Heirs Energies proposes innovative financing for renewable energy

Samuel Nwanze, executive director and chief financial officer of Heirs Energies, has suggested the adoption of innovative financing mechanisms, including green bonds and blended finance, to accelerate the development of solar and other renewable energy projects in Nigeria.

According to him, tailored financial solutions would be required to address project-specific risks and attract investments.

Nwanze suggested these during a fire chat session, “Investing in Tomorrow: Navigating the $360 Billion Energy Transition,” at the Nigeria Energy Leadership Summit in Lagos.

He underscored the critical role of financial institutions in closing the funding gap for Nigeria’s Energy Transition Plan (ETP).

He explained that there was no one-size-fits-all financing solution for renewable energy projects.

“At Heirs Energies, we engage with investors to assess project risks and structure financing to mitigate these risks while attracting capital. Nigeria was the first African country to issue a green bond, and this highlights our potential to leverage innovative financing mechanisms for sustainable development,” he said.

Nwanze stressed the need for an integrated approach within the renewable energy value chain, calling for better collaboration between key agencies such as the Nigerian Content Development and Monitoring Board (NCDMB), the Rural Electrification Agency (REA), and the Nigerian Renewable Energy and Energy Efficiency Association (NREEA).

“Quality needs to be ensured cohesively across the sector. We must align all players within the value chain to achieve targeted results,” he said.

According to him, an effective implementation and monitoring framework is critical to the process, noting that without it, most government policies won’t deliver the desired impact.

He also highlighted the importance of local content in renewable energy development.

“The NCDMB has made tremendous achievements in oil and gas, and these can be replicated in the renewable sector.

“Through capacity building, local manufacturing, and research & development, the board’s expertise and the Nigeria Local Content Act can be instrumental in developing a sustainable renewable energy sector,” he said.

Nwanze outlined several key areas requiring investment to achieve Nigeria’s energy transition goals, including large-scale renewable energy projects, off-grid and mini-grid solutions for rural areas, and decarbonizing the power sector.

He noted that meeting clean cooking needs alone would require $7.5 billion by 2030.

“The ETP focuses on power, transportation, industrial decarbonization, and clean cooking solutions. Decarbonizing the power sector alone will need about $135 billion by 2060 to expand renewable energy capacity, improve grid infrastructure, and scale off-grid solutions.

There are significant opportunities to diversify the energy mix, reduce fossil fuel dependency, and enhance electricity access,” Nwanze said.

He called for stronger government support, including financial incentives, tax breaks, and subsidies, to drive renewable energy adoption.

He also emphasized the need for clear policy frameworks to provide certainty around tariffs and demand, thereby attracting long-term investments.

“Increasing grid stability, expanding transmission infrastructure, and adopting energy storage solutions are essential for integrating renewable energy into the national grid.

“The government must also foster international partnerships to accelerate technology transfer and renewable energy deployment,” Nwanze added.

The ED and CFO of Heirs Energies further reaffirmed the company’s commitment to advancing Nigeria’s energy transition.

“At Heirs Energies, we are dedicated to playing a leading role in Nigeria’s energy transition. Together, we can shape a sustainable energy future that benefits all Nigerians,” he said.