- All on, Odyssey Energy Solutions and the GEAPP have launched an aggregated solar equipment procurement programme.
- The DART programme will provide debt financing enabling solar companies.
- The programme aims to lower costs by removing supply chain bottlenecks.
Shell-backed impact investment company, All On, Odyssey Energy Solutions, and the Global Energy Alliance for People and Planet (GEAPP) have launched a global aggregated procurement program for clean energy companies in Nigeria. The Demand Aggregation for Renewable Technology (DART) programme is backed by a $10 million Financing Facility equally seeded by All On and GEAPP.
The programme which will be piloted in Nigeria and expanded to include four other African countries, will ensure that remote communities in need of electricity receive solar power. The DART program hopes to accelerate energy access via demand pooling and aggregated purchasing of solar equipment, access to affordable finance, and coordinated logistics processes to unlock economies of scale for solar companies and make solutions affordable for consumers. In addition, the facility will provide debt financing enabling solar companies approved by the Rural Electrification Agency, REA, under the Nigeria Electrification Program (NEP) to purchase lower-cost solar equipment.
Eric Wanless, the Managing Director of Innovation for GEAPP, stated that the organization is excited to launch the DART program in Nigeria, which will help to accelerate the transition to universal sustainable energy access. “Aggregating the procurement of standardized DRE products will ensure low-cost, reliable, and clean energy is empowering people and businesses in Nigeria,” he added.
All On’s CEO, Wiebe Boer, noted that the investor is excited about the deal, which he says will provide much-needed capital into the country’s renewable energy sector. “This innovative partnership provides a solution to industry challenges such as high finance costs and lack of scale, by ensuring price competitiveness, supply chain optimization and unlocking local currency financing,” he added.
The third partner, Odyssey Energy Solutions, is set to provide aggregated procurement services in five pilot countries in Africa, beginning with Nigeria. Odyssey will manage equipment standardization, process orders for solar developers, manage supplier relationships, and link developers with finance partners.
Damilola Ogunbiyi, the CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy noted that The DART programme is a win for the sector. “It would go a long way in achieving much-needed economies of scale by bringing together finance providers, aggregated procurement agents, and specialized logistics,” she added. The MD of the Rural Electrification Agency, Ahmad Salihijo, also added that the programme “could be a breakthrough in bridging the finance gap that hinders the growth of small and medium-sized enterprises in the nascent renewable energy sector in Nigeria.”