Nigeria’s renewable energy push gets fresh $5m investment

The move to tackle inadequate supply of electricity in Nigeria through adoption of renewable energy has received a fresh boost with a $5 million investment that is expected to benefit about 41,000 beneficiaries nationwide.

The Federal Government has adopted a shift towards clean, renewable energy through increased investments in solar energy as an alternative source of electricity.

According to the Federal Government’s Energy Transition and Investment Plans, ETIP, Nigeria’s shift to domestic renewables is projected to generate USD 686.8 billion in fuel cost savings by 2060. However, the projection depends on infrastructure delivery as Nigeria’s ETIP targets 277 GW of total installed capacity and over 104,000 mini-grids by 2030.

The fresh $5 million investment was made in ongoing projects by PowerGen Renewable Energy Nigeria Limited (PowerGen) by renewable energy organisation, All On. PowerGen undertakes renewable energy and distribution utility projects to deliver clean, reliable and affordable power for Nigerians.

The $5 million investment is to support the development of isolated and interconnected mini-grid projects serving households as well as commercial and industrial customers across Nigeria.

The investment will enable the expansion of deployment of renewable energy infrastructure for communities with limited or unreliable access to electricity, according to the Chief Executive Officer of All On, Caroline Eboumbou.

Eboumbou said the investment is backed by capital raised by WindGen Power USA Inc., ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa (SEFA) and InfraCo.

She added that, in line with the clean energy push, PowerGen has embarked on development of interconnected renewable energy infrastructure, including the Toto Community Mini Grid Project in Nasarawa State, Nigeria’s first interconnected hybrid solar mini-grid.

The $5 million investment is expected to support up to 6,000 electricity connections and reach an estimated 41,000 beneficiaries, alongside up to 9 MW of generation capacity and 17 MW + MWh of combined energy impact.

The projects are also expected to contribute to the creation of approximately 470 jobs across the communities and businesses served.

Eboumbou noted that the investment would create “the conditions for more businesses and communities to participate in Nigeria’s economic growth”.

The investment would see the replication of the Toto Community Mini Grid Project in Nasarawa State in other parts of Nigeria, according to Oluseye Bassir, Investment Manager at All On.

It would be recalled that All On recently launched the Innovation Ecosystem Development Programme, aimed at providing support for clean energy startups and entrepreneurs in Nigeria.

Eboumbou explained that the Innovation Ecosystem Development Programme, funded by the United Nations affiliated Global Energy Alliance for People and Planet, would address a critical gap in Nigeria’s clean energy ecosystem by providing the technical and infrastructural support needed by promising ventures at the ideation and prototype development stage.

Meanwhile, as part of the move to adopt clean energy alternatives, the Federal Government has established a Renewable Asset Management Company, RAMCO. The company aims to mobilize about N3 trillion into Nigeria’s renewable energy sector.

Nigeria’s renewable energy push gets fresh $5m investment