The Transmission Company of Nigeria (TCN) has reportedly signed a transmission network usage agreement with promoters of the 100 megawatts (mw) Nova Scotia solar plant in Jigawa State.
OGN learnt from sources who are well-informed on the project’s development that both parties sealed the agreement recently in Abuja.
Details of the grid use agreement was not provided to OGN, but pursuant to the transmission license granted to the TCN through clause 65 of the Electricity Power Sector Reform Act 2005 (EPSRA), the TCN is authorized to operate and maintain the country’s transmission grid, as well as enter into such agreement as with Nova Scotia.
While both parties by design have their respective obligations in the agreement such as payment of annual transmission charges, and maintenance of the transmission system, amongst others, cases of defaults in the agreement would however be arbitrated by the Nigerian Electricity Regulatory Commission (NERC).
In July 2016, the Nova Scotia project signed a 20-year power purchase agreement (PPA) with Nigerian Bulk Electricity Trading (NBET) Plc for the plant which is reportedly located on 200 hectares of land.
Its promoters said the project has strong fundamentals with high solar resources and direct access to the transmission grid through a simple connection route.
The project consortium includes Scatec Solar, Africa50 – an African Infrastructure Fund sponsored by the African Development Bank in more than 20 African States, as well as Norfund – the Norwegian Investment Fund for Development Countries. It said in 2016 that it will work with CDIL – a Canadian renewable energy development company focused on Africa, and BPS – a Nigerian strategic consulting, to move the project to achieve financial close in 2017 and commercial operations in 2018.
Also, the project is estimated to take up to $150 million in investable fund, and produce 200,000 megawatts hour (mwh) of electricity annually, as well as 120,000 tons of CO2 emissions avoided annually.
It will help Nigeria rapidly increase its electricity generation capacity, provide economic opportunities, fight desertification caused by climate change, and contribute to fulfilling Nigeria’s commitments to develop renewable energy as part of the Paris Climate Change Agreement.