REA Partners Five Firms to Deliver 1,265MW of Renewable Energy in Nigeria
The Rural Electrification Agency (REA) has entered into a Memorandum of Understanding (MoU) with five companies specializing in renewable energy to improve access to electricity in Nigeria. This collaboration is expected to provide a combined capacity of 1,265 megawatts (MW) from renewable sources.
The agreements were made between REA and five companies: A4&T Power Solutions, Eauxwell Nigeria Limited, Skipper Nigeria Limited, Havenhill Synergy Limited, and Privida Power. These partnerships are set to deliver a total of 1,265 MW through various Distributed Renewable Energy (DRE) projects, including interconnected mini-grids, isolated mini-grids, commercial and industrial uses, and energy for productive purposes.
The goal is to bring electricity to peri-urban and rural communities, covering markets, businesses, homes, public facilities, health centers, and schools, whether they are in areas with weak grid infrastructure or completely off the grid.
According to the REA, these initiatives are part of the Distributed Access through Renewable Energy Scale-up (DARES) project, which the agency is currently implementing.
During the signing ceremony on Thursday, REA’s Managing Director/CEO, Abba Abubakar Aliyu, explained that the new Renewable Energy Service Companies (RESCOs) model is designed to help developers transition into utility companies. This model is expected to enable them to attract investments needed to roll out mini-grid systems.
He added that these developers have the expertise and proven experience to not only implement mini-grid projects but also manage extensive project portfolios and expand their operations.
“This MoU demonstrates our commitment to roll-out this RESCOs model. This MoU gives developers the opportunity to partner with REA to build mini grids under the DARES programme and become RESCOs. We look forward to this mutually beneficial partnership.”
In addition, he said that the partnership would bring about the introduction of new energy service models, including Virtual Power Plants (VPPs), enable the mass adoption of energy efficient appliances and PUE devices through sales, distribution and credit financing as well as bring about the introduction of a range of value-added services, including e-mobility, agricultural processing, cold storage and e-cooking.
Under the agreement, A4&T Power Solutions is expected to deliver 315 MW, Privida Power committing to the development of 200 MW, Skipper Nigeria Limited aims to implement 250 MW.
Also, Euxwell Nigeria Limited is expected to deliver 250 MW and Havenhill; 250 MW of solar energy projects.
In his remarks, G. Balasubramanian, the High Commissioner of India said, “It is a pleasure and honour for me to be part of this MoU signing ceremony. India and Nigeria have had beneficial relationship in manufacturing and service industry since the 1960s.
“Skipper has been the implementing company of several electricity projects in Nigeria sponsored by the Indian Government. This signing will improve the bilateral cooperation between India and Nigeria. I am very happy that we are sharing our experience to develop the energy sector in Nigeria. I am very happy with this MoU signing.”
For Olusegun Odunaya, the Managing Director of Havenhill Synergy, stated that as an indigenous company, they are committed continually work with the REA to deliver on projects to improve the lives of Nigerians.
Ayo Ademilua, the CEO of A4&T Power Solutions, said, “I sincerely appreciate the Management of REA under the leadership of Abba Abubakar Aliyu. The REA has always been ambitious snd supportive. The REA has always pushed developers to scale up and that is our goal.
“The Federal Government and REA has always provided the enabling environment for companies to thrive. I believe that what we want to do is achievable and with REA’s support we will be able to achieve our goals. We are thrilled to partner with REA to advance solar energy solutions that will transform energy access in Nigeria.”
