Why $2.5 Billion Solar Power Projects are Stalled

THISDAY has exclusively obtained documents at the weekend, which provide details on why progress has been quite slow on the consummation of outstanding deals and construction of 14 new solar power plants that could generate 1,125 megawatts (MW) of power to the grid.

The facts in the documents are, however, at variance with recent claims by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, that the IPPs had made demands the federal government could not meet, hence their construction delays.

Fourteen solar independent power producers (IPPs) signed power purchase agreements (PPAs) with the Nigerian Bulk Electricity Trading Plc (NBET) in July 2016 for the construction of power projects in mostly northern states at a total cost of $2.5 billion.

THISDAY learnt that further developments on them have, however, stalled for reasons relating to opaque procurement of their PPAs, as well as the expensive tariffs approved therein.

THISDAY, February 11, 2018

 

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