Access Quaint Solar Nigeria Ltd, a subsidiary of Access Power has secured a convertible loan agreement worth $1.25 million for the development of the Abiba solar project in Kaduna State.
The project will include a ground-mounted 50MWp solar photovoltaic (PV) plant on a 150 ha site at Manchok in in the State, which is expected to supply the much-needed clean power to the country’s national grid.
The loan provider, InfraCo Africa, has issued a counter-guarantee for a 40 percent share of the PPA development security to the value of $400,000.
Executive director, InfraCo Africa, Alex Katon, commented: “Developing strong replicable relationships with organisations like Access Power enables us to multiply our impact and, by sharing risk, accelerate private sector development of infrastructure.”
“Abiba Solar demonstrates our commitment to developing infrastructure in fragile and conflict-affected locations,” Katon continued.
The clean energy developer added that through this partnership they are exploring potential opportunities to connect nearby off-grid communities using local mini-grids.
Executive chairman of Access Power, Reda El Chaar, said: “We see this project as a gateway to the widespread adoption of renewable energy in Africa’s largest economy, whilst cementing the role of ACF as an innovative platform designed to turn good concepts into bankable projects.”
Access Co-Development Facility (ACF), is an innovative financial and technical support mechanism designed to provide local project developers and originators with the technical experience, expertise and funding required to bring their renewable energy projects to life.
The federal government has deregulated the energy sector to attract private investment and has highlighted the importance of renewables in the country’s future energy mix through their Renewable Energy Master Plan (2006).
It is anticipated that the solar project will reach financial close later this year and commence construction in 2018.
On completion, Abiba Solar will generate 82,500-megawatt hours of clean electricity, enough to satisfy the daytime requirement of over 200,000 Nigerian households, the company said.