The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million fund aimed at financing distributed renewable energy (DRE) projects in Nigeria. The fund is designed to raise capital, address challenges such as currency volatility and tariff structures, and attract private investments to enhance energy access across the country. This initiative, announced at the SEforALL Global Forum in Barbados, will focus on supporting mini-grids, solar home systems, and energy storage technologies, benefiting Nigerian households and businesses.
The fund’s primary goal is to catalyze investments from local institutional investors, including pension funds and insurance companies. By offering tailored financial instruments, the fund intends to overcome local financing barriers, providing a pathway for scalable renewable energy solutions. The initiative will play a crucial role in advancing energy access for millions of Nigerians, with a focus on decentralized power generation methods such as solar mini-grids and embedded energy systems.
At the launch event, key stakeholders highlighted the fund’s potential to attract long-term capital, especially from institutional investors, to scale up decentralized energy projects. Damilola Ogunbiyi, CEO of SEforALL, called the launch a milestone in the effort to address Africa’s energy access challenges, emphasizing its significance in scaling up decentralized energy solutions in Nigeria and beyond. Aminu Umar-Sadiq, CEO of NSIA, stressed the importance of the fund in Nigeria’s industrial and economic growth, underscoring its potential to attract global investments and enhance the country’s energy infrastructure.
The fund is also supported by additional partners such as the International Solar Alliance and Africa50, with a focus on unlocking sustainable financing options for large-scale renewable energy projects. The initiative is expected to have far-reaching impacts, not only improving energy access in Nigeria but also serving as a model for other African nations. Through strategic collaborations, the partners aim to close the energy gap and drive economic growth across the continent.
SOURCE: THE CABLE