The Rural Electrification Agency (REA), European (EU) and the German government have pledged to provide support for the deployment of more than 18 solar mini-grid projects in Nigeria by 2022, a recent statement by REA has shown.
According to the statement, the project is going to be getting its financial and technical support coming from the European Union and the German Government within the framework of the Nigerian Energy Support Programme (NESP).
The mini-grid projects, according to the statement, were selected through a competitive process under the Mini-Grid/Interconnected Mini-Grid Acceleration Scheme (I)MAS.
Inga Stefanowicz, Head of Section – Green Economy at the European Union Delegation to Nigeria and ECOWAS, noted that “the EU’s financial support for (I)MAS represents the EU’s commitment to support Nigeria in the efforts to enable more investments in the solar mini-grid sector.
“We hope that our contribution will help improve access to reliable and affordable electricity in Nigeria, especially in the disadvantaged areas of the country, hence advancing the living standard of the rural and peri-urban dwellers using renewable sources of energy.”
The (I)MAS grants encourage more solar mini-grid projects in Nigeria and facilitate access to reliable and affordable electricity, especially in the unserved and underserved areas of the country.
“Depending on the ability of the private sector, between 18 to 24 solar mini-grid projects will be deployed in 2022 under the (I)MAS project, serving clean electricity to around 138,000 people in Nigeria.
“The supported developers are: A4&T Power Solutions, ACOB Lighting Technology Ltd, Darway Coast, GVE Projects Limited, Havenhill Synergy Ltd, NAYO Tropical Technology Ltd, Sosai Renewable Energies Company, and Rubitec Solar Ltd,” the statement reads.
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While speaking at Grant Agreement Sign Off ceremony held in Abuja, Goddy JEDY-AGBA OFR, Minister of State for Power, commended the programme and also believed that “through this programme, more communities across the country will be electrified.
“The Federal Ministry of Power is always open to opportunities that will achieve the acceleration of electrification in Nigeria.
“The Federal Government of Nigeria is appreciative of the support from Nigerian Energy Support Programme (NESP) towards providing reliable electricity in Nigeria,” he said.
In addition, Ahmad SALIHIJO, Managing Director and CEO of the REA, underlined the relevance of the grant support to the development of solar mini-grid projects in Nigeria.
According to him, “the objective of the Grant support is to facilitate the (I)MAS solar mini-grid projects to ensure increase in rural access to reliable and affordable electricity.
“As contained in the Agreement, the cost of the Grant Assets will not be included in the cost of development in order to achieve affordable and appropriate electricity tariffs for those in the rural and peri urban areas where these projects will be implemented,” he said.
While speaking at the ceremony, the parties involved expressed their belief that investors will be motivated to study the solar mini-grid, but that they may be discouraged due to financial concerns.
However, in support of NESP, REA will be able to relieve this significant burden by granting capital in-kind grants to chosen mini-grid developers on favorable and encouraging terms, as specified in the Grant Agreement.
Sanusi OHIARE, Executive Director, Rural Electrification Fund, said, “While investors are being encouraged to explore the solar mini-grid sector, one major constraint to their project development is finance.
“Hence, the Rural Electrification Agency with the support of NESP was able to alleviate this major burden by providing capital in-kind grant to selected mini-grid developers on favourable and encouraging terms as contained in the Grant Agreement,”Ohiare affirmed.
In a similar manner, Ina HOMMERS, Country Director of GIZ Nigeria & ECOWAS, said, “The provision of capital in-kind grants to the developers in the solar mini-grid sector through the IMAS aims to ensure higher investments in the sector.
“Therefore, the grants contribute to achieving the Sustainable Development Goals in Nigeria, in particular SDG 7 on access to affordable and clean energy and SDG 13 on climate action. These represent one of the focal areas of GIZ’s support to Nigeria”.
