Locations
National Child Project under the GEF Africa Minigrids Program
Summary
As part of the UNDP-supported, GEF-Financed Africa Minigrids Program (AMP), this project seeks to increase access to clean energy by increasing the financial viability, and promoting scaled-up commercial investment, in low-carbon mini-grids in Nigeria with a focus on cost-reduction levers and innovative business models. Approximately, seventy million people are without electricity in Nigeria with the larger cohort found in rural areas. Nigeria has made significant strides in setting up a regulatory framework for enabling electrification of underserved communities using decentralized renewable energies, such as solar PV mini-grids. There is now a vibrant private sector value chain for developing solar PV mini-grids. The business environment in Nigeria is conducive for scaling up private investments in off-grid electrification. The UNDP-GEF project will contribute towards this goal in terms of supporting the integration of solar PV mini-grids in the agriculture value chain (i.e., productive energy uses).
The Project objective is to support access to clean energy by increasing the financial viability and promoting scaled-up commercial investment in solar PV mini-grids in Nigeria.
The Project has three (3)components
1. Business Model Innovation with Private Sector Engagement
2. Scaled-up Financing
3. Digital, Knowledge Management, Monitoring and Evaluation and Scale-Up Strategy
UNDP’s derisking approach will be adopted as a financing cost reduction lever to increase private sector investments in the off-grid rural energy market.
Target Beneficiaries and Their Locations
The number of direct project beneficiaries are expected to be around 70,063 persons, of which approximately 34,559 will be women. The lifetime global environmental benefit is estimated at 74.2 ktCO2e. Indirect emission reductions amounting to 4,170 ktCO2e are expected. The project yields a GEF abatement cost of 1.4 US$/tCO2e.Geographic Focus:
The GEF Project will support pilot activities in two geographical areas (Kaduna and Abuja) representing two prominent agro ecological zones in Nigeria. Hence, the most suitable locations for the project sites will be at the intersection of the off-grid communities and the agro-ecological zones.
Target Beneficiaries:
Target beneficiaries include local communities, civil society organizations and non-governmental organizations. The local communities will host the mini-grid systems and utilise resources for socio-economic development, as well as enhance the primary health care system. The operations of public infrastructure such as schools, banks and hotels will be enhanced thereby directly benefiting local communities.
Particular attention will be given to strengthening the role of women as actors and entrepreneurs in the energy-agriculture nexus rather than being passive beneficiaries. Women entrepreneurs will be encouraged to manage various facilities.
