The Rural Electrification Agency (REA) and Oando Clean Energy Limited (OCEL) have signed a Memorandum of Understanding (MoU) towards boosting renewable energy access across the country.
The agreement was signed in Abuja following the successful “Solar Power Naija” (SPN) investor matchmaking event between the private sector and government agencies towards the deployment of sustainable renewable energy access in the country.
The REA has continued to play a key role in the nation’s off-grid, renewable energy space, as it has maintained a strong history of drawing in private sector investments, facilitating inter-sectoral collaboration to boost implementation and delivery of fit-for-purpose off-grid solutions nationwide.
A key player in the energy industry, Oando Plc, through its clean energy subsidiary, Oando Clean Energy Limited (OCEL) established in 2021 signed the latest MoU to mark another milestone in the agency’s strategic partnership to explore new approaches to clean energy development for socio-economic impact in post-subsidy Nigeria.
Speaking at the MoU signing ceremony, the managing director/CEO of the REA, Ahmad Salihijo Ahmad said one of the best ways to mitigate the effects of recent fuel subsidy removal in the country was through the exploitation of opportunities to optimise the critical role of renewable energy.
Ahmad was delighted about the REA–Oando partnership, saying “it will bring about mutually beneficial collaboration, knowledge exchange and experiences all targeted at achieving the common goal of optimising renewable energy.
Ahmad said REA has a history of ensuring that whatever kind of financing was available, there would be programmes and initiatives the agency would implement that could be used to deliver impact across the country.
While commending the REA for its approach on understanding and leveraging the role of the private sector players to deliver on the task on sustainable energy access across the country, the President/CEO of Oando Clean Energy Limited, Alex Irune said Oando was keen on renewable energy development.
He said he was excited for the opportunity to create value that the country needs through the collaboration under the agreement.
Irunen expressed his confidence in the collaboration with REA, explaining that “what the REA has effectively done is to take the bull by the horn and de-risk investment opportunities. I wouldn’t be signing this MoU today if there wasn’t the enabling environment provided by the REA. I commend the REA on their approaches, programmes and achievements over the years. These approaches are sustainable”.
The executive director, Technical Services at REA, Barka Sajou explained the Agency’s shift in paradigm on the delivery of fit-for-purpose electrification projects, adding that “delivering on sustainable energy access across the nation must go beyond just connections to serving as an enabler of growth in communities, while targeting electrification projects to people’s sources of livelihood”.
The Head of Solar Power Naija Programme, Barbara Izilien assured that the agency would continue to deepen private sector engagements, targeted at drawing in funding, sustainably, while expanding access across the nation.
Barbara said the intention for this collaboration was to encourage private sector investment to deploy sustainable renewable energy projects across the country.
“We are trying to grow the funding of Solar Power Nigeria. This MoU signing will support the expansion targets of the REA in providing energy access to communities,” he said.
The repositioned REA has, over the years, strengthened ties with key stakeholders in the private sector and the development space. Beyond that, the Agency has realigned itself with the state governments through the Nigeria Governors Forum. In line with the mandate of the REA, the state governments continue to play a pivotal role in the Agency’s consistent deployment of people-centred electrification projects.
REA is the Implementing agency of the federal government under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians.
The agency, established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005, is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Solar Power Naija (SPN), Energising Education Programme (EEP), Energizing Economies Initiative (EEI), Energising Agriculture Programme (EAP), Energy for All – Mass Rural Electrification and Research and Innovation Hub. Africa Mini Grids Programme and De-risking Sustainable Off-Grid Lighting Solutions.
The agency is also responsible for creating an enabling environment for private sector-led projects, which includes conducting feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements.
The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of five million new solar connections in off grid communities.
The programme is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution. The objectives of the programme is to Expand energy access to 25 million individuals five million new connections through the provision of Solar Home Systems (SHS) or connection to a mini grid, Increase local content in the off grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector
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