The Rural Electrification Agency, under the aegis of the federal government, has signed grant agreements with two mini-grid developers under the Mini-Grid Performance-Based Grant (PBG) to electrify 4 communities.
This disclosure was made by Ahmad Salihijo, the current Managing Director of the Rural Electrification Agency, in a statement issued to the public via his official Twitter account.
The statement partly reads:
“This afternoon, two mini-grid developers were signed up under the Mini-Grid Performance-Based Grant (PBG), under the World Bank and African Development Bank, funded Nigeria Electrification Project (NEP). The plan is to continue to leverage these renewable energy technologies to power communities, under the Nigeria Electrification Project Mini-Grid Component. Today, we signed on Nayo Tropical Technology Ltd and Darway Coast. Using the PBG, these two developers will electrify 4 communities.”
We kicked off a new week with the signing of grant agreements.
This afternoon, two mini-grid developers were signed up under the Mini-Grid Performance Based Grant (PBG), under the @WorldBank and @AfDB_Group funded Nigeria Electrification Project (NEP). pic.twitter.com/T5gCBw7CRd
— Ahmad Salihijo (@modisalihijo) November 2, 2020
Optics
The Mini-Grid Performance-Based Grants (PBG) Program aims to close the viability gap for mini-grids developed on a spontaneous basis. Grants of US$350/connection are available on a first-come-first-serve basis, with a minimum total grant request of US$10,000 per mini-grid.
However, Eligible projects are solar hybrid systems in unserved areas, and the applications for the performance-based grants will be accepted on a rolling basis, once the program is active and until available funds are exhausted.
In case you missed it (ICYMI)
Nairametrics had earlier reported that the Minister of Power, Engineer Sale Mamman disclosed that the Government is set to invest heavily in the deployment of Mini-grid systems that will provide power for 5 million homes in 2021.
This is very important as it is virtually impossible for the national grid to cover every geographical point within Nigeria.
However, the current grant agreements signed with two mini-grid developers under the Mini-Grid Performance-Based Grant (PBG) today, is a huge boost towards deploying Mini-grid systems to power 5 million homes in 2021.
Why this matters
The Nigeria Electrification Project (NEP) is a Federal Government initiative that is private sector-driven. This initiative seeks to provide electricity access to households, micro, small and medium enterprises in off-grid communities across the country through renewable power sources.
The objective of the Buhari-led administration is to close the energy gap in Nigeria using these renewable energy technologies.
The grant agreements accepted by the Rural Electrification Agency, and the subsequent ones from mini-grid developers bring the government closer to achieving their targets.