REA and AMDA Sign MoU to Promote Mini-Grid Development in Nigeria
October 17, 2023
Abuja, Nigeria – The Rural Electrification Agency (REA) and the Africa Mini-Grid Developers Association (AMDA) today signed a Memorandum of Understanding (MOU) to promote and accelerate mini-grid development in Nigeria. The MoU will focus on knowledge sharing, capacity building, and better coordination of the sector, amongst other initiatives.
Nigeria has one the largest mini-grid markets in Africa, with over 100 mini-grids currently in operation primarily through the implementation of data-driven programmes and initiatives of the Rural Electrification Agency. However, due to the energy access gap in the country, there is still a significant need for more decentralized energy interventions to bridge the energy deficit and catalyze socio-economic growth, particularly in rural unserved, and underserved communities hard hit with energy poverty.
As part of the REA’s Vision and Strategic Roadmap, the Agency has, over the years expanded its partnership portfolio, while collaborating with forward-leaning stakeholders across the off-grid energy value chain. With the pivotal role and sustained impact of AMDA in Africa’s renewable energy space, the REA – AMDA partnership is a significant step forward for the mini-grid sector in Nigeria as it underscores a shared commitment to research, data-driven decision-making, and the establishment of robust industry standards.
This strategic approach is pivotal in ensuring the sustainable, secure, and optimal operation of mini-grid systems, thereby contributing to the overall energy landscape in Nigeria.
With a partnership now sealed through a Memorandum of Understanding, the REA and AMDA will collaborate on a non-exclusive basis to further advance access to sustainable electricity for Nigerians and other African countries through mini-grids and decentralized utilities, and ultimately achieve universal access to energy by the year 2030.
While improving data-driven decision-making and industry knowledge in the off-grid space, the MoU is targeted at promoting sustainable energy access for unserved and underserved communities through private sector development and financing, which will ultimately enhance policies/regulations and rapid deployment of renewable energy technologies.
Commenting on the strategic alliance between both institutions, Engr. Ahmad Salihijo Ahmad, MD/CEO of REA expressed enthusiasm stating “We are excited to partner with AMDA to further improve the development of mini-grids in Nigeria while deepening the impact of REA solutions for socio-economic growth. This MOU will further aid the accelerated deployment of mini-grids and provide clean, sustainable, and affordable electricity to more Nigerians.”
Mr. ‘Lamidi Niyi-Afuye, CEO of AMDA, also emphasized their dedication to collaborating with REA in nurturing the mini-grid sector in Nigeria. “Mini-grids have the potential to transform the lives of millions of Nigerians, and this partnership is a step in the right direction. AMDA is committed to working with all stakeholders to create an enabling environment for the minigrid sector to scale and achieve sustainability.”
A timely and impact-focused collaboration, the REA-AMDA MoU signifies a significant milestone in the development of mini-grids across Nigeria. It equally exemplifies the unified efforts between the public and private sectors working in lockstep towards the common goal of providing clean, reliable, safe, and affordable electricity for all.
ABOUT THE RURAL ELECTRIFICATION AGENCY
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyze economic growth and improve quality of life for Nigerians. The Agency was established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005.
The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Solar Power Naija (SPN), Energizing Education Programme (EEP), Energizing Economies Initiative (EEI), Energizing Agriculture Programme (EAP), Energy for All – Mass Rural Electrification and Research and Innovation Hub. Africa Mini Grids Programme and Derisking Sustainable Off-Grid Lighting Solutions.
The Agency is responsible for creating an enabling environment for private sector-led projects, which includes conducting feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements.
About Africa Minigrid Developers Association (AMDA)
The Africa Minigrid Developers Association (AMDA) is an industry association created by private sector minigrid developers and operators, donors, and investors to improve political economic environments for minigrid companies. AMDA has 43 member companies operating in 20 countries in Africa. The companies have a combined portfolio of around 600 minigrids in operation providing electricity services to about 150,000 customers, impacting the lives of more than 750,000 people.
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