Nigeria Bulk Electricity Trading Signs $1.76B Agreement To Purchase 1,125MW of Solar Power

Hunton & Williams advised Nigeria Bulk Electricity Trading in its $1.76 billion power purchase agreements with 14 contractors to purchase 1,125MW of solar power. The deal, announced on July 22, is the largest in Africa and potentially the largest single procurements of utility-scale PV solar in the world.

NBET will receive power from the following 14 solar projects starting in 2017: Pan Africa Solar, Nigerian Solar Capital Partners, Afrinergia Power Limited, Motir Dusable Limited, Nova Solar 5 Farm Limited, KvK Power (NIG) Pvt Limited, Anjeed Innova Kafanchan, Middle Band Solar One Limited, Quaint Abiba Power Limited, Nova Scotia Power Development Limited, eN Africa, and Oriental Renewable Solutions, making up the 1,125 MW solar power capacity. As part of the PPA, the contractors agreed on solar feed-in tariff of $0.07 (NGN $23) per kilowatt hour, which falls within the limits of 2015 Multi Year Tariff Order. Nigeria intends to generate 30 percent of its total power from renewable sources by 2030.

Hunton’s team of energy and infrastructure lawyers was led by Ryan T. Ketchum and included John J. Beardsworth Jr., Ferdinand Calice, Ellis M. Butler and Andrew Lockhart.