The Nigerian Government has launched the $500 million Universal Energy Facility(EUF), an innovative, results-based, finance programme, that focuses specifically on scaling up electricity access for productive uses from 2023.
Vice President Yemi Osinbajo, launched the facility during the virtual event to unveil Nigeria’s Energy Transition Plan, on Wednesday.
According to the facility provides new opportunities for solar energy companies to obtain results-based finance from the Universal Energy Facility as part of a new financing window focused on supporting Stand-Alone Solar for Productive Use.
EnergyDay gathered that UEF is a multi-donor results-based financing facility with implementing partners including the Rockefeller Foundation, Shell Foundation, AMDA, Power Africa, Good Energies, and UK Aid & Carbon Trust.
The UEF is a project of Sustainable Energy for All (SEforALL) an international organization working with leaders in government, the private sector, and civil society to drive further, faster action toward the achievement of Sustainable Development Goal 7 (SDG7) and the Paris Agreement.
Meanwhile, Professor Osinbajo, during the launch, explained that “the Universal Energy Facility will provide grant payments to enable solar companies to expand their operations to small and medium-sized enterprises across Nigeria, while crowding-in additional private capital.
He said, “Projects supported by the Universal Energy Facility will help grow businesses and create jobs, making them key contributors to our Energy Transition Plan.
“I’d like to encourage solar companies in attendance today to engage with this innovative financing opportunity, which is being managed by Sustainable Energy for All,” he added.
The Department for International Development (DFID), Shell Foundation, Sustainable Energy for All (SEforAll), and United States Agency for International Development (USAID), are multinational donor organizations from the United Kingdom(UK) and United States of America (USA) releasing funds for the initiative.
They are expected to provide energy access projects, access finance, and incentive payments to eligible organizations deploying energy solutions and verified end-user electricity connections.
Speaking at the Launch on Wednesday, Mac Carrato, Coordinator, Power Africa, said the US Government through Power Africa, is committed to Nigeria’s transition Energy plan, all aimed at providing enough energy to power industries and other productive uses in Nigeria.
He said the Power Africa programme was aimed to increase Nigeria’s energy access through increasing private sector investment in power generation, and transmission to clean power supply.
According to him, Power Africa is making efforts aimed at improving the enabling environment for the private sector’s participation in the power sector and promoting improved credit around the energy sector.
He said, “Since the programme started globally in 2018, we have achieved more than 2.9 million new on and off-grid connections.”
Ms Damilola Ogunbiyi, CEO.SRSG, SEforAll, in her remark said, energy is an essential part of human daily endeavor.
She said, “Energy accounts for two-thirds of global greenhouse gas emissions, contributing significantly to the climate crisis. These challenges need to be addressed urgently, or we will remain far off track in ending energy poverty and meeting net-zero targets by 2060.
“To get there, we need bold and urgent actions towards a bold and equitable energy transition. This requires an understanding that we must address all the issues of climate change, energy, and development challenges,” the SEforALL CEO noted.
According to SE4All, the $500 million facility aspired to deliver approximately 1.3 million electricity connections and 300,000 clean cooking solutions to millions of homes across Nigeria.
The organization further noted that the facility is expected to reduce about 4.8 Metric tonnes of carbon emissions (CO2e) by 2023.
EnergyDay further gathered that the UEF provides incentive payments to eligible organizations deploying energy solutions and providing verified end-user electricity connections (including mini-grids and stand-alone solar systems) and clean cooking solutions based on predetermined standards.