Nigerians living in rural communities can now enjoy regular electricity in their homes as the Bank of Industry (BoI) in partnership with the United Nations Development Programme (UNDP) commits $4.8 million to an affordable off-grid solar system for six rural communities.
The off-grid solar is operated on the Pay As You Go (PAYG) basis and is expected to cover an average of 200 homes in six pilot states: Anambra, Delta, Gombe, Kaduna, Niger and Osun states.
BoI and UNDP introduced this system to lighten rural communities, reduce rural-urban drift characterising the country, while also ensuring inclusive development in all parts of the country. BoI issued cheques worth N75.8 million to GVE Projects Limited and Arnergy Solar Limited, two firms that will execute the pilot phase of the renewable energy projects.
“This is part of our Renewable Partnership with the United Nations Development Programme,” said Rasheed Olaoluwa, MD/CEO, BoI, during the launch weekend, in Lagos.
“Each home will have sufficient solar energy to power three LED light bulbs, one electric fan, one radio/TV set and will be able to charge phones,” Olaoluwa, who issued the cheques worth N31.6 million for stand-alone project and N44.2 million for micro-grid to the two companies, said.
He said the bank is initiating a commercially viable model for delivering power to Nigerian rural homes at affordable rates, with a view to providing a long-term alternative to the problematic national grid.
The development bank’s MD further said the two firms were selected out of the eight companies that responded to the bank’s RFP in 2014, adding that the bank chose them on the basis of their experience and credibility.
“The GENCOs and DISCOs need not worry about this initiative. There is enough pent-up demand for energy in our cities and major towns to keep them very busy over the next decade,” he said.
He said the bank wants rural communities to take control of their energy generation and to pay only for the energy they use, stressing that ‘our medium-term vision is to have 100,000 homes installed with solar systems in the next five years, through a combination of micro-grid and stand-alone solar home systems.”
Olaoluwa said this is essentially aimed at poverty alleviation and rural development, adding that this is targeted at replicating what happens in the USA, India and Kenya in the country.
The event attracted representatives from Niger, Kaduna, Gombe and other stakeholders in the power sector in the country.
ODINAKA ANUDU
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