Nigeria’s Green Energy Revolution Gets $15 Million Boost from Global Alliance

A global alliance invests $15 million to support the DART programme, which aims to accelerate the deployment of renewable energy technologies in Nigeria.

by Motoni Olodun

Nigeria, Africa’s most populous country and largest economy is facing a dual challenge of providing reliable electricity to millions of its people and reducing its greenhouse gas emissions. The country depends largely on oil and gas for its energy needs, but these sources are not only polluting but also vulnerable to price fluctuations and supply disruptions.

To address this challenge, Nigeria has set a goal to achieve universal energy access by 2030 and is implementing various policies and initiatives to increase access to clean and affordable energy for its citizens. One of these initiatives is the Demand Aggregation for Renewable Technology (DART) program, which was launched in 2021 by All On, a Nigerian impact investment company, in partnership with the Global Energy Alliance for People and Planet (GEAPP), a collective movement that aims to unlock green energy access for one billion people in emerging economies.

The DART program is a global aggregated procurement financing initiative for renewable energy companies to decrease the cost of deploying these technologies in communities most in need. It also aims to stimulate the market and accelerate the sector by providing access to local currency financing. The program has already achieved savings of up to 30% for solar equipment and supported the development of mini-grids and stand-alone systems in off-grid areas.

On Tuesday, at a World Bank event on Distributed Renewable Energy (DRE) focused on accelerating universal access to energy in Africa, All On and GEAPP announced an additional $15 million investment to expand the DART program in Nigeria. This will bring the total fund size to $25 million, with $20 million from GEAPP and $5 million from All On. The facility will support small and medium-sized developers operating in the renewable energy sector and help them overcome the financial and technical barriers they face.

“We are especially excited that this funding will not only unlock economies of scale for renewable energy developers in Nigeria but will also accelerate the transition to renewable energy access for all and play a pivotal role in unlocking local currency financing for the sector,” said Caroline Eboumbou, CEO of All On.

Joseph Ng’ang’a, the interim managing director and vice president for Africa GEAPP, said: “Our continued collaboration with All On and Odyssey Energy Solutions is focused on delivering real results for Nigeria’s renewable energy sector: empowering entrepreneurs, creating jobs, and driving economic growth, while addressing the critical gap between energy demand, supply, and transmission. This partnership lies at the heart of GEAPP’s mission – to ignite a green energy revolution that transforms the lives and livelihoods of people and their communities across Nigeria and around the world.”

The announcement coincided with the commissioning of the largest isolated mini-grid project in Benue State’s Chito Community in the Ukum Local Government Area (LGA). The project was executed by Prado Power Ltd under the aegis of the Nigeria Electrification Project (NEP) by the World Bank and the Rural Electrification Agency (REA). The 350KW mini-grid, backed by $1 million from DART, will connect over 7,000 households and commercial, institutional, and productive use customers in the community to a reliable and sustainable power supply.

Washima Mede, CEO of Prado Power, said: “Prado Power is excited to have collaborated with All On and GEAPP through the DART program to deliver this monumental project in the Chito community. Before this development, Chito had existed without access to electricity and residents found it very challenging to conduct their business activities sustainably. We do not doubt that this mini-grid project would unleash the vast economic potential of the community as it provides constant electricity, creating an enabling environment for residents to live and carry on their businesses sustainably. This will consequently create a lasting socio-economic impact and significantly boost the livelihoods in the community and its surroundings.”

The DART program is an example of how Nigeria can leverage its abundant renewable energy resources and innovative solutions to achieve its energy and climate goals. By working together with the private sector and development partners, the country can ensure that no one is left behind in the green energy transition.

Source: BusinessDay NG

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