Enugu gets $200 million for solar energy project

The Enugu State Government has secured a $200 million investment for a 100MW solar power project. This is a significant step in boosting electricity supply and attracting clean energy investments in the state.

The investment, which is about N300 billion, was announced during a meeting between Governor Peter Mbah and Mr Edwin Enwegbara, Managing Director of Eauxwell Nigeria Limited. The meeting took place at the Government House in Enugu.

This investment came through the state’s Climate and Development Investment Platform (CDIP). Professor Chukwumerije Okereke, Special Adviser to the Governor on Climate and Sustainable Development, coordinated the platform. This is the first major investment breakthrough from the platform set up by the Mbah Administration to connect investors with government institutions and communities.

Governor Mbah welcomed the investment but emphasized that the government wants more than just capital. He said the main goal is to provide reliable and affordable electricity for homes and businesses in Enugu.

Mbah stated, “We want an electricity market that encourages competition and gives consumers the benefit of competitive pricing.” He also mentioned that the financial model and tariff assumptions presented by the investors need to be looked at again. He stressed the need to balance cost recovery for investors with 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,” Mbah added. He called for a quicker project implementation and promised that the state government would help remove any bureaucratic obstacles that could slow down the process.

Mr Enwegbara agreed on the need for balance and said that the final tariff would be set in collaboration with the relevant electricity regulators. He explained that the 100MW solar project would use distributed solar generation along with battery storage. This approach aims to provide steady electricity for communities and businesses while supporting activities like agricultural processing and small businesses that rely on dependable power.

Governor Mbah’s push for this investment comes as Enugu continues to reform its electricity sector. The state has taken up regulatory control of its internal electricity market. The administration aims to create a competitive electricity market that can attract more private investments.

Olufemi Akinyelure, Head of the Nigeria Electrification Programme at the Rural Electrification Agency, joined the meeting online. He shared details about the structure, goals, and implementation of the DARES programme.

The meeting included several key figures, such as Prof. Chidiebere Onyia, the Secretary to the State Government and chair of the CDIP Steering Committee. Other attendees were Osinachi Nnajieze, the State Attorney General; Prof Sam Ugwu, Commissioner for Environment and Climate Change; Dr Sam Ogbu-Nwobodo, Commissioner for Trade and Investment; and Chimaobi Okorie, Commissioner for Lands. Also present were Special Advisers to the Governor on Project Delivery and Power, Ozurumba Afigbo and Joe Aneke, and Mr Chijioke Okonkwo, Chairman of the Enugu State Electricity Regulatory Commission.

The Eauxwell team included Mr Kingsley Okenyi, Director of Business Development; Mr Lazarus Agu, Head of Project Management; and Project Engineer Victoria John. The meeting also discussed the separate Aninri electrification project.

After the discussion, Mbah requested a quick meeting with the community's President-General and traditional ruler. This is to address land issues and kick off the project.