FG to engage banks, major off-grid developers on Solar power

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By Agbenu Oyale, Abuja

Vice President, Yemi Osinbajo, on Thursday led the Federal Government’s team to engage with Banks and major off-grid developers to drive the Solar Power Naija N140Billion Program.

The program is expected to lead to the ESP 5M Solar Power Connections. 

Osinbajo described the federal government’s solar power initiative as a game changer in the Nigerian energy supply challenge.

Osinbajo particularly said the five million homes solar installation plan under the Buhari administration’s Economic Sustainability Plan,ESP,will be a game-changer in the renewable energy space.

A statement by Laolu Akande Senior Special Assistant to the President on Media & Publicity, officeice of the Vice President,quoted Osinbajo as saying,”This is because, besides the installation of the 5 million solar home system and mini grids, the initiative will also generate significant employment through the development of local capacities for the manufacture and maintenance of solar components and equipment.”

The statement said Prof. Osinbajo stated this Thursday at a virtual engagement with stakeholders involved in the implementation of the Solar Power Naija Initiative.

“Under the arrangement, the Rural Electrification Agency (REA) will drive the implementation while private companies will install and manage the home systems, drawing funding from a low-cost loan facility from the Central Bank of Nigeria,”it said.

“Our Solar Home System was designed to be a game-changer in the renewable energy space, in other words, it is not just a programme to provide off-grid power alone, but one that creates opportunities for the development of the local capacities in the assembly, manufacture and even maintenance of equipment.

“We have seen quite a bit of interest already from international and local players across the off-grid solar value chain, there is indeed a lot of interest that we are seeing,”he reportedly said.

Under the Solar Home System of the ESP, the Federal Government is connecting 5 million households to solar systems and servicing 25 million Nigerians who are not connected to the national grid.

Under the scheme, there is an option of outright ownership by beneficiaries possibly at a rough estimate of N4, 000 per month for a period of 3 years. Also, there is the value addition to the economy in the area of job creation for at least 250, 000 persons and the ramping up of local content in solar equipment manufacturing systems installation and maintenance.

Emphasizing the Federal Government’s commitment to the project, Prof. Osinbajo said, “we are open and ready to partner, let’s go out there and ensure that we are able to do this 5 million connection in record time.”

“The banks that are keyed into this have already shown a great deal of interest and leadership in this particular area and we commend them for what they have done so far. We hope that we will be able to work closely with them as we go ahead. And same with all of the assemblers, manufacturers of off-grid systems,” Prof. Osinbajo added.