REA, Mini-grid Developers Seal Deal to Ramp Up Small-scale Power Generation Nationwide

Emmanuel Addeh in Abuja

The Rural Electrification Agency (REA) yesterday signed a Memorandum of Understanding (MoU) with the Africa Mini-grids Developers Association (AMDA) to accelerate the development of small-scale electricity in parts of the country.

The implementation of the agreement, the parties said, will focus on knowledge sharing, capacity building and better coordination of the sector in Nigeria.

The REA is the implementing agency of the federal government of Nigeria tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians.

On the other hand, AMDA an industry association created by private sector mini-grid developers and operators, donors, and investors, has 43 member companies operating in 20 countries in Africa. The companies have a combined portfolio of around 600 mini-grids.

Speaking at the event in Abuja, the Managing Director of the REA, Mr Ahmed Salihijo, said the partnership involving the public and private entities underscored the importance of decentralising renewable energy to power the lives and livelihoods of those living in unserved and underserved areas.

“The importance of this collaboration cannot be overstated. This country has a population of over 200 million people and the use of mini-grids can be a very good solution to power Nigerians across all communities.

“Therefore, this MoU does signify a very big commitment both from ourselves and from AMDA for the sustainability of the mini-grid sector. We have realised more and more that government alone cannot achieve the herculean task of electrifying every Nigerian in the country.

“Together, we can promote renewable energy sources. We will also work with you to create policies where we can support these goals, facilitate research and provide everyone with access to affordable and clean energy,” he stated.

Salihijo stressed that the mission of both organisations goes beyond electrification, noting that it also involves the lives and the people of Nigeria.He maintained that the deal will come with clear deliverables and actions that will add value to the sector.

The MoU, the MD said, will further aid the accelerated deployment of mini-grids and provide clean, sustainable, and affordable electricity to more Nigerians.

Also speaking, the chief executive of AMDA, Mr. Olamide Niyi-Afuye,  emphasised the dedication of the organisation to collaborating with REA in nurturing the mini-grid sector in Nigeria.

“Mini-grids have the potential to transform the lives of millions of Nigerians, and this partnership is a step in the right direction. AMDA is committed to working with all stakeholders to create an enabling environment for the minigrid sector to scale and achieve sustainability, ” he said.

He added: “In AMDA, we believe in data. We need about 160,000 mini-grids (in Sub-Saharan Africa) and I think Nigeria is about 25 per cent of that. So we’re talking 40,000 mini-grids we need to be deployed in the next seven years for us to fully achieve our goals .

“So these kinds of collaborations are not just for the show, they actually should be bringing more solutions, more ideas, and we believe that the REA is more than well equipped to achieve this audacious mission,” he explained.

According to him, the MoU will set clear performance indices for the sector and support good developers to scale up financially.

An impact-focused collaboration, the REA-AMDA MoU signifies a significant milestone in the development of mini-grids across Nigeria, the REA stated.

“It equally exemplifies the unified efforts between the public and private sectors working in lockstep towards the common goal of providing clean, reliable, safe, and affordable electricity for all.

“Nigeria has one the largest mini-grid markets in Africa, with over 100 mini-grids currently in operation, but due to the energy access gap in the country, there is still a significant need for more decentralised energy interventions to bridge the energy deficit.

“With a partnership now sealed through an MoU, the REA and AMDA will collaborate on a non-exclusive basis to further advance access to sustainable electricity for Nigerians and other African countries through mini-grids and decentralised utilities, and ultimately achieve universal access to energy by the year 2030.

“While improving data-driven decision-making and industry knowledge in the off-grid space, the MoU is targeted at promoting sustainable energy access for unserved and underserved communities through private sector development and financing, which will ultimately enhance policies/regulations and rapid deployment of renewable energy technologies,” a statement later released by the REA said.