The Global Energy Alliance for People and Planet (GEAPP), a global climate initiative backed by the Rockefeller Foundation and the Bezos Earth Fund, is piloting an innovative solar mini-grid project in Nigeria.
This initiative is designed to address the country’s persistent power challenges, which have long hindered productivity and economic development. By establishing interconnected solar mini-grids, GEAPP aims to provide a reliable and sustainable energy solution, especially in areas that have suffered from inadequate electricity supply.
Launched in 2021 in collaboration with the Ikea Foundation, the Global Energy Alliance for People and Planet has made significant strides in advancing clean energy solutions. The first interconnected mini-grid was completed in December, with two more currently under construction and funding secured for a fourth.
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These mini-grids, operated by private developers, are intended to supplement the inconsistent electricity from the national grid, ensuring that businesses and households have continuous access to power. Such initiatives are crucial in a country where frequent grid failures disrupt daily life and economic activities.
To enhance the cost-effectiveness and scalability of its projects, GEAPP has introduced the Demand Aggregation for Renewable Technology (DART) program. This initiative consolidates the requirements of multiple developers, allowing for the bulk procurement of solar equipment, thereby reducing overall costs.
Furthermore, the DART program administers a $25 million financing facility that enables developers to secure funding in foreign currency for importing equipment, with repayment made in Nigeria’s local currency, the naira, once the mini-grids begin generating revenue. This approach helps developers navigate Nigeria’s foreign exchange challenges and facilitates the growth of the renewable energy sector.
Fauzia Okediji, a utility innovation manager at GEAPP, highlighted the importance of the initiative during a segment on Bloomberg TV’s Wall Street Week, saying, “You have those kind of underserved communities that do require reliable power to power their homes and their businesses.”
The goal is to address the gaps in electricity access across Nigeria, especially for the approximately 86 million people who still lack access to electricity altogether.
Muhammad Wakil, GEAPP’s country delivery lead, emphasized the project’s significance during an interview at the Ogun State project site.
“We need hundreds or thousands of this kind of projects across Nigeria to end energy poverty. We have shown it’s a viable business model,” he said.
Wakil’s statement aligns with the growing campaign for widespread adoption of mini-grid solutions to address Nigeria’s chronic energy issues.
Nigeria’s Power Woes
Nigeria’s power sector is notorious for its inefficiency and inability to meet the needs of its population. With an estimated population of around 230 million, Nigeria’s electricity grid delivers only about 4,800 megawatts of power—roughly one-sixth of South Africa’s capacity, despite South Africa’s population being just a quarter of Nigeria’s. This disparity highlights the severity of Nigeria’s energy deficit.
The situation is further compounded by frequent grid collapses and widespread outages, which disrupt economic activities and make life challenging for millions of Nigerians. In just the past week, the national grid collapsed three times, bringing the total number of shutdowns this year to nine. These systemic failures underline the urgent need for alternative energy solutions.
For decades, Nigeria has struggled with inadequate power infrastructure, insufficient generation capacity, and technical challenges, including obsolete equipment and poor maintenance. Efforts to improve power supply have often been hampered by policy inconsistencies, lack of investment, and corruption.
The reliance on centralized power generation, which is heavily dependent on gas-fired plants, has made the grid vulnerable to disruptions from fuel shortages and technical failures. The ongoing issues with the national grid have made a strong case for decentralized energy solutions such as solar mini-grids, which can operate independently and provide reliable power to underserved areas.
Solar Energy Potential in Nigeria
Although deeply mired in energy challenges, Nigeria is endowed with abundant solar energy resources, offering a potential solution to its electricity woes. The country receives an average of six hours of sunlight per day, making it suitable for both concentrated solar power and photovoltaic generation. Estimates suggest that Nigeria has the capacity to generate approximately 427,000 megawatts (MW) from solar energy alone, a figure that dwarfs the current output of the national grid.
Energy experts believe that the country can significantly expand its energy mix, reduce its dependence on fossil fuels, and improve access to electricity, by harnessing this vast potential.
The development of solar energy in Nigeria has garnered increased attention in recent years, especially as the cost of solar technology has decreased and awareness of climate change has grown. The government’s efforts to promote renewable energy include policies such as the Renewable Energy Master Plan and the National Renewable Energy and Energy Efficiency Policy, which set ambitious targets for expanding the share of renewables in Nigeria’s energy mix.
However, progress has been slow due to challenges such as financing, regulatory hurdles, and the high initial costs of solar installations.
GEAPP’s solar mini-grid initiative represents a practical approach to overcoming some of these challenges by providing decentralized power solutions that can be scaled up. Mini-grids offer a flexible and modular solution, capable of delivering electricity to remote and off-grid communities where extending the national grid is not economically viable. The involvement of private developers also brings much-needed investment and expertise, which can accelerate the deployment of solar energy across the country.
Broader Electrification Efforts by The Government
In addition to GEAPP’s initiatives, the Nigerian government and international partners are pursuing other projects to improve access to electricity, particularly in rural areas. The Rural Electrification Agency (REA) has been instrumental in driving off-grid and mini-grid projects across Nigeria. Earlier this month, the REA’s Director-General announced a new rural electrification project funded by the World Bank, which is set to launch next month with a budget of $750 million. This initiative aims to bring electricity to 17.5 million Nigerians through a combination of grid extension, mini-grids, and stand-alone solar systems.
The World Bank-funded project underlines a growing recognition of the need for multi-faceted approaches to electrification that go beyond simply expanding the national grid. The focus on mini-grids and off-grid solutions is seen as crucial for reaching remote communities that are unlikely to benefit from grid extension in the near future.
However, while GEAPP’s solar mini-grid initiative represents a promising step toward solving Nigeria’s energy crisis, experts believe that much remains to be done to achieve sustainable and universal access to electricity. They note that scaling up such projects to reach the millions still without power will require overcoming regulatory, financial, and logistical barriers.
For instance, creating a favorable investment climate for renewable energy developers and ensuring that policies remain consistent and supportive will be essential for attracting the necessary funding. They also note the need for greater collaboration between the public and private sectors to share risks and maximize the impact of electrification projects.