28

May

REA GEF | UNDP

About

28

May

REA GEF | UNDP

About

Derisking Sustainable Off-Grid Lighting Solutions in Nigeria
About

The REA implemented GEF UNDP financed project is designed to develop a private sector-led technology value for making off-grid renewable energy technologies, such as solar lanterns and solar home systems, available to base-of-pyramid rural households who would not be electrified at least until after 2025. The project will directly support the implementation of the Rural Electrification Strategy and Implementation Plan (2016) and the energy access targets in the SE4All Investment Prospectus. The project rationale is underpinned by a novel approach to derisk private sector investments in the market for rural decentralised renewable energy access.

This will be achieved through three outcomes: (i) putting in place appropriate policies, programmes and regulations that address policy, awareness and financial barriers to facilitate investment in sustainable off-grid lighting solutions and corresponding business models; (ii) off-grid lighting providers are operating and have access to working capital and equipment; and (iii) good practices, lessons learned, market assessments, demand-supply surveys, delivery models and business models are documented to support replication and scaling-up of project results.

The lifetime global environmental benefits that will accrue from the adoption of off-grid solar technologies is estimated at ~108 ktCO2e. Consequential emission reductions amounting to ~5,644 ktCO2e are expected between 2020 and 2029 predominantly through the replication of the sustainable technology value chain. The project yields a GEF abatement cost of 0.46 US$/tCO2e. While decentralised renewable energy (RE) can play an important role in rural energy access and in providing basic services, several barriers have been identified such as;

· Barrier #1: Energy market

· Barrier #2: Social acceptance

· Barrier #3: Technology and hardware

· Barrier #4: Digital platform and Telecoms sector

· Barrier #5: Developer and energy service providers

· Barrier #6: Payment

· Barrier #7: Financing


REA

Quality life with equal opportunities in an inclusive society.

GEF

Support and promote improved public health, development, emergency services in collaboration with communities, governments and development agencies.

UNDP

Support and promote improved public health, development, emergency services in collaboration with communities, governments and development agencies.