The Universal Energy Facility (UEF), a financing facility managed by Sustainable Energy for All, has shown a commitment to aid in the realization of the Nigeria Energy Transition Plan (ETP) through grants offered to renewable energy companies in the country. Companies operating in the renewable energy sector who had previously applied for funding from UEF’s Stand-alone Solar for Productive Use (SSPU) programme will commence construction on their proposed solar projects with the aid of the grant. Since the commencement of the program in August 2022, over a hundred energy companies have applied to participate in the SSPU programme.
These programs align with the country’s Energy Transition Plan, and aim to provide commercial and institutional customers access to a more sustainable, cost-effective, and stable electricity supply. According to UEF, the project would reach most states in the country and is scheduled to be completed within a period of one year. Moreover, the projects throughout the states aim to link up about 3,500 energy-productive applications, including enterprises, marketplaces, retail malls, cold-storage facilities, clinics, schools, and more.
5,400 tons of CO2 per year will be saved with the projects.
With this program, businesses and individuals will be provided with an alternate opportunity to transition from the current costly and polluting fossil fuel power source to a renewable energy source. As estimated by the UEF, approximately 5,400 tons of CO2 equivalent per year will be saved once all of the proposed projects are implemented. Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, asserts that the UEF’s programme in Nigeria will illustrate the enabling potential that sustainable energy holds for local economic growth and climate action.
In addition, he said that the facility’s backing of solar projects would provide clean, cheap energy to companies, the ability to expand, generate more profit, create more jobs, and reduce their reliance on dirty fossil fuels which can fuel climate change . Meanwhile, all hands are on deck as Nigeria continues the ETP project implementation process launched in 2021, with the goals of achieving universal energy access by 2030, net-zero emissions by mid-century, and the necessary funding in sight.
UEF’s contribution to ETP will aid the development of companies.
Nonetheless, the UEF’s contribution in this regard cannot be underestimated, notably to the plan’s financial objectives for the power industry by giving grants that firms may use to obtain extra capital for clean energy. Yemi Osinbajo, the vice president of Nigeria, made it public in a statement that the United Energy Fund (UEF) Facility would provide grant payments to solar companies so that they could expand their operations to small and medium-sized enterprises (SMEs) across Nigeria, thereby attracting additional private capital. UEF’s contribution to the country’s Energy Transition Plan is essential as this will aid in the growth and development of companies, hence providing more opportunities for citizens to find gainful employment.
On his part, Goddy Jedy Agba, Nigeria’s Minister of State for Power, described the UEF programme as a schematic representation of strategic investment in Nigeria’s power industry and the country’s overarching goal of providing universal access to electricity. Anita Otubu, the UEF senior director, noted that after a few months of establishing this program in Nigeria, we are already at the stage where grantees have been chosen and enterprises can start creating revolutionary stand-alone solar projects.
The global energy transition must provide energy for people.
According to Simon Harford, CEO of the Global Energy Alliance for People and Planet (GEAPP), the global energy transition must provide energy for people and the earth by opening up new economic possibilities and replacing carbon-intensive industries. Harford also shared the organization’s unwavering support for UEF’s efforts to provide tailored, country-specific solutions to the populations most impacted by energy poverty and climate change. While this is the first grant funding window under the SSPU programme in Nigeria, UEF claims to have discovered more projects worthy of funding.
Related Link
SSPU: Website
