The Federal Government has signed grant agreements with seven renewable energy investors under the World Bank funded Nigeria Electrification Project.
It was signed through its implementing agency, the Rural Electrification Agency in Abuja and the event was attended by power sector stakeholders and representatives from international donor agencies.
MD/CEO REA, Mrs Damilola Ogunbiyi
The grant agreements, a statement indicated, are the Output-Based Fund for the sale of solar home systems to homes and businesses across Nigeria and the Performance Based Grant for the deployment of mini grids to unserved and underserved communities in Nigeria.
Following a thorough procurement process, the first six companies to be signed to the OBF are A4&T Integrated Services Limited, Asolar Systems Nigeria Limited, Txtlight Power Solutions Limited (Lumos Nigeria), Greenlight Planet, Smarter Grid International and Solar Energy by D. light Limited.
With these grants, the companies are expected to play a major role in enabling the National Electrification Project Solar Home Systems component to achieve its goal of electrifying one million Nigerian households in five years, using renewable energy solutions.
It added, “PowerGen Renewable Energy was the first company to sign for the Performance-Based Grant under the NEP Mini Grids component. Under this partnership with REA, PowerGen will deploy mini grids to Rokota community, Niger State.”
Mini Grids Component Head, Lolade Abiola, will lead the project to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses with mini grids.
The REA Managing Director, Mrs Damilola Ogunbiyi, expressed optimism over the determination of the Federal Government to transform the power sector in accordance with its Next Level agenda.
She acknowledged the support of the World Bank and the African Development Bank to improve electricity access through the provision of grant funding and technical assistance.
“REA, in collaboration with the Federal Government of Nigeria, has secured funds from the World Bank ($350m) and African Development Bank ($200m). These funds will go a long way in helping us connect communities, schools and homes to constant electricity,” the statement added.