Nigeria Gets Solar Boost: Jeff Bezos Foundation Tackles Power Outages

Bezos Foundation Powers Nigeria with Solar

“You have those kind of under-served communities that do require reliable...”

Nigeria's Electricity Crisis: 86 million without power, 230 million face limited access. Discover efforts to bridge the energy gap through solar energy and rural electrification projects.

The Global Energy Alliance for People and Planet (GEAPP), a New York-based climate organization, is launching a solar mini-grid project in Nigeria on October 21 to address the country's persistent power supply challenges. Backed by the Rockefeller Foundation and Jeff Bezos' Bezos Earth Fund, GEAPP aims to boost productivity and economic growth.

Since its inception in 2021, GEAPP has made significant strides in renewable energy. In partnership with the Ikea Foundation, the organization successfully completed its first interconnected mini-grid in December. Two additional projects are currently underway, with funding secured for a fourth mini-grid.

GEAPP's solar mini-grid initiative seeks to tackle Nigeria's longstanding power supply issues, which hinder productivity and economic progress. By leveraging renewable energy solutions, the organization aims to create a more sustainable and resilient energy infrastructure for the country.

Highlights:

• Launch of solar mini-grid project in Nigeria on October 21
• Backed by Rockefeller Foundation and Bezos Earth Fund
• GEAPP's first interconnected mini-grid completed in December
• Two additional projects underway, with funding secured for a fourth
• Partnership with Ikea Foundation since 2021 inception

Private developers operate mini-grids that supplement Nigeria's national grid, delivering uninterrupted electricity to businesses and households. These mini-grids enhance energy reliability, bridging the gap in the country's electricity supply.

The Demand Aggregation for Renewable Technology (DART) program, initiated by GEAPP, streamlines the renewable energy development process. By aggregating requirements from multiple developers, DART reduces solar equipment costs through economies of scale.

GEAPP's DART program also manages a $25 million financing facility. This facility enables developers to secure dollar-denominated funding for equipment imports, with flexible repayment terms in Nigerian naira once their projects generate revenue.

“You have those kind of under-served communities that do require reliable power to power their homes and their businesses,” Fauzia Okediji, a utility innovation manager at GEAPP, said.

Muhammad Wakil, the delivery lead for GEAPP, said, “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.”

Nigeria is facing a severe electricity crisis, with approximately 86 million people lacking access to power and another 230 million experiencing limited electricity supply. The national grid's capacity is alarmingly low, generating only 4,000 megawatts, which is a fraction of South Africa's output, despite having a significantly larger population. Frequent power outages and nationwide grid failures have become the norm, with three collapses occurring just last week, bringing the total to nine this year.

To address this, the Rural Electrification Agency (REA) has announced a $750 million rural electricity project funded by the World Bank, aiming to provide power to 17.5 million Nigerians. This initiative is part of the Nigeria Electrification Project (NEP), a private sector-driven effort to bridge the energy access deficit. The project includes various components, such as:

Solar Hybrid Mini Grids: Supporting private sector mini-grids in underserved areas with high economic growth potential

Standalone Solar Home Systems: Providing affordable energy services to households and MSMEs 

Results-Based Financing: Increasing access to productive equipment and appliances

Energizing Education Programme: Ensuring constant power supply in educational institutions and healthcare facilities.

Additionally, Nigeria has substantial solar energy potential, receiving six hours of sunlight daily, making renewable energy a viable solution. The REA has partnered with private sector companies, like EM-One and Husk Power Systems, to unlock 500MW of renewable energy for rural communities. These efforts aim to improve energy access, reduce reliance on diesel generators, and promote sustainable development in Nigeria.