Recently, Nigeria announced a major energy infrastructure project, jointly funded by the Rural Electrification Agency (REA) of Nigeria and the World Bank, with a total investment of $750 million. One of the key components of this project is the construction of a 1.2GW solar module factory in Nigeria to accelerate the green transition of the country’s energy mix.
According to a statement released by the REA, the agency has signed a Memorandum of Understanding (MOU) with Oando Clean Energy, a local Nigerian company, to jointly invest in and construct the solar module factory. The factory is expected to commence production with the first 600MW production line next year, gradually expanding to a total capacity of 1.2GW. Abubakar Abba Aliyu, the Managing Director of REA, stated at a press conference held in Abuja, the capital of Nigeria, that this initiative is a significant step towards localizing the production of solar materials.
In addition to the construction of the solar module factory, the project will also cover the development of off-grid power stations, grid-connected power systems, and interconnected grids. Aliyu noted that these comprehensive measures will help enhance Nigeria’s energy supply capacity, particularly in remote rural areas. He revealed that the REA is also expected to sign another joint development agreement with Infracorp and the Nigerian Ministry of Finance to construct another 1GW solar module factory.
Ademola Ogunbanjo, the Chief Executive Officer of Oando Clean Energy, emphasized at the press conference that the 1.2GW manufacturing factory will not only have component production capabilities but will also establish a component recycling line. This innovative initiative aims to achieve resource recycling, reduce waste, and promote the development of local manufacturing in Nigeria. Ogunbanjo stated, “We are building a solar module assembly factory in Nigeria that can not only produce solar modules but also recycle those that are no longer functional due to aging or malfunction, converting them into raw materials for other uses.”
It is worth noting that this plan is supported by the Distributed Renewable Energy Expansion (DARES) program, a collaborative funding project between the World Bank and the Nigerian government aimed at promoting the adoption of solar photovoltaic systems and assisting Nigeria in achieving its decarbonization goals. In a recent report released by the Global Solar Council (GSC), it was pointed out that despite Africa’s abundant solar resources, solar photovoltaic only meets 3% of its electricity demand. Investment and financing barriers are among the main factors constraining the development of the solar photovoltaic industry in Africa.
With the completion and commissioning of the 1.2GW solar module factory in Nigeria, the country will take a solid step forward on its path to energy transition.
