- REA is preparing to expand its capacity for the Energy Transition Plan.
- 67 out of 267 mini-grid projects are completed
The Rural Electrification Agency (REA) is now prepared to demonstrate its capacity to undertake the $300 million renewable energy component of the $1.9 trillion plan as part of the Federal Government’s ambition to start implementing the Energy Transition Plan (ETP). The $550 million and $350 million World Bank and African Development Bank initiatives for the Nigerian Electrification Project are now being managed by it (NEP).
At a media event with a few energy journalists in Abuja, the announcement was made by REA Managing Director Engr. Ahmad Salihijo Ahmad. The financial cost, according to him, for Nigeria to achieve net zero by 2060 is $1.9 trillion. He disclosed that to show that the nation is prepared for the energy transition, the Federal Government will employ a variety of REA renewable initiatives. He said on the financial implication that “what we have for net zero is $1.9trillion. Therefore, we need $ 10 billion annually.
Anita Otubu, the former head of the project management unit, added her voice to the discussion and mentioned that $64.8 million of the $350 million in World Bank funds for the NEF has already been distributed for implementation.
She claims 267 project agreements totalling $92 million have been signed, one for each community. However, only 67 of the 267 mini-grid projects had been finished, according to Otubu.
She emphasized that the first disbursement phase is issued once the developers have transported their equipment to the project site and clarified that not all projects have progressed to the funding level.
She said, “Out of the entire financing of 550million dollars, we have spent about $64.8m. Our commitment to draft an agreement is $92m. The agreement includes that we have already signed.”