Nigeria Rural Electrification Agency and Husk Power Systems partner in implementing 250MW decentralized renewable energy projects

In a major development, the Rural Electrification Agency of Nigeria (REA) and Husk Power Systems (Husk) signed a Memorandum of Understanding (MoU) to collaborate on the implementation of decentralized renewable energy (DRE) projects with a capacity of up to 250 MW. This strategic partnership is designed to support the federal government’s goals on energy access, energy transition and energy security.

The partnership will focus on a variety of DRE projects in rural and peri-urban areas, including energy generation and distribution through interconnected mini-grids (IMGs) and isolated mini-grids, commercial and industrial rooftop solar PV installations, productive use of energy (PUE), and sales and equipment financing.

These projects will be in line with the $750 million Distributed Access through Renewables (DARES) project, financed by the World Bank and administered by REA, which is expected to launch later in 2024.

In addition to building new clean energy infrastructure, the partnership will explore innovative models such as virtual power plants (VPPs) and social services such as electromobility, agro-processing and cold storage, and clean cooking. REA and Husk will also work together to promote the mass adoption of energy-saving appliances and PUE devices through sales, distribution and credit financing.

Abba Aliyu, Managing Director of REAexpressed optimism about the partnership, stating: “This partnership represents a historic step forward in our vision for a network of Renewable Energy Service Companies (RESCOs) that can deliver clean and reliable electricity to every corner of Nigeria.”

Manoj Sinha, co-founder and CEO of Husk Power Systems, stressed the importance of public-private partnerships (PPPs) to achieve widespread electrification in Nigeria. He praised REA’s vision and commitment, noting that the strategic partnership will accelerate the deployment of Husk’s AI-enabled energy platform, benefiting millions of Nigerians and enhancing climate change adaptation and resilience.

Husk Power Systems has been operating in Nigeria since 2020, providing reliable, clean electricity to households, micro, small and medium enterprises (MSMEs), as well as various institutions. As part of its Africa Sunshot initiative, Husk aims to deploy 1,000 mini-grids in Nigeria and an additional 1,500 elsewhere in sub-Saharan Africa.

The partnership between REA and Husk underscores Nigeria’s commitment to increasing access to clean and sustainable energy and achieving energy transition goals.

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