PHOTO: Nigeria Electricity
The Federal Government has signed Power Purchase Agreement (PPA) with Mabon Nigeria Limited, which is currently executing 40 megawatts hydro-power project.
The government, represented by the Managing Director of the Nigeria Bulk Electricity Trading Plc (NBET), Dr. Marilyn Amobi, said the agreement would enable the government buy electricity from the investor and sell to the distribution companies (DisCos).
Amobi said though the government is not making initial payment now, such payment would be made based on metered capacity when the investor starts selling electricity on completion of the project.
She said: “We have been on this for a couple of months. It is a hydro-power project based in Dadinkowa, Gombe State and they have electricity they want to inject into the grid.
“What we are signing is just a binding document for us to engage with them and buy their electricity which we will then sell to the distribution companies and other general service companies which buy electricity from NBET.
FG, firm sign power purchase agreement on 40mw
