REA Engages Potential Investors to Pitch for N140bn Solar Power Naija Scheme
Emmanuel Addeh in Abuja
The Rural Electrification Agency (REA) yesterday engaged would-be investors in a match-making fair for the N140 billion Solar Power Naija (SPN) scheme meant to power 5 million Nigerian households.
The organisation is tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians.
The fair, the REA said, was to provide the opportunity for potential investors to pitch their financial offerings to developers, clearly stating the selection criteria and key terms.
Speaking during the event, the Managing Director and Chief Executive of the organisation, Ahmad Salihijo, said such partnerships will boost energy access in communities.
“As the implementing agency for Nigeria’s off-grid strategy, the REA has been working to support private developers by creating an enabling environment to facilitate investments in various ways.
“These include access to data, policy support, grants, capacity development, stakeholder management, and most importantly financing for developers,” Salihijo said.
He stated that the event provides a networking and matchmaking forum that brings together key investors and high-performing developers that are pre-evaluated by the SPN team in the power sector.
The event was organised in collaboration with the Power Africa Nigeria Power Sector Programme (PA-NPSP, USAID)
Solar Power Naija programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar connections in off grid communities.
This programme is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.
The objectives of the programme is to expand energy access to 25 million individuals, 5 million new connections, through the provision of Solar Home Systems (SHS) or connection to a mini grid, increase local content in the off grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and incentivize the creation of 250,000 new jobs in the energy sector.
In his remarks, the Acting Deputy Missions Director, USAID Nigeria, Stephan Menard, encouraged the private developers to take advantage in accessing financing towards improving the lives of Nigerians by delivering sustainable energy access.
He said the US government through Power Africa has supported Nigeria on 3.6 million on-grid and off-grid connections and supported the development of over 1,000 megawatts while providing training for about 4,000 persons just as Nigeria still has 85 million people without access to electricity.
Menard said the Nigerian offg-rid market was worth N9.2 billion as he called for more investors’ interest in the country.
The Head, Solar Power Naija Programme, Barbara Izilien, stated that it was important to build quick partnerships that would lead to new connections and further count towards the target of electrifying a minimum of 5 million households and serving a minimum of 25 million Nigerians.
Izilein added that the first investor match-making event is expected to help participants build swift partnerships towards realising the objective of realising the 5 million connections.
“We hope with this approach, we will be able to build quick partnerships that would lead to new connections and further count towards our target of electrifying a minimum of 5 million households, serving a minimum of 25 million Nigerians,” she noted.
Also speaking, the Director, Investments and Power Sector Development in the Federal Ministry of Power, Mrs E.O. Babalola, said the country will require an investment of $3.5 billion annually in power generation to achieve electricity goals by 2030, urging investors to key into the scheme.
The event also witnessed the signing of a Memorandum of Understanding (MoU) between the REA and Chapel Hill Denham to facilitate financing to developers for off-grid electrification projects.
