March 2, 2024

Nigerian Government raises $100m solar stabilisation fund for on-grid solar contracts

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Nigerian Government raises $100m solar stabilisation fund for on-grid solar contracts

Oredola Adeola

The Nigerian Government revealed the plan to raise $100 million Solar Stabilisation Fund through the Nigerian Sovereign Investment Authority(NSIA) to backstop on-grid solar contracts, complementing the country’s policy for integration of Utility Scale Solar into the national grid.

Vice President, Professor Yemi Osinbajo, who was represented by Engr Abubakar Aliyu, Minister of Power, made this known at the ECOWAS Centre for Renewable Energy and Energy Efficiency ECREEE/ECOWAS, Sustainable Energy Forum (ESEF) 2022 held in Abuja, on Monday.

According to him the stabilisation fund is expected to Renewable Energy Distribution Franchise complement the efforts of solar developers in the country.

He also noted that the Government is framing out the Mini-Grid Regulation to raise the cap for licensing from 1 megawatt (MW) to 5 megawatts (MW).

Osinbajo said, “We have dedicate resources to completing scalable, private sector-driven Renewable Energy Distribution Franchise pilots (all at Financial Close) including:Konexca Distribution model 90 million dollars with the Kaduna Distribution Company (DISCo)

“Attention is given to the Maiduguri Solar Power Island -40 million dollars Kano Interconnected Minigrid–100MW pilot. We also plan to secure 1.5 billion dollars in additional financing through the World Bank to expand the Nigerian Electrification Programme.

“We are also stabilising the on-grid sector through modernising operations of our Grid and further preparing the grid for renewables, ”he said.

The Vice President further noted that the Nigerian Government is developing innovative data tools including the Integrated Energy Planning Tool designed in partnership with Sustainable Energy for All (SEforALL) and the SE4All Central Data Management System (CDMS) Web portal (nigeriase4all.gov.ng).

He noted that Nigeria is incorporating Solar PV Alternative Power Supply to select Public Buildings and develop the 3D (Distributed, Decarbonised, and Digitalised) 24 Hours Feeder Programme.

According to him, the project would provide uninterrupted power supply to dedicated feeders through a hybrid of grid and renewable power.

Professor Osinbajo said, “These efforts amplify government’s commitments and signify our readiness for investments.

He also revealed that Nigeria’s Energy Transition Plan (ETP) would require funding of about USD1.9 trillion up to 2060.

“USD410 billion of this amount is above usual spending and implies that we need to mobilise an additional USD10 billion per annum.

“The realisation of this goal depends on the implementation of our nation’s Energy Transition Plan (ETP) which was recently launched by this administration.

“Nigeria’s Energy Transition Plan is a prime example of the needed evolution of policies to deliver both the growth in energy consumption necessary for development and the climate response required for the preservation of our planet.

“Our Energy Transition Plan seeks to tackle the dual crises of energy poverty and climate change, and deliver universal energy access (SDG7) by 2030 and net-zero by 2060.

“It is also a bolder articulation of our commitment to sustainability and renewables as earlier proposed in the Electricity Vision 30:30:30,, which aims to provide 30 Gigawatts (GW)of electricity by the year 2030 with renewable energy contributing at least 30 per cent to the energy mix, ”he said.

According to him, the success of universal energy access and carbon neutrality is dependent on effectiveness in crowding in these investments.

Osinbajo said that the Federal Government planned to roll out a set of policy measures that would attract financing and investments of up to 10 billion U.S. dollars and create scalability of programmes of over 30 billion U.S. dollars over the coming decades.

The VP said that these policy measures and programmes would be leveraged on to catalyse the Nigerian ETP; specifically on renewable power.

He further noted that collaboration in the form of strategies and reforms needed to crowd in the investments required for real and impactful projects and progress on the ground.

The VP said, “To reach our goals, sufficient capital must be made available in the region, and we must do our part in creating the enabling environment for these funds.

“As a region, we must scale such efforts and deliver robust and sustainable energy systems for the prosperity of our people.

The Nigerian Vice President therefore called on the ECOWAS Commission and all delegates to engage constructively in ensuring the development of enabling policies, financing models for private sector participation, and technological applications in the region’s clean and sustainable energy future.

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