The Rural Electrification Agency (REA) has signed several Memoranda of Understanding (MoUs) with five private developers, including Havenhill Synergy. The agreements, formalized on Thursday, July 4, 2024, represent a concerted effort to boost the nation’s energy capacity through renewable sources.
The MoUs involve REA and five companies:
- A4&T Power Solutions
- Eauxwell Nigeria Limited
- Skipper Nigeria Limited
- Havenhill Synergy Limited
- Privida Power
Collectively, these partnerships will facilitate the delivery of 1,265 MW of distributed renewable energy (DRE) projects. These projects include interconnected mini-grids (IMGs), isolated mini-grids, commercial and industrial (C&I) solutions, and productive use of energy (PUE) initiatives, targeting electrification in peri-urban and rural areas, including markets, businesses, households, public institutions, health clinics, and schools.
These initiatives fall under the Distributed Access through Renewable Energy Scale-up (DARES) project, which is managed by the REA. DARES aims to revolutionize Nigeria’s energy landscape by introducing innovative service models such as Virtual Power Plants (VPPs), promoting the widespread adoption of energy-efficient appliances and PUE devices through sales, distribution, and credit financing.
The partnership will also explore value-added services, including e-mobility, agricultural processing, cold storage, and e-cooking. Note that the combined capacity of 1,265 MW will be distributed among the five developers as follows:
- A4&T Power Solutions: Developing 315 MW.
- Privida Power Limited: Committing to 200 MW.
- Skipper Nigeria Limited: Implementing 250 MW.
- Eauxwell Nigeria Limited: Focusing on 250 MW.
- Havenhill Synergy Limited: Planning 250 MW of solar energy projects.
The REA’s collaboration with these developers is expected to significantly impact peri-urban and rural communities, providing reliable and sustainable electricity to areas currently underserved by the national grid. The projects are designed to enhance the quality of life for residents by ensuring access to essential services such as healthcare and education, which are often hindered by inadequate power supply.
During the signing ceremony, Abba Abubakar Aliyu, REA’s Managing Director and CEO, expressed enthusiasm about this initiative’s potential.
“This is a landmark event under the DARES programme and the introduction of the Renewable Energy Service Companies (RESCOs) model,” he said. “The RESCO model aims to provide developers with a platform to become utility companies, attracting investment to deploy mini-grids.”
The collaboration between REA and the five private developers underscores a shared commitment to harnessing renewable energy’s potential to drive socio-economic development in the country. As these projects come to fruition, they promise to illuminate Nigeria’s future, one solar panel at a time.