REA in talks with global experts to reduce mini grid costs in Nigeria by 60%

Nigeria’s Rural Electrification Agency (REA) has engaged global experts in mini grid power finances and development to see how the cost of deploying mini grid power in the country can be cut down by about 60 per cent.

REA stated in a statement it sent out in Abuja that for about three days, it will engage a United States based institute – the Rocky Mountain Institute (RMI) and other leading experts in the global mini grid electricity market to develop a new strategy to achieve this.

It explained the dialogue with RMI and other experts would create a roadmap that is both actionable and scalable when completed.

According to it, system costs, demand stimulation, and enabling policy measures would be looked into and discussed better on how they could harmoniously work to develop and deploy mini grid power systems in Nigeria. REA said the three-day event was ‘the 20 by 20 Design Charrette’.

Its partner, the RMI, it noted was founded in 1982 as an independent non-profit organisation, interested in transforming global energy use to create a clean, prosperous, and secure low-carbon future.

It also explained that RMI has engaged businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift their energy sources from fossil fuels to efficient renewable energy sources, and that the goal of the 20 by 20 Design Charrette would be to cut costs of mini grid delivered electricity by over 60 per cent.

“This multibillion-dollar revenue opportunity will create sustainable energy for hundreds of millions of people and combine the power of global supply chains with local market entrepreneurs and communities,” explained REA statement.

The Chief Executive Officer of RMI, Jules Kortenhorst, was quoted to have stated in the statement: “I’m positive we have the right people in the room and they will deliver a financially viable solution that will truly be a game changer for the market and more importantly, for the people and communities who will gain access to power for the first time.”

Similarly, REA’s Managing Director, Mrs. Damilola Ogunbiyi, reportedly noted that: “The aim of REA is to roll out 10,000 mini grids rapidly to support underserved communities in Nigeria and with the current regulatory landscape, Nigeria is the best market to do mini grids.”