$750m World Bank Project: FG Powers Up Rural Nigeria, November Launch

$750m World Bank Project: FG Powers Up Rural Nigeria, November Launch

“There is a new project that we are starting next month called Distributed Renewable Energy Scale-up project which is a $750 million financed by World Bank...”

Nigeria's electricity crisis: challenges, opportunities & renewable energy solutions. Read more about the path to a sustainable energy future.

The Rural Electrification Agency (REA) is set to launch a landmark rural electrification project in November, backed by a $750 million World Bank investment. This initiative targets 17.5 million Nigerians, providing electricity through sustainable renewable energy solutions.

According to Engr. Abba Abubakar Aliyu, REA's Managing Director, the project - dubbed Distributed Renewable Energy Scale-up - will harness renewable energy to electrify underserved rural areas. This ambitious undertaking prioritizes sustainable energy delivery to millions of Nigerians.

According to Engr. Abba Abubakar Aliyu, this groundbreaking project ranks among the largest globally, aiming to electrify 17.5 million lives. The distribution breakdown includes:

3 million people served through isolated mini-grids

1.5 million via interconnected mini-grids

Remaining beneficiaries accessing electricity through combined matched grid systems and standalone solar power solutions

Managing Director Aliyu emphasized the project's significance, leveraging diverse renewable energy solutions to bridge Nigeria's rural electrification gap.

According to Engr. Abba Abubakar Aliyu, this groundbreaking project ranks among the largest globally, aiming to electrify 17.5 million lives. The distribution breakdown includes:

3 million people served through isolated mini-grids

1.5 million via interconnected mini-grids

Remaining beneficiaries accessing electricity through combined matched grid systems and standalone solar power solutions

“There is a new project that we are starting next month called Distributed Renewable Energy Scale-up project which is a $750 million financed by the World Bank. The target of that project is to electrify 17.5 million Nigerians, and I must say that this is one of the most ambitious project in the world based on moved many unelectrified people to have access to electricity,” the REA MD said.

The Distributed Renewable Energy Scale-up project is expected to run for five years, building on the successes of previous initiatives that received $550 million in funding from the World Bank and African Development Bank. This new project aims to provide electricity to 17.5 million Nigerians through renewable energy solutions, with the World Bank approving $750 million in financing. The project will leverage innovative financing solutions to scale up private sector-led clean electricity provision in Nigeria, replacing polluting and expensive petrol and diesel generator sets.

Major Project Highlights:

Duration: 5 years

Funding: $750 million from the World Bank

Goal: Electricity for 17.5 million Nigerians

Previous Funding: $550 million from World Bank and African Development Bank

Replacement Goal: Replace 280,000 polluting petrol and diesel generator sets

Development Partners: USAID, GIZ, SEforAll, AfDB, and more

This project is part of Nigeria's efforts to expand access to clean energy and address the electricity access gap.

The Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project is a massive undertaking that aims to provide electricity to 17.5 million Nigerians through renewable energy solutions. This project is made possible by a $750 million International Development Association (IDA) credit from the World Bank, approved in December 2023.

What's exciting is that DARES is expected to attract over $1 billion in private investments, plus additional funding from development partners. Some notable contributors include the Global Energy Alliance for People and Planet ($100 million), the Japan International Cooperation Agency (JICA) ($200 million), the United States Agency for International Development (USAID), the German Development Agency (GIZ), Sustainable Energy for All (SEforAll), and the African Development Bank (AfDB).

The DARES project will use innovative financing solutions to scale up private sector-led clean electricity provision in Nigeria. This initiative builds on the successes of the Nigeria Electrification Project (NEP), which has already supported the establishment of 125 mini-grids and the sale of over a million Solar Home Systems, providing electricity to over 5.5 million Nigerians.

By supporting Nigeria's energy transition, DARES will help replace 280,000 polluting and expensive petrol and diesel generator sets, promoting a cleaner and more sustainable energy future.

Nigeria confronts a staggering energy deficit, with approximately 90 million citizens lacking electricity access – one of the highest numbers worldwide. This disparity exists despite the country's substantial population of over 200 million, which generates merely 5,000 megawatts of electricity.

However, Nigeria possesses vast, untapped potential for renewable energy development. The northern region receives up to 12 hours of sunlight daily, rendering solar power an attractive solution. Additionally, the country boasts significant wind and hydroelectric resources, offering opportunities for diversified energy generation.