In less than a month, the European Union (EU) announced two major investments in Nigeria in the renewable energy sector. These include a €30 million investment facility from the Electrification Financing Initiative (ElectriFI) and a €165 million direct loan from the European Union.
Good news for the renewable energy sector in Nigeria. The European Union has decided to mobilise €195 million through two operations.
On the one hand, an EU loan of €165 million for this West African country, which was recently announced at the inauguration of a solar tree at the headquarters of the European Union delegation in Abuja, the country’s capital.
“A very large number of people do not have access to affordable energy options. The European Union has set aside €165 million, complemented by other financing opportunities for Nigerian companies to promote better use of renewable energy in the country,” said Ketil Karlsen, the European Union’s Ambassador to Nigeria.
No details have yet been given on how the European Union intends to invest the €165 million. However, to promote people’s access to electricity, this investment should be used to support companies that invest in off-grid in Nigeria, particularly in solar energy. In the home solar kits sector, many women are offering their autonomous solar systems in rural areas.
ElectriFI invests 30 million euros
The second investment of €30 million will come from a facility provided by the Electrification Financing Initiative (ElectriFI), an investment fund that supports the private sector in providing unserved areas with electricity. It is actually an investment facility that this European Union financial institution makes available to companies in Nigeria.
During the presentation of this €30 million financing, Quentin Antoine, Senior Investment Manager at ElectriFI, explained that the financial institution’s role is to target projects that provide access to electricity in rural areas. Recently, ElectriFI partnered with Renewable Energy Performance Platform (REPP) to open a $10 million line of credit for PAS Solar, a British company. This facility should help it to boost the distribution of its solar kits to villages in Nigeria.
In urban areas, ElectriFI will support companies that offer mini-grids to local businesses and businesses. In February 2019, ElectriFI invested $2 million to expand Redavia, a German company that offers off-grid solar systems. With this investment, Redavia will continue its operations and install at least 55 solar mini grids with a capacity of 100 kW each in Ghana.
Jean Marie Takouleu