Follow Us on Google
Universal Energy Facility (UEF), a financing facility managed by Sustainable Energy for All, yesterday, signed an agreement with renewable energy companies that applied to have their projects financed as part of the facility’s stand-alone solar for productive use programme in Nigeria.
The signing ceremony, held in Lagos, attracted dignitaries from the public and private sectors. Under the new arrangement, the companies would begin construction on their proposed solar projects, all of which are designed to connect businesses and services to a clean, affordable and reliable electricity source.
The projects would span most states in Nigeria and be completed within the next 12 months.
Together, they would connect approximately 3,500 businesses, markets, shopping malls, cold-storage facilities, clinics, schools, and other productive users of energy.
As stand-alone solar energy projects, they would alleviate the need for businesses and services to rely on expensive, polluting fossil fuel generators as their source of power. The UEF estimates that approximately 5,400 tons of CO2 equivalent per year will be saved once all of the proposed projects are implemented.
“With the programme in Nigeria, the Universal Energy Facility would demonstrate the enabling power that sustainable energy can have on local economic development and climate action.
“Solar projects supported by the facility will give businesses clean and affordable electricity to help them scale up, create jobs, and replace polluting power sources,” said Damilola Ogunbiyi, chief executive officer and special representative of UN secretary general for Sustainable Energy for All.
Last year, the government of Nigeria launched its Energy Transition Plan showing how the country will achieve universal energy access by 2030 and net-zero emissions by mid-century, as well as the finance required to meet these goals. The UEF is contributing to the plan’s finance targets for the power sector by providing grants that companies can leverage to attract additional finance for clean energy.
“The Universal Energy Facility will provide grant payments to enable solar companies to expand their operations to small and medium-sized enterprises across Nigeria, while crowding-in additional private capital,” said Yemi Osinbajo, vice president of Nigeria.
“Projects supported by the Universal Energy Facility will help grow businesses and create jobs, making them key contributors to our Energy Transition Plan.”
Goddy Jedy Agba, Minister of State for Power of Nigeria, said: “This Universal Energy Facility programme is a practical demonstration of targeted investment in our power sector and in our overall objective to provide energy access to all Nigerians.”
The stand-alone solar for productive use programme in Nigeria opened for applications in August 2022 and received expressions of interest from hundreds of energy developers.
“Within just a few months of opening this programme in Nigeria, we are now at the point where grantees have been selected and companies can start building transformative stand-alone solar projects,” said Anita Otubu, senior director, Universal Energy Facility.
“The Universal Energy Facility is proving the effectiveness of results-based finance to catalyse energy development at speed and scale.”
This is the first grant-funding window under the stand-alone solar for productive use programme in Nigeria. The UEF has identified many additional viable projects for financing in future waves
