KEDCO Allocates 41 Sites to Boost Renewable Energy in Nigeria

  • KEDCO has allocated 41 prioritised sites to 31 top renewable and off-grid companies in Nigeria.
  • The initiative involves developing interconnected mini-grids and embedded generation projects across Kano, Katsina, and Jigawa states.
  • An estimated 60MW of solar power is allocated to significant companies like Axxela, PowerGen, and DayStar.

Kano Electricity Distribution Company (KEDCO) has allocated 41 prioritised sites to 31 leading renewable and off-grid companies in Nigeria. This initiative, part of the KEDCO Utility 2.0 Project, aims to improve energy supply and enhance energy security within the KEDCO network, aligning with the Federal Government’s energy transition plan.

The selected sites span the states of Kano, Katsina, and Jigawa. They will see the development of interconnected mini-grids and embedded generation projects intended to augment grid supply and improve reliability. Sani Bala Sani, KEDCO’s Head of Corporate Communication, announced the allocations on Sunday.

These projects will include network infrastructure upgrades, following the model of the $2 million Zawaciki Solar Power Plant, a pilot project by KEDCO’s core investors, Future Energies Africa (FEA). Selected sites include Tokarawa Industrial Area, Amana and Kwankwasiyya Cities in Kano; Charanchi, Malumfashi, and Barhim Estate in Katsina; and Kafin Hausa and Gumel towns in Jigawa State.

KEDCO has engaged with relevant stakeholders, particularly the tri-state governments, to ensure the success of these projects. Major players in the renewable energy and off-grid space, such as Axxela, PowerGen, DayStar, Elektron, Bagaja, ProServe, Husk, and Westa, have shown interest in collaborating on phase one of the Utility 2.0 concept.

After a comprehensive procurement process, KEDCO categorised pre-qualified developers into two tiers based on project size: Tier 1 for sites of 1MW or more significant and Tier 2 for sites below 1MW. Developers must register, pay fees and security deposits, complete an initial site assessment, and sign agreements within the month to start site activities by Q3 2024.

KEDCO allocated an estimated 60MW to developers to construct solar power plants, upgrade distribution infrastructure, and provide metering infrastructure. Notable sites, including Tokarawa and Challawa, will operate as embedded generation projects under bilateral contracting agreements between KEDCO and the developers.

Future Energies Africa leads the Utility 2.0 program to establish KEDCO as Africa’s first green utility. The initiative views off-grid solutions as opportunities rather than threats, fostering developer partnerships.

KEDCO’s Chief Strategy Officer, Engr. Hussaini Sadiq highlighted the potential for investment and partnerships with state governments to revive agro-industrial and commercial hubs and drive community socio-economic empowerment.

KEDCO’s Chairman, Engr. Adamu Ibrahim Gumel emphasised the importance of diverse solutions to address energy deficiencies. He noted that the initial 60MW represents a small portion of the energy gap, but KEDCO already plans phase two and aims to continue collaborating with successful developers from phase one.

Site Allocation Details:

1. Tokarawa Phase 1, Kano: 20MW – Elektron Energy

2. Kura Rice Millers & Karfi Rice Millers, Kano: 2.5MW – Bagaja Renewables

3. Barhim Estate, Katsina: 2-3MW – Bagaja Renewables

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