Oando, WeLight… REA partners 8 renewable energy firms to ‘boost power generation’

The Rural Electrification Agency (REA) has signed a memorandum of understanding (MoU) with Oando Clean Energy, Sosai Renewable Energy, and Okra Solar PTY Limited to boost power generation.

REA also signed MoUs with Ashipa Electric Ltd, Fox Power Ltd, De-Janees Concepts Ltd, WeLight Nigeria Ltd, and MBH Power Ltd.

Speaking at the signing ceremony in Abuja on Monday, Abba Aliyu, managing director of REA, said the agreement will go a long way to boost local production and create job opportunities. 

“We are signing landmark MOUs that will redefine the sector,” Aliyu said.

“We really need to domesticate the localisation of the value chain for us to continue to enhance the gross domestic product of the country, to enhance our job employment opportunities and at the same time to increase the revenue base of the country.”

Also, according to Reuters, the MoU with WeLight is a $200 million deal, which will see the company deploy hundreds of renewable mini-grids to supply reliable electricity to millions in rural communities.

TINUBU APPROVED N100BN TO SOLARISED PUBLIC INSTITUTIONS 

Aliyu also noted that to reduce the cost of governance, President Bola Tinubu approved N100 billion to solarise the public sector institutions.

“Mr. President has approved N100 billion funding for rural electrification agencies to implement what we call the National Public Sector Solarization Initiative, which is a federal government initiative to reduce cost of governance,” he said. 

“The analysis that we have seen of budget implementation has shown a number of public institutions spending a lot of money to buy diesel or to pay for the electricity.

“And to reduce that cost of governance, we secured N100 billion to solarise the public sector institutions. And that project will start in the next few weeks. 

“We also have advanced discussion with the Japanese International Development Corporation for additional co-financing funding of $200 million that will be added to the $750 million DES project, making the total funding for DES to be $950 million.”

Aliyu also said the agency expects to catalyse $1.1 billion as private sector funding for the implementation of the DES. 

The MD said REA expects private sector financial assistance as a counterpart funding for the implementation of the project.