REA Flags Off REF Call 3, Sensitises Bidders On Expectations

Following the successful implementation of the Rural Electrification Fund (REF) Calls 1 and 2, the Rural Electrification Agency (REA) has flagged off the REF Call 3, targeting 30,000 total number of connections.

The REA is the implementation agency of the federal government under the Federal Ministry of Power, tasked with the mandate to electrify unserved and underserved communities across the country.

Among its mandates include promote rural electrification in the country; Co-ordinate electrification programs for unserved and underserved communities in the country; and administer the Rural Electrification Fund (REF) to promote, support and provide rural electrification through Public and Private sector participation.

Speaking at the REF Call 3 Bidders’ workshop held in Abuja, yesterday, managing director of REA, Mr Ahmad Salihijo Ahmad, said the REA expects that over 1,000 mini-grids will be built in the next few years, in tandem with other REA programs and initiatives, as well as the recently announced intervention of the President to deploy 5 million solar-based connections across Nigeria through the Economic Sustainability Plan

Salihijo said the Agency continues to support off-grid developers by creating an enabling environment to facilitate investments in various ways, including access to data, policy support, grants, capacity development, and financing.

Represented by executive director Corporate Services, Chief Netufo Olaniyi, Salihijo said the REA’s goal of providing and increasing energy access to millions of Nigerians through renewable energy is critical if the country is to deliver the economic benefits that will spur rural economic growth and development in Nigeria.

“Through the testimonies from the commissioning of various REA projects, including REF Calls One and Two mini-grid projects, we have proven that renewable energy technology, its economics, and business models work. We, therefore, have no doubt about the capacity of leveraging our off-grid renewable energy potential to transform more rural communities across the country through the REF Call 3,” he said.

According to him, the purpose of the REF Call 3 Bidders workshop, is to sensitise all the shortlisted bidders on the eligibility and selection criteria for business and financial models, technical specifications, regulatory requirements, and the timeline for the submission of their proposals.

“The REA continues to work to ensure that stakeholders not only see the potential in off-grid sector development but that they also wish to participate, and in the process strengthen their commercial positions,” the MD emphasised.

Giving an overview of the REF Call 3, deputy director Rural Electrification Fund, Mr. Magaji Abdu said the EPSRA, 2005 mandates the REF to promote cost-effective expansion of electricity access in un-electrified rural areas, using renewable solutions through partial one-off capital subsidies and technical assistance to ensure access to reliable and affordable electricity, with the ultimate goal of improving the living standard, socio-economic and environmental conditions of rural dwellers.

On the performance of the REF Calls 1 and 2, Abdu said the Call 1 recorded milestone of 26,000 connections, 12 mini-grids and 19,310 Solar Home Systems (SHS) were deployed, while Call 2 recorded 51 mini-grids out of which 16 were completed.

For REF Call 3, Abdu said 30,000 total connections were expected with Infrastructural projects; isolated and interconnected grid extension; non-infrastructural projects, SHS as well technology demonstration concept & technology demonstration.