Nigeria Sovereign Investment Authority allocates US$24m for renewable energy

NIGERIA – The Nigeria Sovereign Investment Authority (NSIA), the institution that manages Nigeria’s sovereign wealth fund, has announced that it is allocating US$24 million in funding for renewable energy.

This investment is aimed at the deployment of more than 200,000 solar home systems in Nigeria.

This is another step forward in renewable energy investment in Nigeria. The Nigeria Sovereign Investment Authority (NSIA), the institution that manages Nigeria’s sovereign wealth fund, will finance the local assembly and deployment of 200,000 solar home systems to the tune of US$24 million.

This investment is part of the “Solar power Naija” partnership between NSIA and Nigeria’s Rural Electrification Agency (REA), in line with the Buhari administration’s economic sustainability plan under the supervision of Nigerian Vice President Yemi Osinbajo.

REA, under the Nigerian Ministry of Power, is providing technical and advisory support to NSIA in this process.

The Solar Power Naija program was established to provide access to electricity to 5 million households, or 25 million Nigerians in rural areas and underserved urban communities nationwide.

The program is also expected to create 20,000 manufacturing, assembly, and installation jobs to catalyze over 500,000 off-grid systems by 2023.

According to Uche Orji, NSIA’s managing director, his institution is prioritizing climate-smart infrastructure to create access to affordable electricity for Nigeria’s underserved communities, especially in rural areas where 66% of the rural population still lacks access to electricity according to Power Africa.

In 2022, South Korea will allocate just over US$12.4 million in funding to the Nigerian federal government for the installation of solar mini-grids in rural areas.

The project, led by energy providers S&D Powernics and ILJIN Electrics, will bring the benefits of electricity, including improved security and nighttime activity, to unserved populations.

After developing six mini-grids to facilitate rural electrification in Nasarawa State, energy provider Husk Power Systems will deliver its seventh mini-grid to Sabon Gida in Lafia City in 2022.  The company plans to reach 500 solar hybrid mini-grids by 2026.

Meanwhile, The U.S. Trade and Development Agency (USTDA) announced it has awarded a grant to Nigeria’s Daybreak Power Solutions Limited, a subsidiary of African renewable energy company Daystar Power Group, for a feasibility study to help optimize clean energy supply to business entities in the country.

Daybreak Power Solutions selected Colorado-based Rocky Mountain Institute (RMI) to carry out the study.

USTDA’s study will assist Daybreak Power Solutions with developing 20 solar-plus-storage minigrids that will supply power to Nigeria’s grid when it is operational and provide power directly to Nigerian businesses when the grid is down.

The minigrids will provide a clean and reliable alternative to diesel back-up generators and produce up to 40 megawatts of solar power. The study will develop the technical designs of the minigrids, select the sites for deployment, and finalize the project’s business model.

“USTDA has long worked with our partners in Nigeria to help expand energy access and advance climate resilience,” said Ambassador Vinai Thummalapally (ret.), USTDA’s Acting Director.

“Our support for this project will offer Nigerian businesses a clean energy solution for their power needs and facilitate partnerships with U.S. companies that supply high-quality infrastructure solutions.”

This activity supports USTDA’s Global Partnership for Climate-Smart Infrastructure, which connects U.S. industry to major clean energy and transportation infrastructure projects in emerging markets. It also supports the U.S. government’s Power Africa and Prosper Africa initiatives.

“We are thrilled to partner with RMI and USTDA on this landmark project to explore win-win opportunities for industrial manufacturers, solar energy providers, and distribution companies in Nigeria,” said Jasper Graf von Hardenberg, CEO and Co-Founder of Daystar Power Group.

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