Ten (10) successful MSMEs and renewable energy companies selected across Nigeria have received Universal Energy Facility (UEF) grants, a results-based financing facility managed by Sustainable Energy for All (SEforALL), to drive Stand-alone Solar for Productive Use (SSPU) programme and save thousands of tons of carbon emissions per year in the country.
This was the major highlight of the launch of the UEFNigeria Stand-Alone solar for productive use programme in Nigeria, held in Lagos on Thursday.
The renewable energy companies that received the UEFNigeria grants for their solar projects are AshipaElectric, Cloud Energy Nigeria, Creeds Energy, Darway Coast, Havenhill Synergy Limited, Konexa Energy, Oolu Nigeria, Pam Africa, SOLAD17 and SunFi.
The 10 successful solar SMEs are expected to begin construction on their proposed solar projects, all of which are designed to connect businesses and services to a clean, affordable and reliable electricity source. These projects by the Solar MSMEs, are expected to span most states in Nigeria and be completed within the next 12 months.
EnergyDay’s check showed that the UEF grant released to the 10 solar SMEs, was meant to complement the Nigerian Government’s Energy Transition Plan, ETP’s finance targets for the power sector by providing grants that companies can leverage to attract additional finance for clean energy.
ETP, it would be recalled, was an initiative proposed to achieve universal energy access by 2030 and net-zero emissions by mid-century, as well as the finance required to meet these goals. SEforALL is expected to provide grants to successful renewable energy companies who applied to have their projects financed as part of the facility’s Stand-alone Solar for Productive Use programme in Nigeria.
Together, they will connect approximately 3,500 businesses, markets, shopping malls, cold-storage facilities, clinics, schools, and other productive uses of energy, which are used to support economic activity and community infrastructure.
As stand-alone solar energy projects, they will alleviate the need for businesses and services to rely on expensive, polluting fossil fuel generators as their source of power.
The UEF estimates that approximately 5,400 tons of CO2 equivalent per year will be saved once all of the proposed projects are implemented.
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All during the launch said, “With this programme in Nigeria, the Universal Energy Facility will demonstrate the enabling power that sustainable energy can have on local economic development and climate action.
“Energy is the golden thread that will help deliver development gains. Access to reliable and affordable energy for productive uses will power SMEs and deliver jobs, growth, and sustainability for all the people of Nigeria.
“Solar projects supported by the facility will give businesses clean and affordable electricity to help them scale up, create jobs, and replace polluting power sources,” Ogunbiyi said.
Ahmad Salihijo, Managing Director/Chief Executive Officer, Rural Electrification Agency, REANigeria in his remark said that results-based financing like UEFNigeria, is an already proven approach to scaling energy access in Nigeria.
He however revealed that the grant approach employed by the UEFNigeria will expand the scope of the Standalone Solar for Productive Use Initiative (SSPU).
Anita Otubu, UEF Senior Director, in her comment said that hundreds of developers in Nigeria expressed their interest to join the SSPU programme and six months later, grantees have already been selected and can start building transformative solar projects in Nigeria through the UEFNigeria.
Wakil Muhammad, Nigeria Country Representative of Energy Alliance, in his comment said his organisation is committed to offering its expertise and learnings to the UEFNigeria SSPU.
He also added that The Global Energy Alliance for People and Planet (GEAPP) is one of his organisation’s valued implementing partners in the UEFNigeria’s programme.
Yewande Olagbende, Chief Executive Officer SOLAD integrated Power, one of the grantees, in her remark said the UEF grant is a welcome catalyst for SOLAD’s plan to deliver affordable solar solutions to thousands of MSMEs across economic clusters in Nigeria.
She said, “We are extremely delighted to be a grantee under this facility and the subsidy will help make delivering our pipeline a true reality.
EnergyDay gathered that SOLAD operates an independent Energy Distribution Network and is also an investor in Off Grid and Hybrid Energy projects in Africa.