Empowering Nigeria: ARM-Harith Boosts Renewable Energy Investment in Power Sector

by Victor Adetimilehin

The ARM-Harith Infrastructure Fund, which focuses on captive commercial projects under 1MW in Nigeria and off-grid and interconnected mini-grids, pledges to provide equity and quasi-equity instruments to firms overseeing small- to medium-sized renewable energy projects. Off-grid initiatives, linked mini-grids, and commercial and industrial projects are among the areas that are being targeted. With the establishment of AD Power HoldCo, ARM-Harith Infrastructure Fund pledges increased investment in Nigeria’s power sector. With an emphasis on equity finance for renewable energy, this project seeks to completely transform the nation’s electrical system.

By utilizing an investable balance sheet to secure reasonably priced, long-term, local currency debt financing, AD Power HoldCo presents a novel strategy. By making it easier for domestic financial institutions to provide loan capital and commercial debt, this tactic promotes the renewable energy industry’s steady expansion. Up to $7 million has already been invested by the platform in two different Special Purpose Vehicles (SPVs) created by off-grid developers. These Special Purpose Vehicles (SPVs) are made up of several off-grid projects in Nigeria that were developed by Energy Conversion Company Nigeria (ENERCON) in association with Nayo Tropical Technology and GVE AssetCo Nigeria Limited (GANL) in association with Green Village Electricity Projects Limited (GVE).

In order to overcome issues with small project sizes and a dispersed investment environment, ARM-Harith formed a consolidated HoldCo and played a critical role in establishing the investment framework. The goal of this streamlined transaction procedure is to lower total transaction costs while increasing efficacy and efficiency. The investment firm highlights its dedication to improving local communities’ access to and supply of electricity while acknowledging the favorable regulatory climate for distributed energy projects. Tariye Gbadegesin, CEO of ARM-Harith, emphasizes how this program fits in with the company’s goal of funding environmentally friendly infrastructure projects that advance Nigeria’s economic development.

ARM-Harith’s renewed commitment to the power industry signifies hope for improved accessibility, cleaner energy, and a sustainable path to economic growth as the country works towards a greener and more resilient future. 

Source: The Guardian 

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