REA partners with private developers to expand access to electricity in Nigeria

The Rural Electrification Agency (REA) signs a Memorandum of Understanding with five (5) private developers to increase access to electricity in Nigeria.

The MoUs have been signed between REA and A4&T Power Solutions, Eauxwell Nigeria Limited, Skipper Nigeria Limited, Havenhill Synergy Limited and Privida Power to deliver a combined capacity of 1265 MW of DRE projects including Interconnected Mini-Grids (IMG), Isolated Mini-Grids, C&I and PUE, for the electrification of peri-urban and rural communities (including markets, businesses, households, public institutions, clinics and schools) in both underserved and off-grid areas. These projects fall under the Distributed Access through Renewable Energy Scale-up (DARES) project managed by the Agency. In addition, this partnership will lead to the introduction of new energy service models including Virtual Power Plants (VPPs), enable mass adoption of energy efficient PUE devices and equipment through sales, distribution and credit financing, and lead to the introduction of a range of value-added services including e-mobility, agro-processing, cold storage and e-cooking.

The breakdown of the total capacity of 1,265 MW is as follows:

• * A4&T Power Solutions: 315 MW expansion target
• * Privida Power: commitment to develop 200 MW.
• * Skipper Nigeria Limited: A 250 MW facility is planned to be implemented.
• * Euxwell Nigeria Limited: Focuses on development of 250 MW capacity.
• * Havenhill: Plans are underway to develop 250MW of solar power projects.

During the signing, REA Managing Director/CEO, Abba Abubakar Aliyu stated, “This is a groundbreaking event for the DARES program and the introduction of the Renewable Energy Service Companies (RESCO) model. The RESCO model aims to provide developers with a platform to become utility companies where they can attract investment to implement mini-grids. These developers have the capacity and experience to not only deliver mini-grids but also manage large portfolios of projects and also scale. This MoU demonstrates our commitment to implementing this RESCO model. This MoU allows developers to work with REA to build mini-grids under the DARES program and become RESCOs. We look forward to this mutually beneficial partnership.”

Indian High Commissioner G. Balasubramanian stated, “It is my pleasure and honour to be a part of this MoU signing ceremony. India and Nigeria have had beneficial relations in manufacturing and services industries since the 1960s. Skipper has been the implementing company for several power projects in Nigeria, sponsored by the Government of India. This signing will enhance bilateral cooperation between India and Nigeria. I am excited that we are sharing our experience to develop the power sector in Nigeria. I am very happy to sign this MoU.”

A representative of Eauxwell’s Managing Director, Chibuzo Enwegbara, stated: “We are very pleased to have signed this agreement and hope that we will be able to achieve all our goals.”

Privida CEO Omo Williams said: “We are very grateful for this opportunity. We are very much behind REA. We have to show our gratitude to REA for this opportunity. We have worked in several countries but Nigeria stands out and the vision and goals set by REA are exceptional. We will support REA and work towards achieving the goals set by the Agency.”

Skipper Energy Managing Director Ankit Kumar said, “We want to partner with leading policymakers like REA to make a difference in the lives of Nigerians. We are thrilled with this opportunity.”

Havenhill Synergy Managing Director Olusegun Odunaya stated, “We are an indigenous company that has had several partnerships with REA in the past and we are delighted with this opportunity to continue our collaboration. We believe in working with REA to deliver this project and improve the lives of Nigerians.”

A4&T Power Solutions CEO Ayo Ademilua stated, “I sincerely appreciate the leadership of REA under the leadership of Abby Abubakar Aliyu. REA has always been ambitious and supportive. REA has always encouraged developers to scale and that is our goal. The Federal Government and REA have always provided an enabling environment for companies to grow. I believe that what we want to do is achievable and with REA’s support, we will be able to achieve our goals. We are excited to partner with REA to promote solar energy solutions that will transform access to energy in Nigeria.”

The Rural Electrification Agency (REA) is an implementing agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Energy, tasked with electrifying unserved and underserved communities in order to accelerate economic growth and improve the quality of life of Nigerians. The agency was established under Part IX, Sections 88-89 of the Electricity Sector Reform Act (EPSRA) 2005.
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, Derisking Sustainable Off-Grid Lighting Solutions and the Korean Energy Project.

The Agency is responsible for creating an enabling environment for private sector projects, which includes conducting feasibility assessments, energy audits, enumerations, data analysis, identifying qualified private sector developers and engaging project stakeholders.

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