Mini-Grid Developers Receives Subsidies from federal Government

by Vincent Godstime


Mini-Grid Developers Receives Subsidies from federal Government

The Nigerian Federal Government has announced its plans to provide subsidies to mini-grid developers, aiming to implement solar power mini-grids across 150 sites lacking adequate electricity services in seven states. Spearheaded by the private sector, the initiative was disclosed in a statement by the Rural Electrification Agency on Friday. The Nigeria Electrification Project, managed by the Project Management Unit of the REA, has completed a hybrid pre-bid conference for the Minimum Subsidy Tender programme for the solar hybrid mini-grid component.

The African Development Bank is financing the solar hybrid mini-grid component, a crucial part of the NEP, to stimulate the off-grid market and encourage private sector mini-grid development in underserved and unserved areas with high economic growth potential. The REA stated that the pre-bid conference served as a technical platform for engaging with the over 100 private sector players in attendance and facilitated additional clarification on bidding document components.

The Managing Director of REA, Ahmad Salihijo, praised the private sector players for their enthusiasm and interest, stating that “the Minimum Subsidy Tender was a significant achievement in Nigeria’s journey towards delivering dependable and sustainable electricity to its citizens, particularly in remote areas with limited or no access to electricity.” The REA emphasized the importance of a fair and competitive bidding process, only selecting capable and qualified contractors who can deliver the project on time, within budget, and to the highest quality standards.

Abba Aliyu, the Head of the Project Management Unit, NEP, stated that the MST program is among the adopted models as it provides a transparent and economically viable approach to providing access to electricity for off-grid communities in rural areas. The Federal Government, with the support of the World Bank and the African Development Bank, continues to optimize the Nigeria Electrification Project, offering clean, safe, and sustainable energy solutions to off-grid communities across the nation.

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