The NEP solar hybrid mini grid component aims to support the development of private sector mini grids in unserved areas across Nigeria. The component targets to electrify 300,000 households and 30,000 local enterprises.
The objectives of this component are to:
I. Provide clean, safe, and affordable electricity to communities that are currently not connected to the national electricity grid.
II. Increase business productivity by replacing generators, lanterns and candles with reliable electricity.
Minimum Subsidy Tender (MST) – aims to electrify pre-selected communities that have high economic growth potential though a competitive tender. The communities to be electrified under the MST are identified, verified and sensitized by the REA/NEP.
Performance-based Grant Program (PBG) – aims for the development of mini grids on a rolling basis. The communities are identified, verified and sensitized by mini grid developers and they may also use this window to support development of pre-planned projects in their portfolios. Eligible projects are solar and solar hybrid systems in unserved areas, with generation capacity of not more than 1MW.
The total funding available for the component is US$150million
Minimum Subsidy Tender (MST)
A total of US$70 million has been assigned for the MST to electrify 250 communities.
The MST subcomponent will be implemented in two phases. The REA/NEP has prioritized 100+ sites to be tendered in the first phase, spread across the following states: Abia, Anambra, Bauchi, Cross River, Kano, Niger, Ondo, Ogun, Plateau and Sokoto 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.
The grant amount will be determined competitively through the tender.
Performance-Based Grant Programme (PBG)
A total of US$80million has been assigned for the PBG programme. Grants of US$350/connection, the naira equivalent of which will be disbursed to qualified mini grid developers on a first-come first-served basis, up till the available funds are exhausted.
A total amount of the grant to be provided are agreed upon based on the total amount of connections for each site of the developers the NEP has approved. Multiple grants are awarded for individual sites submitted by the developers. Grants are disbursed 3 months after the connections have been verified to be successful.
Steps Required to Register for a Mini Grid and Obtain a Permit from NERC
HOW TO GET A PERMIT FOR AN ISOLATED MINI GRID ABOVE 100KW
HOW TO GET A PERMIT FOR AN INTERCONNECTED MINI GRID ABOVE 100KW
HOW TO GET A PERMIT FOR AN ISOLATED MINI GRID BELOW 100KW