Association Aims to Drive Mini Grid Investments in Nigeria, Others

The Africa Mini-grid Developers Association (AMDA) is currently working on developing clever financing mechanisms and determining best policies in countries such as Nigeria as well as others in sub-Saharan Africa.

AMDA was launched in April this year, with one of the points on its agenda being the development of a Results Based Financing (RBF) fund to help mini grids gain scale, in cooperation with donors, governments and other stakeholders. Jessica Stephens, global coordinator of the association, says that the African Development Bank (AfDB) is currently developing a continent-wide RBF facility that is based on the principles that AMDA outlined in its SMART RBF policy paper.

AMDA has also set up a chapter in Nigeria which will be launched officially in the coming months, Jessica Stephens confirmed. This adds to Kenya and Tanzania, where AMDA started in April with 11 member developers, among which French utility Engie SA. “We are currently in discussions with developers across an additional 8 countries and expect to open the association up for more membership in the next 4-6 weeks. We expect to represent 30 developers across 8-10 countries by the end of 2018,” said Stephens.

In Nigeria, the government wants to reach 30 GW of generating capacity by 2030 with 30%, or 10 GW, coming from renewables. Total of 5.3 GW of these 10 GW are planned to come from mini-grids, which, AMDA says, creates a strong mandate for the sector. To support the government’s targets the World Bank is providing USD 350 million to energy projects in Nigeria, of which USD 150 million should go to mini-grids.

 

Source: EnergyMixReport

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: