REA and CarbonAi Sign MoU to Develop Solar Mini-Grid Projects in Rural Nigeria

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The Nigerian Rural Electrification Agency (REA) and Canada-based greenhouse gas (GHG) reduction project developer, CarbonAi, have signed a Memorandum of Understanding (MOU) to develop solar mini-grid projects in underserved communities in Nigeria.


Under the MoU, REA will identify the potential project locations and work closely with the local communities. CarbonAi will finance, design, and build the projects, applying its carbon finance and expertise in project development.


These solar energy projects will be developed in unserved or underserved communities near CarbonAi’s flare gas capture projects across Nigeria. CarbonAi will also quantify, verify and monetize GHG emissions reductions using its proprietary data management platform.

Flaring of gas is a common practice in oil and natural gas activities, but it generates high levels of GHGs and other harmful pollutants. This often creates local air and water quality issues. Nigeria is third among the countries with the highest number of gas flares, but the country has vowed to eliminate the practice of gas flaring by 2025.

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Many communities in Nigeria’s high-flaring regions currently do not have access to reliable electricity. REA and CarbonAi believe that their recent collaboration is a significant step in providing reliable renewable energy to these communities while improving local air quality associated with gas flaring.

CarbonAi’s Chief Carbon Officer, Yvan Champagne, commented, “We are strong believers in win-win outcomes, and we believe our Climate Dividend Programme captures the spirit of the energy transition by leveraging immediate reductions in today’s energy system to build the energy system of tomorrow in Nigeria.”

Ahmad Salihijo Ahmad, MD/CEO of Nigeria’s Rural Electrification Agency, said their collaboration with CarbonAi is timely and solution-driven. The solar off-grid market in Nigeria is undergoing commendable growth. This step is another strategic and innovative measure to finance climate-resilient infrastructure in the country along with alleviating energy poverty.

The REA is an implementation agency of the Nigerian Government under its Ministry of Power. It primarily aims to promote and increase electricity access in unserved and underserved rural communities across the country.

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