In a significant development, the Rural Electrification Agency (REA) of Nigeria and Husk Power Systems (Husk) have entered into a Memorandum of Understanding (MoU) to collaborate on deploying up to 250MW of decentralized renewable energy (DRE) projects. This strategic partnership aims to support the Federal Government’s energy access, energy transition, and energy security targets.
The partnership will focus on various rural and peri-urban DRE projects, including power generation and distribution through interconnected minigrids (IMGs) and isolated minigrids, rooftop commercial and industrial (C&I) solar installations, productive use of energy (PUE), and sales and financing of appliances.
These projects will align with the $750 million Distributed Access through Renewable Energy Scale-up (DARES) project, funded by the World Bank and administered by REA, which is set to launch later in 2024.
Beyond building new clean energy infrastructure, the partnership will explore innovative models such as Virtual Power Plants (VPPs) and community services like e-mobility, agricultural processing and cold storage, and clean cooking. REA and Husk will also collaborate to promote the mass adoption of energy-efficient appliances and PUE devices through sales, distribution, and credit financing.
Abba Aliyu, Managing Director of REA, expressed optimism about the partnership, stating, “This partnership represents a historic leap forward in our vision for a network of Renewable Energy Service Companies (RESCOs) that can deliver clean and reliable electricity to every corner of Nigeria.”
Manoj Sinha, Co-Founder and CEO of Husk Power Systems, emphasized the importance of public-private partnerships (PPPs) in achieving universal electrification in Nigeria. He praised REA’s vision and commitment, noting that the strategic partnership would accelerate the deployment of Husk’s AI-enabled energy platform, benefiting millions of Nigerians and enhancing climate adaptation and resilience.
Husk Power Systems has been operating in Nigeria since 2020, delivering reliable, clean electricity to households, micro, small, and medium-sized enterprises (MSMEs), as well as various institutions. As part of its Africa Sunshot initiative, Husk aims to deploy 1,000 minigrids in Nigeria and an additional 1,500 in other parts of Sub-Saharan Africa.
This partnership between REA and Husk underscores Nigeria’s commitment to expanding access to clean and sustainable energy and advancing its energy transition goals.
