Sterling & Wilson Renewables JV awarded $2.2 billion order by the Nigerian government: Exclusive

Sun Africa has committed to delivering 961 MWp of Solar PV generation infrastructure and 455 MWh of battery energy for which the total contract value will be around $2.2 billion.

According to Adelabu, the move will addresses Nigeria's increasing power demand, supporting economic and energy sustainability objectives.

Financing partners like ING Bank and Citi, backed by US-EXIM Bank, will actively support this venture, committing up to $10 billion over the years, the minister said.

Adelabu also said that the collaboration with Sterling & Wilson Renewable is pivotal, ensuring successful execution of the project's initial phase.

The renewable energy transformation project in Nigeria is expected to have four phases worth over $10 billion. Sterling and Wilson Renewable will be a contendor for Phase 2 of the project as well. A backup / fail-over center in Nigeria is being planned for the second phase, sources said.

Out of the total $2.2 billion order, $1.5 billion - $2 billion could come to Sterling and Wilson Renewable. Sources also add that the award could have double-digit margins and could be executed over the next 1.5-2 years after signing of the agreement.

Shares of Sterling and Wilson are locked in a 5% upper circuit at ₹314.80. The stock is up 16.5% so far in 2023.