Minister of Power, Works and Housing, Mr. Babatunde Fashola has issued a statement on the decisions by Federal Government in addressing the challenges facing the power sector in Nigeria.
The Minister who chaired a meeting with the solar power promoters convened in pursuit of the plan for incremental, steady and ultimately uninterrupted power, was held at the auditorium of the former Power Holding Company of Nigeria, PHCN corporate headquarters on May 12.
Yesterday, a statement signed by the Special Adviser on Communication to the Minister, Mr. Hakeem Bello, contained a final communiqué presented by the Minister at the end of the meeting.
The communiqué stated that, “The participants agreed that the meeting is timely. Addition of all sixteen (16) projects with a total of 1,300 MW would be highly beneficial for the country’s energy mix, but the projects have been unable to progress because of lack of bankable Power Purchase Agreements, PPA.
“Government is mindful of the burden of the premium price of solar power while the sponsors recognised the difficultly of NBET contracting for solar power at their proposed premium tariff and the potential tariff impact and/or subsidy requirement.
“Solar sponsors have expressed concern and frustration that bankable PPAs have not been signed after so many years of negotiations with NBET. Thus the meeting was called to agree on the way forward,” it read.
On the way forward, Promoters agreed to meet over the next few days to refine and update the pricing as well as make specific suggestion on incentives such as duty waivers, VAT exemption and access to concessional credit facilities to help bring down the price.
Also, some of the promoters agreed to take on an obligation to find off-takers of the premium power they will sell to NBET under the PPA. The meeting agreed that those promoters willing to proceed on this way should progress their PPA with NBET. The Ministry and NBET will provide assistance to those promoters to engage with DisCos, State Governments and bulk off-takers of the premium solar power.
Over the next few weeks, the Ministry, Nigerian Electricity Regulatory Commission, NERC, Transmission Company of Nigeria, TCN, and NBET will define the process and magnitude of capacity to be procured under competitive procurement for solar power. NERC will commit to incorporating the competitively procured solar power into the tariff so that NBET is not exposed to any subsidy requirement.
In attendance were officials from the Federal Ministry of Power, Works and Housing, representatives of Ministry of Federal Capital Territory, State Governments, Nigerian Bulk Electricity Trading Company, NBET, Distribution Companies and prospective solar power promoters/sponsors and investors.

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