REA subsidizes Renewvia and PowerGen for solar mini-grids in Nigeria
By John Haruna/:
Nigeria’s Rural Electrification Agency, REA is providing grants to Renewvia Energy Corporation and PowerGen Renewable Energy. These suppliers of mini-solar hybrid grids will use this funding to electrify several communities in Nigeria.
Two companies have just received performance-based grants (PBGs) from the Rural Electrification Agency, REA of Nigeria. They are Renewvia Energy Corporation and PowerGen Renewable Energy, two solar hybrid system suppliers involved in the Nigeria Electrification Project, NEP.
Renewvia Energy Corporation will use the funding to electrify the villages of Ekong Anaku, Balep, Opu, Bendeghe-Afi in Cross River State and Obokwu Ozuzu in Rivers State.
The company based in Atlanta (Georgia, USA) has already received a first PBG from REA in early 2020 for the electrification of several localities in the southern part of Nigeria.
Its competitor, PowerGen Renewable Energy is getting the same benefits. The PBG that the mini-grid supplier has just received will enable the electrification of the villages of Dacitagi, Dukugi, Sa’Achi Nku, Ebangi, Sosa, Gbade, Kpange, Jikanegi and Lagun in Niger State.
“The signing of the PBG agreement enables NEP, the Nigerian government, REA and the World Bank to take another step towards the electrification of Nigeria. This event is an important step in the electrification of more than 2.5 million Nigerians,” REA said.
The agency leading the Nigerian electrification project is also financing solar home system suppliers through Output Based Finance, OBF grants.
Just a few weeks ago, REA signed grant agreements with seven solar home system suppliers with a view to providing electricity to one million households and 90,000 micro, small and medium enterprises in rural Nigeria. In addition to the World Bank, NEP is also funded by the African Development Bank, AfDB.