The solar mini-grids, which will be developed by five renewable energy service providers, are expected to enable more than 494,000 new electricity connections in Nigeria.
The International Finance Corporation (IFC) and Norwegian investment fund Norfund offer a combined financing package of up to $83.2 million to scale up off-grid and distributed energy solutions Nigeria.
The financing initiative will support five renewable energy service companies – Darway Coast Nigeria Limited, GVE Projects Limited, Prado Power Limited, PriVida Power Limited and StarTimes Energy – with the financing provided. towards the rollout of 315 solar hybrid mini-grid locations in Nigeria, which is expected to facilitate a total of 494,189 new connections.
IFC estimates that more than 85 million people in Nigeria, Africa’s largest economy, currently live without electricity.
“By supporting distributed renewable energy solutions, this initiative will help increase access to reliable electricity while lowering energy costs, strengthening local economies and enabling income-generating activities,” the IFC statement added.
Henry Ureh, CEO of Darway Coast Nigeria Limited, added that the support will help the company scale faster and increase its impact. “Access to reliable electricity allows us to expand our operations, support local businesses and create jobs in the communities we serve,” Ureh said.
The Africa Solar Industry Association (AFSIA) has identified over 4.8 GW of operational solar power in Nigeria, of which 115 MW currently comes from solar mini-grids, according to figures from its project database.
Last November, IFC announced plans to provide Nigerian developer Virtuitis with $16 million in financing for construction and operations 97 solar mini-gridsthat could connect more than 140,000 off-grid consumers by 2027.
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