The Federal Government yesterday in Abuja said there was a need for a renewable energy ecosystem in the country to serve over 20 million Nigerians, accounting for about 23 per cent of households and entities that are to be connected to renewable electricity.
The development may see existing renewable energy companies in the country manage and collect tariffs from renewable energy users.
Speaking during the signing of a Memorandum of Understanding (MoU) in Abuja, Managing Director of Rural Electrification Agency (REA), Abba Abubakar Aliyu, said the move would enable the agency meet up with the goals set by the Federal Government and the World Bank under Distributed Access through Renewable Energy Scale-up (DARES) project.
Aliyu, who is looking towards improving service capacity for renewables in the country, said the government would generate 1,265 megawatts of renewable energy through private companies.
He disclosed that A4&T Power Solutions would provide 315 MW, Privida Power would generate 200 MW, Skipper Nigeria Limited would generate 250 MW, Eauxwell Nigeria Limited would generate 250 MW while Havenhill Synergy Limited would generate 250 MW.
Aliyu said the developers would create inter-connected mini-grids (IMGs), isolated mini-grids, commercial and industrial (C&I) applications and Productive Uses of Energy (PUE), aimed at electrifying peri-urban and rural communities, including markets, businesses, households, public institutions, health clinics and schools, in both weak grid and off-grid areas.
He said the move would also lead to new energy service models, such as Virtual Power Plants (VPPs), and promote the mass adoption of energy-efficient appliances and PUE devices through sales, distribution and credit financing.
He stated that it would also introduce various value-added services, including e-mobility, agricultural processing, cold storage and e-cooking.
Aliyu said: “This is a landmark event under the DARES programme and the introduction of the Renewable Energy Service Companies (RESCOs) model. The RESCO model aims to provide developers with a platform to become utility companies, attracting investment to deploy mini grids. These developers have the capacity and track record to deliver and manage large portfolios of projects and scale up. This MoU demonstrates our commitment to rolling out this RESCOs model, and we look forward to this mutually beneficial partnership.”
Speaking at the event, Indian High Commissioner, Shri Balasubramanian, highlighted the long-standing beneficial relationship between India and Nigeria, adding: “Skipper has been the implementing company of several electricity projects in Nigeria sponsored by the Indian Government. This signing will improve bilateral cooperation between India and Nigeria, and we are happy to share our experience to develop the energy sector in Nigeria.”
The lead for Eauxwell, Chibuzo Enwegbara, expressed confidence in meeting their targets, while Privida’s CEO, Omo Williams, emphasised their strong support for REA’s vision and targets.
Managing Director of Skipper Energy, Ankit Kumar, and Managing Director of Havenhill Synergy, Olusegun Odunaya, expressed their delight in partnering with REA to make a positive impact on the lives of Nigerians.