The Nigeria Sovereign Investment Authority (NSIA) has teamed up with Sustainable Energy for All (SEforALL), the International Solar Alliance and Africa50, to create a $500m (€459.9m) fund dedicated to the development and financing of distributed renewable energy (DRE) projects within Nigeria.
The DRE Nigeria Fund plans to raise capital to develop financial instruments designed to attract private sector investment and mitigate issues such as currency volatility, tariff structures and the availability of local currency financing.
The fund will support a range of DRE projects, such as mini-grids, solar home systems, commercial and industrial power solutions and innovative energy storage technologies.
The DRE Nigeria Fund, co-managed by infrastructure manager Africa50 and NSIA, is expected to serve as a benchmark for other national funds to be launched under the DRE Africa Platform, the companies said.
Damilola Ogunbiyi CEO and SRSG for Sustainable Energy for All, said: “The launch of the DRE Nigeria Fund marks a pivotal moment in our collective efforts to address Africa’s energy access challenges. This fund will attract the long-term patient capital required to scale projects, especially from institutional investors.
“With the fund’s targeted focus on scaling up decentralised energy solutions, we are one step closer to achieving universal energy access across Nigeria.”
Aminu Umar-Sadiq, MD and CEO, NSIA, said: “The DRE Africa Platform represents another major step in our commitment to unlocking Africa’s renewable energy potential. With the DRE Nigeria Fund, we are creating a scalable model to attract global investments, drive industrial development, and enhance energy access for millions of Nigerians and Africans at large.
“This initiative underscores our belief that sustainable infrastructure is critical to economic transformation, and we are proud to collaborate with SEforALL, ISA, and Africa50 to turn this vision into reality.”
Ashish Khanna, director general-elect of the International Solar Alliance, said: “Mobilising private investments and promoting catalytic finance through grants and equity is the key to a sustainable, energy-secure future for the Africa region which currently receives only 3% of global solar investments. We’ll begin with Nigerian homes and businesses and then take it to all countries of the continent.”
Alain Ebobisse, Africa50 CEO, said: “This is a strong partnership with solid partners which can be a game-changer in accelerating investment in distributed renewable energy across Africa.
“This innovative collaboration aims to unlock the right financing instruments to fund projects at scale and help solve the energy access gap in Africa, bringing power to millions of Africans, driving economic growth for businesses and communities across the continent.”
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