REG - Savannah Energy Plc - MoA Signed for Development of New Solar Projects

Savannah EnergyAnnouncement

11/05/2023 07:15

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RNS Number : 0851Z  Savannah Energy Plc  11 May 2023

11 May 2023

Savannah Energy PLC

("Savannah" or "the Company")

Memorandum of Agreement signed with the Government of Niger

 for the development of up to 200 MW of New Solar Projects

 

Savannah Energy PLC, the British independent energy company focused around the
delivery of Projects that Matter is pleased to announce the signing of a
Memorandum of Agreement ("MOA") by Savannah Energy Niger Solar Limited, a
wholly owned subsidiary of Savannah, with the Government of the Republic of
Niger (the "Government") for the development of two solar photovoltaic power
plants with a combined installed power generation capacity of up to 200
megawatts ("MW")(the "Solar Projects"). A signature ceremony was held
yesterday in Niamey attended by His Excellency Ibrahim Yacoubou, Minister of
State for Energy and Renewable Energies, Her Excellency Catherine Inglehearn,
British Ambassador to the Republic of Niger, and Yacine Wafy, Savannah's Vice
President West Africa.

The two proposed solar plants are expected to be located within 20 km of the
cities of Maradi and Zinder, respectively, in southern Niger. Each plant is
expected to have an installed capacity of between 50 and 100 MW, for a total
potential installed capacity of up to 200 MW. The Solar Projects are expected
to: generate reliable, affordable energy for Niger; increase overall grid
connected power generation in the country by over 20%; and avoid an estimated
up to 260,000 tonnes of annual CO(2) emissions 1 . The Solar Projects are
expected to be connected to the South Central section of Niger's electricity
grid, which is forecast to be interconnected to the Western electricity grid
zone (which serves Niamey) by 2026, as part of a World Bank funded project.
Following the anticipated completion of the required project feasibility
studies over the course of the next 12 months, the Solar Projects are expected
to receive project sanction in 2024, with first power targeted in the 2025 to
2026 window.

Savannah expects to fund the Solar Projects from a combination of its own
internally generated cashflows and project specific debt.

 

His Excellency Ibrahim Yacoubou, Minister of State for Energy and Renewable
Energies for the Republic of Niger, said:

"I am delighted to participate in today's signature ceremony for a Memorandum
of Agreement with Savannah Energy for the construction and operation of two
new solar power plants, up to 200 MW in scale, to be located in the Maradi and
Zinder regions of Niger. These projects are an example of the Republic of
Niger's strategy to increase electricity access for our people at an
affordable cost through an expanding energy mix, as we have outlined in our
National Strategy of Energy Access ("SNAE") and our National Policy Document
on Electricity ("DPNE").

These projects come in addition to the up to 250 MW Parc Eolien de la Tarka,
the wind farm project signed with Savannah last year, which has strong
momentum and is expected to start construction in 2024. In aggregate, the wind
and solar projects Savannah is developing in partnership with the Government
of Niger have the potential to increase the on-grid power supply in country
substantially. These projects are crucial for Niger's economy, potentially
improving the lives of millions of Nigeriens by providing them with life
changing benefits from energy access.

I would like to warmly welcome the support of the British Ambassador to Niger
for these projects. Today we have witnessed her personal commitment to
mobilising British companies to come and invest in Niger; with the UK's wider
commitment to Niger evidenced by the investment round table that His
Excellency President Bazoum spearheaded recently in London.

Lastly, I would like to wish every success for these projects. May God help us
achieve the goals we have set ourselves, and both personally and on behalf of
the Government of Niger, Savannah can count on our wholehearted support for
the development of the Tarka wind farm and the Maradi and Zinder solar power
plants, to ensure they can be brought to fruition."

 

Her Excellency Catherine Inglehearn, British Ambassador to the Republic of
Niger, said:

"I am pleased that Savannah, as a British company, continues to make
significant investments in Niger's energy industry. Foreign investment such as
this is crucial for Niger's continued social and economic development and we
welcome Savannah's support. Following the investor roundtable with President
Bazoum in London on 5 May 2023, this is evidence of the United Kingdom's
strong continued commitment to Niger."

 

Andrew Knott, CEO Savannah Energy said:

"I am delighted that we are announcing the signing of our Niger Solar Projects
MOA. These are exactly the sort of high developmental impact projects our
renewable energy division is seeking to deliver, with the potential to
increase on-grid electricity supply in country by over 20%. We look forward to
working with the Government of Niger as we seek to advance these projects
through their development and construction phases towards first power in the
2025 to 2026 window.

I would like to thank His Excellency Ibrahim Yacoubou, Minister of State for
Energy and Renewable Energies, the wider Nigerien Government and the British
Embassy in Niger for their support for these projects. We look forward to
working with Niger and our developmental finance partners over the course of
the coming years as we move the projects through the feasibility and
construction phases towards our planned first power dates in the 2025 to 2026
window.

As a company, Savannah has successfully created a large portfolio of high
quality greenfield renewable energy development projects in the hydro, solar
and wind sectors over the course of the past 18 months. We will continue to
work towards achieving our target of having up to 1GW+ of renewable energy
projects in motion by end 2023 and expect to update on further progress
towards achieving this goal over the course of the coming months."

 

 

For further information, please refer to the Company's website
www.savannah-energy.com or contact:

Savannah Energy
          +44 (0) 20 3817 9844

Andrew Knott, CEO

Nick Beattie, CFO

Sally Marshak, Head of IR & Communications

 

Strand Hanson (Nominated Adviser)           +44 (0) 20 7409 3494

James Spinney

Ritchie Balmer

Rob Patrick

 

finnCap Ltd (Joint Broker)                             +44 (0)
20 7220 0500

Christopher Raggett

Tim Redfern

 

Panmure Gordon (UK) Ltd (Joint Broker)     +44 (0) 20 7886 2500

John Prior

Hugo Rich

James Sinclair-Ford

 

Camarco
            +44 (0) 20 3757 4983

Billy Clegg

Owen Roberts

Violet Wilson

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

About Savannah Energy:

Savannah Energy PLC is an AIM quoted British independent energy company
focused around the delivery of Projects that Matter, active in Cameroon, Niger
and Nigeria.

Further information on Savannah Energy PLC can be found on the Company's
website: www.savannah-energy.com.

 1  Calculation based on European Investment Bank (EIB) Project Carbon
Footprint Methodologies, Methodologies for the Assessment of Project GHG
Emissions and Emission Variations, July 2020.

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