The NEP solar hybrid mini grids component aims at accelerate private sector delivery of mini grids in off-grid communities.

Mini-grid: generation and distribution system capable of serving at least 2 end‐users, independently from the national grid.

Technical focus – Solar PV generation with battery and diesel back up.

Prepaid metering to mitigate revenue and collection losses and support project bankability

The objectives of this component are to:

i. Accelerate private sector delivery of mini grids in off-grid communities

ii. Develop mini grids on a build-own-operate model and catalyze mini grid deployment at scale to kick-start the market

iii. To electrify unserved and underserved areas with high economic growth potential

iv.  To energize households, local enterprises and public institutions within the mini –grid sites.

v. The target is to electrify 105,000 households and 20,000 MSMEs through a USD 70,000,000 funding mechanism from the African Development Bank

Minimum Subsidy Tender (MST) – will be implemented in two phases. The REA/NEP has prioritized 99 sites to be tendered in the first phase, spread across the following states: Kwara, Oyo and Nasarawa States. These sites will be packaged into lots, by state to encourage economies of scale in procurement and efficiency in operations and management. The remaining sites will be tendered in the second phase across Jigawa, Enugu, Delta and Ekiti states

The grant amount will be determined competitively through the tender.

households to be electrified through mini grids (of which 10% headed by women)

local enterprises to be electrified through mini grids (of which 10% headed by women)

female employees related to mini grid or developers

of renewable energy (solar)

The mini grid component will use an innovative web-based platform to key interfacing aspects and program management.

The web-based platform will be used for managing the RFP stage of the minimum subsidy tender and application process for the performance-based grant window of the mini grid component

Phase 1: Electrification Verification and Energy Audit of sites identified by REA’s geospatial desktop survey. Energy demand requirements/load profiles have been completed in 99 Communities within Kwara, Oyo and Nasarawa states. Community Engagements have also been conducted to ascertain communities’ interest in energy access, buy-in and willingness to pay for energy supplied from the mini grid. Odyssey’s web based platform will undertake, the system sizing and distribution and include financial proposals in readiness for the Minimum Subsidy Tender procurement process (managed on the Odyssey platform) where firms with the least capital requirement amongst other capabilities will be shortlisted.

Phase 2 – over 200 communities will be selected from geospatial desktop survey from which Electrification Verification, Energy Audits and Community Engagements will be held in suitably qualified 151 communities within Jigawa, Enugu, Delta and Ekiti states.