Vice President, Yemi Osinbajo, has described the Federal; Government’s 5 Million home solar installation plan as a game changer in the efforts aimed at boosting the nations energy supply under the Economic Sustainability Plan (ESP).
According to the Vice President, this is because the initiative will also generate significant employment through the development of local capacities for the manufacture and maintenance of solar components and equipment.
Prof. Osinbajo was quoted as saying this on Thursday at a virtual engagement with stakeholders involved in the implementation of the Solar Power Naija Initiative according to a press Statement by his spokesman, Laolu Akande.
Under the arrangement, the Rural Electrification Agency (REA) will drive the implementation while private companies will install and manage the home systems, drawing funding from a low-cost loan facility from the Central Bank of Nigeria.
According to the Vice President, “Our Solar Home System was designed to be a game-changer in the renewable energy space, in other words, it is not just a programme to provide off-grid power alone, but one that creates opportunities for the development of the local capacities in the assembly, manufacture and even maintenance of equipment.
“We have seen quite a bit of interest already from international and local players across the off-grid solar value chain, there is indeed a lot of interest that we are seeing.”
Under the Solar Home System of the ESP, the Federal Government is connecting 5 million households to solar systems and servicing 25 million Nigerians who are not connected to the national grid.
Under the scheme, there is an option of outright ownership by beneficiaries possibly at a rough estimate of N4, 000 per month for a period of 3 years. Also, there is the value addition to the economy in the area of job creation for at least 250, 000 persons and the ramping up of local content in solar equipment manufacturing systems installation and maintenance.
Emphasizing the Federal Government’s commitment to the project, Prof. Osinbajo said, “we are open and ready to partner, let’s go out there and ensure that we are able to do this 5 million connection in record time.”
“The banks that are keyed into this have already shown a great deal of interest and leadership in this particular area and we commend them for what they have done so far. We hope that we will be able to work closely with them as we go ahead. And same with all of the assemblers, manufacturers of off-grid systems,” Prof. Osinbajo added.
Citing the example of A-Solar’s 100,000 connections project as an effective public private partnership in delivering reliable off-grid energy to underserved communities, and developing the entire value chain, the Vice President said “one of the innovative deals that I like to highlight as part of what is going on is the A-Solar 100,000 connections transaction which is supported by Sterling Bank and the NDPHC.”
While calling on commercial banks to support the Federal Government’s drive to develop the local capacity for the entire solar energy sector, the Vice President commended Sterling Bank for its stand financing off-grid power projects in the country.
Corroborating the Vice President’s views about the potentials of the Solar Home System, in his contribution at the meeting, the Minister of State for Power, Mr Godwin Jedy Agba said the 5 million solar connections will usher in more investments in the off-grid space, creating more jobs for Nigerians.
Stakeholders present at the meeting include the Managing Director of the Rural Electrification Agency (REA), Mr Ahmad Salihijo; the representatives of the Governor of the Central Bank of Nigeria (CBN); Sterling Bank; First Bank of Nigeria; United Bank for Africa (UBA); Fidelity Bank; Pan Africa Solar; Auxano Solar; Blue Camel Energy; Lumos Nigeria; GVE Projects Limited; and ENGIE Energy Access.
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