Nigeria’s long-standing power supply issues might soon see a ray of hope through a revolutionary solar initiative backed by major global investors. The Global Energy Alliance for People and Planet (GEAPP), funded by the Bezos Earth Fund and the Rockefeller Foundation, is working to deliver solar mini-grids to the nation in an effort to end its energy crisis.
For years, Nigeria has struggled with unreliable electricity, hindering business growth, industrial productivity, and even household comfort. This new solar mini-grid initiative could offer the solution Nigerians have been waiting for.
The GEAPP, established in 2021, has set its sights on solving one of Nigeria’s most pressing problems: electricity shortages. The organization’s solar mini-grid initiative is already making headway, with the first interconnected mini-grid completed last December. Two more are under construction, and funding has been secured for a fourth.
Unlike the limited and inconsistent power provided by Nigeria’s national grid, these mini-grids will be privately operated by developers, providing continuous and reliable electricity to homes and businesses alike.
Fauzia Okediji, a utility innovation manager at GEAPP, highlighted the importance of reliable power, especially for underserved communities. “You have those kinds of under-served communities that require reliable power to power their homes and their businesses,” she said during an appearance on Bloomberg TV’s Wall Street Week.
The success of the solar mini-grid initiative is backed by innovative financing models. GEAPP’s Demand Aggregation for Renewable Technology (DART) program plays a crucial role by pooling the needs of multiple developers. This bulk purchasing strategy helps reduce the cost of solar equipment, making it more accessible to project developers.
Additionally, GEAPP manages a $25 million financing facility that allows developers to secure funding in dollars for equipment imports. Importantly, these developers can repay the loans in Nigerian naira once they start generating revenue, minimizing the risks associated with exchange rate fluctuations.
Muhammad Wakil, the country delivery lead for GEAPP, emphasized the scale of the project. “We need hundreds or thousands of these kinds of projects across Nigeria to end energy poverty. We have shown it’s a viable business model,” he said during an interview at one of the project sites in Ogun state.
Nigeria currently holds the unfortunate title of having the highest number of people without access to electricity in the world. A staggering 86 million Nigerians live without electricity, while the rest of the country’s 230 million people endure frequent power outages.
The national grid, which provides only 4,000 megawatts of electricity, is grossly insufficient to meet the country’s needs. In comparison, South Africa, with just a quarter of Nigeria’s population, generates six times that amount.
The situation worsens with frequent grid collapses, which have become an all-too-common occurrence. In just one week, Nigeria’s national grid collapsed three times, bringing the total number of grid failures this year to nine. These power challenges cripple industries, disrupt day-to-day life, and place a massive burden on the economy.
Despite the country’s severe power problems, Nigeria holds significant potential for solar energy. The nation receives an average of six hours of sunlight daily, making it an ideal location for solar power generation.
Nigeria’s estimated capacity for concentrated solar power and photovoltaic energy generation is around 427,000 megawatts. If harnessed, this vast resource could transform the country’s energy landscape and significantly reduce its reliance on the unstable national grid.
Recognizing this potential, the Nigerian government has also been taking steps to promote solar energy. Earlier this month, the Rural Electrification Agency (REA) announced the launch of a new rural electricity project. Funded by a $750 million World Bank loan, the project aims to provide electricity to 17.5 million Nigerians living in rural areas.
The introduction of solar mini-grids in Nigeria could mark the beginning of the end for the country’s persistent energy woes. These grids are small, localized energy systems that generate and distribute electricity to a specific community. Unlike the national grid, they operate independently, ensuring that power is available even when the larger grid fails.
With private developers running these systems, the solar mini-grids promise a more efficient and reliable solution to Nigeria’s energy crisis. Local businesses, industries, and households will no longer need to rely solely on the erratic national grid, allowing them to thrive and grow with a stable power supply.
In addition to providing reliable power, solar mini-grids are also more environmentally friendly. By reducing the country’s dependence on fossil fuels, these grids help lower greenhouse gas emissions, contributing to global efforts to combat climate change.
