February 03, 2025

Nigeria to build 23 solar mini-grids in rural areas

February 02, 2025

The Nigerian Rural Electrification Agency has awarded $5.91 million in grants to 18 renewable energy companies to develop 23 mini-grids in two years. This funding is part of the African Mini-Grids Programme (AMP), an impact-focused initiative active in 21 African countries, launched in 2022 to catalyse renewable energy investments.

  • The project will target six geographically diverse zones in Nigeria with significant agricultural activity. These zones have been selected as the pilot phase of the AMP, with mini-grid capacities ranging from 30 kWp to 200 kWp.  It is expected to connect over 70,000 Nigerians and enable more than 600 productive use connections, primarily within the agricultural sector.

  • It is funded by the Global Environment Facility (GEF) and implemented by UNDP in partnership with Rocky Mountain Institute (RMI ) and the African Development Bank (AfDB).

  • Our take: Rural electrification projects need more support in appliance financing to encourage electricity consumption… Read more (2 min)

The eThekwini Municipality has applied for ministerial approval to procure 400 MW of electricity from independent power producers (IPPs). This comes after the Electricity Regulation Act (ERA)  2023 came into effect in January 2025, which creates an open electricity market. Municipalities can now source electricity from IPPs.

  • The municipality's application is seeking to procure 100 MW of solar photovoltaic (PV) and 300 MW of natural gas. This is part of a broader goal of diversifying its energy mix and moving away from the expensive Eskom electricity, the national power utility provider.

  • It has set a short-term target of reducing its reliance on the national grid by 20% in 2025, with a further plan to reduce reliance by 40% in 2030 and achieve energy independence by 2035.

  • Our take: The change in regulatory space allowing municipalities to procure their electricity directly from IPPs will challenge Eskom to adopt renewables… Read more (2 min)

Kenyan-based renewable energy company PowerGen Renewable Energy (PowerGen) has received $15m in funding from a Denmark-based, Investment Fund for Developing Countries (IFU). PowerGen aims to develop a 120 MW portfolio of commercial and industrial (C&I) and mini-grid renewable power projects across Africa.

  • The funding is a joint investment involving the Private Infrastructure Development Group (PIDG), the EU-funded EDFI ElectriFi, and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA).

  • It is expected to provide energy access for over 68,000 households and reduce power costs for 7,000 businesses in Nigeria, the Democratic Republic of the Congo (DRC), and Sierra Leone, with the potential to charter other African markets.

  • Our take: Equity financing (and the lack thereof) is a significant barrier to scaling renewable energy projects in Africa… Read more (2 min)

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Technical University of Mombasa students  pose for a photo during the Solar PV Training in Mombasa, Kenya

Events

📅 Addis Ababa hosts 5th Solar Africa 2025 (Feb 18)

📅 Cape Town hosts Africa Green Economy Summit (Feb 19)

📅 Nairobi  hosts  Intersolar Summit Africa 2025 (Mar 12)

Jobs

👔 Zutari seeks a director of operations (South Africa)

👔 Baker Hughes seeks a field specialist (Angola)

👔 Engie seeks an accounting manager (Nigeria)

Various 

🔋 2 GW Julius Nyerere Hydropower Plant nears completion

🔋 OPEC Fund and Mauritania forge partnership to boost renewable energy

🔋 ENGIE Golden Valley Wind Farm partners with Lonwabo High School

Seen on LinkedIn 

Filagot Woldeselassie, Co-Founder and Managing Director of On Energy Consult, shares her thoughts on the expected launch of the East Africa Power Pool and what lessons experts can learn from the European electricity market.

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