World Bank Approves $750 Million For Nigeria’s Renewable Energy Access Project

World Bank has approved a $750 million credit to support Nigeria's efforts to provide clean and reliable electricity to millions of its citizens through distributed renewable energy solutions.

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Distributed Access through Renewable Energy Scale-up (DARES) project, which will leverage over $1 billion of private capital and significant parallel financing from development partners, aims to provide over 17.5 million Nigerians with new or improved access to electricity through standalone solar and mini-grids.

The project will also replace more than 280,000 polluting and expensive petrol and diesel generator sets, an important step for Nigeria towards achieving its energy transition targets.

DARES project will build on the achievements of the World Bank-financed Nigeria Electrification Project (NEP), which has supported the establishment of 125 mini-grids and the sale of over a million Solar Home Systems, through which more than 5.5 million Nigerians have gained access to electricity. NEP has also resulted in the creation of over 5,000 private-sector local green jobs in Nigeria.

The DARES project will enable the Federal Government of Nigeria to coordinate and finance all off-grid electrification efforts. It will help states access technical assistance to develop institutional capacity and policy frameworks for rooftop solar. The project will prioritize gender and inclusion by building on the NEP’s gender-related actions to facilitate access to electricity for disadvantaged female-headed households and women-led MSMEs, as well as actions to increase women’s employment in the energy sector.

Shubham Chaudhuri, World Bank Country Director for Nigeria, said  “We are committed to expanding clean energy-based access in Nigeria, with the USD $750 million Nigeria DARES project being the largest ever single distributed energy project of the World Bank globally. It will benefit over 17.5 million unserved, underserved, rural, and remote Nigerians through the deployment of standalone solar and mini grids and replace more than 280,000 polluting and expensive petrol and diesel generator sets, an important step for Nigeria towards achieving its energy transition targets.

“Through the DARES project, Nigeria will be able to  provide up to 237,000 MSMEs with reliable and clean electricity for productive uses that will help improve their potential to generate income and create local jobs,” he added.

Minister of Power in Nigeria, Adebayo Adelabu, expressed excitement in contributing to “this revolutionary movement, emphasizing innovative financial instruments like the DARES program. These initiatives not only unlock the full potential of the off-grid sector but also fuel investments, propelling forward clean energy solutions.”

He said, “The ripple effect reaches unserved and underserved communities, unlocking access to a realm of clean and equitable energy for all. It’s a powerful journey of empowerment and transformation.”

The DARES program will support Nigeria in closing its electricity access gap and accelerate its transition towards sustainable, efficient, and economically viable electricity supply, demonstrating what can be achieved through effective collaboration and partnerships between the Government, private sector, and development partners.

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