1.2GW! Construction of Solar Module Factory Begins in Nigeria

PVTIME – Nigeria has taken a significant step towards a greener energy future with the launch of a 1.2GW solar panel factory project. This massive undertaking, funded by the Nigerian Rural Electrification Agency (REA) in partnership with the World Bank with a total investment of $750 million, is set to revolutionise the country’s energy landscape and the REA has signed a Memorandum of Understanding (MoU) with local company Oando Clean Energy.

The plant’s first 600MW production line is expected to be commissioned next year, with the ultimate goal of reaching full capacity of 1.2GW. Speaking at a press event in Abuja, REA’s Managing Director, Abubakar Abba Aliyu, stressed that this was a major step towards localising the production of solar materials. This project isn’t just about the solar module factory, but also includes the construction of off-grid power plants, mesh power systems and an interconnected grid. These additional facilities are critical to improving energy access, especially in rural and remote areas of Nigeria.

Aliyu also revealed that there are plans to sign another joint development agreement with Infracorp and the Nigerian Ministry of Finance for a separate 1GW solar module factory.

Ademola Ogunbanjo, CEO of Oando Clean Energy, highlighted an innovative aspect of the 1.2GW factory. It will not only produce solar modules, but will also include a recycling line. This environmentally friendly initiative not only reduces waste, but also contributes to the circular economy by recycling old or defective modules into useful raw materials. The project, supported by the Distributed Renewable Energy Expansion Scheme (DARES), is in line with Nigeria’s decarbonisation ambitions. Given Africa’s vast solar potential, yet minimal solar power utilisation (only 3% according to the Global Solar Council), this project in Nigeria could be a game changer for solar energy development on the continent.

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