Nigeria has launched, in partnership with the UN, a $500 million fund aimed at financing the deployment of decentralized renewable energy solutions such as mini-grids and home solar systems, according to information released by Bloomberg.

This fund is supported by the Nigerian Sovereign Investment Authority (NSIA), the United Nations' Sustainable Energy for All (SEforALL) initiative, and Africa50, the infrastructure investment platform created by the African Development Bank (AfDB).

Framed within the Mission 300 program, led by the World Bank and the AfDB, which aims to electrify 300 million people in Africa by 2030, the fund seeks to mobilize capital, especially from Nigerian pension funds, to provide local currency financing to local developers.

With approximately 90 million people without electricity, primarily in rural areas, Nigeria represents one of the largest markets for off-grid electrification in Africa.

Decentralized energy, especially mini-grids and home solar systems, is a viable and already competitive solution compared to diesel generators.

This fund marks an important evolution in the way electrification is financed in Africa. If the model is successful, it could be replicated in other parts of Africa and serve as a reference for other initiatives aiming to finance the energy transition and strengthen access to clean and affordable energy across the continent.

Article source: lobservateur