REA Presents $620m Renewable Energy Opportunity To Bauchi

Rural Electrification Agency (REA) has presented a significant opportunity of $620 million for renewable energy development in Bauchi State.

This funding aims to enhance the state’s capacity for mini-grid solar projects, capitalising on its abundant natural resources, particularly sunlight and wind.

The state government is seeking a partnership with the REA to enhance electricity supply to boost productivity.

The managing director Abba Abubakar Aliyu made the call to Governor Bala Mohammed who led a delegation from the state on a working visit to the corporate Headquarters of the agency in Abuja, on Thursday.

Aliyu said the state can tap into the $410 million for mini-grids and $210 million for the solar home system, totalling $620 million.

He informed the governor that the funding window for the opportunity of developing renewable energy projects through the Renewable Energy Service Companies (RESCOS) will open in the next two weeks.

He urged the governor to organise a roundtable on renewable energy development in order to meet the developers from the private sector.

His words: “So we look forward to potentially having the state’s roundtable so that it’s not only us talking.

“We want the private sector to hear from you, to be there, show them this site, and get them to obtain this.

“Because in the next two weeks, the funding window will be open, and it’s first come, first served purpose.

“We amassed a total of $410 million for the mini green grants and $210 million for the solar home system.

“So we want the authority state to take as much as possible out of that funding.”

According to him, lack of access to electricity is on the increase because of the continuous rise in population.

He said the gap cost Nigeria N7 trillion to N25 trillion ($25 billion) to bridge.

“And that gap, is at a cost. It’s costing the country between N7 to N10 trillion, which is about 25 billion US dollars annually, five to seven per cent of the country’s GDP,” he said.

Aliyu disclosed to the Governor that the state is highly endowed with natural resources such as sun and wind for viable renewable energy projects.

He also informed him that since Bauchi is an agrarian state, renewable energy will be of immense benefit to it.

Citing an example of Alkaleri Local Government, the REA boss said

This community has a potential of 1,585 potential connections for agricultural connection.

He said: “If you look at Bauchi, for example, focusing on just agriculture, if you take Alkaleri, there is a community in Alkaleri called Karya. This community has a potential of 1,585 potential connections for agricultural connection.”

He also told the governor about the Toro Local Government Area of the State which has 90 mini-grid sites that can be used to power about 800,000 people. He added that 335,000 can also be powered by mini-grids in the Local Government Area.

Aliyu said: “The local government alone in Bauchi has 90 mini-grid sites that can be used to power close to 800,000 individuals. Some 335,000 people can be powered by a mini-grid in Toro local government.”

Meanwhile, the Governor said the state population which would ordinarily have been seven million people has soared to 10 million because of the high level of migration to embrace the peaceful state.

He said the energy deficit in the state is so huge because it is becoming the most industrial area of the country owing to its huge solid mineral potential.

According to him, some investors have indicated interest from all over the world in developing the state as its agricultural sector is growing.

Continuing, he said: “We are really trying to bolster the possibility of our peasant farmers doing their best, exploit their potential. And you know, as we said, without power, you cannot do anything.

“The SMEs ministry, we have established and looking for power. The cities, our metropolitan cities are looking for power. Even our utilities like the waterboard, the hospitals, the schools, we have them in a cluster.”

The Governor said the state would look into the possibility of providing solar-powered machines for irrigation.

He said despite the window of funding for renewable energy available in REA, the state is ready to make its contribution to provide electricity for the people.

Mohammed said, “Of course, the financing model that you have established is very, very encouraging. We are not just here as beggars with caps in our hands because of the grant.

“But we are also ready to make contributions so that at the end of the day, it is going to be very collaborative.”