• Friday, September 29, 2023
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All On, GEAPP sign $11m investment to support 25 mini-grid projects in Nigeria

All On, GEAPP sign $11m investment to support 25 mini-grid projects in Nigeria

All On through its Demand Aggregation for Renewable Technology (DART) programme, in partnership with the Global Energy Alliance for People and Planet (GEAPP), has committed $11 million to support 25 mini-grid projects in Nigeria.

This was made known at an inaugural DART workshop with off-grid developers, commercial banks, domestic investors, and other critical stakeholders to discuss strategies to unlock local currency commercial funding for the off-grid renewable energy sector in Nigeria.

During her remarks, Caroline Eboumbou, CEO of All On, highlighted the remarkable success achieved through the DART programme since its launch in 2021.

“The programme has committed a total of $11 million to support 25 mini-grid projects across the country, over 2,700 solar energy systems to be funded, and 12 successful applications thus far,” Eboumbou said.

According to a statement by All On, efforts have been made to increase the funding of the facility by $15 million, in collaboration with its partner, GEAPP.

These efforts aim to address the local financing bottlenecks experienced by developers and ensure that affordable, high-quality solar products reach the communities most in need in Nigeria, it said.

“While celebrating these achievements, we also acknowledge that challenges have arisen along the way. In collaboration with our partners at GEAPP, we are actively working to address these challenges,” Eboumbou said.

Read also: Technology transfer and capacity building for renewable energy deployment in Nigeria

“We have made significant progress in simplifying the application process and reducing the timelines from application to disbursement. Additionally, we have expanded the eligibility scope to include Solar Energy Systems, Standalone Systems for Productive Use (SSPU), and Commercial and Industrial (C&I) developers.”

In November 2021, All On, in partnership with GEAPP set up the DART programme, a $10 million financing facility designed to accelerate the growth of the renewable energy sector in Nigeria and beyond.

“It achieved this through a combination of demand pooling, aggregated purchasing of solar equipment, access to affordable finance, and streamlined logistics processes,” the statement said.

“By leveraging economies of scale, the DART programme aims to reduce costs for solar companies and end users while promoting the adoption of renewable energy.”

Eboumbou added that the DART programme allows small-scale developers to benefit from group purchasing, resulting in lower unit costs for solar equipment.

“Secondly, it addresses the issue of foreign exchange availability, alleviating the FX bottlenecks experienced by developers,” she said.

“Moreover, the programme offers additional benefits such as a streamlined procurement process, expedited deployment of off-grid assets, access to affordable financing for developers, and the potential for result-based subsidies and other commercial financing options.”