The African Development Bank (AfDB) and the Government of Nigeria announced the launch of their National Electrification Project (NEP), which aims to help improve access to energy by promoting private investment into mini-grid and off-grid solutions.
The project will be implemented by the country’s Rural Electrification Agency (REA) to boost efforts to achieve the target of universal energy access by 2030 thanks to joint financing by the AfDB and Africa Growing Together Fund (AGTF) amounting to $200 million (~₹14.82 billion).
This funding will help de-risk and scale up private sector investment in the off-grid sector, nurturing a business ecosystem conducive to the rapid electrification of Nigeria’s off-grid communities.
“Over 500,000 people will have access to approximately 76.5 MW of increased installed power, of which 68 MW will be solar generated,” said Wale Shonibare, AfDB’s acting vice president for power, energy, climate change, and green growth.
“Eight universities will have access to reliable energy, and 150 female students will receive training on renewable energy solutions. Also, 20,000 micro, small and medium-sized enterprises (MSMEs) will be supplied with appliances and equipment,” he added.
Earlier, Mercom reported that the African Development Bank announced that the Facility for Energy Inclusion’s Off-Grid Energy Access Fund reached its final equity close target of $59 million (~₹4.17 billion) in committed equity capital and $36 million debt facilities to promote off-grid energy access. It said that the final close was reached on November 18, 2019, following a $15 million (~₹1.06 billion) equity contribution from the European Union and a $17 million (~₹1.20 billion) offering from KfW.
The Green Climate Fund and the African Development Fund joined have joined hands previously to support a $154 million renewable financing framework in the southern African nation of Zambia. To address the ongoing hydroelectric power generation issues in Zambia because of droughts, the framework will deploy alternative energy sources by financing 100 MW of renewable energy projects, which would primarily be small solar projects.
Last year, Nigeria announced that it was looking to execute a second green bond issuance – Series II Green Bonds amounting up to N15 billion ($41.64 million). Through the issue, the government of Nigeria sought to reduce the emission of greenhouse gases in the country by up to 20% before 2030, as outlined under the Paris Agreement signed on September 21, 2016.
Nithin is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.