The Global Energy Alliance for People and Planet (GEAPP), a prominent climate organization backed by the Rockefeller Foundation and the Bezos Earth Fund, is spearheading a solar mini-grid initiative in Nigeria.
This project aims to tackle the nation’s unreliable power supply, which significantly hinders productivity and economic growth.
Established in 2021 in collaboration with the Ikea Foundation, GEAPP has already completed its first interconnected mini-grid in December, with two additional grids currently under construction and funding secured for a fourth.
These mini-grids, operated by private developers, serve as crucial complements to the limited electricity provided by the national grid, ensuring that businesses and households can maintain continuous power.
Fauzia Okediji, a utility innovation manager at GEAPP, highlighted the initiative’s significance during an appearance on Bloomberg TV’s Wall Street Week.
“You have those kinds of underserved communities that do require reliable power to power their homes and their businesses,” she stated, emphasizing the project’s potential to enhance living conditions and stimulate economic activities.
Muhammad Wakil, the country delivery lead for GEAPP, echoed these sentiments during a site visit in Ogun State.
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He stressed the necessity for scaling up these efforts, saying, “We need hundreds or thousands of this kind of project across Nigeria to end energy poverty. We have shown it’s a viable business model.”
The urgency of this initiative is underscored by alarming statistics: Nigeria has the highest number of people without access to electricity globally, with about 86 million individuals affected.
Furthermore, the remainder of its 230 million population experiences frequent power shortages. The national grid currently provides only 4,000 megawatts, roughly one-sixth of South Africa’s generation capacity, despite Nigeria’s population being four times larger.
Recent weeks have been particularly challenging, with the national grid collapsing three times in just one week, bringing the total shutdowns in 2024 to nine.
GEAPP’s Demand Aggregation for Renewable Technology (DART) program plays a critical role in this initiative by consolidating the needs of multiple developers to reduce solar equipment costs.
Additionally, the program manages a $25 million financing facility, enabling developers to secure funding in U.S. dollars for equipment imports while allowing repayment in Nigeria’s naira once they begin generating revenue.
Nigeria boasts significant solar energy potential, averaging six hours of sunlight daily, with an estimated capacity for concentrated solar power and photovoltaic generation standing at approximately 427,000 megawatts.
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This natural advantage positions the country well to harness solar energy as a sustainable solution to its power crisis.
In a related effort, the Director-General/CEO of the Rural Electrification Agency (REA) recently announced the launch of a new rural electricity project set to commence next month, funded by the World Bank with $750 million.
This initiative aims to provide electricity to an additional 17.5 million Nigerians, further bolstering the country’s commitment to addressing its energy challenges.
As GEAPP and other stakeholders continue to explore innovative solutions, the pilot solar mini-grid initiative stands as a promising step towards alleviating Nigeria’s energy poverty and fostering economic development.