The Nation Newspaper

Tag: solar power

  • Omole: Off-grid solar power solutions will boost economy

    Tellco Europe Nigeria chairman Prof Wale Omole yesterday said alternative sources of energy was needed to spur economic growth.

    He said power was a critical component of the nation’s infrastructure, adding that Nigeria can bridge the energy gap through renewable energy.

    “Renewable energy is an inextricable growing pathway of the future supply mix now disparagingly needed for Nigeria, without which future sustainable economic growth and development will be a mirage,” he said.

    Omole spoke in Lagos at the inauguration of the off-grid solar power solutions for Micro, Small and Medium Scale Enterprises (MSMEs) by Tellco Europe and its Nigerian partner.

    “It is sad to note that, significant amount of the economy is continually powered largely by small-scale generators (10–15 GW) and more than 50 per cent of Nigeria’s population have limited or no access to the grid.

    “Most citizens of this country, power their businesses and homes, depending on fossil fuel at a frightening cost of nearly $14 billion or N5 trillion yearly, with added negative public health and other socio-economic hazards!” he said.

    According to Omole, the Rural Electrification Agency (REA), had acknowledged the need for the development of robust off-grid alternatives to complement the grid network.

    “Tellco Europe Nigeria is unveiling our strategic roadmap  for up-scaling the powering of MSMEs – the engine room of economic transformative growth and development, beyond the 30 per cent scenario, through our well-tested  off-grid solutions that are programmed to unlock a never yet seen scale of massive powering of this sector in a most efficient, affordable (pocket friendly) and sustainable manner,” he said.

    Co-Founder TellcoSol Switzerland Dr Omar Fischer said the solar power units were affordable, and were designed to empower the local communities.

    He said the international partners were open to building an assembly plant in Nigeria and in transferring the technology.

    According to him, the project would not only create jobs as installation and maintenance of the units would be done by Nigerians, but would end energy poverty.

    Chairman of Catch Energy, David Collett, one of the partners, said the system’s batteries and solar panels could last for 10 years or more.

    Managing Director of Tellco Europe Nigeria Dr Victor Fodeke said with about 100 million Nigerians and 80 per cent of schools in darkness, there was the need for an efficient alternative source of energy, which he said Tellco Europe Nigeria provides .

    He said the technology would help eliminate global warming and improve Nigerians’ health.

    “Where power is lacking, development takes the back stage. With Tellco Europe and Tellco Europe Nigeria, Nigeria is telling the world that Africa is ending energy poverty,” he said.

    He said solar powered energy systems were not being well used in Nigeria because of the poor quality of available products.

    “We’re blazing the trail with the right technology that is affordable and pocket-friendly. You’re going to see the lighting up of Africa, which will no longer be referred to as the dark continent,” he said.

  • Why most Nigerians are not using solar power

    Why most Nigerians are not using solar power

    The usage of solar energy is one topic that excites Nigerians now, though majorities see it as a mirage because of the cost. The reason why some discerning Nigerians are interested in it, of course, is not farfetched. Successive governments have failed woefully with regards to the provision of regular electricity.

    Interestingly, the country has abundant supply of sunshine. On the average, Nigeria has at least eight hours of sunshine which is the major raw material for an effective solar system.

    Still only very few homes and offices use solar energy. From the look of it, it seems a rich man’s game. Though apart from the cost majority of the people do not even have good knowledge of it.

    According to a certified solar designer with the giant Solar Wise Nigeria Limited, “As a certified solar designer I am more interested in applying this technology in Nigeria with an abundance of sunlight which is necessarily the major raw material or component for an effective solar system. With my little research in Nigeria I have found out that there are lots of factors mitigating against the effectiveness of this more effective and durable form of power supply in Nigeria.”

    As the official of the solar company observed, there is lack of proper knowledge of this old technology in Nigeria which is being used by other countries with less sunlight which is the fundamental raw material.

    “Besides, just like every other sectors in Nigeria there is not enough will/intentions by the government to propagate and invest in this technology,” he regrettably pointed out.

    Pressed further, he said, “There is also a misinformation from the so called solar distributors/companies in Nigeria. In this regard, let me state here that, solar energy though it is affordable it is not cheap, though there are lots of research going on to manufacture cheaper solar panels which is the most expensive component in a solar system.”

    Elucidating further, the solar designer stated that “Moreover solar energy for home use cannot be used to directly substitute your grid electricity like using it for all your home and outdoor appliances or equipment like your electric stoves, pressing irons, air-conditions, gym equipment etcetera for 24hours, though if you are ready to spend millions and a large space for your panels it is achievable. But an average home systems for four-five hours is affordable and very effective.”

    In essence the purpose of solar energy is to provide an alternative and long term cost effective source of power for homes compare to your generators, and for areas where the national electricity grid is unable to reach. And most importantly to save our environment as it has a zero effect on the environment unlike your fossil fuels and other carbon source.

    However, Mr. Gabriel Okafor, a solar power engineer with the Solar company Dieu Point Device Company Ltd, while agreeing that the cost may be part of the reason solar usage is not common in Nigeria, however said that the main reason is lack of knowledge and awareness.

    “When you consider the cost of fuel, diesel, pollution and other problems associated with generators, you will realise that in the long run that solar energy is far cheaper,” he asserted.

    “One can have a solar system installed for as low as N100,000 while you can have one that runs into millions of naira. The main determinate of the cost is the load you want the solar system to carry,” he added.

    Explaining further, Okafor said that N150,000 can guarantee solar power for a consumer in one or two room apartment who uses, four energy or direct contact [DC] bulbs, two DC fans, one DC television. At that price the consumer can have an uninterrupted supply of light all year round.

    “With about N800,000.00, a house with four bedrooms, two sitting rooms that uses any kind of light bulbs, laptops, big LCD television, fans, DC pressing iron, charges phones, will enjoy continual supply of light,” he further clarified.

    Expatiating, he said that the N800,000 will be used to buy 1,000  watts solar panel, 2,000  watts inverter, two deep cycle battery, solar rack, Accessories for the installation, accessories for the separation/distribution and labour cost.

    “If the consumer wants to use more electrical gadgets like freezer etcetera she will have to invest in more solar panels, increase the battery and inverter size etcetera. So the cost actually depends on what you want,” he noted.

    On whether consumers in rented houses or apartments can use solar power, Mr. Okafor stressed that “the system can be installed in any house or compound or even in just a one room apartment as it can not disturb or interfere with other people. It can be installed for just a tenant living in the midst of other tenants in a compound.”

    On how users may maximise solar power after installation, he advised them to imbibe the habit of using energy bulbs and DC electronics in order to conserve energy and extend the life span of the battery and the Inverter.

    “Users should also be watchful not to overload or underload the system as that can affect the battery adversely” he cautioned.

    Lumos, a company incorporated in the Netherlands in partnership with the giant telecommunication company MTN, has demonstrated that solar plus storage can be deployed in a low income developing economy.

    According to the information posted on their website, within a couple of years, it has sold 20,000 units and 300-400,000 units last year alone.

    Investigations reveal that the major reason while majority of consumers are still living in the dark is lack of knowledge about the cost of solar power and how it works. So solar companies and distributors you need to create more awareness and enlighten consumers.

    People spend millions on generators. Many consumers live in the dark while they park several exotic cars in their compound.

  • KWASU, UK firm sign $150m solar power pact

    The Kwara State University (KWASU), Malete, has entered into partnership with United Kingdom based firm, African Growth and Energy Solutions Company to generate 100 megawatts of electricity through solar energy.

    The partnership which is expected to cost a sum of $150 million would be implemented under the Independent Power Project (IPP) scheme.

    Speaking while signing the memorandum of understanding (MoU) between KWASU and African Growth and Energy Solutions Company, the company’s Project Director, Rolston Dawkins, counseled the Federal Government to create mini grids for Nigeria to overcome its electricity supply crisis.

    Dawkins said that the partnership has many hurdles to cross, adding that “we will not see them as challenges but opportunities.”

    He noted that his company would train and upscale those that would “maintain what we have put on ground.”

    Earlier, KWASU Vice Chancellor, Prof Abdulrasheed Na’Allah, said that alternative energy was the way out of the current epileptic electricity supply in the country.

    He said: “We know quite well that if Nigeria can resolve its energy crisis the country will hit the ground running. Nigeria is the only country that has underutilized its energy potential, yet it has the highest concentration of sun energy power.

    “The university that is worth its salt must regularly address the problems its country. We have signed a partnership agreement to explore a relationship. We have also started consultation and everybody we consulted gave us his support. We are also aiming at establishing a research partnership.

    “Research will be geared towards storage and we will lay emphasis on local resources in place of imported technology. The joint partnership will embark aggressively in sourcing for grants. We are looking to occupy 500 hectares of land both in Malete here and Ilorin, the state capital.

    “We are fully aware of the challenges out there, but we don’t want to be held back by those challenges.”

     

  • Firm to boost solar power generation with N715b

    Firm to boost solar power generation with N715b

    SOLA Nigeria has set machinery in motion to boost solar power energy generation across the country with 13million pounds (about N715b), The Nation has gathered.

    The fund is to help reputable companies involved in the production of solar energy in Nigeria.

    Giving this hint at the weekend was the Programme Coordinator of SN, Mrs. Ifunanya Nwandu. She spoke at a renewable energy forum organised by “Power for ALL” in Abuja.

    Solar Nigeria is a Department for International Development (DFID) funded programme which began in 2014.

    The programme was designed to end in 2020 with the mandate to provide grants and technical assistance to companies involved in providing household solar technologies.

    Nwandu said that the grant would help strong companies to accelerate their expansion to provide solar energy for 25 million Nigerians.

    According to her, SN has also improved energy access for over 1.5 million people since it commenced operation in 2014.

    She said that the organisation had been involved in delivering clean, reliable and affordable solar energy to Nigerians.

    She said this was possible by accelerating the private markets for off-grid solar solutions.

    According to her, the SN programme had also earlier provided 38 .3 million pounds to Kaduna and Lagos state governments for various developmental projects.

    She said part of the projects had resulted in the construction of 175 schools and 11 clinics in Lagos and 34 primary health clinics in Kaduna with solar installations.

    She said that the combined projects in both states had resulted in the provision of 6MW of solar power.

    According to her, in 2016, more than 166,000 solar systems were acquired on commercial terms by individual consumers from companies who benefited from the grants provided by SN.

    She said that SN was also helping to demonstrate how solar systems could be technically viable to drive growth in the private sector solar market

    Nwandu said SN was committed to collaborating with the federal government and state governments to improve renewable energy to health and education facilities, particularly in the northern part of Nigeria.

    In a related development, the federal government has hinted of plans to partner with relevant organisations to workout modalities for the provision of alternative sources of energy and improved wood stoves for the rural population.

    Dr Shehu Ahmed, the Permanent Secretary, Federal Ministry of Environment, made this known in an interview with the weekend in Abuja.

    “We need to increase the use of cooking gas, liquefied natural gas, while increasing plantation of woodlots in communities or individual farms and avoiding indiscriminate bush burning,” he said.

    According to him, government has put in place some strategies to keep the forest safe.

    This, he said included control of wood exports to ensure forest conservation, engagement of wood-based industries in reforestation and afforestation, enhancing conversion efficiency and increasing value additions for processed wood before exportation.

    He, however, said that stakeholders needed to do their bits to ensure the stoppage of deforestation.

    “We all need to plan and protect our forests everywhere and anywhere, and continue to raise awareness on the need for sustainable preservation of our forests for the future generation,” he said.

    Ahmed said that the federal government would intensify environmental education in schools and roll out new public awareness programmes on forest conservation and community participation.

    “Awareness creation on the importance of forest to sustainable development is very critical and that is why we want to catch them young.

    “This will also highlight the impact and consequences of human activities on the forests and socio-economic development as well as mobilise all stakeholders against deforestation.

  • Solar power

    Solar power

    •Time to take advantage of innovation for nation’s development

    Cheery news is coming the way of rural Nigeria about deployment of solar energy in off-grid communities. Last week, Acting President Yemi Osinbajo launched a government initiative to close the gap in access to power in rural communities in Abuja. According to the acting president, the initiative, with an immediate goal of providing 20,000 off-grid homes with solar power is designed to be a nation-wide project in the long-run.
    The initiative could not have come at a better time. Any attempt to provide solar power in off-grid communities is long overdue. Equally long overdue are initiatives to reduce the agony of urban communities connected to the central grid that has transferred its function to generators. It is logical for a government elected on the platform of change to think anew about bringing solution to over 170 million people who live in darkness occasionally punctuated by brief moments of light.
    While we find the policy to provide 20,000 homes with solar power to be on the right track, the new thinking requires a comprehensive review of the country’s energy policy. Just as it is important to connect off-grid homes to solar power, so is it necessary for governments to create a comprehensive policy to solve the problem of inefficient power supply to over 100 million citizens supposedly connected to a grid that constantly carries little or no power. To put the matter bluntly, government needs to come to grips with the fact that all of Nigeria is practically off-grid.
    The country’s power crisis has gone beyond ad hoc solutions. There is a need for a strategic plan to address the country’s gross under-development by decades of failure of a workable energy policy. Failure of state-owned utilities to provide power led to privatisation of the power sector. Experience of customers has been more of change of names than of methods and outcomes. While solar photovoltaic (PV) can address off-grid homes if it is approached with sincere commitment, there are other forms of solar power technology that can also reduce the pain of urban homes, offices and factories that are currently served by an inefficient grid and an erratic energy privatisation regime.
    For example, the technology for Concentrated Solar Thermal Power (CSP) has advanced in many countries to the point of competing with fossil fuel energy source. CSP technology in North America has the capacity to provide four times United States’ annual electricity demand, with the possibility of becoming cheaper once the use of non-toxic magnesium chloride (sea-water salt) replaces toxic cadmium chloride.
    In short, innovations in other parts of the world now show more promise of a global energy revolution through renewable energy. Government needs to develop a clear policy framework to let Nigerians, regardless of where they reside, have access to alternative sources of power. Solar energy is no longer just a back-up device to other traditional energy sources in many countries. Consequently, government must create policies that support multiple sources of electricity and further decentralisation of the energy landscape.
    The new solar power policy should include provision of subsidies to those who opt to be joined to a pay-as-you-go system, rather than a power donation scheme to selected villages. This is how to make the programme sustainable and lead to a new business model in the power sector. A new power policy must also include stimulation of companies to provide CSP, such as some northern states are already negotiating with GE. Buildings should be designed to accommodate solar heating/air-conditioning roof systems, such as exists in South Africa, China, and other places. And CSP companies need to be stimulated as stand-alone utilities to compete with other companies that produce and distribute power.
    In addition, the government needs to plan to become a solar technology research and manufacturing centre, like India, Brazil, Germany, Japan, USA, etc. Provision of renewable energy to complement and compete with traditional sources is long overdue, especially in a country with abundance of sunshine, wind, ocean waves and over five renewable energy research institutes. There is need for a policy to make Nsigeria join the ranks of renewable power innovators, for energy security, wealth and job creation, and mitigation of negative climate change.

  • IFC, others plan solar power for SMEs

    Thousands of Small and Medium Enterprises (SMEs) in Nigeria would benefit from solar energy programme being put together by the International Finance Corporation (IFC), the Department for International Development (DFID) and local financial institutions.

    The Country Manager, IFC, Eme Essien Lore, in an interview with The Nation in Lagos, said the IFC was partnering DFID and banks in Nigeria to achieve this goal.

    She said IFC through its off-grid and embedded solar market development and finance programme, would provide solar power to willing SME owners.

    She added that the programme ensures that IFC, the Department for International Department (DFID), and banks in Nigeria partnered to provide technical and financial support for owners of SMEs that are interested in accessing solar power for operation.

    According to her, the banks, through their Energy or Oil and Gas units, would disburse loans to SMEs, in order that they could  access solar electricity for their operation.

    She told The Nation that some selected local financial institutions would be used by the IFC to provide technical and monetary supports to owners of small and medium scale enterprises in the country, adding that the Corporation was undertaking the programme for SMEs owners because it was cheaper and easy to install when compared with coal, biomass, wind and other renewable energy sources.

    Lore said IFC was working with the Department for International Development to improve access to electricity and further contribute to the growth of the Nigerian economy.

    “IFC plans are to provide thousands of SMEs with solar energy, improve economies and create employment opportunities in Nigeria and Africa in the next 10 years. We intend to make use of the abundant Sun light in Africa to achieve our goal of providing off-grid electricity through solar energy. IFC has provided about $3.5billion for renewable energy projects such as biomass, hydro, solar and wind, globally and wants to do more.

    “Through solar energy, people produce electricity they need and reduce transmission losses to a great extent. In the grid method of power generation electricity there are huge transmission losses due to weak facilities and to avert the losses, a lot of money and expertise are required.”

    Also, the DFID’s representative in Nigeria, Ben Mellor, said the government of United Kingdom (UK) was interested in improving off-grid electricity in Nigeria to promote growth. He said off-grid electricity serves as a viable option to meet the needs of people in the low income segment of the economy, stressing that solar and other off-grid electricity would help in improving businesses in such areas when deployed.

    “Access to energy is one of the most critical needs in Africa and particularly Nigeria. Based on this, the UK Department for International Development is determined to assist in bringing solar technology financing solutions to smaller businesses and corporates and we are working with IFC to achieve this goal,” he said.

  • Nuclear power not safe for Nigeria – Sen. Shehu Sani

    Nuclear power not safe for Nigeria – Sen. Shehu Sani

    Senator representing Kaduna Central senatorial district, Senator Shehu Sani has Tuesday criticize attempt by the Federal Government to invest in Nuclear power in the country saying it is not safe for the nation.

    Senator Sani who said 2 billion naira has been allocated for the construction of nuclear station in the 2016 budget, expressed fears that Nigeria as a country is not ready for the nuclear  power.

    Speaking while flagging-off distribution of Solar Power energy and transformers to Hundred communities within the Kaduna Central Senatorial zone, Senator Sani said instead the Federal Government should invest in renewal solar energy rather than nuclear power which he said comes with a lot of dangers.

    According to him, “Nuclear power station is not like what happens, when militants break pipelines and the next day it is repaired.

    “If we are to install nuclear station, we should know that it comes with a lot of consequences.

    “Nuclear station is not NNPC depot or pipeline, where you can damage it and fix it immediately and continue operations.

    He however warned, “We have seen the danger of nuclear power station in Japan and Russia, so, we must be very careful.”

    While emphasising that renewable energy is the future of energy, the lawmaker who is also, the Chairman Senate Committee on Foreign and Domestic Debts said Nigeria as a country must take the issue of power very seriously.

    He further stated, ” If we are serious about developing our country and serious about diversifying our economy, we must take the issue of electricity very seriously, understanding that without electricity ,we cannot develop and move to  the promise land of our dream.

    According to him, all industrialised nations of the world addressed the problem of electricity first, before other development issues.

    He recalled that in the last sixteen years, successive governments have spent over 25 billion dollars in the name of power generation and distribution and it has not solved the problem.

    He also stressed, “Even privatisation of electricity and distribution companies is still unable to address the problem . How long will our people continue to be in the dark?”

    ” Electricity distribution companies must live to the expectation of our people. If the essence of privatising generation and distribution is to improve service, it has not yielded results because, everyday, power distribution is moving from bad to worst.

    “We have seen ECN, NEPA PHCN and now have the GENCOS AND DISCOS, yet our people are in the dark. For how should this continue?

    While stressing that APC as the ruling party is committed to change, he said the elected leaders must be seen to be seriously committed to that ambition of change.

    Meanwhile, he said as an elected leader, he took it  as a responsibility to facilitate the provision of electricity  to 100 communities within the seven local government areas in his senatorial constituency .

    Explaining that it is not a project that is starting today, he said “In the last 8 months, we have been able successfully intervene in facilitating the provision of electricity to communities with the seven local government which I represent.

    ” Electricity is an indispensable source for socio-economic development of our society.  it an indispensible medium for the industrialisation of our country, we cannot build an economic and viable nation without providing power to our communities .”

    The lawmaker also lamented, “It is unfortunate that over 5 decades after independence, Nigeria is still hovering within 2 to 3 thousand megawatts of electricity.

    ” A nation like South Africa has electricity power generation of over 40 thousand megawatts, a coutry like Pakistan has over 60 thousand megawatts, we cannot achieve our, industrial, economic ambition without electricity.

    “Electricity is life, electricity is industry, electricity is commerce, electricity is humanity.

    “We have seen over the past few months how our power fortune has plummeted to certain level, even up to zero. This is serious issue that we must take very serious.

    “Our people have suffered enough and there is need for all hands to be on deck to get this issue of electricity right

    “As a senator representing Kaduna central, I consider it a personal duty and responsibility to do everything possible to intervene in giving support for the provision of electricity to our people.”

    He reiterated, “I have taken it upon myself to provide solar power to 100 communities within my constituency and I have started a pilot project by providing solar power for Saint Gerald’s Catholic Hospital, done over a month ago.”

    He further said, “I  have a request of over 320 transformers and this is not something a senator can do, but promised  to attempt to do it .

    “Our performance in office is not going to be scored by the social media, but the masses on ground, who bear the brunt of hardship.

    ” It is only the views of the masses that is most objective view about anybody in office.

    “This project is not new as I have provided transformers for several communities, but what is new is that I am introducing solar renewable aspect of energy to our communities.  I am now taking a journey towards librating my people from the blackmail of power generation and supply.

    ” By bringing power to my people, I am empowering my people.”

    However, he called on each elected representative of the people to tow the same line. Noting,” We would not be scored by what we say while in office, but what we do about education, agriculture, health, agriculture  and power generation .

    “But without power there will be no health, education, agriculture and others, which are very strong instrument for empowering the people,” Senator Shehu Sani added.

     

  • Gombe community gets BoI, UNDP solar power

    The Bank of Industry (BoI)  in partnership with United Nations Development Fund, (UNDP) has provided electricity for over 200 homes through  the national grid in Gombe State.

    Its Acting Managing Director,   Waheed Olagunju said the N44million rural electrification project is being financed by the bank and the UNDP.

    Speaking during the commissioning of the project in Kolwa, a rural community in the state,  said the rural electrification project was conceived by the bank not only to improve the living standards of rural dwellers, but also to boost economic activities in the areas.

  • Osinbajo to inaugurate solar power grid

    Osinbajo to inaugurate solar power grid

    Vice President Yemi Osinbajo will inaugurate a 24 KW PV solar-based mini-grid project in Bisanti Village in Niger State. It is the brainchild ofGreen Village Electricity (GVE) Projects Ltd and Community Energy Africa.The inauguration is slated for next Tuesday.

    A statement on the project reads: “ In July 2015, GVE Ltd in collaboration with the Bank of Industry (BOI)/ United Nations Development Program (UNDP) and the Institute of Electrical Electronics (IEEE) announced the implementation of a 24kW PV solar based mini-grid pilot project. The project was aimed at field-testing and commercial viability of adopting renewable energy for off-grid rural electrification. The project created 60 direct jobs during the course of implementation while creating an estimated N2.75million ($13,000.00) in wealth in the beneficiary community through construction, survey, labour and other related expenditure.

    The project is estimated to offsets about 365.2 metric tons of CO2 annually in the community thereby preserving the natural environment while enhancing the living standard of the inhabitants.

    “This project has led to the transfer of knowledge by training locals to oversee the daily operation of the site (post-implementation). The project currently serves 200 households (i.e. 1,600 people at 8 persons per household).

    “The project with a total cost of $250,000 was financed 90 per cent by Bank of Industry Nigeria through equity and debt financing and a 10 per cent Grant support from the IEEE. The initiative has a very sound financial model based on a pay-as-you go system and is very reliable yet extremely affordable to the low income rural dwellers.”

    “Our Consortium, Community Energy Africa, is looking forward to introducing Community Share Ownership into the mix in order to promote local equity and local ownership of energy projects. For infrastructure of this nature, the security of the asset and guaranteed market for the energy generated are sine qua non for success. We are working assiduously  to promote Community Share Schemes for our projects which will lead to shared prosperity and security of asset in our ever increasingly unequal world. Our mission is also to target underserved communities who will probably not have access to electricity from the national grid within next decade. The pay-as-you-go strategy has been put to use in Egbeke community in Rivers State by GVE and it has proven to be a commercially sound model since its adoption nearly three years ago.”

     

  • World Bank launches initiative to promote solar power

    The Word Bank Group has launched the ‘Scaling Solar’ initiative to help create a viable market for solar power projects in Africa and increase supply of energy for millions across the continent.

    In a statement by Ejura Audu, Africa Communications, International Finance Corporation (IFC) Nigeria, an arm of the World Bank, said the World Bank Group, announced the launch of Scaling Solar at the Powering Africa Summit in Washington DC, a gathering of African ministries, utility companies and the international power community to discuss progress and initiatives to increase access to energy across Africa.

    Scaling Solar aims to create a viable market for private solar power projects in Africa that will help governments increase the supply of energy for millions of residential and commercial consumers across the continent. Scaling Solar reduces the development time and uncertainty for bidders and investors, while lowering tariffs for utilities, which ultimately benefits consumers.

    “The World Bank Group is committed to promoting sustainable universal access to modern energy in Africa, and Scaling Solar is a key step towards attaining this goal,” said Jean Philippe Prosper, IFC Vice President for Global Client Services. “By quickly delivering affordable electricity to previously unreached populations, significant progress can be made on other development goals,” he added.

    Africa has some of the world’s most abundant solar resources, yet more than a third of the population lives without electricity. Investors developing private solar projects in Africa are often deterred by a variety of obstacles, including the unique features and structures of the different markets, high transaction costs, heavily negotiated agreements, and high perceived risk and cost of capital. As a result, the region continues to struggle with slow, relatively expensive and ineffective solar development, which impedes access to electricity, the World Bank Group said.

    The World Bank said that large-scale photovoltaic solar power can be quickly and economically developed to increase the supply of electricity to national grids and improve the reliability of power services for households and businesses.

    Scaling Solar provides a straightforward package to help countries determine the size and location of projects, then auction them competitively to developers. The initiative combines World Bank guarantees, Multilateral Investment Guarantee Agency, (MIGA’s) investment guarantees, and IFC financing to mobilize privately funded solar projects that are connected to the grid.  A simplified process and suite of contract templates significantly speeds this process to enable initial electricity production to begin within two years of initiating an engagement.

    “The countries we work with in Africa to support the development of solar energy look to the World Bank Group for our full suite of services – from technical knowledge and innovation to guarantees and financing,” said Anita Marangoly George, World Bank Senior Director for the Energy and Extractives Global Practice. “Through Scaling Solar, we are able to respond nimbly and effectively to this growing area of demand.”

    Scaling Solar builds on the World Bank Group’s experience in promoting small and larger-scale solar power development in emerging economies around the world and on South Africa’s successful Renewable Energy Independent Power Producer Programme (REIPP). Scaling Solar will lower the cost of solar by helping governments to procure solar power competitively and enhance the provision of sustainable energy in Africa.

    “This initiative offers a framework that allows countries to rapidly and efficiently mobilize private capital into solar projects with high development impact without having to start from scratch,” added Edith P. Quintrell, MIGA’s Director of Operations.