EXECUTIVE SUMMARY

About the Energizing Economies Initiative

The Energizing Economies Initiative (EEI) is a Federal Government of Nigeria initiative implemented by the Rural Electrification Agency (REA) that aims to support the rapid deployment of off-grid electricity solutions to MSME’s in economic clusters (such as markets, shopping complexes and agricultural/industrial clusters), through private sector developers.

The Federal Government of Nigeria (FGN) launched the initiative in September 2017 as part of its wider Micro, Small, Medium Enterprise (MSMEs) programme.

Objectives of the Energizing Economies Initiative (EEI)

  1. The EEI seeks to increase energy access and economic growth by providing clean, reliable and affordable power to economic clusters across Nigeria; such as markets, shopping complexes and agricultural/industrial clusters.
  2. Promote efficient, clean, safe, cheaper and sustainable power to catchment areas that have high growth impact on the economy.

Projected Impact

The objective of this project is to connect over 100,000 establishments in these clusters across the country at a relatively rapid pace, with 70% of these projects to be renewable energy based. This will directly or indirectly positively touch the lives of approximately 7 million people. As part of the wider EEI, over 340 economic clusters have already been identified across the country. The total estimated energy demand from these clusters is 3-4GW with a combined market opportunity of ~ USD 955M annually. It is also estimated that 70% of these projects will be based on renewable energy.

Projected impact of the EEI can be summarized in these four key projected outcomes:

  • Job creation – over 2,500 jobs will be created.
  • MSMEs empowerment – over 200,000 MSMEs will be transformed.
  • Improved access to stable electricity – over 80,000 shops will receive clean, safe and reliable electricity by 2018.
  • Reduced carbon emissions – Greenhouse carbon emissions will be reduced annually by 25,000 metric tonnes.

Download/view EEI Executive Summary

PROJECTED IMPACT
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STAKEHOLDERS

Market Traders Association
Market Executives and Facility Managers
State Ministry of Commerce and Industries
State Ministry for Trade and Industry
Local Government
State Governments
Federal Government of Nigeria
Private Sector Investors
Distribution Companies (DISCOS)

 

PROJECT ACHIEVEMENTS
On 29/1/2019, H.E. President Muhammadu Buhari, GCFR commissioned Ariaria Market Independent Power Plant in Abia State
On 26/10/2018, H.E. Vice President Yemi Osinbajo, SAN, GCON commissioned the Sura shopping Complex, Lagos state
On 8/2/2018, REA MD/CEO Damilola Ogunbiyi launched the First Phase of 500 Electrified Shops at Sabon-Gari Market, Kano State
On 10/10/2017, REA MD/CEO Damilola Ogunbiyi commissioned 22KW Gas Powered Pilot IPP for Ariaria Market
Secured funding from Sterling Bank worth N446m to Virtus for the deployment of distributed energy solutions across selected economic clusters in Nigeria
On 18/10/2019, REA facilitated a tripartite agreement signed by Abuja Electricity Distribution Company (AEDC), Green Village Energy (GVE) and Wuse Market Association for the development of 1MW interconnected mini grid at Wuse Market, Abuja.
5 private developers have created jobs across 9 markets in phase 0 and phase 1
7 markets currently have a customer service centre for customer registration and payment
6 phase 1 markets have been electrified
As part of the wider EEI, over 340 economic clusters have already been identified across the country. This has positively touch the lives of approximately 7 million people. The total estimated energy demand from these clusters is 3-4GW with a combined market opportunity of ~ USD 955M annually.

 

BEST PRACTICE END TO END FOR ELECTRIFYING ECONOMIC CLUSTERS

The Rural Electrification Agency has adopted the following key activities as best practice for the implementation of the Energizing Economics Initiative in Nigeria.

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REQUIREMENTS TO PARTICIPATE IN THE INITIATIVE

General: All of the templates provided have been put together in order to clarify the programme requirements. We request that you do not amend them (except the financial model where absolutely necessary).

Please complete all sections of the documents and where a section is not applicable please provide a reason. All three templates have to be filled in completely and submitted as provided under ‘Requirements to Participate’ otherwise the documents will not be reviewed by the REA.

Energy Audit: The energy audit provides the basis for the investment and it anchors the business plan to the financial model. Please provide this document in Microsoft Excel.

Click here to download Energy Audit template

Financial Model: The instructions for completion are included in the summary page of the document. The energy audit will be necessary in order for this to be completed. Please provide this document in Microsoft Excel.

Click here to download Financial Model template

Business Plan: The Business Plan provides a clear basis on how the proposed investment is aligned to the EEI. Please complete all the sections as provided in the template. The energy audit and financial model will be necessary for this document to be completed. Please provide this document in Microsoft Word.

Click here to download Business Plan template