SUNREF invites operators to tap $81m funding for off-grid projects

The Sustainable Use of Natural Resources and Energy Finance (SUNREF), a green financing line for businesses developed by the French Development Agency (AFD) is encouraging manufacturers to take advantage of the SUNREF funding facility.

The organisation in a virtual investors conference it hosted along with the Manufacturing Association of Nigeria (MAN) said that its SUNREF funding facility, which is composed of a €60 million ($70 million) lowcost debt financing, a €9.5 million ($11 million) grant facility and technical assistance provided to partner banks and project developers, will help to deepen Nigeria’s energy access.

The conference, which was hosted in partnership with development partners, the Nigerian Energy Support Program (NESP) implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and off-grid renewable
energy investor All-On, brought together investors, SUNREF Nigeria partner banks (Access Bank and UBA), technical assistance providers, renewable energy and energy efficiency project developers, government agencies and other stakeholders.

“The SUNREF facility has come at the right time when manufacturers need more power to drive our operations. We are excited about it as potential beneficiaries and we hope that both our members and non-members will take full advantage of this opportunity,” said MansurAhmed, the MAN President.

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In his remarks, Wiebe Boer, CEO All-On, an investment firm, highlighted the huge market potentials in the renewable energy and energy sectors in Nigeria.

“The size of the energy gap in Nigeria is between 30GW and 175GW, and would cost between $40 billion to $200 billion to address. Nigerians spend $15 to $20 billion annually on power, which is ten times the grid,” said Boer.

“This is also a market opportunity for providers of constant, reliable electricity, such as mini-grids which are a potentially $10 billion market.”

There were also presentations from the partner banks and the Nigerian Energy Support Programme (NESP). The conference was followed by a matchmaking session hosted by the Renewable Energy Association of Nigeria (REAN) which brought manufacturers and other businesses together in order to be connected to qualified developers that can offer them energy and cost saving solutions, and help them put together an application that will meet the SUNREF eligibility criteria.

This will provide a starting point for those businesses that are interested in RE/EE solutions and want to take advantage of the concessionary lending and technical assistance that the SUNREF Nigeria programme has to offer but they are not sure where to begin.