International Finance Corp. (IFC) plans to finance up to $16 million for Nigerian developer Virtuitis to build and operate 97 solar mini-grids, connecting more than 140,000 off-grid consumers by 2027.
The IFC proposes to co-finance the rollout of 97 solar mini-grids Nigeria.
According to a project listing on the company’s website, a revolving loan of up to $16 million will be provided to Nigerian energy company Virtuitis for the construction and operation of the mini-grids, pending final approval.
Virtuitis is one of 22 developers that signed an agreement with the Nigerian Rural Electrification Agency in October 2024 to deploy distributed renewable energy systems in nine Nigerian states. Since then, it has completed seven mini-grid projects, totaling 5,517 new connections.
IFC’s investment would help connect an additional 142,343 off-grid consumers through the 97 new mini-grids by 2027. The mini-grids will consist of solar systems with sizes between 50 kW and 800 kW, in addition to lithium battery storage with capacities between 200 kWh and 1.65 MWh and diesel generators between 60 kVA and 500 kVA.
The mini-grids will be constructed on plots ranging between 0.15 and 10 hectares in villages in the Nigerian states of Plateau, Ondo, Delta, Kogi, Ekiti, Sokoto, Zamfara and Kebbi. Virtuitis will be responsible for both construction, which is expected to take approximately four months per location, and operation and maintenance of each system.
IFC’s latest update states that it has completed the Environmental and Social Review Summary for the project, assessing it to have limited risks and environmental impacts.
IFC and Virtuitis first signed a partnership agreement for mini-grid deployment in Nigeria earlier this year at the Mission 300 Africa Energy Summit, aimed at building 500 solar mini-grids across the country, including 100 in the first year.
At the time, IFC’s role was described as bridge financing by Virtuitis Chief Executive Officer Chantelle Abdul, who added that the financing would “fund capital expenditures and establish the necessary physical infrastructure for the development of the proposed mini-grid sites.”
According to local reports, during the summit, IFC signed equivalent agreements with four other companies – Havenhill Synergy, Prado Power, PriVidea Power and Sosai Renewable Energies – which also involve the rollout of solar mini-grid projects across Nigeria.
Each of the companies is participating in the Nigerian Distributed Access through Renewable Energy Scale-up (DARES) program. The project, implemented by the Rural Electrification Agency and funded by the World Bank, aims to provide clean electricity access to 17.5 million Nigerians by the end of the decade.
A report published by the Nigerian National Bureau of Statistics in November 2024 shows that 53.6% of Nigerian households have access to electricity. There is a big gap between houses in the city and in the countryside. According to the report, the electrification rate is about 82% of urban households, compared to 40% for rural homes.
According to the Africa Solar Industry Association (ASFIA) project database, Nigeria has 449.8 MW of operational solar power. The figure includes 92.5 MW of mini-grid capacity and 88.6 MW of home solar systems.
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