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FG Reiterates Commitment To Power Sector, Approves Contracts Worth €161 Million, WB Commits $750 Million For DARES

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Managing Director/CEO of REA, Abba Abubakar Aliyu while making presentation at the workshop.

The Federal Government has reiterated its commitment to revamping power supply as contracts worth of €161 million has been approved while the nation’s development partner, World Bank commits $750 million in Distributed Access through Renewable Energy Scale-up (DARES) programme.

The Minister of Power, Adebayo Adelabu who disclosed this Wednesday during Rural Electrification Agency (REA) stakeholders’ engagement workshop (SEW2024) with the theme “Powering Partnerships for Sustainable Energy Access and Innovation”, applauded the activation of the REA’s e-H.E.A.R.T, which is a key initiative targeted at sustainably energizing Healthcare institutions, Education,  Agriculture, Rural communities and Transportation.

This even as the the Managing Director/CEO of REA, Abba Abubakar Aliyu, noted that the renewable energy sector and rural electrification have caught the attention of the federal government now more than ever before

The Minister stressed that the days of glossing over ideas and strategies were long gone, adding that “Now is the time for action. As we all know, energy poverty has been a persistent challenge for decades, especially in rural communities where millions lack access to electricity.”

He emphasized the essence of partnership, saying we must harp on the concept of collaboration in every sense of the word and activate new opportunities to drive change in the sector.

According to the Minister whose address was presented by Dr. Owolabi Sunday, “At the recent Federal Executive Council (FEC), His Excellency approved €161 million worth of contracts for the upgrade of power substations under the Presidential Power Initiative (PPI). I am happy to assure you that we are on course to deliver an additional 150MW to the grid while impacting 14 existing substations and establishing 21 new ones.

“The team at the Rural Electrification Agency (REA) have also been hard at work as we approach the kick-off of the Distributed Access through Renewable Energy Scale-up (DARES) programme, which I believe many of you must have heard about. Our partners at the World Bank have committed $750 million to this groundbreaking project and we are certain that over 13 million Nigerians will be impacted through the DARES.

“As part of the implementation of the Federal Government’s Rural Electrification Fund (REF) and as part of the REA’s forward-leaning approach to solution-based energy access initiatives, I am happy to witness the activation of the e-H.E.A.R.T, a key initiative targeted as sustainably energizing healthcare institutions, education,  agriculture, rural communities are transportation.

“Innovative and impactful initiatives such as these will continue to enable us to scale up energy access. Beyond this, however, there is a need to sustain the close-knit collaboration between the public and private sector players, financiers, innovators and development finance institutions.

“The Federal Government’s commitment to universal energy access by 2030, in alignment with the United Nations’ Sustainable Development Goal 7 (SDG 7), has sparked a paradigm shift. The team at the REA have been hard at work, delivering decentralized renewable energy projects while charting a new course for the delivery of utility-scale renewable energy infrastructure”

Earlier, the Managing Director/CEO of REA, Abba Abubakar Aliyu, noted that the renewable energy sector and rural electrification have caught the attention of the federal government now more than ever before.

He cited that President Bola Tinubu’s signing of the Electrification Act 2023,
created much more opportunities in this country for sub-national, local governments and communities to participate in providing electrification in this country.

 According to Abubakar Aliyu, “For the first time in this country, the entire electricity value chain has been liberalized and sub-nationals and the private sector have been given opportunities to play a key role in providing electricity in this country.

“Apart from that, Mr. President approved the request of the federal minister of power by approving $750 million distributed access fund with which to set up funding which programme had been launched on Tuesday. Private sector prohibitive has ended. This the reality.

“Private sector should use this opportunity to go to the communities, start building these infrastructure and come back to benefit from this capital grants based on predetermined framework that was approved. 

“Mr President has also agreed when the minister of power made a presentation at the National Economic Council for a framework to be established for a distributable renewable energy.

“NEC has created a committee that will facilitate the establishment of National Electrification Strategy and Implementation plan under the leadership of the governor of Cross River state. The committee has representatives from each of the geopolitical zones representing the ministers of power, finance and Budget and National planning.”

Also, the Executive Director, Rural Electrification Fund (REF), Engr. Doris Uboh, made presentation on “Building collaborative partnerships for renewable energy solutions: Goals and objectives for working with state governments. Expected impact on primary healthcare, agriculture, productive use of energy (MSMEs), and education. The part forward: roles of key stakeholders in making the programme (e-H.E.A.R.T project) a success.

She cited that there are over 46,100 PHCs
across Nigeria, out of which an initial database of over 925 functioning Primary Healthcare Centers (PHCs) were assessed
and selected across all six (6) geopolitical zones in Nigeria

She said while implementing the programme, 462,500 households will be connected to the Mini-Grids across 925
communities which would include functional Primary Health Care (PHC) facilities.

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