Tag: Rural Electrification Agency

The Rural Electrification Fund (REF) of the Rural Electrification Agency (REA) yesterday said its interventions have   attracted N5.8 billion private sector investments.

REA Managing Director Engr Abba Aliyu disclosed this during the “REF Call 3 Grant Award Signing Ceremony and Access to Finance (A2F) Workshop in Abuja.

Represented by the Executive Director, Corporate Service, Mr. Ayoade Adegboyega, he said the interventions culminated in the achievements of 16.6 megawatts (Mw) of renewable energy installed capacity and created over 26,000 jobs and averted 91,720 tons of CO2 emissions.

“Beyond these numbers lie a deeper story of transformation—16.6 Mw of renewable energy capacity installed, over 26,000 jobs created, 91,720 tons of CO emissions avoided, and N5.8 billion in private sector investment attracted,” he said.

The REA boss said collectively,  interventions enabled the deployment of 124 mini-grids, the installation of over 25,580 Solar Home Systems (SHS), and the empowerment of 18,013 micro, small, and medium enterprises (MSMEs).

Aliyu noted that the interventions impacted 183 communities across all 36 states and the Federal Capital Territory.

Through REF Call 1, Call 2, and other flagship initiatives such as the Interconnected Mini-grid Acceleration Scheme (IMAS), the Global Cleantech Innovation Programme (GCIP), and the De-risking Sustainable Off-Grid Lighting Solutions (DSOLS), he said the agency consistently demonstrated the achievable imbuing bold vision with strategic execution.

He said the commencement of REF Call 3 the agency’s mission went far beyond scaling capacities to about scaling impact and touching more lives.

This next phase, he said: “is designed to deepen penetration into underserved areas, catalyze productive use of energy (PUE), and foster greater empowerment of MSMEs, women-led businesses, and agricultural value chains.”

REA and about 39 Solar Home System (SHS) companies signed the agreements.

In her overview of Rural Electrification Fund (REF) and its programs, Engr. Doris Uboh, emphasized sustainability of the REF projects.  She sought the adherence to the operational guidelines of REF.

Uboh insisted the companies must ensure the success of the plants.

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She said:  “Not left behind, which is the most important factor, is the sustainability plan that comes with our projects.  For every project we do, every mini-grid, every solar home system, we ensure operational guidelines of REF departments.

“Every mini-grid, every developer who has his footprint in REF will tell you that some have been on a particular mini-grid for over 5 years, some going to 10 years.

“And the reason being, like I said, job creation and sustainability plan.vWe make sure that you are there, making sure the plant is being handled very well, if there is anything technically to be done to make sure that the plant does not fail.

“The developer that builds the plant is tied to that, not only to ensure generation, transmission and distribution, but also to collect tariff.”

The Rural Electrification Agency (REA) yesterday commissioned a 440kWp interconnected mini-grid in the communities of Etomi, Agbokim, Abia, and Bendeghe in Etung Local Government Area, Cross River State.  The initiative aims to accelerate the development of Nigeria’s interconnected mini-grid market and provide clean energy access to approximately 125,000 beneficiaries.

The project, implemented under the Interconnected Mini-Grid Acceleration Scheme (IMAS), is part of a €9.3 million in-kind grant initiative funded by the European Union and supported by the German Cooperation.

The project will provide reliable, clean and sustainable energy to these underserved communities, significantly contributing to their socio-economic development.

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In his address, the Governor expressed his deep appreciation for the project, emphasizing its potential to transform the socio-economic landscape of the state.

 Otu stated: “This mini-grid project is a landmark achievement for Cross River State. It not only provides access to sustainable energy for the communities of Etomi, Agbokim, Abia, and Bendeghe but also opens doors to numerous opportunities for growth and development. The Cross River State Government is committed to supporting further initiatives like this, as we work towards ensuring that every community in the state has access to reliable and affordable electricity.”

He tasked the benefiting communities to scale up this project by actively participating in its maintenance and management, ensuring its long-term sustainability. He emphasized the importance of community ownership, urging local leaders and residents to take responsibility for protecting the infrastructure and preventing any form of vandalism.

He also encouraged the communities to explore innovative ways to expand the reach of the mini-grid, including the establishment of small businesses that can thrive with reliable power supply.

By doing so, he believes that these communities can fully capitalize on the opportunities the mini-grid offers and become models of self-sufficiency and economic growth in the region.

The Governor assured the residents that the state government would continue to support their efforts and work closely with the REA and other stakeholders to further enhance the project’s impact, with the ultimate goal of improving the overall quality of life for all residents.

He also reaffirmed his commitment to the e-HEART initiative, which aims to leverage sustainable energy to improve vital sectors such as healthcare, education, and agriculture in rural areas. Prince Otu emphasized the importance of integrating the mini-grid project into the e-HEART framework and assured the communities of continued government support to expand energy access and drive long-term development in Cross River State.

Meanwhile, the REA Managing Director/CEO of REA, represented by the Director of the Rural Electrification Fund, Ngozi Chimdi-Ejiogu, expressed heartfelt gratitude to all stakeholders involved in making the project a reality. Special thanks were extended to the German Cooperation, European Union, and GIZ for their financial contributions to the development of the IMAS initiative. Additionally, the MD/CEO praised the efforts of the Executive Director, Rural Electrification Fund Directorate, the Project Lead, and team members, Darway Coast Limited (the Project Developer), and the Port Harcourt Electricity Distribution Company (PHEDC) for ensuring seamless integration into the national grid.

He said, “This project is not just about infrastructure; it’s about empowering the communities of Etomi, Agbokim, Abia, and Bendeghe with the transformative power of sustainable energy. This mini-grid will enhance local economic activities, support small businesses, improve education and healthcare services, and ultimately uplift the quality of life for the residents of these communities.”

The mini-grid is a major step toward reducing reliance on harmful energy sources like kerosene, diesel, and firewood, offering a renewable energy solution to local households and businesses.

Darway Coast Limited, the project developer, expressed their pride in being part of this transformative project: “We are honored to be involved in bringing sustainable energy solutions to the communities of Etomi, Agbokim, Abia, and Bendeghe.

The successful implementation of this mini-grid is a testament to the power of collaboration and innovation. At Darway Coast Limited, we believe in the potential of renewable energy to drive positive change, and we are thrilled to have contributed to the development of a solution that will enhance the quality of life in these communities.

This project not only provides reliable electricity but also opens up new opportunities for economic development and social progress.”

A representative from the Port Harcourt Electricity Distribution Company (PHEDC), Augustine Obinna, also shared their perspective on the project’s significance. “We are proud to have been part of this journey, ensuring the seamless integration of the mini-grid into the national grid,” said the PHEDC representative. “This project is a perfect example of how partnerships can drive progress. By collaborating with the Rural Electrification Agency, Darway Coast Limited, and other stakeholders, we have been able to provide a solution that not only supplies power but also empowers communities. This mini-grid will support local businesses, enhance education, and improve healthcare services, ultimately creating a brighter future for the residents of these areas.” He emphasized the need for community ownership and accountability to ensure sustainability.

Local leaders and residents from the four benefiting communities, especially HRH Ntufm Raphael Ekuri Agbor, shared their gratitude and excitement about the project’s impact on their lives and emphasized the need for collective protection of the project equipment to eliminate darkness in the communities.

Representatives from GIZ, including Eckhard Heine, also attended the event and offered remarks on the project’s significance. Mr. Heine emphasized the importance of partnerships in achieving renewable energy development, stating, “This mini-grid is a clear demonstration of what can be achieved when governments, development partners, and local communities work together to address energy access challenges. GIZ is committed to supporting such initiatives as we collectively strive for a sustainable and prosperous future.”

In addition to powering homes, the 440kWp mini-grid will energize local businesses, schools, and healthcare facilities, providing a foundation for greater economic and social development. The REA is also collaborating with the Cross River State government to explore further opportunities for decentralized energy solutions, including additional mini-grids and solar power systems, to expand energy access throughout the state.

The Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with Anfani Energy Limited to catalyze funding and technological innovation for the implementation of renewable energy projects in the next three years.

The Federal Government has already provided $750million to attract $1.1billion funding from private investors for the projects.

In his remarks at the MoU signing ceremony in Abuja, the Anfani, Managing Director, Mr. Ishaq Bolarinwa Anfani, said his firm is to bridge the gap of affordability and accessibility for renewable energy solutions.

“We bridge the affordability and accessibility gap for renewable energy solutions in Nigeria and sub-Saharan Africa,” he said.

Explaining his firm’s role in the MoU, he said it is about about the removal of constraints and catalyzing financing for the projects.

His words, “It is about igniting dreams, empowering communities, and catalyzing growth from the ground up. That is what renewable electrification is all about.

 “Regarding the MOU, we are treating it as an opportunity free from constraints. Catalytic financing is one aspect we want to source.”

He said the process and project improvement are vital as the stakeholders  embark on the project.

He said as the firm focuses on technological innovation, it goes beyond building technology for communities to assessing and providing the suitable technology for them.

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“One thing we do is not build technology for communities; instead, we assess what the communities need and develop technology to suit them,” he said.

Meanwhile, Nigerian Electrification Project (NEP), Head, Mr. Olufemi Akinyelure said the REA developed the Renewable Energy Service Companies (RESCOs) strategy as part of its broader efforts to scale up improved energy access, particularly in underserved and off-grid rural areas and ensure sustainability of off-grid projects.

He said the RESCO model plays a crucial role in the deployment and operation of off-grid electrification projects, specifically through public-private partnerships.

The RESCO, according to him, is a central pillar of REA’s off-grid electrification efforts, ensuring that unserved, underserved and rural communities benefit from sustainable, affordable, and scalable renewable energy solutions.

He added that in the light of Electricity Act (2023) giving states autonomy over their electricity market, the REA has initiated collaboration with state governments and RESCO’s to address potential bottlenecks and ensure structured and simplifies processes are in place towards achieving successful and sustainable project development.

Akinyelure revealed that key elements of the RESCOs Strategy Public-Private Partnerships (PPP).

The partnerships, he said, capitalize on the strengths of private investment, technical expertise, and operational capacity, while REA provides critical support through policy frameworks, financing mechanisms, and monitoring oversight.

Continuing, he said, “This collaborative model ensures the long-term success of off-grid electrification projects.

Innovative Payment Models

“A core strength of the RESCO model is the introduction of flexible payment models typically the Pay-As-You-Go (PAYG) system, making energy more accessible and affordable for low-income households and businesses. “This approach allows customers to pay in manageable installments while enjoying uninterrupted access to clean and reliable electricity. RESCOs are responsible for the entire lifecycle of the system, from installation to maintenance, ensuring a seamless experience for consumers.

Sustainability and Scalability.  The RESCO model is designed to ensure the sustainability of rural electrification projects while promoting scalability.

“It encourages renewable energy providers to scale up by investing in large portfolio projects with diverse business models, optimizing the organizations resource use and reducing service costs.

“As a result, the RESCO model enhances access to energy in rural communities, providing reliable energy for millions of Nigerians and supporting the accelerated development of these regions.

“Enhancing Local Developers through Improved Corporate Governance

A key objective of the RESCO model is to equip local companies for commercial capital investment.

“By strengthening their internal corporate governance, developers can make more informed investment decisions and foster a culture of corporate accountability and responsibility—essential elements for attracting corporate investments.”