REA releases details on financing of off grid electricity supply

Nigeria’s Rural Electrification Agency (REA) has released more details on how it would spend about $350 million financial facility expected from the World Bank to develop off grid electricity supply systems in the country under the Nigerian Electrification Project (NEP).

A document obtained from the agency indicated the fund would be disbursed in four parts – $150 million for hybrid solar systems to improve the economies of rural communities in the country; $75 million for standalone solar systems for rural homes, farms, and enterprises; $105 million for power systems to electrify public universities and teaching hospitals; and $20 million to provide technical assistance to the budding market.

The project is a $350 million facility from the World Bank to the Nigerian government for off grid development, and the implementing agency is the REA. The NEP hopes to increase electricity access to households and Micro, Small and Medium Enterprises (MSMEs), students and patients at federal universities and university teaching hospitals throughout Nigeria.

Accordingly, the REA has been working with the World Bank team to develop a robust project that when implemented will be the largest off grid electrification project in West Africa. The NEP is equally expected to be a data-driven off grid electricity market model that could be copied by other countries in Sub Saharan Africa.

Source: energy mix report

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