Emmanuel Addeh in Abuja

In a significant move to address the inconsistent power supplies hindering productivity in Nigeria, a global climate organization supported by the Rockefeller Foundation and the Bezos Earth Fund is testing a solar mini-grid program. This initiative was highlighted in a Bloomberg report recently.

The Global Energy Alliance for People and Planet (GEAPP), established in 2021 through a collaboration of these foundations alongside the Ikea Foundation, was behind the construction of Nigeria’s first interconnected mini-grid last December. Currently, two additional mini-grids are underway, with plans for a fourth already funded.

These facilities, which are managed by private developers, aim to enhance the limited power supply consumers receive from the national grid, enabling businesses and homes to maintain continuous power.

GEAPP is initially focused on setting up a pilot project in each of the regions serviced by Nigeria’s 11 power distribution companies, with a long-term objective to establish 10 gigawatts of mini-grids. This effort complements earlier initiatives aimed at delivering energy to areas lacking access to the national power supply.

In an interview at one of the project sites in Ogun State, Muhammad Wakil, GEAPP’s country delivery lead, stressed, “We need hundreds or thousands of these kinds of projects across Nigeria to end energy poverty. We’ve demonstrated that it’s a viable business model.”

Nigeria currently holds the unfortunate distinction of having the highest number of individuals without any electricity—approximately 86 million—while the remainder of its 230 million population has very limited access. The national grid generates around 4,000 megawatts, which is only a fraction compared to South Africa’s output for a population one-quarter its size, resulting in frequent outages and sporadic total collapses of supply.

Fauzia Okediji, a utility innovation manager at GEAPP, addressed the pressing need for reliable power in underserved communities during an interview with Bloomberg TV’s Wall Street Week. “These communities require dependable power to support their homes and businesses,” she noted.

The GEAPP’s Demand Aggregation for Renewable Technology (Dart) program combines the procurement needs of multiple developers to reduce solar equipment costs. The initiative also features a $25 million financing facility from which developers can borrow to import necessary equipment, repaying in Nigeria’s naira once revenue starts flowing.

“This strategy has enabled developers to realize savings of up to 30 percent,” Wakil shared regarding the pooling arrangement.

To further support mini-grid developers, GEAPP offers grants, loans, and technical assistance, leveraging a government regulation from last year that allows mini-grids to coexist alongside the national grid. The success of this program has compelled the World Bank to commit $130 million toward the development of similar facilities.

The Ogun State project showcases a one-megawatt solar mini-grid constructed by the Nigerian company Darway Coast, which promises to deliver all-day electricity to the local community by year-end, enhancing the current eight-hour supply from Ikeja Electric Plc.

Fatima Haliru, the power purchase manager at Ikeja Electric, emphasized the collaborative prospects spawned by the new electricity act: “Everyone is now permitted to create energy and sell to customers. Rather than viewing them as competitors, it’s more beneficial to engage them as partners,” she stated in reference to Darway.

Community leader Aleem Oloyede expressed optimism about the increased power supply, noting that it would significantly enhance productivity in the area, which is home to various trades, healthcare facilities, and educational institutions. “We’re excited about the solar energy that is coming,” he remarked.

The Dart program is anticipated to serve as a template for the Mission 300 initiative announced by the World Bank and the African Development Bank, which collectively pledged $30 billion with the goal of providing electricity to 300 million Africans by 2030.

Wakil reflected on this connection, stating, “I believe Mission 300 draws inspiration from the Nigerian experience. Mission 300 is about scaling and replicating this model across at least 15 African countries.”