The Rural Electrification Agency, REA, has signed a Memorandum of Understanding with Oando Clean Energy Limited (OCEL) on the deployment of sustainable renewable energy access across Nigeria.
The Managing Director of the Rural Electrification Agency, Mr. Ahmad Salihijo-Ahmad who stated this in Abuja, the nations’s capital, said the signing of the MOU would boost collaboration between the private sector and government.
Mr Salihijo-Ahmad explained that one of the best ways to mitigate the effects of subsidy removal in Nigeria is through the exploitation of opportunities to optimise the critical role of renewable energy.
He expressed his delight over the REA – Oando partnership, saying that “it will bring about mutually beneficial collaboration, knowledge exchange and experiences all targeted at achieving the common goal of optimising renewable energy in the country.”
He further stressed that the Agency has a history of ensuring that different kinds of financing are available.
“There are programmes and initiatives the REA implements that can be used to deliver impact across the nation,” he said.
While commending the REA for its approach to understanding and leveraging the role of the private sector players to deliver on the task on sustainable energy access across the country, the President and CEO of Oando Clean Energy Limited, Dr. Alex Irune stated that the company was keen on renewable energy and is excited for the opportunity to create value that the country needs.
He expressed his confidence on the collaboration with REA, while explaining that ” what the Agency has effectively done is to take the bull by the horn and derisk investment opportunities.
“I wouldn’t be signing this MoU today if there wasn’t the enabling environment provided by the REA”
” I commend the REA on their approaches, programmes and achievements over the years. These approaches are sustainable,” he added.
Fit for Purpose
For his part, the Executive Director, Technical Services at the REA, Mr. Barka Sajou while explaining the Agency’s shift in paradigm on the delivery of fit-for-purpose electrification projects, explained that “delivering on sustainable energy access across the nation must go beyond just connections and rather serve as an enabler of growth in communities, while targeting electrification projects to people’s sources of livelihood”.
Also, the Head of Solar Power Naija Programme, Barbara Izilien, explained that the Agency continues to deepen private sector engagements, targeted at drawing in funding sustainably, while expanding access across the nation.
Izilien stated that the intention for this collaboration is to encourage private sector investment to deploy sustainable renewable energy projects across the country.
According to her, the company is trying to grow the funding of the ‘Solar Power Naija’, stressing that the MOU signing will support the expansion targets of the REA in providing energy access to communities in the country.
The repositioned REA has, over the years, strengthened ties with key stakeholders in the private sector and the development space. Beyond that, the Agency has realigned itself with the State governments through the Nigeria Governors Forum.
People-Centered Projects
In line with the mandate of the REA, the State governments continue to play a pivotal role in the Agency’s consistent deployment of people-centred electrification projects.
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyze economic growth and improve quality of life for Nigerians.
The Agency was established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005.
The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Solar Power Naija (SPN), Energizing Education Programme (EEP), Energizing Economies Initiative (EEI), Energizing Agriculture Programme (EAP), Energy for All – Mass Rural Electrification and Research and Innovation Hub. Africa Mini Grids Programme and Derisking Sustainable Off-Grid Lighting Solutions.
The Agency is responsible for creating an enabling environment for private sector-led projects, which includes conducting feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements.
ABOUT SOLAR POWER NAIJA PROGRAMME
The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar connections in off grid communities.
This program is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.
The objectives of the programme is to Expand energy access to 25 million individuals (5 million new connections) through the provision of Solar Home Systems (SHS) or connection to a mini grid, Increase local content in the off grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of over 250,000 new jobs in the energy sector.
