GEAPP, CHD Mobilise $50M to Boost Renewable Energy in Nigeria

Gilbert Ekwugbe

The Global Energy Alliance for People and Planet (GEAPP) in collaboration with Nigerian investment firm, Chapel Hill Denham (CHD), has established a new local currency subordinated debt vehicle: the Energy Transition & Access Facility for Africa (ETAFA).

ETAFA is an innovative financing initiative, which will enable the deployment of $50 million to support distributed renewable energy projects in Nigeria.

In a statement, GEAPP said it will contribute an initial $10 million and an additional $40 million from the Chapel Hill Denham Nigeria Infrastructure Debt Fund. 

“ETAFA’s financing is structured as a Naira-denominated, low-cost long-term financing, which will directly contribute towards making DRE solutions more affordable, particularly for lower income consumers, “it stated.

DRE is acknowledged to be the fastest and most cost-effective solution to accelerate clean electricity access to the African continent. While Nigeria is well positioned to reap the benefits of DRE, the lack of subordinated capital and local currency financing for developers is hampering the DRE sector’s growth.

“We welcome this support from GEAPP which will help Chapel Hill Denham with two of its strategic priorities,” CEO of Chapel Hill Denham, Bolaji Balogun, said;  “Reducing the number of Nigerians without any access to electricity; and accelerating the adoption of renewable sources of energy.  With partnerships with global institutions such as GEAPP, CHD seeks to mobilise up to $1 billion for clean energy projects in Nigeria and Africa by 2030. It is also targeting to reduce the number of people without access to modern energy in Nigeria and Africa by half in the same timeframe.”

“Renewable energy development is paramount for Nigeria to transition to clean energy and meet critical climate goals, while powering economic and social development. “GEAPP’s partnership with CHD aims to tackle the barriers to Nigeria’s clean energy transition by providing the de-risking capital needed to stimulate the financing of projects that bring clean electricity to, and promote the economic development and sustainable livelihoods of, underserved communities, ” said Stefanie Fairholme, GEAPP’s Head of Investments.