- CrossBoundary will finance PowerGen’s mini-grid project deployment.
- PowerGen plans to deploy 28 mini-grid systems across Nigeria.
- The systems will also reduce CO2 emissions by about 2,000 MT annually.
Clean energy developer PowerGen Renewable Energy has secured long-term project financing from CrossBoundary Energy Access to develop mini-grids across Nigeria. PowerGen plans to deploy 28 solar and battery-powered mini-grids to connect 55,000 rural people to electricity. The project is also set to receive about $9 million from international finance institutions including, Oikocredit, Triodos IM, and EDFI ElectriFI. The projects are also being developed under the Output-Based Fund of the World Bank and Nigeria Rural Electrification Agency’s Nigeria Electrification Project (NEP).
PowerGen will develop the mini-grids via a special purpose vehicle (SPV) set to be fully acquired by CBEA once the systems have met the pre-agreed technical standards. PowerGen will construct, maintain and operate the mini-grids after the transfer to CBEA. PowerGen has developed 6 mini-grid systems across Nigeria, including its pilot in Rokota, the first to be commissioned under the NEP Performance-Based Grant (PBG) program.
Humphrey Wireko, Associate Principal, CrossBoundary Energy Access, notes that the company believes mini-grids are key for bringing power to over 200 million people in Africa. In addition, Wireko asserts that this project finance structure is the best way to attract the $187 billion investment needed.
The mini-grid systems will help to increase economic activity in local communities via reduced energy costs and increased access to productive energy for industrial activities. The systems will also reduce CO2 emissions by about 2,000 MT annually.