The federal government, through the Rural Electrification Agency (REA), has signed grant agreements with seven renewable energy investors under the World Bank funded Nigeria Electrification Project (NEP).
The grant agreement signing for the Performance Based Grant (PBG) and Output Based Fund (OBF), which took place over the weekend at Sheraton Hotel in Abuja, was attended by power sector stakeholders and representatives from international donor agencies.
The grant agreements are the OBF for the sale of solar home systems to homes and businesses across Nigeria and the PBG for the deployment of mini-grids to un-served and under-served 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 would play a major role in enabling the NEP Solar Home Systems (SHS) component to achieve its goal of electrifying one million Nigerian households in five years using renewable energy solutions.
PowerGen Renewable Energy is the first company to sign for the PBG under the NEP mini-grid components.
Under this partnership with REA, PowerGen would deploy mini-grids to Rokota community in Niger State.
Mini Grids Component Head, Lolade Abiola, led the project to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses with mini grids.
After the signing, she reiterated that “the grant agreement signing today is an attestation to both local and foreign investors of the readiness of the Nigerian government to leverage renewable energy technologies for increased access to electricity.
I can confidently state that renewable energy is the next big thing for the sector.”