The mini grid minimum subsidy tender aims to kick-start the Nigerian market and catalyze mini grid deployment at scale. Mini grid developers will compete on the basis of quality (technical proposal) and price (minimum subsidy requirement) to build, own, and operate solar hybrid mini grids. The REA will provide the minimum subsidies required to the successful proposers.
- Nigeria Electrification Project (Nep) Solar Hybrid Mini Grids Component
The mini grid component aims to support the development of private sector mini grids in unserved areas. The Component targets are to electrify 300,000 households and 30,000 local enterprises through mini grids. The specific objectives of this component are to:
i) provide clean, safe, and affordable electricity to communities that are currently not connected to the national electricity grid;
ii) increase business productivity by replacing generators, lanterns and candles with reliable electricity;
iii) improve community security through street lighting.
The funds available for the mini grid component are US$150million. The Component consists of two funding windows:
i) A minimum subsidy tender to electrify selected communities that have high economic growth potential. The grant amount will be determined competitively through the tender.
ii) A performance-based grant program for the development of mini grids on a spontaneous basis (developers may use to electrify the communities of their choice). The grant amount is set at US$350 per connection.
The Mini Grid Performance-Based Grants (PBG) Program aims to close the viability gap for mini grids developed on a spontaneous basis. Grants of US$350/connection are available on a first-come first-served basis. Eligible projects are solar and solar hybrid systems in unserved areas, with generation capacity of not more than 1MW
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