REA To Boost Electricity With Fresh $561m  Loan

The Rural Electrification Agency REA,has  obtained financing amounting to $550 million .

The agency said $350 million loan was obtained  from the World Bank and $200 million from the African Development Bank for financing the Nigeria Electrification Project, and an additional $11 million for financing the Rural Electrification Fund for the deployment of solar hybrid mini grids and solar home systems.

These funds will ensure that millions of Nigerians have access to clean, safe, reliable and affordable electricity,the agency added.

The agency further said  it held a roundtable meeting with Energizing Economies Initiative (EEI), a  private power fevelopers in order to identify implementation gaps, improve service delivery and strengthen the initiative to achieve the desired goal of providing constant and reliable electricity in economic clusters in Nigeria .

The agency explained that the Energizing Economies Initiative (EEI) is a Federal Government of Nigeria (FGN) initiative being implemented by the Rural Electrification Agency (REA).

The focus of the EEI is to electrify economic clusters in Nigeria – which include markets, shopping plazas/complexes and industrial clusters in line with the FGN’s goal of increasing electricity access.

The REA is mandated to implement the initiative through Technical Assistance to private project developers; this includes identification and audit of economic clusters, facilitation of engagement with key stakeholders and technical support for project development and operation.

Over 300 clusters have been identified for electrification across the country in different phases. So far, over 12,000 shops are now receiving clean, safe, reliable and affordable electricity supply.

At the  launch, the pilot phase of the Energizing Economies Initiative has commissioned the Sura Shopping Complex Independent Power Project in Lagos State powering 1,047 shops, as well as the Ariaria International Market (Independent Power Project), Aba, Abia State, powering over 4,000 shops. Also, launched were over 6,000 energized shops at Sabon Gari market, Kano State with more connections in the pipeline.

The EEI developers were sufficiently represented at the Roundtable, with representatives from Ariaria International Market Energy Solutions (AMES) Limited, Solad Integrated Power Solutions Limited, Rensource Energy Limited and Green Village Electricity (GVE) Projects Limited all present at the REA.

At  the roundtable, the setbacks faced by the Private Developers as stated by their representatives include; technical and legal solutions to customer bypass, funding constraints, gas unavailability, power shortage and system collapse due to system capacity, inadequate provision of metering, electricity vending system issues and challenges with customer service delivery.

Acknowledging the challenges faced by the Developers, the reiterated the need for them to deliver on their obligations as enshrined in their bilateral and tripartite agreements.

According to the agency, some obligations are not being met by the developers in view of the performance of their projects,adding that  some of these challenges are externally induced .

The agency advised the developers to strengthen their communication culture by proactively updating their customers on key information and/or technical issues in order to keep their stakeholders up-to-date, per time.

Responding to the challenges raised by the agency, the private developers agreed to step up towards ensuring the issues are addressed and services improved in all affected markets, while such efforts will further service as mitigation measures in upcoming EEI projects.

The Federal Government is keen on the success of the initiative and the REA plans to create an enabling environment where the Private Sector Developer handles all the project delivery steps from inception to conclusion.

Deployment is currently ongoing in markets under Phase 1 of the EEI. In 2019, a Tripartite Agreement between Abuja Electricity Distribution Company (AEDC), Green Village Electricity (GVE) and Wuse Market Association was signed for the development of 1MW Interconnected Mini-grid.

The Phase 2 rollout plans are currently in view and conversations have begun between the Developers, State Governments and other key stakeholders. Baseline Surveys and Energy Audits are currently being conducted for 98 Markets across the country. The Agency is also exploring ways to secure concessionary finance and Technical Assistance to further support EEI Developers.