DisCos, renewable players get into action as Benin DisCo, Rubitec sign MoU
NIGERIAN POWER DISTRIBUTION companies and renewable players are beginning to move from conversation into action over mini grid power as Rubitec and Benin DisCo sign an MoU for the development of interconnected mini-grids that will help to boost the supply of electricity in Nigeria.
Bolade Soremekun, chief executive officer, Rubitec Solar Nigeria Limited, said “it took time to educate the Disco and understand what their needs are and how to manage them. It is a territory that has been on concession to them (Discos), so in terms of interconnected mini-grids, we need to work with them.”
He explained the importance of the interconnected mini-grids policy, which is to ensure that “if there are areas that are already under the grid but not energised, or if there is a distribution line that is not energised nor has no electricity, we can come in and supply electricity through renewable energy, mostly solar.”
“We will then meter the customers with prepaid meters and use the DisCos’ distribution lines. Now, these distribution lines may need to be upgraded and we lease the lines and pay the DisCos for it. With the MoUs being signed, I think more DisCos will begin to have ingains.
creased confidence to work with us,” he explained.
He also spoke on isolated mini grids which is the models deployed by most renewable companies in Nigeria, stressing the need for more conversations between the DisCos and the renewable industry players.
“In terms of isolated mini-grids, they need to know that we are doing projects on them and not necessarily for us to get their permission because the NERC (Nigerian Electricity Regulatory Commission) regulation allows us to do isolated mini-grids.”
According to officials from the Rural Electrification Agency and stakeholders in the renewable energy space, already, the signed MoU would reduce the poor power supply situation in communities not energised by the national grid.
Segun Adaju, chief exective officer and President of Renewable Energy Association of Nigeria (REAN), said there were opportunities in the mini-grids space and urged the DisCos to take advantage of it.
He said: “There is an opportunity clearly in this space, provided DisCos are not seeing it as an encroachment into their territories. I can give you an example, there is one of our members, Rubitec Solar, who has developed a mini-grid in partnership with a Disco. That is a test case.
“This is why we are saying to the DisCos that since they don’t have enough energy to distribute within their network, we are interested and willing to partner them to generate energy that they can also distribute and meet their target and earn more revenue.”
On whether the mini-power grid sector had been favourable to investors, he stated, “The sector is better than what it was three years ago and there is a major improvement. For example, there is a minigrid policy framework that is seen as one of the best in Africa and was developed by NERC. It has made the sector attractive, although there are still many grounds to cover.
“There is a market in Nigeria and mini-grids are running efficiently. People are paying and this is to the surprise of many stakeholders. So, this is to say that Nigeria is ready; it is a market where investments should come to and there is an estimated $500 billion of funds in the development space that can be accessed.”
James Sherwood, manager at Rocky Mountain Institute said the mini-grids sector could attract investments worth $9billion annually to Nigeria.
He added that there is a very strong mini-grid industry getting started here in Nigeria and there are some clear opportunities to grow that industry going forward.
“It has the opportunity to be a $9 billion per year industry and with a little bit of additional work, we can quickly move this to open up opportunities to use mini-grids as a tool for energy access.”
There is a market in Nigeria and mini-grids are running efficiently