The Rural Electrification Agency (REA) has signed Output-Based Fund (OBF) Grant Agreement with five Solar Home Systems (SHS) companies under the Nigeria Electrification Project (NEF).

Under the agreement, the  companies: Onnan Unity Company, Greenage Energy Solutions, NTA STAR TV Network Ltd, Hanshot Solar Power and SAO Energy, will deploy over 51,000 Solar Home Systems across rural communities in Nigeria. OBF is for the sale of solar home systems to homes and businesses across Nigeria

REA in recent years has been working to provide electricity in rural areas and under served communities. In the first quarter of 2021, REA  signed a Performance-Based Grant (PBG) agreement with Prado Power Limited, a private developer.

The agreement, according to REA, will in a short period, provide sufficient and sustainable power in Lafian-Kpada, Aninigi, Isahu, Amale, and Mai Jaki communities, all in Niger state, adding about 8,547 connections to clean, safe and reliable energy.

In November 2020, REA also signed mini-grid development agreements with two mini-grid developers, Nayo Tropical Technology, and Darway Coast for the electrification of four communities, under the PBG mini-grid component of NEP.

Under the agreement,  Nayo Tropical Technology is expected to connect ~800 households, MSMEs, and Public facilities in Petti, Kilankwa I & II communities, Kwali Local Government Area of the Federal Capital Territory; while Darway Coast Nigeria Limited will connect 1000 households, MSMEs, and Public facilities in Obite Community at Etche Local Government Area, Rivers State.

The target is to electrify over 1 million households and 90,000 Micro, Small and Medium Scale Enterprises with reliable and affordable electricity. The SHS Component is one of the best performing components under NEP.