Reading Time: 3 minutes
In a joint partnership, the Nigerian impact investment company All On, Odyssey Energy Solutions, and the newly-launched Global Energy Alliance for People and Planet (GEAPP) have set up a global aggregated procurement program, called Demand Aggregation for Renewable Technology (DART) for renewable energy companies.
The All On-managed DART program supported by a $10 million fund will ensure reliable, affordable, and high-quality solar products reach the marginalized communities in Nigeria. The solar companies already approved by the Rural Electrification Agency (REA) for the Nigeria Electrification Project (NEP) will get this fund for debt funding to purchase lower-cost solar equipment through the DART.
The objective of the DART program is to accelerate the growth of the renewable energy market, empowering people and businesses in Nigeria. The program looks for combining demand pooling and aggregated purchasing of solar-powered equipment, access to affordable finance, and coordinated logistics processes to unlock economies of scale for solar-related companies and achieve cost savings for the customers. The program launched in Nigeria will be followed by pilot programs in four additional nations in Africa.
The Managing Director of Innovation for the Alliance, Eric Wanless said “We are excited to launch the DART program in Nigeria as an important part of the Global Energy Alliance for People and Planet, which is accelerating the transition to renewable energy access for all, reducing emissions and creating jobs.”
All On CEO, Wiebe Boer said “This innovative partnership provides a solution to industry challenges such as high finance costs and lack of scale, by ensuring price competitiveness, supply chain optimization and unlocking local currency financing.”
Odyssey Energy Solutions will manage the global platform to provide standardized equipment, process solar company orders, maintain supplier relationships, and link solar equipment developers with finance partners.
Rural Electrification Agency’s MD, Ahmad Salihijo said “This could be a breakthrough in bridging the finance gap that hinders the growth of small and medium sized enterprises in the nascent renewable energy sector in Nigeria.”
The DART mechanism is an example of the kind of innovation and collaboration needed to close the energy access gap, enable clean energy transition, and bring forth a sustainable future for all. The program aims to improve the overall investment in the renewable energy sector in African nations and attract more international and local investors.