IFC partners five renewable energy firms on mini-grid projects in Nigeria

The International Finance Corporation (IFC) has signed an agreement with five distributed renewable energy (DRE) companies to support the rollout of mini-grid projects across Nigeria.

According to NAN, the agreement was signed during the ongoing Mission 300 Africa Energy Summit in Dar es Salaam on Monday.

IFC signed the agreement with Havenhill Synergy Ltd., Prado Power Ltd., PriVida Power Ltd., Sosai Renewable Energies Ltd., and Virtuitis Solaris Ltd.

The companies are part of the World Bank-funded Nigeria-distributed access through renewable energy scale-up programme (Nigeria DARES), implemented by the Rural Electrification Agency (REA) of Nigeria.

The new agreement aims to support Nigeria in closing its electricity access gap and accelerating its transition towards sustainable, efficient, and economically viable electricity supply.

Speaking at the event, Wale Edun, minister of finance and coordinating minister of the economy, said the agreement is a significant step toward addressing Africa’s energy poverty.

“This is one of the first tangible actions we can point to at this summit, which will culminate in the Dar es Salaam Declaration,” Edun said.

“Today’s agreement will bring electricity access to 400,000 people, and we all know how transformative that is.

“I encourage us to keep up this momentum of doing rather than merely saying.”

Edun praised Ajay Banga, World Bank president and Akinwumi Adesina, president of the African Development Bank (AfDB), describing their efforts as pivotal in driving the initiative.

‘COLLABORATION REQUIRED TO ACHIEVE ENERGY ACCESS IN AFRICA’

Adebayo Adelabu, minister of power, also underscored the need for collaboration between the public and private sectors to achieve universal energy access in Africa.

Adelabu said bridging the $30 billion funding gap required for Nigeria’s energy compact under Mission 300 would require a collective effort.

“The name of the game is about partnership, cooperation, and collaboration. No single entity can do it alone,” the minister said.

“Government alone cannot make this available. It requires cooperation and collaboration with the private sector, both locally and internationally.”

Adelabu highlighted the importance of combining public and private funding sources, including equity and debt financing, to meet the country’s energy needs.

Also speaking, Chantel Abdul, chief executive officer (CEO) of Solaris and a representative of the DRE companies, reaffirmed the organisation’s commitment to providing energy access in underserved communities.

Abdul commended the collaborative efforts of development partners in supporting the distributed energy solutions (DES) programme, which aims to provide off-grid electricity to those who need it most.

“This is evidence of our development partners’ commitment to the M-300 agenda, as outlined by the Minister of Finance. Connecting 300 million Africans, including Nigerians, to electricity is a passion that Solaris shares deeply,” Abdul said.

She also lauded IFC’s role in providing bridge financing, enabling renewable energy firms to scale their operations.

“This financing ensures that those of us building on the ground have the necessary capital, especially working capital, to invest in and scale our projects,” she added.

The CEO reaffirmed Solaris’s dedication to constructing 500 mini-grids within the next two years, starting with 100 grids in the first year, aiming to connect at least 200,000 customers across 10 to 15 states in Nigeria.