Frequently Asked Questions on Energizing Economies Initiative

1. What is the Energizing Economies Initiative (EEI)?

The Energizing Economies Initiative (EEI) is an initiative of the Federal Government of Nigeria (FGN) launched on September 2017 aimed at to increasing energy access and economic growth by assisting private sector developers in providing clean, reliable and affordable power to economic clusters (such as markets, shopping complexes and agricultural/industrial clusters) across Nigeria

2. What are the benefits of the EEI?

  • Creation of over 2,500 jobs
  • Empowerment of over 200,000 MSMEs
  • Provision of clean and reliable power supply to over 80,000 shops in the next 7 to 10 months
  • Electrification of 16 economic clusters that serve 18 million Nigerians
  • Reduction of greenhouse carbon emissions annually by 25,000 metric tonnes

3. Who are the project partners?

  • Federal Government of Nigeria
  • Implementing Agency – Rural Electrification Agency (REA)
  • Project Developer – Private Sector
  • USAID Nigerian Power Sector Programme

4. What is the project timeline?

The EEI will evolve across 4 phases, over the next 3 to 5 years. The pilot phase of the project has been concluded with phase 1 underway.

Pilot – 3 sites; 6 months

Phase 1 – 10 to 20 sites; 12 months

Phase 2 – 80 t0 100 sites; 12 to 18 months

Phase 3 – 200+ sites; 12 to 24 months

5. What type of technology will be used?

Renewable energy technology (Solar) is the preferred technology deployed. However, Ariaria market and Sura shopping complex of the pilot phase are gas-powered.

6. How are economic clusters selected?

  • Economic clusters are selected based on the following conditions:
    1. Have at least 1,000 shops/businesses
    2. Rely on self-generation (diesel gen or alternative) to run business
    • Have a structured/functioning market association
    1. Have accessible infrastructure (in-roads to the cluster)
    2. Must be a market/cluster that is recognized by the State Government

7. What measures are being taken for project sustainability?

  1. Cost effective tariffs (at least 20% cheaper than the existing method of self-generation)
  2. Sustained operation and maintenance
  • Good customer service for customers to lodge complaints or discuss payment plans/methods

Smart meters are installed in each shop to ensure that business owners only pay for what they consume

8. What health and safety measures are employed under the EEI?

Developers are required to adhere to National and International health and safety standards during deployment

9. Can I invest in the EEI as a developer?

Private sector developers are welcome to invest in the project

10. What are the eligibility criteria for interested developers?

Developers must be able to submit the following:

  1. Completed Energy Audit using template provided by the REA
  2. Completed Business Plan using template provided by the REA
  • Completed Financial Model using template provided by the REA

Once the documents are submitted and reviewed, they will be passed on to the State Government of the market/cluster to commence discussions.