The federal government through the Energy Commission of Nigeria (ECN) and other stakeholders recently met investors in Lagos under the “Grid-Connected Renewable Energy Investor’s Forum”. The forum was supported by the United Nations Development Programme (UNDP) and was convened to address issues and challenges hindering the construction of Independent Power Producer (IPP) solar projects in the country.
This comes as a component of a five-year Global Environment Facility (GEF) -supported project titled: De-Risking Renewable Energy NAMA (Nationally Appropriate Mitigation Action) for Nigerian Power Sector” being implemented by UNDP, ECN, Federal Ministry of Environment and Federal Ministry of power, Works and Housing. The objective of the project is assisting the government in achieving a transformation in the electricity mix such that at least 20 GW of electricity is generated from solar PV by 2030.
At the end of the meeting, the investors noted the delays in government in finalizing all PPAs and guarantee documents (PCOA and PRGs); inability in honouring contractual terms and inconsistencies in Tariffs due to delays in PPAs (11.5 Cents – 7.5/6.6 cents/kWh). The stakeholders recommended that the authorities should make investments in the power sector attractive and special domestic financing with one digit (4 per cent and below) interest rate should be made available to renewable energy IPPs and will not require guarantees.