The Rural Electrification Agency (REA) has announced the launch of a new rural electricity project, set to begin next month, with the financial backing of the World Bank. The project, valued at $750 million, aims to provide electricity to 17.5 million Nigerians, primarily in underserved rural areas, through the use of renewable energy solutions.
The REA’s Managing Director, Engr. Abba Abubakar Aliyu, shared the details during an interview on Channels Television’s Sunrise Daily program. He described the project, known as the Distributed Renewable Energy Scale-Up Project, as one of the most ambitious rural electrification projects globally in terms of the number of people it seeks to benefit.
Scope of the Project
According to Engr. Aliyu, the initiative will leverage renewable energy technologies to bring power to millions of Nigerians. Specifically, 3 million people will gain access to electricity through isolated mini-grids, 1.5 million via interconnected mini-grids, while the remaining will be electrified through a combination of matched grid and standalone solar systems.
“There is a new project that we are starting next month called the Distributed Renewable Energy Scale-Up Project. This $750 million project, financed by the World Bank, aims to electrify 17.5 million Nigerians. This is one of the most ambitious projects in the world, especially when compared to similar global efforts like those seen in India,” Engr. Aliyu explained.
Building on Past Successes
The REA has a proven track record of delivering electrification projects, having successfully implemented previous programs funded by the World Bank and the African Development Bank (AfDB). This new project builds on the successes of past initiatives, such as a $550 million program that also focused on rural electrification.
The current project is expected to last for five years and is designed to significantly expand Nigeria’s renewable energy footprint while improving access to electricity for rural communities.
Global and Local Support
In December 2023, the World Bank approved the Nigeria Distributed Access through Renewable Energy Scale-Up (DARES) project, funded by a $750 million International Development Association (IDA) credit. This project is set to attract over $1 billion in private capital and additional financial support from development partners.
Notable contributors include the Global Energy Alliance for People and Planet ($100 million), the Japan International Cooperation Agency (JICA) ($200 million), and other major partners like the United States Agency for International Development (USAID), the German Development Agency (GIZ), and the African Development Bank (AfDB).
Addressing Nigeria’s Energy Gap
Currently, Nigeria has one of the highest rates of energy poverty in the world, with an estimated 90 million people lacking access to electricity. The country generates approximately 5,000 Megawatts (MW) of electricity, which is insufficient for its population of over 200 million.
However, Nigeria holds significant potential for renewable energy generation, particularly in the northern region, where sunlight is available for up to 12 hours a day. Additionally, the country has untapped wind and hydropower resources that can be harnessed to improve its energy infrastructure.
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