FG to provide subsidies for solar power developers 

Oluwanifemi Ojo
Oluwanifemi Ojo

The Rural Electrification Agency has revealed that the Federal Government intends to provide subsidies to developers of mini-grids powered by solar energy.

The aim is to install these mini-grids at 150 electricity sites in seven states that are currently underserved or not served at all.

The Punch reported that the Federal Government On Friday issued the statement through the Rural Electrification Agency.

It said that the private sector will lead the deployment of solar power mini-grids at 150 underserved or unserved electricity sites across seven states.

The Nigeria Electrification Project’s Project Management Unit, under the auspices of the Rural Electrification Agency, has just completed a hybrid pre-bid conference for the solar hybrid mini-grid component’s Minimum Subsidy Tender programme.

The African Development Bank provides funding for the solar hybrid mini-grid component.

The Minimum Subsidy Tender programme is a significant aspect of the NEP, which aims to boost the Nigerian off-grid market and facilitate the widespread deployment of solar hybrid mini-grids.

In the statement, REA said, “A private sector-driven programme, the MST is targeted at awarding subsidies to mini-grid developers to catalyse the rollout of solar and/or hybrid mini-grid solutions across up to 150 sites split into seven lots across seven states in Nigeria.”

“With over 100 private sector players in attendance, the pre-bid conference served as a technical, knowledge-driven platform for engagement and interaction between the NEP-PMU and prospective bidders on the MST programme.”

“The pre-bid conference allowed for clarification on bidding documents and feedback on the application process,” says the Rural Electrification Agency.

REA Managing Director, Ahmad Salihijo, applauds private sector interest in the Minimum Subsidy Tender and says it’s an important step towards providing electricity to rural areas.

Salihijo said, “The REA is committed to a competitive and transparent bidding process to ensure qualified contractors deliver the project on time and within budget.”

The Head of the NEP Project Management Unit, Abba Aliyu, says the MST programme offers a transparent and economically viable way to provide electricity to rural off-grid communities.

The Nigerian Electrification Project, with support from the World Bank and African Development Bank, aims to power off-grid communities nationwide with clean, sustainable energy solutions, explains the REA.

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