Federal Government Signs Agreement to Generate 500MW of Electricity in Rural Communities
Written by Jerry Alomatu on May 24, 2024
The Rural Electrification Agency (REA) has inked two Memoranda of Understanding aimed at generating 500 megawatts of renewable energy to power rural communities nationwide.
The initiative plans to deliver the 500MW through various mini-grids to be erected in unserved and underserved communities.
On Thursday, the Managing Director/CEO of REA, Abba Aliyu, signed a 250MW agreement with EM-One, a renewable energy company, at Eko Hotels, Lagos. The agency had previously signed a similar 250MW agreement with Husk Power the day before. These agreements signify a significant stride towards fulfilling REA’s vision of providing electricity for 23 percent of the 85 million Nigerians lacking access to electricity.
Aliyu emphasized that the MoU with EM-One symbolizes a joint commitment to deliver an additional 250MW of interconnected mini-grids across Nigeria, targeting peri-urban and rural communities. These mini-grids will prioritize sites with large-scale anchor loads like factories or commercial centers, acting as hubs to illuminate surrounding underserved communities.
Mini-grids are integral to REA’s Distributed Access through Renewable Energy Scale-Up project, aiming to enhance energy access, stimulate local economies, and foster balanced development across Nigeria.
Aliyu highlighted that the partnership with EM-One and Husk Power signifies a total combined commitment of 500MW of renewable energy delivered through mini-grids. These agreements also pave the way for integrating cutting-edge technologies like smart grids and decentralized systems, enhancing grid visibility, optimizing power flows, and modernizing Nigeria’s energy infrastructure.
Mir Islam, CEO of EM-One, underscored the innovative nature of the partnership, expressing excitement about introducing smart grids and decentralized systems to address Nigeria’s energy access challenges. These solutions will enhance energy efficiency and ensure reliable integration of renewable energy into the national grid.
The partnership between REA and Husk Energy aims to establish a long-term strategic relationship to scale the deployment of decentralized solar power projects in Nigeria. These projects will electrify peri-urban and rural communities, including markets, businesses, households, public institutions, health clinics, and schools.
Manoj Sinha, Co-Founder and CEO of Husk Power, emphasized that the partnership will not only provide electricity access but also empower communities through innovative energy solutions.
The REA is a Federal Government agency dedicated to providing sustainable energy access to Nigerians in underserved and unserved communities. Besides electrifying areas not connected to the national grid, REA also focuses on powering universities and other public institutions.
Additionally, REA entered into an agreement with the Small and Medium Enterprises Development Agency of Nigeria to energize small businesses and enhance productivity. President Bola Tinubu approved a $750 million World Bank loan for constructing over 1,200 mini-grids in rural communities across the country.
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Author: Jerry Alomatu
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