FG signs PCOAs with 2 large scale solar power firms

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The federal government yesterday signed two put and call option agreements (PCOAs) with two of the 14 large scale solar power firms that have indicated interests to build and generate up to 1125 megawatts (MW) of solar power for Nigeria’s national grid, ThisDay reports.

The government had through the Nigerian Bulk Electricity Trading Plc (NBET), signed power purchase agreements (PPAs) with the 14 solar independent power plants (IPPs) in July 2016. It was however supposed to sign the PCOAs with the firms a month after the initialing of the PPAs but could not because of long periods of negotiations on the Partial Risk Guarantees (PRG) for the projects with the World Bank and African Development Bank (AfDB).

The PCOAs serve as indemnity for the project promoters to go ahead with their constructions and ultimately bring their power to the grid. The NBET at a ceremony in Abuja, however signed the first two PCOAs with Afrinergia which would be constructing a 50MW solar farm in Nasarawa State and CT Cosmos which has a 70MW solar power project in Plateau State.