Pay-As-You-Go (PAYGo) solar and mini-grids solutions provider, Engie Energy Access (EEA) Nigeria has signed a project finance agreement with investment company, CrossBoundary Energy Access (CBEA) to build a $60 million portfolio of mini-grids that will connect over 150,000 people to electricity in Nigeria.
Under the agreement, Engie Energy Access will oversee the construction, provide long-term operations and maintain services for the mini-grids. Engie will ensure that the residential, commercial, and productive use customers receive clean, reliable electricity while delivering high-quality and customer-centric services.
CrossBoundary, on the other hand, will finance all the development and construction activities and will own the projects. They will collaborate with the World Bank-funded Nigeria Electrification Project under the Rural Electrification Agency (REA) in this regard.
Nairametrics had earlier reported that the NEP under the REA has impacted over 3.5 million people across Nigeria with off-grid power projects, as of Q2 2022.
Gillian-Alexandre Huart, the chief executive officer, Engie Energy Access, says; “We are excited to work in partnership with CrossBoundary Energy Access to finance this portfolio of mini-grids in Nigeria. This deal reflects our long-term commitment as a leading provider of energy access solutions in Africa. Most importantly, this agreement will connect marginalized rural populations in Nigeria with clean and affordable technologies and facilitate more economic opportunities in these hard-to-serve areas. Promoting productive usages is key to growing resilient economic networks in these areas.”
Onyinye Anene-Nzelu, head of mini-grids at Engie Energy Access Nigeria, says; “This partnership shows what is possible within the off-grid decentralized renewable energy industry, in Nigeria, and across Africa. It is a signal as well to other investors to come to Africa and become partners in progress to bridge its huge energy gap.”
Strategy
Nairametrics has also earlier reported that under the NEP, people in unserved communities are not only connected to lightbulbs. They are also provided with productive use appliances, which will boost income generation and help them earn a living for the benefit of their families and the whole community. Some of these appliances could be used for milling activities, cybercafes, cellphone charging stations, greenhouses, and cold storage rooms.
What you should know
- CrossBoundary Energy Access will invest in the project from the procurement stage
- CrossBoundary Energy Access and Engie Energy Access plan to implement this agreement over the next four years.
- This agreement is the largest mini-grid project finance transaction in Africa, yet
- The project will be deployed in unserved communities across Nigeria
- CrossBoundary Energy Access invests in grid-quality power for rural households and businesses
- Engie Energy Access Nigeria is operational in Benin, Cote d’Ivoire, Kenya, Mozambique, Nigeria, Rwanda, Tanzania, Uganda, and Zambia. The company boasts of over 1.5 million customers and has impacted 8 million lives across Africa.
