All On, an impact investment company supported by Shell through its Demand Aggregation for Renewable Technologies (DART) program, has recently declared its dedication to providing $11 million in funding. This financial support aims to facilitate the implementation of 25 mini-grid projects in Nigeria. During the inaugural DART workshop, attended by off-grid developers, commercial banks, domestic investors, and other significant stakeholders, strategies were discussed to unlock commercial funding in local currency for the off-grid renewable energy sector in Nigeria. In her remarks, Carolin Eboumbou, CEO of All On, expressed her delight at the remarkable success achieved through the DART program since its launch in 2021. She highlighted that the program has committed a total of $11 million to support 25 mini-grid projects across Nigeria, funding over 2,700 solar energy systems. Additionally, she mentioned that the program has received and approved 12 successful applications thus far.

To further expand the impact of the program, All On has been actively working with its partner, Global Energy for People and Planet (GEAPP), to increase the funding facility by an additional $15 million. These collaborative efforts aim to address the financing challenges faced by local developers and ensure that affordable and high-quality solar products reach the communities in Nigeria that are most in need of reliable energy solutions.

While celebrating these notable achievements, we recognize that challenges have arisen during the implementation of the DART program. In response, All On, in collaboration with GEAPP, is actively working to tackle these challenges head-on. Considerable progress has been made in streamlining the application process and reducing the time it takes from application to fund disbursement. These improvements aim to ensure a more efficient and timely funding process for the mini-grid projects. Furthermore, the eligibility criteria for the program have been expanded to include Solar Energy Systems, Standalone Systems for Productive Use (SSPU), and Commercial and Industrial (C&I) developers. This broader scope allows for a wider range of renewable energy initiatives to access funding and support from the DART program.

In November 2021, All On, in collaboration with GEAPP, established the DART program, a financing facility with a total value of $10 million. This initiative was specifically designed to accelerate the growth of the renewable energy sector in Nigeria and beyond. The DART program achieves its objectives through a combination of strategies, including demand pooling, aggregated procurement of solar equipment, access to affordable finance, and streamlined logistics processes. By leveraging economies of scale, the program aims to reduce costs for both solar companies and end-users while driving the widespread adoption of renewable energy solutions.

Carolin Eboumbou emphasized the importance of the DART program within the renewable energy ecosystem in Nigeria. She highlighted that the program enables small-scale developers to benefit from group purchasing, resulting in lower unit costs for solar equipment. This cost reduction allows developers to implement projects more efficiently and offer more affordable solutions to the local communities. In addition to benefiting small-scale developers through group purchasing, the DART program addresses the issue of foreign exchange availability. This helps alleviate the foreign exchange bottlenecks that developers often encounter, enabling them to access the necessary funds for their projects more efficiently.

Carolin Eboumbou, CEO of All On, further highlighted that the program offers several additional advantages. These include a streamlined procurement process, which simplifies the acquisition of necessary assets for off-grid projects. It also facilitates the expedited deployment of off-grid assets, ensuring that renewable energy solutions reach communities promptly. Access to affordable financing is provided to developers, enabling them to secure the necessary capital for their projects. Moreover, the program presents opportunities for result-based subsidies and other commercial financing options, further supporting the growth of the renewable energy sector. During the workshop, various presentations were delivered, focusing on key aspects of Nigeria’s macroeconomic climate and its impact on the renewable energy industry. Topics covered included the sector’s roadmap, challenges faced by the industry, and a plenary session dedicated to discussing strategies for unlocking local commercial financing. These discussions aimed to foster collaboration among stakeholders and find innovative solutions to drive the development of renewable energy in Nigeria.

The gathering convened various stakeholders from different backgrounds, comprising commercial lenders, influential stakeholders, and off-grid developers.

Under the guidance of All On’s Investment Manager, Afolabi Akinrogunde, the panel consisted of distinguished individuals including Olu Aruike, Country Director of Husk Power Nigeria; Terkuma Ivande, Chief Operating Officer of Prado Power Nigeria; Dele Faseemo, Group Head of Energy at Sterling Bank; Phil Southwell, Partner at Chapel Hill Denham; and Dolapo Kukoyi, Managing Partner at Detail Solicitors. In addition to the mentioned participants, the workshop also included Corey Karaka, Investment Director of the Global Energy Alliance for People and Planet; Victor Okinda, DART Programme Lead of the Global Energy Alliance for People and Planet; and Damilola Asaleye, Vice President of the Renewable Energy Association of Nigeria.