Nigeria's Rural Electrification Agency (REA) has teamed up with Husk Power Systems to implement interconnected mini-grids and isolated mini-grids, rooftop commercial and industrial (C&I) solar projects, initiatives promoting productive use of energy (PUE), appliance sales, and financing solutions.
Nigeria's Rural Electrification Agency (REA) and Husk Power Systems have forged a strategic partnership aimed at deploying up to 250 MW of decentralized renewable energy (DRE) projects, aligning with the government's goals for energy access, energy transition, and energy security. The collaboration was formalized through the signing of a memorandum of understanding (MoU) by the two entities.
The collaboration will prioritize various rural and peri-urban decentralized renewable energy (DRE) initiatives, encompassing power generation and distribution through interconnected and isolated mini-grids, rooftop commercial and industrial (C&I) solar installations, productive use of energy (PUE) programs, appliance sales, and financing endeavors. These projects are designed to bolster the implementation of the $750 million Distributed Access Program. Additionally, the REA and Husk Power Systems will jointly facilitate the widespread adoption of energy-efficient appliances and PUE devices, leveraging sales, distribution channels, and credit financing mechanisms.
Since 2020, Husk Power Systems has been operating in Nigeria, delivering dependable and sustainable electricity to a wide array of beneficiaries, including households, micro-, small-, and medium-sized enterprises (MSMEs), factories, health clinics, schools, markets, and public institutions. Through its Africa Sunshot initiative, unveiled in 2023, Husk Power Systems aims to establish 1,000 mini-grids in Nigeria and an additional 1,500 in other regions of Sub-Saharan Africa.
The Rural Electrification Agency (REA) operates as a federal entity within Nigeria's Ministry of Power, tasked with realizing the national objective of attaining universal access to electricity. To fulfill this mandate, the agency employs a combination of public funding and mobilized resources from partners and the private sector. This collaborative effort aims to deliver clean and sustainable energy access to Nigerian communities that are currently underserved or unserved.
The upcoming projects will play a pivotal role in supporting the implementation of the $750 million Distributed Access through Renewable Energy Scale-up (DARES) initiative. Funded by the World Bank and overseen by the REA, DARES is scheduled for launch later this year.
In addition to constructing new clean energy infrastructure to provide electricity to communities lacking access, the agreement also specifies collaboration on innovative models, including virtual power plants (VPPs). Furthermore, it outlines plans for value-added community services such as e-mobility, agricultural processing, cold storage, and clean cooking.
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