On Monday, London-based energy solutions company, Genesis Energy, signed a Power Purchase Agreement (PPA) with the government of Benin for the development of a 360MW gas-fired plant in the Republic of Benin, West Africa.
The total project cost, which is estimated at $190 million, will be incurred by the project investors and not by the government of Benin.
However, government will procure the generated power through the PPA, which is expected to be enough power to meet 30% of Benin’s current electricity demand.
The first phase of the project will commission 120MW, which will be fast-tracked through the support of the PPA, without receiving any financial contributions from the government, the power company said in a statement.
The African-focused company added: “This agreement is very important for the government since it is in line with the National Energy Emergency Programme of the Ministry of Energy, which has engaged in the research of sources of renewable energies and promised the people of Benin to endeavour to provide all the communities and villages with efficient and sustainable power and make up for power deficit and load shedding.”
The power company’s long-term partners including General Electric, Cummins Co-Gen UK, and Engro Corporation are supporting Genesis’ investment.
Implementing clean power policy
Earlier this year, the government of Benin, under the supervision of the Ministre de l’Energie, des Recherches Pètrolièrs et Minières et du Dèveloppment des Energies Renouvelables (MERPMDER), implemented the country’s National Energy Emergency Programme, which aims to attract large investment for the deployment of clean power plants across selected locations in the region.
According to Genesis, the government has signed concession agreements with various power firms for natural gas, hydro and solar.
In addition, the gas-fired project will generate jobs across the value chain, and according to the power company will “improve internally generated revenues to the coffers of the government by way of taxation applied to increased economic activities in the country.”
The procured power will be fed directly into the national grid under the administration of the Société Beninoise d’Energie Electrique (SBEE) for distribution to all segments of the country, including households, industries, commercial enterprises and all other classified customers of the SBEE.
CEO of Genesis, Akinwole Omoboriowo II, said: “We are very excited by the positive closure to the project development activities started over a year ago as evidenced by the execution of the raft of investment grade agreements with the government of Republic of Benin and it’s respective agencies, and we are now in full projects implementation and construction mode in ensuring the benefits of clean electric power of 120MW first phase of our investment is achieved within the shortest time possible.”