REA Signs Performance-Based Grant Agreement With Private Developer


By Ikenna Omeje

The Rural Electrification Agency (REA) has signed a Performance-Based Grant (PBG) agreement with Prado Power Limited, a private developer.

According to REA in a post via its LinkedIn page, the agreement signed on Thursday, 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.

“The PBG now has 12 developers with signed agreements and 87 sites with grant agreements, under the Nigeria Electrification Project.

“Through The World Bank Nigeria and African Development Bank Group-funded Nigeria Electrification Project (NEP), we have continued to power Nigeria, one community at a time.

“As a result of the Grant Agreement signed today, in a short period, Lafian-Kpada, Aninigi, Isahu, Amale, and Mai Jaki communities, all in Niger state will be sufficiently and sustainably powered, adding about 8,547 connections to clean, safe and reliable energy,” REA said.

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 Nigeria Electrification Project (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.

Also in December 2020, the agency signed Output-Based Fund (OBF) Grant Agreement with 7 Solar Home Systems (SHS) companies, thus increasing the number of companies in our SHS portfolio from 12 to 19.

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.

The Mini-Grid PBG Programme provides grants of US$350 per connection on a first-come-first-served basis with a minimum total grant request of US$10,000 per mini-grid.  The basic criteria for proposed projects is that it would be cited in an unserved area and would apply solar hybrid technology to qualify for the grant. Grants are disbursed when verification is concluded that customers have been satisfactorily serviced by the mini-grid network.

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