A new solar mini-grid programme in Nigeria, backed by global climate funds, aims to resolve erratic power supply and boost productivity across the country.
A global climate organisation, supported by the Rockefeller Foundation and the Bezos Earth Fund, is launching a solar mini-grid programme in Nigeria to combat the nation’s frequent power shortages.
This project, piloted by the Global Energy Alliance for People and Planet (Geapp), could significantly improve Nigeria’s energy reliability, a Bloomberg report revealed.
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The initiative aims to build pilot mini-grids across regions served by Nigeria’s 11 power distribution companies, with an ambitious goal of ultimately delivering 10 gigawatts of power.
These mini-grids are part of a broader effort to provide electricity in regions without access to the national grid, which currently supplies just 4,000 megawatts—far below the demand of Africa’s most populous nation.
The Global Energy Alliance for People and Planet, formed in 2021 by the Rockefeller Foundation, Bezos Earth Fund, and Ikea Foundation, played a pivotal role in constructing Nigeria’s first interconnected mini-grid in December.
Currently, two additional grids are under construction, with funding secured for a fourth. Operated by private developers, these mini-grids supplement the limited hours of electricity supplied by the national grid, allowing businesses and households to remain powered throughout the day.
Muhammad Wakil, Geapp’s Country Delivery Lead for Nigeria, highlighted the importance of such projects, stating, “We need hundreds or thousands of these kinds of projects across Nigeria to end energy poverty.”
Speaking at the site of a mini-grid project in Ogun State, Wakil emphasised the need for widespread adoption to address Nigeria’s significant energy challenges.
Nigeria is home to approximately 86 million people who lack access to electricity, the highest number globally.
The remaining population, estimated at around 230 million, faces frequent power outages and grid collapses. In contrast, South Africa, with a much smaller population, generates six times more electricity than Nigeria.
To support the development of these mini-grids, Geapp’s Demand Aggregation for Renewable Technology (Dart) programme pools the needs of multiple developers, thereby reducing the cost of solar equipment by up to 30%.
Additionally, Dart operates a $25 million financing facility, allowing developers to import equipment using borrowed dollars, which can then be repaid in Nigeria’s naira once revenue is generated.
This initiative has garnered the attention of global financial institutions, with the World Bank pledging $130 million to develop similar facilities.
The Dart programme is also seen as a blueprint for the World Bank and African Development Bank’s Mission 300 programme, which aims to provide electricity to 300 million Africans by 2030.
In Ogun State, a 1MW solar mini-grid built by Darway Coast, a Nigerian mini-grid company, is set to provide 24-hour electricity to the local community by the end of the year, a significant improvement from the current eight hours of supply provided by the national distribution company.
The solar mini-grid programme in Nigeria is viewed as a critical step towards addressing the country’s energy poverty and ensuring reliable power for its growing population.
With international backing and scalable models, the initiative holds promise for replication across other African nations, contributing to a brighter energy future for the continent.
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