The Rural Electrification Agency (REA) has signed a Memorandum of Understanding with five private developers to scale up electricity access in Nigeria on Thursday.
The MoUs were signed between the REA and A4&T Power Solutions, Eauxwell Nigeria Limited, Skipper Nigeria Limited, Havenhill Synergy Limited and Privida Power for the delivery of a combined 1,265 MW capacity of DRE projects, including inter-connected minigrids (IMGs), isolated minigrids, C&I, and PUE (the “Projects”), with the purpose of electrifying peri-urban and rural communities (including markets, businesses, households, public institutions, health clinics and schools) in both weak grid and off-grid areas.
These Projects fall under the Distributed Access through Renewable Energy Scale-up (DARES) project, which is administered by The Agency. Furthermore, this partnership will bring about the introduction of new energy service models, including Virtual Power Plants (VPPs), enable the mass adoption of energy efficient appliances and PUE devices through sales, distribution and credit financing as well as bring about the introduction of a range of value-added services, including e-mobility, agricultural processing, cold storage and e-cooking.
The breakdown of the combined capacity of 1,265MW is as follows:
A4&T Power Solutions: Targeting the development of 315 MW
Privida Power: Committing to the development of 200 MW.
Skipper Nigeria Limited: Aiming to implement 250 MW.
Euxwell Nigeria Limited: Focused on the development of 250MW.
Havenhill: Planning to develop 250 MW of solar energy projects.
During the signing, the managing director/CEO of REA, Abba Abubakar Aliyu stated “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 where they can be able to attract investment to deploy mini grids. These developers have the capacity and track record to not only deliver mini grids but to manage large portfolios of projects as well as scale up.
This MoU demonstrates our commitment to roll-out this RESCOs model. This MoU gives developers the opportunity to partner with REA to build mini grids under the DARES programme and become RESCOs. We look forward to this mutually beneficial partnership.”
The High Commissioner of India, G. Balasubramanian, stated “It is a pleasure and honour for me to be part of this MoU signing ceremony. India and Nigeria have had beneficial relationships in the manufacturing and service industry since the 1960s. Skipper has been the implementing company of several electricity projects in Nigeria sponsored by the Indian Government. This signing will improve the bilateral cooperation between India and Nigeria.
I am very happy that we are sharing our experience to develop the energy sector in Nigeria. I am very happy with this MoU signing.”
The representative of the managing director of Eauxwell, Chibuzo Enwegbara, stated, “We are very pleased to sign this MoU and we hope that we will be able to meet all our targets.”
The chief executive officer of Privida, Omo Williams stated, “Thank you very much for this opportunity. We are solidly behind REA. We have to show gratitude to REA for this opportunity. We have worked in several countries but Nigeria stands out and the vision and targets set by REA is unique. We will support the REA and will work towards achieving the targets set by the Agency.”
The managing director of Skipper Energy, Ankit Kumar, stated “We want to partner with leading policy makers like the REA to make an impact on the lives of Nigerians. We are delighted with this opportunity.”
The managing director of Havenhill Synergy, Olusegun Odunaya, stated “We are an indigenous company who has had several partnerships with REA in the past and we are delighted for this opportunity to continue working together. We believe that we will work together with the REA to deliver on this project and improve the lives of Nigerians”.
The CEO of A4&T Power Solutions, Ayo Ademilua, stated, “I sincerely appreciate the Management of REA under the leadership of Abba Abubakar Aliyu. The REA has always been ambitious and supportive. The REA has always pushed developers to scale up and that is our goal. The Federal Government and REA has always provided the enabling environment for companies to thrive. I believe that what we want to do is achievable and with REA’s support we will be able to achieve our goals. We are thrilled to partner with REA to advance solar energy solutions that will transform energy access in Nigeria.”
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) 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 was established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005.
The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Solar Power Naija (SPN), Energising Education Programme (EEP), Energising Economies Initiative (EEI), Energising Agriculture Programme (EAP), Energy for All – Mass Rural Electrification and Research and Innovation Hub. Africa Mini Grids Programme, Derisking Sustainable Off-Grid Lighting Solutions and the Korean Energy Project.
The Agency is 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.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
