Cameroon Authorities Provide Tax-Exempt Status for the Maroua and Guider Solar Power Plants

  • The Cameroonian government is applying the laws signed in 2013with the aim of increasing private investments in the country.
  • The tow power plants when completed will provide a cumulative 25MWp to the Cameroonian grid.

To boost private investment in renewable energy in Cameroon, the country has decided that the Maroua Guider Solar Company (MGSC) will be tax-exempt for 10 years. This is per a 2013 law (revised in 2017). The Maroua and Guider solar project is cited in the northern part of the country. It is being implemented Norwegian Independent Power Producer (IPP) Scatec, the Israeli-American Izuba Energy and Sphinx Energy. When completed, the solar power plants of Maroua and Guider will generate 15 and 10 MWp, respectively.

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The electricity generated by the Maroua and Guider solar power plants will be sold under a Power Purchase Agreement (PPA) signed between the project developer, MGSC and the electricity utility Energy of Cameroon S.A. (Eneo). The projects are expected to cost a total of 14 billion CFA francs (about €21.3 million).

The expectation is that the connection of the two plants to the grid will reduce load shedding frquency in the north of the country. The Maroua and Guider solar power plants will also help diversify the country’s electricity mix. Cameroon’s installed capacity of 1.6 GW largely consist pf hydroelectric thermal power plants that have often not been maintained properly. Renewable solar energy could help provide the country with a sustainable energy and increase energy access.

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