(Ecofin Agency) - Germany-based solar developer, Soventix, and Gentec EPC, a pioneer in the Nigerian energy industry, have together formed a joint venture to develop solar projects across Nigeria.

Called Soventix Hybrid Limited, the first phase of the joint venture will focus on industrial rooftop solar applications that will synchronize with existing generators or grid power systems. This will allow industries have additional sources of power generation at a lower price and at the same time reduce emissions significantly. The Phase 2 would also aim to develop national solar parks.

“Given the significant shortfall of reliable power across Nigeria, at a residential, industrial and national grid level, solar energy is well positioned to play a major role in Nigeria’s energy mix. The beauty of solar energy is that the tariffs are fixed over a 20-year period, given there is no fuel input and hence, industries can effectively plan their long-term energy costs. Moreover, solar energy is already more competitive against fossil fuels with regard to pricing per kWh,” the companies said in a statement.

According to the statement, with the rising competitiveness of solar energy over fossil fuels, analysts see Nigeria as one of the key solar growth markets across Africa. Although Nigeria has 12.5 GW of installed generation capacity, only about 4, 000MW is available. USAID has estimated that 95 million Nigerians (approximately 55% of the population), do not have access to electricity.

Anita Fatunji