The Federal Government has signed a Put/Call Option Agreement with two local companies, Afrinergia and CT Cosmos Solar Power Developers for the production of 50MW and 70MW Solar Power to the National Grid.
The Put/Call Option Agreement (POCA) is an agreement where the Federal Government stands in gap for both the investors and Nigerians to pay for power even if consumers don’t pay.
As a result, investors are guaranteed safety of their investment, and Nigerians are guaranteed of stable electricity.
Speaking at the ceremony held at the Ministry’s Headquarter in Abuja, on Tuesday, Minister of Power Works & Housing, Babatunde Fashola, commended the initiative, pointing out that this is in tandem with the present administration’s Economic Recovery and Growth Plan (ERGP) of which power is among.
He further stated that the solar power initiative fits very well with the Ministry’s drive towards achieving incremental, stable and uninterrupted power supply.
“We are committed to getting incremental power wherever it is available”, he added. The Minister also disclosed that the initiative fits well with the Ministry’s energy mix of which 30% would be renewable energy, by the year 2030.
Fashola to this end,called on more investors to come into the sector, adding that government is committed to stimulating the private sector development of renewable energy through right policies and institutional frameworks.
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