• Friday, July 12, 2024
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REA holds conference to subsidies mini-grid developers across 7 states

REA holds conference to subsidies mini-grid developers across 7 states

The Nigeria Electrification Project (NEP), Project Management Unit (PMU) of the Rural Electrification Agency (REA), held a hybrid Pre-Bid conference on Thursday to provide subsidies for mini-grid developers across seven states in Nigeria.

According to a statement by REA, the conference was for the Minimum Subsidy Tender (MST) programme of the Solar Hybrid Mini Grid component – financed by the African Development Bank (AfDB) Nigeria Electrification Project (NEP).

“The MST is a key component of the NEP, aimed at catalysing the Nigerian off-grid market while aiding the deployment of solar hybrid mini-grids at scale,” the statement said.

“The NEP’s Solar Hybrid Mini Grid component supports the development of private sector mini-grids in unserved and underserved areas with high economic growth potential.”

The MST is a private sector-driven programme that awards subsidies to mini-grid developers to catalyse the rollout of solar and/or hybrid mini-grid solutions across up to 150 sites split into seven lots across seven States in Nigeria, according to REA.

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“With over 100 private sector players in attendance, the pre-bid conference served as a technical, knowledge-driven platform for engagement and interaction between the NEP-PMU and prospective bidders on the MST programme,” REA said.

“It equally provided an opportunity for further clarification on components of the bidding document issued, offering an opportunity for feedback on the application process and programme-specific information to support prospective bidders in finalising their bids.”

While commending the private sector players for their interest and enthusiasm, Ahmad Salihijo Ahmad, the managing director and CEO of REA, said that the Minimum Subsidy Tender is a significant milestone in Nigeria’s efforts towards providing reliable and sustainable electricity to its citizens, particularly in rural unserved and underserved areas.

“The REA is committed to a transparent and competitive bidding process that will result in the selection of qualified and capable contractors who will deliver the project on time, within budget and to the required quality standards,” he said.

In his address, Abba Aliyu, the Head of the Project Management Unit (HPMU) of the NEP, said that the MST programme is one of the models being adopted specifically because it provides a transparent, economically viable approach to providing access to electricity to rural off-grid communities.

“The NEP is using this particular model to provide a pathway that will enable the off-grid sub-sector to see the viability of using the MST in funding developers for electricity access to these communities,” Aliyu said.

The Federal Government of Nigeria, through the support of both the World Bank and the African Development Bank, continues to optimise the Nigeria Electrification Project (NEP) to power off-grid communities nationwide with clean, safe and sustainable energy solutions.