Nigeria has launched the $300 million Nigeria Distributed Renewable Energy (DRE) Fund to expand access to electricity through solar power and mini-grids.
The Nigeria Sovereign Investment Authority (NSIA) and Africa50 will manage the fund, with support from Sustainable Energy for All (SEforALL), the World Bank and other partners.
The fund will finance distributed renewable energy projects in communities with limited or unreliable electricity. It will also support systems that can supply power directly to homes and businesses.
The initiative aims to improve electricity access without depending entirely on national grid expansion. Distributed energy systems can bring electricity closer to consumers, particularly in areas where extending the grid may be difficult or costly. NSIA Managing Director and Chief Executive Officer Aminu Umar-Sadiq described the launch as a signal to investors.
“This is a major development milestone,” Umar-Sadiq said. He added that the launch shows that Nigeria’s distributed renewable energy market is investable and ready to operate at scale.
The platform will give investors a dedicated channel to finance distributed renewable energy projects. Eligible projects will include mini-grids and standalone solar systems. The financing structure could help address funding challenges facing projects in underserved communities and support electricity access in areas where grid expansion requires major infrastructure investment.
Small and medium-sized businesses could also benefit from wider access to solar and mini-grid power. More reliable electricity could help reduce their reliance on diesel and petrol generators. The fund will also support Mission 300, the African initiative that aims to connect 300 million people to electricity by 2030.
Africa50 Group Chief Executive Officer Alain Ebobissé said the platform brings together different areas of expertise to address Nigeria’s electricity needs.
He said the partnership combines NSIA’s knowledge of the Nigerian market with Africa50’s investment experience. It also draws on SEforALL and World Bank expertise in expanding energy access.
Ebobissé said the approach could be used beyond Nigeria, allowing other African countries to adapt the model to attract investment in renewable energy projects.
SEforALL Chief Executive Officer and UN Special Representative for Sustainable Energy for All Damilola Ogunbiyi said the fund could help turn Nigeria’s electricity access plans into new investments and connections.
The World Bank is contributing $25 million through the International Development Association (IDA). The funding forms part of the platform’s efforts to attract more capital for electricity projects.
World Bank Group Managing Director of Operations Anna Bjerde said reliable electricity remains important for economic development. “Reliable and affordable energy is required for job creation and economic transformation in Africa,” Bjerde said. The World Bank said its $25 million contribution demonstrates its commitment to expanding electricity connections and attracting further investment into distributed energy projects.
The International Solar Alliance also sees the platform as a potential financing model for other African countries. Its Director General, Ashish Khanna, said Nigeria could offer lessons on attracting private investment into renewable energy.
Khanna also highlighted opportunities for knowledge sharing between Africa and India, particularly in developing and financing renewable energy projects.
The fund will combine public and development finance with private investment to help raise the capital needed to expand electricity access across Nigeria.
The platform will focus on distributed power generation rather than relying only on large power plants and the national grid. Mini-grids can provide electricity to groups of homes, businesses, and communities, while standalone solar systems can serve individual users.
source: africa-energy-portal.org
African Energy Council