• Thursday, July 25, 2024
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REA partners private developers to deliver 1,265mw of renewable energy

REA partners private developers to deliver 1,265mw of renewable energy

The Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with five firms in the Renewable energy space to boost access to electricity in Nigeria. The agreement is expected to deliver a combined capacity of 1,265 MW of renewable energy.

The MoUs were signed between the REA and A4&T Power Solutions, Eauxwell Nigeria Limited, Skipper Nigeria Limited, Havenhill Synergy Limited and Privida Power for the delivery of a combined 1,265 MW capacity of DRE projects, including inter-connected mini-grids (IMGs), isolated mini-grids, C&I, and PUE (the “Projects”), with the purpose of electrifying peri-urban and rural communities (including markets, businesses, households, public institutions, health clinics and schools) in both weak grid and off-grid areas.

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These Projects, according to the REA, fall under the Distributed Access through Renewable Energy Scale-up (DARES) project, which is being implemented by the Agency.

Speaking during the signing ceremony on Thursday, Abba Abubakar Aliyu, the Managing Director/CEO of REA, said that the introduction of the Renewable Energy Service Companies (RESCOs) model aims to provide developers with a platform to become utility companies where they can be able to attract investment to deploy mini-grids.

These developers, he said have the capacity and track record to not only deliver mini-grids but to manage large portfolios of projects as well as scale up.

“This MoU demonstrates our commitment to roll-out this RESCOs model. This MoU gives developers the opportunity to partner with REA to build mini grids under the DARES programme and become RESCOs. We look forward to this mutually beneficial partnership.”

He further stated that the partnership would bring about the introduction of new energy service models, including Virtual Power Plants (VPPs), enable the mass adoption of energy efficient appliances and PUE devices through sales, distribution and credit financing as well as bring about the introduction of a range of value-added services, including e-mobility, agricultural processing, cold storage and e-cooking.

Under the agreement, A4&T Power Solutions is expected to deliver 315 MW, Privida Power committing to the development of 200 MW, Skipper Nigeria Limited aims to implement 250 MW.

Also, Euxwell Nigeria Limited is expected to deliver 250 MW and Havenhill; 250 MW of solar energy projects.

In his remarks, G. Balasubramanian, the High Commissioner of India said, “It is a pleasure and honour for me to be part of this MoU signing ceremony. India and Nigeria have had beneficial relationship in manufacturing and service industry since the 1960s.

“Skipper has been the implementing company of several electricity projects in Nigeria sponsored by the Indian Government. This signing will improve the bilateral cooperation between India and Nigeria. I am very happy that we are sharing our experience to develop the energy sector in Nigeria. I am very happy with this MoU signing.”

Read also: Renewable energy in Nigeria – Projects, investments, and future Prospects

For Olusegun Odunaya, the managing director of Havenhill Synergy, stated that as an indigenous company, they are committed continually work with the REA to deliver on projects to improve the lives of Nigerians.

Ayo Ademilua, the CEO of A4&T Power Solutions, said, “I sincerely appreciate the Management of REA under the leadership of Abba Abubakar Aliyu. The REA has always been ambitious snd supportive. The REA has always pushed developers to scale up and that is our goal.

“The Federal Government and REA has always provided the enabling environment for companies to thrive. I believe that what we want to do is achievable and with REA’s support we will be able to achieve our goals. We are thrilled to partner with REA to advance solar energy solutions that will transform energy access in Nigeria.”