The team lead for SUNREF Nigeria, Javier Betancourt, explained that the renewable sector has so far remained forgotten by financiers but becoming a more important subject matter, saying that this is why banks are becoming more involved in the sector.
A recent report into fossil fuel extraction pointed out the industry plans to sink $230 billion into developing new gas and oil projects in Africa across the next decade. And, that figure ramps up to $1,4trillion by 2050.
Three major and interconnected challenges exist for IPP projects, namely the fragile T&D infrastructure, the ambitious yet incomplete energy reforms, and securing access to long-term international project financing.
The Nigerian electricity sector through its Nigerian Energy Support Programme (NESP) will receive a $65 million investment from the European Union in collaboration with Germany’s Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).