By Okoro Uche
Last week, Dr Akinwumi Adesina was re-elected for another five-year stint at the helm of the African Development Bank (AfDB). While this is good news for Nigeria in terms of bolstering the country’s regional and continental pedigree, it is also a welcome development to one of the nation’s and the continent’s burgeoning sectors – the renewable energy sector. When Dr Akinwumi was elected in 2015, he highlighted 5 priority areas “The High 5s” that the bank would focus its resources on, one of them being ‘to light up and power Africa’.
In recent years, the bank has taken a dedicated approach to energy project financing. With its interest focused mainly on green projects, the Adesina-led AfDB has been one of the foremost financiers of renewable projects on the continent. The year 2019 saw the single highest investment in renewable energy by the bank with 42 per cent of new power generation investments focused on renewables.
The AfDB-funded Nigeria Electrification Project (NEP) aims to electrify 300,000 households and 30,000 Small and Medium Enterprises (SMEs) via 1,000 mini-grids by 2023 catalysing development in energy deficit communities and regions. In the Democratic Republic of Congo, the first phase of the Green Mini-Grid Program will see the bank provide $20 million in supporting finance for the development of 3 private sector-led solar mini-grids of between 3MW to 10MW capacities.
The AfDB’s activities in renewable energy development go beyond financing. The Bank also provides a platform (Green Mini-grid help desk) for the provision of detailed information on mini-grid development for both developers and policymakers across sub-Saharan Africa. By also promoting emerging technologies and business models, AfDB aims to accelerate mini-grid and off-grid sector development as well as encourage private sector participation across the continent.
The bank’s electricity financing is not restricted to renewable energy projects as it is financing several transmission projects across the countries. It is also financing the first phase of the $210m Nigeria transmission expansion project. This project will enable efficient evacuation of generated power and enable distribution companies to improve supply. It will also increase the amount of energy being exported via the West African Power Pool.
The AfDB has always financed energy projects across the continent, Dr Adesina’s tenure as president has seen one of the most radical changes to the bank’s electrification approach. By embracing distributed energy systems, the bank has positioned itself in a position to directly impact the lives of Africans especially those most affected by energy challenges.
One can only hope Dr Adesina’s second term as president of the bank eclipses the strides made in renewable energy development and finance over the past half-decade.