FG to receive $2bn from US energy firm for solar project

The federal government says Sun Africa LLC, a US-based renewable energy firm, has pledged to support President Bola Tinubu’s administration with $2.2 billion to provide vital power infrastructure for Nigeria.

This was disclosed in a statement on Sunday by Bolaji Tunji, the special adviser of strategic communication and public relations to the minister of power, in Abuja.

Tunji said the commitment was formalised during the week, after Adebayo Adelabu, minister of power, met with representatives of Sun Africa led by Goran Rajsic, the firm’s chairman.

Adelabu said as Africa’s largest economy, Nigeria faces significant demands for new power infrastructure to support economic needs and transition to a sustainable power mix.

The minister said the initial phase of the project would focus on delivering 961 megawatts peak (MWp) of solar photovoltaics (PV) infrastructure and 455MWh of battery energy storage, valued at approximately $2.2 billion dollars.

“Sun Africa, with its partners, is set to implement this transformative project in the coming months,” he said.

“The commitment from all parties involved, ensures a close collaboration to execute this vital renewable power infrastructure, addressing the nation’s requirements.”

On his part, Rajsic thanked the partners for their support in designing the cutting-edge project, featuring leading solar PV and battery storage technologies, financed with affordable, long-term debt under the Organisation for Economic Co-operation and Development (OECD) guidelines.

The OECD guidelines are for multinational enterprises on responsible business conduct.

The recommendations jointly addressed by governments of multinational enterprises to enhance the business contribution to sustainable development and address adverse impacts associated with business activities on people.

Rajsic said Sun Africa’s financing partners, ING Bank and Citi, had also emphasised their commitments up to US$10 billion in financing projects in the coming years.

“This support extends to both the initial phase and future developments,” he said.

“Additionally, Sun Africa is collaborating with Sterling & Wilson Renewable Energy Limited, its Engineering, Procurement and Construction (EPC) partner, by playing a pivotal role in providing services for the initial project phase.

“The joint efforts signify a remarkable milestone in advancing sustainable and reliable energy solutions for Nigerians, aligning with the commitment to driving positive change through innovative renewable energy solutions.”