The Global Energy Alliance for People and Planet (GEAPP), a worldwide climate initiative backed by the Rockefeller Foundation and the Bezos Earth Fund, is launching a solar mini-grid project in Nigeria to tackle the country's inconsistent power supply, which negatively impacts productivity.
Founded in 2021 in partnership with the Ikea Foundation, GEAPP successfully completed its first interconnected mini-grid in December, with two more grids currently under development and funding secured for a fourth.
These mini-grids, managed by private developers, enhance the limited electricity provided by the national grid, ensuring that both businesses and households have a reliable power source.
GEAPP’s Demand Aggregation for Renewable Technology (DART) program aims to streamline the needs of various developers to lower the costs of solar equipment. Additionally, it oversees a $25 million financing facility that allows developers to obtain funding in dollars for equipment imports, with repayments made in Nigeria’s naira once they start generating income.
Fauzia Okediji, a utility innovation manager at GEAPP, emphasized the importance of reliable power for underserved communities during her appearance on Bloomberg TV’s Wall Street Week, stating, “You have those kind of under-served communities that do require reliable power to power their homes and their businesses.”
Muhammad Wakil, the country delivery lead for GEAPP, highlighted the necessity for numerous similar projects across Nigeria to eliminate energy poverty, asserting during an interview at the project site in Ogun state, “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 currently holds the distinction of having the largest population without access to electricity in the world, affecting approximately 86 million individuals. The remaining portion of its 230 million citizens faces significant limitations in power supply.
The national grid generates merely 4,000 megawatts, which is about one-sixth of South Africa's capacity, despite South Africa's population being only a quarter of Nigeria's. The situation is exacerbated by frequent power outages and occasional nationwide grid failures.
In the past week, Nigeria has faced severe electricity issues, with the national grid collapsing three times, bringing the total number of shutdowns this year to nine.
The country possesses considerable solar energy potential, benefiting from an average of six hours of sunlight each day. Nigeria's estimated capacity for concentrated solar power and photovoltaic generation is approximately 427,000 megawatts.
Earlier this month, the Director-General/CEO of the Rural Electrification Agency (REA) announced the upcoming launch of a new rural electricity initiative, set to begin next month. This project, funded by the World Bank with $750 million, aims to provide electricity to 17.5 million Nigerians.