The Global Energy Alliance for People and Planet (GEAPP), a climate organization supported by the Rockefeller Foundation and the Bezos Earth Fund, is piloting a solar mini-grid initiative in Nigeria to address the nation’s unreliable electricity supply, which hampers productivity.
This initiative is critical, as approximately 86 million Nigerians lack access to electricity, highlighting the urgency for sustainable energy solutions.
Solar Mini-Grids: Progress and Expansion Plans
Since its establishment in 2021, GEAPP has made significant strides in expanding renewable energy access in Nigeria. The organization completed its first interconnected mini-grid in December 2023, with two additional grids currently under construction and funding secured for a fourth.
These mini-grids, operated by private developers, are designed to complement the limited electricity provided by Nigeria’s national grid, ensuring that businesses and households have continuous power supply.
Innovative Financing Solutions with the DART Program
Central to this initiative is GEAPP’s Demand Aggregation for Renewable Technology (DART) program, which consolidates the needs of multiple developers to reduce solar equipment costs.
The program also manages a $25 million financing facility that enables developers to secure funding in U.S. dollars for equipment imports, with repayment made in Nigeria’s naira once the projects begin generating revenue.
This innovative financing approach is essential for fostering the growth of renewable energy infrastructure in Nigeria.
Addressing Energy Poverty in Underserved Communities
Fauzia Okediji, a utility innovation manager at GEAPP, emphasized the importance of providing reliable power to underserved communities during a recent appearance on Bloomberg TV’s Wall Street Week. She noted, “You have those kinds of under-served communities that do require reliable power to power their homes and their businesses.”
Muhammad Wakil, the country delivery lead for GEAPP, reiterated the need for hundreds or thousands of similar projects across Nigeria to effectively combat energy poverty, stating, “We have shown it’s a viable business model.”
As reported by Arbiterz Media, the power grid experienced 93 collapses during President Buhari’s administration, followed by an additional 12 collapses in over a year under President Tinubu.
The Scale of Nigeria’s Energy Crisis
Nigeria’s energy crisis is staggering, with about 230 million people affected by limited access to electricity.
The national grid currently generates only about 4,000 megawatts, which is roughly one-sixth of South Africa’s generation capacity, despite Nigeria’s population being significantly larger. The country has faced frequent outages and grid collapses, with three failures occurring in just one week.
Harnessing Nigeria’s Solar Energy Potential
Despite these challenges, Nigeria has significant solar energy potential, receiving an average of six hours of sunlight daily. The estimated capacity for concentrated solar power and photovoltaic generation is around 427,000 megawatts.
This vast potential presents a critical opportunity to address the electricity crisis through sustainable energy solutions.
Future Developments in Rural Electrification
In line with these efforts, the Director-General/CEO of the Rural Electrification Agency (REA) announced a new rural electricity project funded by the World Bank, with a budget of $750 million.
This initiative aims to provide electricity to 17.5 million Nigerians, furthering the mission to enhance energy access across the country and combat energy poverty effectively.