Why EU support Nigeria with additional $17.4 million to boost renewable energy

Nigeria is Africa’s most populous country and third-largest economy with growing energy needs that the national grid cannot meet fully or reliably.

To meet the country’s energy needs, the European Union and Germany’s Deutsche Gesellschaft für Internationale Zusammenarbeit have signed an agreement for the extension of the Nigerian Energy Support Programme (NESP) Phase II until November 30, 2022.

To this end, the EU granted additional funding of $17.4 million (€15 million) to support the Nigerian renewable energy and energy efficiency sector.

The programme had an initial funding of 20 million euros, and with the new grant, the total funding now stands at 35 million euros from the EU and 13 million euros from the German federal ministry of economic cooperation and development (BMZ).

Under the NESP II extension, the programme will expand its activities and up-scale geographically, while extending its measures to strengthen the support to the Nigerian Government in the areas of solar battery recycling, clean cookstoves and access to finance mechanisms for renewable energy and energy efficiency investments.

The NESP is a renewable energy project co-financed by the EU and the German government and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the federal ministry of power.

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“The programme is a notable example of efficient cooperation among the EU and the Nigerian partners, bringing tangible results to the country,” Head of Cooperation at the European Union Delegation to Nigeria and ECOWAS, Cecile Tassin-Pelze said in a press statement.

She added, “We are glad to continue this successful collaboration with GIZ and the Nigerian Government to help the country achieve the renewable energy and energy efficiency targets”.

The main activities of NESP are to advise public and private stakeholders on how best to utilise the potential of renewable energy and energy efficiency.

During the first phase (2013-2017), NESP supported the Nigerian Government in developing key sustainable energy policies and regulatory instruments such as the Mini-Grid Regulations, the National Renewable Energy and Energy Efficiency Policy, and the Building Energy Efficiency Code.

According to GIZ, nearly 16,000 people gained access to solar power in rural areas while a total of 3,147 households in five different states are provided with environmentally friendly power using six off-grid village electricity plants (referred to as mini-grids) funded by public-private partnerships.

In the second phase, which started at the end of 2017, NESP shifted its focus from framework support to implementation.

Two tender processes – the Mini-Grid Acceleration Scheme, and the Interconnected Mini-Grid Acceleration Scheme were developed to support private developers.

This was done in collaboration with respective distribution companies to set up mini-grids in un-electrified or underserved rural areas.

Ina Hommers, country director of GIZ Nigeria and ECOWAS, described the development of the Nigeria sustainable energy for all (Nigeria SE4ALL) platform, in collaboration with the federal ministry of power, as a major milestone of NESP II.

Most stakeholders say more collaborative programs like NESP are needed in Nigeria where 55 percent of the population, and as many as 75 percent in rural areas, have no access to on-grid electricity. The lack of access to electricity is hindering industrial production and economic growth.