Europe throws fresh €33m funding package into Nigeria’s RE market

The European Union (EU) and government of Germany have rolled over their financial commitments in developing Nigeria’s renewable energy market for a fresh term of three years under the Nigeria Energy Support Programmme (NESP).

Within the new phase of the NESP, the EU and Germany would commit a cumulative sum of €33 million to support further developments in Nigeria’s renewable energy market, thus targeting to reach about 100,000 people with up to 500 megawatts (MW) of solar photovoltaic (PV) generated electricity.

The fresh financial package was disclosed on Friday in Abuja by the manager of the NESP which is the German cooperation agency – the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) when it presented a compendium of its achievements in the first phase of the NESP.

The first phase of the NESP according to GIZ successfully supported the implementation of six off-grid renewable energy mini-grid solar PV projects which provided about 10,000 people in Sokoto, Niger, Ogun, Cross River and Plateau states access to clean and sustainable electricity.

It also supported local stove manufacturers to provide about 100 agro-processor groups with access to clean and efficient cook-stoves, in addition to helping the Nigerian Electricity Regulatory Commission (NERC) and Rural Electrification Agency (REA) develop its mini-grid regulations and rural electrification strategy and plan respectively.

Iner Hommers, who heads the NESP, explained at the event that the new financial package of €33 million would be used in the second phase of the NESP to support Nigeria’s provision of stable data for electrification planning, sustainable on-grid and off-grid solar-based electricity, in addition to creating an enabling environment for renewable energy and energy efficiency investments in the country.

Hommers, said the EU would provide €20 million in the programme while the German government through its federal ministry of economic cooperation and development would give €13 million in support.

She noted the programme would ensure as part of its schedule that up to 500MW of solar PV electricity would be procured and generated to serve about 100,000 people, while supports to renewable energy operators to scale up their electricity provision would be provided as well.

Hommers, stated that while the NESP had a strong focus on the policy and regulatory framework to enable investments into renewable energy and energy efficiency, its second phase will focus on supporting project implementation within its frameworks.

According to her, about 10,000 tonnes of carbon emission has also been targeted to be saved per annum from the programme.