The Enugu State Government has secured a $200 million investment, estimated at about N300 billion, for a 100-megawatt (MW) solar power programme aimed at improving electricity supply and supporting economic activities across the state.
The investment was disclosed during a meeting between Governor Peter Mbah and a delegation from Eauxwell Nigeria Limited, led by its Managing Director, Edwin Enwegbara, at Government House, Enugu.
The project is expected to deploy distributed solar power generation backed by battery storage to provide more reliable electricity for homes, businesses, agricultural processing facilities and other productive enterprises.
However, Mbah has called for a review of the proposed tariff structure and a reduction in the implementation timeline to ensure that the investment delivers affordable electricity to residents and businesses.
The investment was facilitated through the state’s Climate and Development Investment Platform (CDIP), coordinated by the Special Adviser to the Governor on Climate and Sustainable Development, Prof. Chukwumerije Okereke.
The platform was established by the Mbah administration to connect investors with government institutions, regulatory agencies and host communities to accelerate investment in climate-related and sustainable development projects.
Welcoming the investment, the governor said the state’s objective extended beyond attracting private capital, stressing that the ultimate priority was to ensure that residents and businesses enjoyed reliable electricity at affordable rates.
“We want an electricity market that encourages competition and gives consumers the benefit of competitive pricing,” he said.
Mbah noted that the tariff assumptions and financial model presented by the investors required further examination to strike a balance between investors’ need to recover costs and consumers’ ability to pay for electricity.
“Cost recovery is important, but we must also ensure that the tariff is affordable to our people and businesses,” the governor said.
He also urged the investors to shorten the project’s implementation timeline, assuring them that the state government would work to eliminate bureaucratic and institutional obstacles that could impede delivery.
In his response, Enwegbara acknowledged the importance of balancing investment sustainability with affordability, adding that the final tariff would be determined in consultation with the relevant electricity regulatory authorities.
He explained that the proposed 100MW programme would utilise distributed solar generation supported by battery storage to ensure a more dependable electricity supply for communities and businesses.
According to him, the project would also support economic activities, particularly agricultural processing, small businesses and other enterprises that require a consistent power supply to operate efficiently.
The proposed investment comes amid ongoing electricity-sector reforms in Enugu State, where the government has assumed regulatory oversight of its intrastate electricity market as part of efforts to establish a competitive environment capable of attracting more private investment.
Also participating in the meeting virtually, the Head of the Nigeria Electrification Programme at the Rural Electrification Agency, Olufemi Akinyelure, explained the structure, objectives and implementation processes of the Distributed Access through Renewable Energy Scale-up (DARES) programme.
Those present at the meeting included the Secretary to the State Government and Chairman of the CDIP Steering Committee, Prof. Chidiebere Onyia; the Attorney-General and Commissioner for Justice, Barr. Osinachi Nnajieze; and the Commissioners for Environment and Climate Change, Prof. Sam Ugwu; Trade and Investment, Dr. Sam Ogbu-Nwobodo; and Lands, Barr. Chimaobi Okorie.
Others were the Special Advisers to the Governor on Project Delivery and Power, Ozurumba Afigbo and Joe Aneke, respectively, and the Chairman of the Enugu State Electricity Regulatory Commission, Chijioke Okonkwo.
Members of the Eauxwell delegation included the Director of Business Development, Kingsley Okenyi; Head of Project Management, Lazarus Agu; and Project Engineer, Victoria John.
The meeting also considered issues surrounding a separate electrification project in Aninri Local Government Area.
Following deliberations, Mbah requested an urgent meeting with the community’s President-General and traditional ruler to address outstanding land-related issues and facilitate the commencement of the project.
