A $25 million solar facility will help expand access to reliable electricity in Nigeria, particularly in rural areas. This facility is part of a broader mini-grid initiative, providing 24-hour solar power to communities and boosting energy stability.
Solar Facility: Boosting Renewable Energy in Nigeria
Nigeria is set to benefit from a new $25 million solar facility aimed at expanding access to reliable electricity. The facility is backed by the Global Energy Alliance for People and Planet (GEAPP), Rockefeller Foundation, and Ikea Foundation. This funding will help Nigeria tackle its energy challenges, particularly in rural areas with unreliable electricity.
The facility is part of a broader initiative to develop mini-grids in Nigeria. These mini-grids are designed to provide 24-hour electricity to local communities, boosting productivity and improving living conditions. The mini-grid programme will enable developers to install solar power systems that can operate alongside the national grid.
According to a Bloomberg report, GEAPP has been working to lower solar equipment costs through its demand aggregation for renewable technology (DART) programme. This programme pools the needs of developers, reducing costs by up to 30%. In addition to lowering costs, the solar facility will provide $25 million in financing for solar equipment imports, which developers can repay in naira.
Importance of the Solar Facility
GEAPP’s country delivery lead, Muhammad Wakil, highlighted the importance of this pooling arrangement, which helps developers save money while expanding solar infrastructure. Wakil also mentioned that GEAPP offers grants, loans, and technical assistance to mini-grid developers. These resources enable developers to build solar mini-grids that can operate independently or alongside the national grid.
One example of the impact of this solar facility is a one-megawatt solar mini-grid built by Darway Coast in Ogun State. This mini-grid will provide the local community with 24-hour electricity by the end of the year. Currently, the community only receives about eight hours of electricity from Ikeja Electric Plc.
This facility is just one of many projects aimed at addressing Nigeria’s energy challenges. Wakil stated that thousands of similar projects are needed across the country to eliminate energy poverty. He explained that GEAPP’s initial goal is to build pilot projects in each region served by Nigeria’s 11 power distribution companies (DisCos).
In addition to providing electricity in areas with limited access, the solar facility is expected to complement efforts to establish mini-grids in regions without any connection to the national grid. This will allow more communities and businesses to benefit from clean and renewable energy.
International Support Nigeria’s Energy Transition
The success of the programme has attracted attention from other international organizations. The World Bank has pledged $130 million to support similar solar facilities in Nigeria. This additional funding will help accelerate the development of mini-grids across the country, further expanding access to renewable energy.
Wakil emphasized the importance of these projects in helping Nigeria meet its energy goals. He noted that energy poverty is a major issue in the country, and projects like these are essential to providing a solution. By expanding the solar facility programme, Nigeria can take significant steps toward eliminating energy poverty and improving the quality of life for millions of people.
Ikeja Electric’s Power Purchase Manager, Fatima Haliru, also expressed support for the initiative. She noted that the Electricity Act allows for the creation and sale of energy by private companies. Instead of viewing Darway Coast as a competitor, Haliru suggested that it is better to see them as partners. This collaboration between private companies and public utilities is crucial for the success of the solar programme.
The $25 million solar facility backed by GEAPP, Rockefeller Foundation, and Ikea Foundation represents a major step forward in Nigeria’s renewable energy sector. By providing funding and technical support for solar mini-grids, this initiative will help expand access to reliable electricity across the country.