Nigeria’s push to address unreliable electricity supplies through renewable power has gained momentum with a $5 million investment expected to benefit about 41,000 people across the country.
The federal government is increasingly backing solar and other clean-energy sources as alternatives to conventional electricity generation. Under its Energy Transition and Investment Plans, Nigeria estimates that a domestic renewable-energy shift could deliver $686.8 billion in fuel-cost savings by 2060.
That projection hinges on infrastructure delivery. The plan calls for 277 GW of total installed generation capacity and more than 104,000 mini-grids by 2030.
Quick facts
- $5 million committed to PowerGen Renewable Energy Nigeria projects
- Up to 6,000 new electricity connections and roughly 41,000 beneficiaries
- As much as 9 MW of generation capacity and 17 MW + MWh in combined energy impact
- About 470 jobs expected across participating communities and businesses
- Up to N3 trillion targeted for Nigeria’s renewable-energy sector through RAMCO
All On, a renewable-energy organisation, invested the $5 million in projects being developed by PowerGen Renewable Energy Nigeria Limited. PowerGen develops renewable generation and distribution-utility schemes designed to provide clean, dependable and affordable electricity.
The funding will support isolated and interconnected mini-grids serving households, commercial users and industrial customers in different parts of Nigeria.
All On Chief Executive Caroline Eboumbou said the capital would help extend renewable-energy infrastructure to communities where electricity access is limited or unreliable.
The investment is supported by capital mobilised by WindGen Power USA Inc., ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa, known as SEFA, and InfraCo.
As part of the wider clean-energy drive, PowerGen is developing interconnected renewable systems, including the Toto Community Mini Grid Project in Nasarawa State. The project is Nigeria’s first interconnected hybrid solar mini-grid.
The investment is projected to finance up to 6,000 electricity connections and reach an estimated 41,000 beneficiaries. It is also expected to support up to 9 MW of generation capacity and deliver 17 MW + MWh of combined energy impact.
The projects could generate approximately 470 jobs in the communities and businesses they serve. Eboumbou said the funding would help create “the conditions for more businesses and communities to participate in Nigeria’s economic growth.”
Oluseye Bassir, an investment manager at All On, said the Toto Community Mini Grid model would be reproduced in other parts of Nigeria.
All On has also launched the Innovation Ecosystem Development Programme to support clean-energy start-ups and entrepreneurs in the country.
Eboumbou said the programme is financed by the United Nations-affiliated Global Energy Alliance for People and Planet. It is intended to close a major gap in Nigeria’s clean-energy ecosystem by offering technical and infrastructure assistance to promising ventures at the idea and prototype-development stages.
Separately, the federal government has created the Renewable Asset Management Company, or RAMCO, as part of its clean-energy transition. RAMCO is expected to mobilise about N3 trillion for Nigeria’s renewable-energy industry.
