By Patience Chat Moses
The Rural Electrification Agency (REA) has announced it has attracted over $2bn in investments in the renewable energy sector over the past decade.
REA was set up by Section 88 of the Electric Power Sector Reform Act (2005) and the Board and Management of the Agency was inaugurated on March 16, 2006.
Since its inception, the Agency has been responsible for implementing Nigeria’s commitment to aggressive rural electrification as expressed in the National Energy Policy Scheme, the Electric Power Sector Reform Act 2005, and the Rural Electrification Strategy and Implementation Plan (RESIP).
In advancing these achievements, the Agency established partnerships with the World Bank, the African Development Bank, Global Alliance for People and Planet, the Rocky Mountain Institute, and Japan International Cooperation Agency (JICA).
Others include Sustainable Energy for ALL, Agence Française de Développement, the United Kingdom Nigeria Infrastructure Advisory Facility, European Union, United Nations Industrial Development Organization, Global Environment Facility, and the United States Agency for International Development, among others.
REA’s Director of Promotion and Outreach, Mutari Ibrahim, who disclosed this in a statement issued in Abuja, said that “from 2020 to date, REA has provided power to over 7.5 million people including 1.5 million households, delivering 130 mini-grid projects, including 1.3 million standalone home systems. The Agency has equally deployed over 1,650km of solar street lights, improving power, security, and economic growth in rural areas.”
He added that REA completed 1,403 projects under the capital budget, delivering solar street lights, mini-grid projects, standalone home systems, and grid extension work through various programmes, including Energizing Education Programme, Energizing Agriculture Programme, beyond COVID-19, and Economic Clusters.
“REA has delivered over 500MW of power, electrified numerous communities, created 500,000 new jobs, and attracted over $2bn in investments in the renewable energy sector over the past decade,” he said.
The Federal Government Agency stated that, in 2022, as part of the National Poverty Reduction and Growth Strategy Programme, it secured an additional N4 billion in capital injection grants.
REA said the grants were to provide clean power standalone home systems to over 50,000 locations, including rural homes, micro-businesses, schools, and faith-based institutions.
It noted in a statement that “most recently, on the back of the success of the Nigeria Electrification Project (NEP), REA negotiated and secured the advance approval of a $750m facility with the World Bank to expand renewable and rural electrification initiatives, providing additional resources to Nigeria during a challenging period.
“In response to subsidy removal, REA is implementing interventions to develop electric mobility, mini-grids, distribute home systems, and deploy streetlights, potentially supporting up to 250,000 households in the coming year.”
Earlier on October 17, REA had announced that it signed a Memorandum of Understanding (MoU) with the Africa Mini-Grid Developers Association (AMDA) to promote and accelerate mini-grid development in Nigeria. The MoU, it said, focuses on knowledge sharing, capacity building, and better coordination of the sector, amongst other initiatives.
Nigeria has one of the largest mini-grid markets in Africa, with over 100 mini-grids currently in operation, primarily through the implementation of data-driven programmes and initiatives of REA.
However, due to the energy access gap in the country, there is still a significant need for more decentralized energy interventions to bridge the energy deficit and catalyze socio-economic growth, particularly in rural unserved and underserved communities that are hard hit with energy poverty.
As part of REA’s Vision and Strategic Roadmap, the Agency has over the years expanded its partnership portfolio, while collaborating with forward-leaning stakeholders across the off-grid energy value chain. With the pivotal role and sustained impact of AMDA in Africa’s renewable energy space, the REA-AMDA partnership is seen as a significant step forward for the mini-grid sector in Nigeria, as it underscores a shared commitment to research, data-driven decision-making, and the establishment of robust industry standards.
REA and the Japan International Cooperation Agency (JICA) also held a kickoff meeting at the Nigeria Electrification Project (NEP) Office on the August 16th to explore avenues of collaboration to electrify Nigeria.
The meeting was led by the Managing Director (MD) of REA, Engr. Ahmad Salihijo Ahmad, and the JICA Country Representatives in Nigeria, Mr. Susumu Yuzurio; who were accompanied by Mr. Hiroki Miyoshi and Mr. Ismaila Zarma.