Infrastructure | Access Energy Developing a $200-Million Solar Plant in Nigeria

Lagos, Nigeria, Capital Markets in  Africa — Access Energy Group, a Dubai-based renewable energy company, is developing a 100-megawatt solar project in northern Nigeria.

The plant will be in the Kaduna state, north of the capital of Abuja. It is expected to cost around $200 million and be built in two phases of 50 megawatts, Reda El Chaar, the company’s managing director, said in an interview in London.

The project is fully licensed and Access Energy expects to sign a power purchase agreement with Nigerian utility Nigerian Bulk Electricity Trading Plc soon and begin construction six months later. It is working with Abuja-based Quaint Global Energy Solutions, which was selected through the Access Co-Development Facility.

The $5-million facility seeks to assist African energy companies with technical and financial issues. This year it will be extended to $7 million and plans to select three projects with the goal of developing a combined 200 to 300 megawatts of clean power.

“There is a lot of money available to build clean energy in Africa but not enough bankable projects,” he said.

The solar plant in Nigeria will be financed with a combination of debt from development institutions and equity provided by Access, with the developer expecting a 75-to-25 ratio. It is working with Dutch development bank FMO, France’s Proparco and the African Development Bank on the co-development facility.