Oando, REA to build 1.2GW solar module assembly plant in Nigeria

The Rural Electrification Agency (REA) of Nigeria has entered into an agreement with Oando Clean Energy, a renewable energy developer based in Lagos, to build a solar module assembly plant with a capacity of 1.2 gigawatts (GW).

The project will be implemented under a USD 950 million (EUR 873.1 million) initiative known as Distributed Access through Renewable Energy Scale-up (DARES), which seeks to boost the local production of solar photovoltaic (PV) components. In addition to the manufacturing facility, the initiative also includes plans for electricity generation from a new solar PV park, the REA announced on Wednesday.

The initial 600-MW production line at the planned factory is anticipated to begin operations next year. Its output will cater to the local market as well as other African nations. According to the statement, the facility will be the first of its kind in Africa to include a dedicated recycling line.

REA’s agreement with Oanado Clean Energy is part of a wider deal with a total of nine companies that will help to deliver the DARES project. The solar manufacturing and power production project is financed by the World Bank and Japan International Cooperation Agency (JICA).

REA’s plans for an additional solar module assembly plant

During a signing ceremony, REA Managing Director Abubakar Abba Aliyu announced plans to finalize a joint development agreement with Infracorp and the Ministry of Finance for an additional 1 GW solar panel assembly plant, expected to be signed “in a few weeks.”

This recent announcement comes after the groundbreaking ceremony for a solar module assembly plant held in Enugu, a southeastern state, last July.

In a separate development, the REA has initiated an operations and maintenance tender for seven hybrid solar power plants, with the submission deadline set for April 28.