind, hydro, hybrid and bio-mass.
The winning projects were selected by an expert panel after a live session at the Africa Energy Forum 2015 in Dubai at the end of last week. They were chosen based on commercial, technical and environmental merits, the local regulatory environment and the project team.

Other shortlisted projects included a 20MW photovoltaic plant by Ada Solar Energy in Ghana and a 10MW solar plant by Wagonanze Investments in Tanzania.
Director at Quaint Solar Energy, Seun Solesi said: “We are delighted to partner with Access Infra Africa to develop the Abiba solar project in Nigeria. Their funding, technical support and guidance will undoubtedly play a key role in bringing the project to fruition and creating significant benefit for all our stakeholders.”

Also, Managing Director of Flatbush Solar, Samuel Tesfaye said: “We are pleased that Access Infra Africa recognises the importance of providing funding and technical expertise to early-stage projects within the renewable energy sector in Africa.”
Similarly, the chairman of Access Power MEA, Reda El Chaar said: “It is a fantastic opportunity to be able to partner with two projects that will undoubtedly have a positive social and economic impact in their respective regions, and we look forward to working closely with them as they progress towards becoming operational.”

Access will take an equity stake in Flatbush Solar and Quaint Solar Energy and fund third-party development costs such as feasibility studies, grid studies, environmental and social impact assessments and other due diligence fees. 

Energy Projects in Nigeria, Cameroon Get $5m Funding

Canadian-Saudi JV to Build $5 Billion Solar Power Installation in Nigeria

While Nigeria worldwide is known as Black Africa’s largest hydrocarbon exporter, the state is also looking into renewable energy for indigenous use.

Nigeria’s Delta State’s solar initiative follows the May 6 Federal Government signing the Foreign Investments Protection Agreement (FIPA) with Canada to improve the climate for Canadian investing in Nigeria. Delta State Government signed a memorandum of understanding (MOU) with Canada’s Skypower FAS Energy to build a $5 billion, 3,000 megawatt facility in the state.

SkyPower FAS Energy is a joint venture between Toronto-based SkyPower Global and Saudi Arabia’s FAS Energy. Established in 2003, SkyPower FAS Energy has built facilities generating over 25,000 megawatts worldwide, producing over 219 million kilowatt hours of clean electricity to date.  FAS Energy is a subsidiary of Fawaz Alhokair Group, one of the leading groups of companies in the Kingdom of Saudi Arabia focusing on retail and real estate business sectors.

Nigerian Minister of Industry, Trade and Foreign Investments Olusegun Aganga said, “Skypower will deploy first in Delta State which has taken the lead because of the enormous work the State has put in to ensure the realization of the renewable energy program.” 

Related Article: Nigeria’s Missing Oil Money Sparks Political Crisis

SkyPower FAS Energy President and CEO Kerry Adler said, “This is truly a proud moment for SkyPower FAS Energy. Global partnerships such as these are key to bringing together extensive expertise from around the world. The signing of these landmark agreements demonstrates the shared vision of a partnership that will further stimulate the vibrant, fast-growing Nigerian economy and substantially impact the state and country’s GDPs, resulting in increased employment and skills training. We applaud the leadership of the Delta State and Federal Nigerian governments for embracing this initiative and demonstrating their continued commitment to reduce carbon emissions and harness the proven power of solar PV.”

Lauding the agreement Nigeria’s Federal Ministry of Power Permanent Secretary Godknows Boladei Igali said, “The Nigerian Government is pleased to partner with SkyPower FAS Energy and we look forward to creating more power and more jobs for the people of Nigeria. Foreign investment in Nigeria helps build the economy and strengthen international ties with a well-respected and viable partner such as SkyPower FAS Energy.” Delta State governor Emmanuel Eweta Uduaghan was equally enthusiastic, commenting, “Delta State is pleased to sign this agreement with the world’s largest solar developer, SkyPower FAS Energy. It represents a continued effort to provide even more clean and renewable energy that can be sustained for decades to come. Delta State: beyond oil into solar.”

Solar power is well suited to Nigeria. As Nigeria is in the tropics, it has only two seasons a year, a rainy and dry season. Accordingly, Nigeria’s greatest solar energy generation potential occurs during the dry season, which last from December to May, while solar energy can only be generated at lower levels during the rainy season due to the reduced amount of sunshine.

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SkyPower FAS Energy project is expected to begin commercial operation in phases starting in 2015.

While the Delta solar project is a Canadian-Saudi Arabian joint venture, Nigeria’s solar initiatives dovetail with U.S. President Barack Obama’s “Power Africa” initiative, announced on June 30, 2013, which is intended to “build on Africa’s enormous power potential, including new discoveries of vast reserves of oil and gas, and the potential to develop clean geothermal, hydro, wind and solar energy.”  The initiative will provide increased opportunities for U.S. power companies, as U.S. firms are leaders in commercial solar power development. As the “Power Africa” initiative has already identified Nigeria as a “partner country,” is seems likely that U.S. renewable energy companies will shortly join the U.S. oil and natural gas firms already operating there.

By John Daly of Oilprice.com

Canadian-Saudi JV to Build $5 Billion Solar Power Installation in Nigeria