Nigeria Solar PPA Project Pipeline InterSolar Europe 2017, Munich Germany Presented by: Segun Adaju CEO Consistent Energy & President, REAN

Transcription

1 Nigeria Solar PPA Project Pipeline InterSolar Europe 2017, Munich Germany Presented by: Segun Adaju CEO Consistent Energy & President, REAN

2 Nigeria Facts and Figures 6.50% 19.80% 63.60% 10.00% 0.10% 10.00% 0.10% 6.50% 63.60% Chart Title NOMINAL GDP SPLIT Q1, 2016 Source: National Bureau of Statistics 19.80% Agriculture Services Mining National Electrification Rate : 55% (about 93 Million live off-grid) Manufacturing Oil and Gas Urban Electrification: 55% Rural Electrification: 35% Land Area : 923,768 km 2 Major Exports: Oil, Agric. Products GDP Per Capital: 3,005 USD (2013) GDP: $568Billion (2016) $950Billion (2030) Population: 180 Million (2015) 260 Million (2030) Middle Class Population: 46 Million Population relying on Generators 60 Million World Bank (WB) EODB (2016): 169th (Out of 190) WEF GCI (2016): 127th (Out of 138) Energy Shortages are common even though Nigeria is a major Oil and Gas Exporter Total clean energy investments btw is $358.8m (Bloomberg)

3 Nigeria Energy Profile Energy Demand (Output) 5,000 TWh/Year 4,000 3,000 2,000 1, Cooking Lighting & Appliances Cooling Industry Pipeline Berge 5,000 4,000 3,000 2,000 Domestic Aviation Rail 1,000 Transport Road Transport Electricity Generation (TWh) Electricity Imports Nuclear Power Non- Thermal RE Generati on Biomass Power Station Conventional Domestic Demand Self Generation Source: Energy Commission of Nigeria, Nigeria Energy Calculator (NECAL) 2050 Report

4 Nigeria Solar Irradiation Nigeria could generate 207,000 GWh/annum with Polycrystalline Solar PV (Yield of 1,500Wh/Wp per year) from just 1% of its >920,000km 2 land area Irradiation ranges from 3.5 KWh/m2/day in coastal regions to about 9.0 KWh/m2/day in Northern borders

5 Nigeria - Power Sector Reform 2005 Electric Power Sector Reform Act State Utility unbundled to form 11 Distribution (DISCOs) and 7 Generation Companies (GENCOs). Nigerian Electricity Regulatory Commission (NERC) 2010 Road Map for Power Sector Reform Nigerian Bulk Electricity Trader (NBET) formed 2008 Nigerian Integrated Power Project (NIPP) $5 Billion State Investment Solar IPPs PPAs signed with 14 developers of 1.12GW Solar IPPs Privatization Sale of DISCOs, GENCOs and 7 NIPP Generation Companies

6 DEVELOPERS MW LOCATION 1 Nigeria Solar Capital Partners 100 Bauchi 2 Afrinergia Power 50 Nasarawa 3 Pan Africa Solar 75 Katsina 4 Motir Dusable 100 Enugu 5 CT Cosmos 70 Plateau 6 EN Africa 50 Kaduna 7 KVK Power 100 Sokoto 8 Middle Band Solar One 100 Kogi 9 LR Aron Power Ltd 100 FCT 10 Nova Scotia Power Dev Co 80 Jigawa 11 Oriental Renewable Solution 50 Jigawa 12 Quaint Abiba Power Ltd 50 Kaduna 13 Anjeed Innova Group 100 Kaduna 14 Nova Solar 5 Farm 100 Katsina Total 1,125

7 Nigerian Solar PPAs The Nigerian Bulk Electricity Trading (NBET) Company signed 20-year, dollar-denominated fixed-power PPAs at 11.5 US cents/kwh. Developers paid US$20,000/MW as deposit which they forfeit if they fail to meet financial close or operate According to Bloomberg, this tariff looks relatively generous when compared to recent prices for PV projects in Sub- Saharan Africa NBET is capitalised by the Nigerian Federal Government and enters into agreements with generation companies and resell power to distribution companies. NBET s future plan is to launch the first RE auction process in few months for between 500MW and 1,000MW. NBET will publish invitations for Expressions of Interest (EOI) in the Federal Government Tenders Journal, the World Bank procurement website and at least two Newspapers circulating within Nigeria.

8 Nigerian Solar PPAs - Updates Two of the developers recently signed the Put and Call Option Agreements (PCOA) to conclude the generation of 120MW (CT Cosmos and Afrinergia) The PCOA agreement transfers the payment risk from the state-owned company Nigerian Bulk Electricity Trading Plc (NBET) directly to the ministry. The Put Call Option Agreement (PCOA) is a guarantee mechanism recently adopted by the Nigerian government. PCOA could not be signed a month after the PPA were initialled due to protracted negotiations of the Partial Risk Guarantee (PRG), another document that helps to secure the investments at the World Bank and the African Development Bank (AfDB).

9 Future Outlook Huge opportunities in the Nigerian Solar PV market with expected commencement of auction process for another round Government is targeting an energy mix of 30% minimum from renewables by 2030 Recent approval of the National Renewable Energy and Energy Efficiency Policy by the Government Plan to generate 13GW offgrid solar to meet the NDC commitments Draft Mini grid policy framework to support investments in the sector Government recently approved that end users can purchase up to 2MW of power from generating companies

10 Thank you Segun Adaju CEO, Consistent Energy Limited Lagos Nigeria