The Rural Electrification Agency (REA) on Thursday, 2nd December 2021 signed contract agreements for the Energy Efficient Productive Use Appliances & Equipment (PUE) component to kick-start Phase I under Component II of the African Development Bank (AfDB) financed Nigeria Electrification Project (NEP).

The aim of this Component is to increase the productive use of energy in remote communities by increasing access to efficient, electric productive equipment.

This objective is achieved by using a result-based finance mechanism to incentivize energy access companies to include the distribution of these types of equipment in their business operations.

Messrs. Leading Diagonal Engineering Ltd, Nayo Tropical Technology Ltd, PowerGen Renewable Energy Nig. Ltd, GVE Projects Ltd and Zylab Technologies Nig. Ltd (who successfully scaled through the qualification stage and have existing mini grids deployed in rural communities across Nigeria) were the five mini grid developers that signed the contracts, to test run the various assumptions surrounding PUE in the Nigerian Market.

In his welcome address, the MD/CEO REA, Engr. Ahmad Salihijo Ahmad encouraged mini grid developers to make productive use appliances a bigger part of their overall strategy and business model for mini grid viability.

He also emphasized on Developers’ commitment to supply standardized energy efficient appliances & equipment.

In attendance at the signing ceremony were the Executive Director, Corporate Services, Chief Olaniyi Netufo, AfDB Task Team Lead, Chigoziri, Egeruoh, Director, Promotions Information & Outreach, Ayang Ogbe, Head, Project Management Unit, NEP, Anita Otubu, Head, Legal Unit, REA, Barr. Amina Sugha, the Component Co-ordinator PUE and Mini Grids (AfDB-NEP), Temitope George and other REA/NEP Team members.

Others from the Power Sector who have supported in the process leading up to the signing of these contracts were, Head, Power Africa Nigeria, USAID Power Africa, Narlene C. Egu and Deputy Chief of Party, Nigeria Power Sector Programme, Tunde Gbajumo.

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