REA signs MoU with five renewable energy firms

UGO AMADI

Nigeria’s power sector received a major boost as the Rural Electrification Agency (REA) signs Memorandum of Understanding with five Private Developers to scale up electricity access in Nigeria

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.

The Projects fall under the Distributed Access through Renewable Energy Scale-up (DARES) project, which is administered by the agency. Furthermore, the 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 financingas 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 250 MW.

• 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 becomeRESCOs. 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 a beneficial relationship 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 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.”