The Enugu State government has secured a $200 million investment for the development of a 100-megawatt (MW) solar power project aimed at improving electricity supply to homes and businesses across the state.
The investment, estimated at about N300 billion, was disclosed during a meeting between Governor Peter Mbah and a delegation from Eauxwell Nigeria Ltd., led by its managing director, Edwin Enwegbara, at the Government House, Enugu, on Thursday.
The investment engagement was facilitated through the state’s Climate and Development Investment Platform (CDIP), coordinated by the special adviser to the governor on climate and sustainable development, Chukwumerije Okereke.
Welcoming the team, Mr Mbah said the state’s interest went beyond attracting capital, stressing that the ultimate objective was to provide reliable and affordable electricity to residents and businesses.
“We want an electricity market that encourages competition and gives consumers the benefit of competitive pricing,” he said.
The governor said the tariff assumptions and financial model presented by the investors needed to be reviewed to ensure a balance between legitimate cost recovery by investors and affordable electricity prices for households and businesses.
“Cost recovery is important, but we must also ensure that the tariff is affordable to our people and businesses,” Mr Mbah said.
He also called for a shorter implementation period and pledged the state government’s support in removing bureaucratic and institutional bottlenecks that could delay the project.
Responding, Mr Enwegbara acknowledged the need to strike a balance between investment recovery and affordability, saying the final tariff would be determined in collaboration with relevant electricity regulators.
He said the proposed 100MW programme would deploy distributed solar generation supported by battery storage to provide more dependable electricity for communities and businesses.
According to him, the project would also support productive activities, including agricultural processing, small businesses and other enterprises that depend on reliable electricity.
Olufemi Akinyelure, head of the Nigeria Electrification Programme at the Rural Electrification Agency (REA), who joined the meeting virtually, explained the structure, objectives and implementation processes of the Distributed Access through Renewable Energy Scale-up (DARES) programme.
(NAN)