World Bank, AfDB Fund Mini-Grids in 6 Nasarawa Communities

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Nigeria Electrification Project (NEP) is building new hybrid mini-grids in under the Nigerian Electrification Agency (REA), with funding from the World Bank and the African Development Bank (AfDB). Directly undertaken by Colorado, based Husk Power Systems, additional 5,000 people and 500 small businesses in select locations are getting electricity under the recent approvals.

Reports monitored by Afrik21 said these hybrid mini-grids are located in Doma and Lafia Local Government Areas (LGA). According to the report yesterday, in Doma, electricity is being provided to households and businesses in Rukubi, Idadu and Igbabo localities.

The contractor, the report went further, has electrified the communities of Kiguna, Akura and Gidan Buba in Lafia local government. Like several other mini-grid providers operating under the NEP, Husk benefits from performance-based grants (PBG). In September, the company announced that it got grants for seven mini-grids in Nasarawa

This mechanism covers the recently commissioned hybrid systems and a seventh to be delivered to Sabon Gida in Lafia LGA in 2022. Commenting on the development, the state governor, Alhaji Abdullahi A. Sule, was quoted by Afrik21, saying, the completion of mini-grids by Husk Power Systems in is an important step in the development of rural electrification and energy access for all Nigerians.”

In Nigeria, the company, which employs 40 people locally, plans to reach 500 hybrid mini-grids by 2026, with a significant impact expected in rural areas. In addition to electrification, these installations will enable the socio-economic development of localities, creating new jobs.

The Rural Electrification Agency (REA) continues to implement its program to subsidize suppliers of green mini-grids. These power generation and distribution systems are a major asset for rural electrification in Nigeria and elsewhere in sub-Saharan Africa.

REA says this mechanism increases access to electricity for unsaved and underserved communities using hybrid technology. Performance Based Grants (PBGs) are awarded under the Nigeria Electrification Project (NEP), co-financed by the African Development Bank (AfDB) and the World Bank.

Under the PBG, for each connection, the mini-grid provider will receive a $350 grant, or $10,000 for each green mini-grid installed in Nasarawa State.

By Chibisi Ohakah, ABUJA


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