• Friday, February 23, 2024
businessday logo

BusinessDay

Odyssey Energy, REAN sign $100m equipment procurement deals to reduce cost, bureaucracy

Odyssey Energy, REAN sign $100m equipment procurement deals to reduce cost, bureaucracy

As part of deliberate efforts to boost investment in the alternative energy sector, the management of Odyssey Energy Solutions has signed a $100 million Memorandum of Understanding (MoU) with Renewable Energy Association of Nigeria (REAN) for the procurement of solar equipment.

The MoU was signed by Justin Tinsey, vice president, procurement solutions at Odyssey Energy and Ayo Ademilua, president, REAN.

The signing of the MoU took place in Benin City, at the association’s town hall meeting and energy access roadshow for stakeholders in the renewable energy sector with the theme, ’Driving energy transition through renewable energy’.

Speaking at the occasion, Tinsey said that the partnership was to help ease the association’s cost and the bureaucracy associated with the importation of renewable energy equipment.

He said the procurement equipment financing would be through local banks and other entities to help REAN members procure equipment.

“We are partnering with local banks to make $100 million financing available and better payment terms for equipment.

“REAN members only need to put 10 percent down when they place their order. $25million is available only for the first order and the balance payment will be 60 days after the arrival of equipment at Odyssey’s warehouse in Nigeria.

“The partnership between Odyssey Energy Solutions and REAN aims to address challenges by streamlining the procurement process, providing better access to high quality solar products, access financing, better payment terms and supply chain support for REAN members.

“Our combined expertise and resources will enable us to provide better solutions to solar companies in Nigeria, helping them to grow their businesses and contribute to the development of a sustainable energy future for the country”, he said.

Tinsey, who said Odyssey Procure was the procurement wing of Odyssey Energy Solutions, added that over 2000 renewable energy companies use Odyssey to finance procurement of equipment for and operate their projects.

He added that the partnership agreement with the association was to work together to make solar equipment procurement more efficient and cost-effective for solar companies operating in Nigeria.

On his part, Ayo Ademilua, who commended the management of the energy company for the procurement financing agreement, noted that Nigeria had a huge potential for renewable energy sources such as solar, wind, hydro and biomass.

Read also: Africa’s 375GW renewable energy capacity is mostly in concept phase – AEC

Adimilua, said the Nigerian government has set an ambitious target to achieve 30 percent renewable energy mix by 2030.

“REAN is committed to supporting the growth and development of the renewable energy sector in Nigeria, and this partnership with Odyssey Energy Solutions is an important step in that direction.

“We look forward to working together to provide better access to quality solar products and solutions for our members.

“With the official announcement of the partnership agreement, Odyssey Energy Solutions and REAN are poised to make a significant impact on the solar energy industry in Nigeria, by making it easier, faster and cheaper to procure high-quality solar products”, he stated.