The Rural Electrification Agency (REA) and the Africa Mini-Grid Developers Association (AMDA) have signed a Memorandum of Understanding (MoU) to promote and accelerate mini-grid development in Nigeria.

According to REA in a statement, the MoU will focus on knowledge sharing, capacity building, and better coordination of the sector, amongst other initiatives.

Nigeria has one of the largest mini-grid markets in Africa, with over 100 mini-grids currently in operation primarily through the implementation of data-driven programmes and initiatives of REA.

However, due to the energy access gap in the country, there is still a significant need for more decentralized energy interventions to bridge the energy deficit and catalyze socio-economic growth, particularly in rural unserved, and underserved communities hard hit with energy poverty.

The REA – AMDA partnership is seen as a significant step forward for the mini-grid sector in Nigeria as it underscores a shared commitment to research, data-driven decision-making, and the establishment of robust industry standards.

This strategic approach is pivotal in ensuring the sustainable, secure, and optimal operation of mini-grid systems, thereby contributing to the overall energy landscape in Nigeria.

With a partnership now sealed through a Memorandum of Understanding, the REA and AMDA will collaborate on a non-exclusive basis to further advance access to sustainable electricity for Nigerians and other African countries through mini-grids and decentralized utilities, and ultimately achieve universal access to energy by the year 2030.

While improving data-driven decision-making and industry knowledge in the off-grid space, the MoU is targeted at promoting sustainable energy access for unserved and underserved communities through private sector development and financing, which will ultimately enhance policies/regulations and rapid deployment of renewable energy technologies.

Commenting on the strategic alliance between both institutions,  MD/CEO of REA, Ahmad Salihijo Ahmad, expressed enthusiasm.

He stated: “We are excited to partner with AMDA to further improve the development of mini-grids in Nigeria while deepening the impact of REA solutions for socio-economic growth. This MOU will further aid the accelerated deployment of mini-grids and provide clean, sustainable, and affordable electricity to more Nigerians.”

On his part, CEO of AMDA, Lamidi Niyi-Afuye emphasized his company’s dedication to collaborating with REA in nurturing the mini-grid sector in Nigeria.

“Mini-grids have the potential to transform the lives of millions of Nigerians, and this partnership is a step in the right direction. AMDA is committed to working with all stakeholders to create an enabling environment for the minigrid sector to scale and achieve sustainability,” Afuye said.

The REA-AMDA MoU is further seen as a a significant milestone in the development of mini-grids across Nigeria. It equally exemplifies the unified efforts between the public and private sectors working in lockstep towards the common goal of providing clean, reliable, safe, and affordable electricity for all.