Nigeria’s renewable mini grids project takes shape as the Federal Government strikes a $200 million deal to facilitate implementation. The agreement was signed between the government and WeLight, a pan-African Distributed Renewable Energy (DRE) company. The scope of the agreement entails the deployment of hundreds of renewable mini grids aimed at bringing reliable electricity. Furthermore, it aims to connect millions to accessible electricity in rural communities and surrounding urban centers. Africa’s most populous country seeks to increase its renewable energy share of its electricity mix from 22% to 50%.
Moreover, it aims to secure finances from private investments for this purpose. The government sees this deal as an important step in implementing this regard. The project, backed by the World Bank and the African Development Bank, will develop and operate 400 mini grids. Moreover, 50 MetroGrids are also in the scope as they will be distributed across Nigeria’s mostly rural areas to improve electricity access.
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The Significance of Nigeria’s Renewable Mini Grids Project
Once implemented, an estimated 1.5 to 2 million people are expected to benefit from Nigeria’s renewable mini grids project. Moreover, the access to electricity is expected to boost local economies and improve standards of living. WeLight noted that it signed a Memorundum of Understanding (MoU) with Nigeria’s Rural Electrification Agency (REA). WeLight is backed by major international players such as Axian Group, Sagemcom and Norfund. On the other hand, REA is a government agency that is tasked with helping millions of Nigerians without electricity access. Romain de Villeneuve, WeLight’s Chief Executive Officer, noted his optimism on the project. “This MOU not only represents a leap towards providing clean electricity to millions in Nigeria. It also supports WeLight’s ambition to become a truly pan-African company,” he noted.
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