REA signs pact with two local firms to power four communities

296 Views

By Bamidele Fashube

AS part of the World Bank and African Development Bank (AfDB) funded Nigeria Electrification Project (NEP), the Rural Electrification Agency (REA) on Monday signed a pact with two local firms – Nayo Tropical Technology Limited and Darway Coast to power four communities in the country.

The project would be executed under the Mini-Grid Performance-Based Grant (PBG) of the development partners.

With the NEP project identification P161885, World Bank pegged the project cost at $765 million.

Ahmad Salihijo, REA Managing Director said at the agreement signing that the gesture was part of the current administration’s resolve to electrify communities

“The plan is to continue to leverage these renewable energy technologies to power communities, under the NEP Mini-Grid Component. Today, we signed on Nayo Tropical Technology Limited and Darway Coast. Using the PBG, these two developers will electrify four communities,” he stated.

According to him, NEP is a Federal Government initiative that is private sector driven and seeks to provide electricity access to households, micro, small and medium enterprises in off-grid communities across the country through renewable power sources.

Some of the objectives of the NEP include: Increase electricity access to households and micro small and medium enterprises (MSMEs).

Provide clean, safe, reliable and affordable electricity through renewable power sources to unserved and underserved rural communities.

Develop a data-driven off-grid model for Nigeria that would become an exemplar for Sub-Saharan Africa and to provide a reliable power supply for 250,000 (MSMEs) and 1 million households.

A further breakdown of the proposed spending shows $150m allocation for the Solar Hybrid Mini-Grid, $75 million for Standalone Solar Systems for homes, farms, enterprises, Z$105 million to power private universities and $20 million for technical assistance.

“The objective of President Muhammadu Buhari is to close the energy gap in Nigeria using these renewable energy technologies. We look forward to signing more grant agreements. Applications are still being accepted from mini-grid developers,” he stated.

 

Leave a Reply

Your email address will not be published. Required fields are marked *