Clean, safe, reliable electricity’

In this interview with JOHN OSADOLOR and HARRISON EDEH, speaks on the agency’s w to creating enabling economic environment for national development. Excerpts:

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Our universities and hospitals are experiencing your key interventions. Talk us through further on this, and whether there are concerns.

Education and quality health care are backbones to economic development. The REA through the Energizing Education Programme (EEP) aims to provide clean and reliable electricity in Federal Universities and affiliated Teaching Hospitals. We have seen the successful completion of projects in Bayero University, Kano, Alex Ekwueme Federal University, Ndufu-alike Ikwo, Ebonyi State with other projects under phase 1 at various stages of completion

Also, since the beginning of the Covid-19 pandemic, the REA has deployed 4 solar mini grids to Isolation Centers in Gwagwalada and Ogun State as well as the NCDC Laboratory in Lagos in its bid to support the efforts of the FG in containing the Covid-19 pandemic.

Following the impact of the Agency’s intervention in 4 COVID-19 Isolation Centers, a series of engagement between the REA, the World Bank, Federal Ministry of Power, the Federal Ministry of Health and the Nigeria Center for Disease Control (NCDC) plan to scale up this intervention by energizing 100 additional COVID-19 centres (Phase 1) and 400 Primary Healthcare Centres (PHC) (Phase 2) across the nation.

We intend to scale up on all these interventions to cover more universities and health facilities across the country.

There are still concerns that off- grid solutions are still on the high side on the back of duty concerns. Could you speak on this development? Are there any discussions with the government on pruning down the duty cost?

Just like we have in many countries deploying mini-grids, we continue to scale barriers as the industry develops. Tariff, for example, can be seen as a barrier, but not to the extent of it crippling the growth of mini-grids.

Another barrier we are working fervently to scale is on importation of renewable energy components. Players in the industry have expressed their views on the removal of VAT for solar and renewable energy companies. This is actually a policy issue that we are currently collaborating with other relevant agencies to solve because we believe that if the government continues to drive beneficial policy issues around renewable energy, it will help bring down the cost of renewable energy deployment for private use, business use as well as deployment in communities.

East Africa tells a beautiful story of advancing off-grid energy solutions; are their chances we could adopt their model of success?

Off-grid solutions are witnessing a rise in adoption in Nigeria with investments coming in from Donor Organizations such as the World Bank and African Development Bank. I believe Nigeria is setting the pace in the advancement and deployment of off-grid solutions in Africa. Other African countries can learn a lot from what Nigeria is doing.

With our unique history of energy poverty in Nigeria, the Nigerian government have taken steps towards steering the nation on the path to improved energy access. The programs being deployed by the REA, as mandated by the Federal Government are data-driven, locally developed but globally appealing programs designed to solve our energy problems, sustainably.

With the franchise regulation by the Nigerian Electricity Regulatory Commission, are there plans to incentivize and woo more Nigerians into the off-grid market?

That is the idea. NERC’S franchise arrangement caters to the electricity distribution sphere of influence and covers (i) metering, billing and collection; (ii) total management of electricity distribution function in a ring- fenced area; ( iii) total management of distribution feeders including billing and collection; (iv) loss reduction and provision of embedded generation; and (v) any other innovative franchise models developed by the Disco.

As a relatively novel technology, the floodgates are open to energy developers in the off-grid market. This is helpful as deliberately aids competition in the off-grid market. With a competitive market, service delivery and quality of deployed systems automatically improves.

Remember that under the Nigeria Electrification Project (NEP), there are already well-set funding models such as the Output Based Fund (OBF) for the sale of solar home systems to homes and businesses across Nigeria and the Performance Based Grant (PBG) for the deployment of mini grids to unserved and underserved communities in Nigeria. All these are open to developers in the off-grid market to key in and access funding targeted at powering Nigeria.

There are lots of investment opportunities in the off-grid electricity market; what is the REA message to investors who may want to switch investments to East Africa?

I would say to those investors, stay in Nigeria and keep investing. The Federal Government is doing a lot towards simplifying ease of doing business in the country. Nigeria is attracting investment not just in the energy space but also in other sectors.

The investment opportunities in the Nigeria off-grid market is big. As you are aware, asides having the largest economy in subSaharan Africa, Nigeria is one of the best locations in the world for the deployment of mini-grids and solar home systems.

Currently, the energy gap in Nigeria is huge. Millions of MSMES, industries and agencies are being powered by carbon emitting generating sets. What this means is that the investment in clean, safe and reliable energy in Nigeria creates an option for a switch to cleaner, more sustainable energy for consumers.

Also, through critical agencies such as REA, the Nigeria Electricity Regulatory Commission (NERC) as well as the Federal Ministry of Power, the Federal Government of Nigeria is deliberately providing an enabling environment for off-grid investors as well as private developers to flourish. We also have the advantage of global attention through funding and technical support in the Nigeria off-grid space. Very few African countries currently deploys forward-leaning, investor-friendly programs as we do in Nigeria.

There is significant rise in the adoption of off-grid solutions with lots of return of investment. Therefore, we keep seeing more private developers applying into REA’S several programmes.

In the recent past, you advanced move in attracting about N350 million from the World Bank and another fund from the ADB; could you talk us through that procedure and the success recorded?

The procedure is simple, we showed them the potentials of investing in Nigeria and the growth of the energy sector and they agreed with us. Since the investment from these banks under the Nigeria Electrification Project, several activities have taken place to ensure the success of the program.

The World Bank and the Africa Development Bank are two important stakeholders supporting the Federal Government’s Nigeria Electrification Project (NEP). NEP is private sector-driven initiative designed to provide electricity access to households, micro, small and medium enterprises in off grid communities across the country through renewable power sources. Currently, NEP is being funded by the World Bank through a $350 million loan and a $200 Million loan from the African Development Bank.

The first PBG completed project under the NEP by Powergen Renewable Energy with 157kw capacity was commissioned on 7th December, 2019 in Rokota Community, Edati Local Government Area, Niger State.

The second and third NEP PBG Mini-grid projects with capacities of 67.32kw each were commissioned on 13th April 2020 at Oloibri and Akipelai communities, Bayelsa state by Renewvia Solar Nigeria Ltd. A total of 921 connections have been achieved so far in households, MSMES and Public facilities and a total capacity of 198.64kw of energy deployed. In addition, Over 68,000 solar homes systems have been installed in households, MSMES and public facilities by the eleven (11) companies who have signed grant agreements. The capacities of the system ranges from 6Wp to 75Wp translating to over 2,443kw of installed capacity across the 36 states in Nigeria.

Under the NEP-AFDB, the REA is commencing Phase I of the productive use appliances and equipment for off grid communities with seven (7) existing mini grid sites to demonstrate the effectiveness of the productive use component in rural economies and to ascertain the optimal business models and subsidy designs to be deployed in the subsequent phases of the program roll out. Developers of operational mini-grids were invited to indicate interest by submitting responses to an Application Survey launched on the REA website. Nineteen (19) applications were received, of which ten (10) sites were shortlisted for field studies (7 shortlisted and 3 reserve sites). Field studies have been completed to validate the basis for investment decisions. The approvals for grant agreements will elicit the launch of the Component 2 Phase I by the end of October 2020.

So far, private developers have been accessing these funding windows to deploy mini-grids as well as solar home systems. In addition, We have brought together private developers and other energy stakeholders to ensure the success of the program.

Kindly share with us your message to Nigerians, especially the rural dwellers, as we celebrate 60 years since independence.

Nigeria has come a long way since independence. We have witnessed growth and the Federal Government is doing its best towards developing rural communities, especially by provision of clean, safe and reliable electricity through the REA. We are resilient, determined and hardworking people. Therefore, we should ensure we only focus on moving our country forward to greater heights.