REA SIGNS GRANT AGREEMENTS TO BOOST ENERGY EFFICIENT PRODUCTIVITY IN RURAL COMMUNITIES
In a significant step towards improving access to energy in rural communities, the Rural Electrification Agency (REA) signed grant agreements on the 2nd June, 2023 with 14 Energy Access Companies (EACs) under the Results-Based Financing for Productive Use Appliances & Equipment (PUE) component of the Nigeria Electrification Project (NEP) being funded by the African Development Bank.
The core objective of the component is to increase the productive use of energy in off grid communities powered by mini grids. This is achieved through a result-based finance framework to qualified companies to accelerate access to energy efficient electric productive appliances and equipment such as grinding machines, solar cold storges, welding machines, industrial sewing machines etc. The programme also aims to deploy 24,500 PUEs to micro, small, and medium enterprises (MSMEs) and provide improved energy services for 1,050,000 individuals through productive use systems.
The event marked a significant milestone in the implementation of the NEP as MD/CEO of the Rural Electrification Agency (REA); Abba Aliyu, Head of Project management Unit; and REA’s Executive Director of Technical Services, led the agency in signing grant agreements with 14 shortlisted companies
The grants will support Energy Access Companies to incorporate the use of energy-efficient productive use at low-cost in unserved and underserved communities, thereby boosting rural productivity, fostering economic growth, and generating employment opportunities.