FG signs grant agreement with seven renewable energy Investors.
Last Friday, the Federal Government of Nigeria signed a grant agreement with seven renewable energy investors to help improve access to electricity through renewable energy. The implementation agency and representative of the Federal Government, Rural Electrification Agency (REA), was on hand to sign this agreement.
The agreement signing, which held in Sheraton hotel, Abuja, was witnessed by key players in the power industry and international donor’s representatives. This agreement is a function of the World Bank Funded Nigeria Electrification Project (NEP) and is said to help provide solar home systems (SHS) and mini-grids to communities, businesses, and homes.
The agreement is in two parts: Performance-Based Grant (PBG) and Output-Based Fund (OBF). The PGB is specifically for the implementation of mini-grids in the underserved and unserved populace of Nigeria while the OBF is meant to provide Solar Home System (SHS) to various businesses and homes in the country.
Having gone through rigorous selection processes, six companies were signed to the OBF. The six companies are ASOLAR Systems Nigeria Limited, Smart Grid International, Greenlight Planet, A4&T Integrated Service Limited, Solar Energy by D. light Limited, Txtlight Power Solutions Limited (Lumos Nigeria). These companies will be at the forefront of ensuring the provision of Solar Home systems to households and businesses across the country.
The Power Renewable Energy company was also signed to the PBG. This will see its partnership between REA help implement mini-grids in Rokota community of Niger state. The mini-grid is planned to provide electricity to thousands of homes and businesses in the community.
The Managing Director of REA, Mrs. Damilola Ogunbiyi, expressed her appreciation to the World Bank and African Development Bank (ADB) for their efforts in helping improve electricity access in Nigeria. “REA, in collaboration with the Federal Government, has secured funds from the World Bank ($350m) and ADB ($200m). These funds will go a long way in helping us connect communities, schools, and homes to constant electricity”, she remarked.
She also expressed optimism over the commitment of the Nigeria government to improve access to electricity in the country.
In the course of appreciating REA and the World Bank for the opportunity to help provide electricity to Nigeria communities, representatives of the grant recipient companies also expressed their resolve to ensure dedicated use of the grants.
New Source: REA