Nigerian REA, CarbonAi to set up rural solar energy projects

Rural Electrification Agency (REA) of Nigeria and CarbonAi have signed a Memorandum of Understanding (MOU) to develop rural solar energy projects.

The deal is to identify and develop small-scale solar energy projects in that country. The projects will be funded by proceeds from carbon credits that are generated through CarbonAi-financed and developed flare gas capture projects in Nigeria.

REA will apply its knowledge of Nigeria’s rural electrification requirements and programmes to identify appropriate project opportunities and liaise with local communities. CarbonAi, in turn, will apply its carbon finance and project development expertise to finance, design and construct the projects. The company will also quantify, verify and monetise greenhouse gas (GHG) emissions reductions using its proprietary data management platform.

READ:First floating solar station in Tunisia goes into operation

“We are excited to work with the REA as our CarbonAi Climate Dividend Programme partner in Nigeria. We are strong believers in win-win outcomes, and we believe our Climate Dividend Programme captures the spirit of the energy transition by leveraging immediate reductions in today’s energy system to build the energy system of tomorrow in Nigeria,” stated CarbonAi’s Chief Carbon Officer, Yvan Champagne.

Managing Director/CEO of the Nigeria’s REA, Ahmad Salihijo Ahmad, added that REA’s collaboration with CarbonAi is timely and solution-driven. “The off-grid space in Nigeria is undergoing commendable growth. With the resultant opportunities, key stakeholders must take the responsibility to leverage these opportunities to accelerate sustainable impact, nationwide. This is another strategic and innovative way to finance climate-resilient infrastructure in Nigeria while alleviating energy poverty.”

Nigeria has one of the lowest net electricity generation per capita rates in the world with an estimated 50% of the population deprived of access to electricity.The parties believe this MoU will be an important step in providing reliable renewable energy to local communities that are currently unserved and underserved, while improving local air quality associated with gas flaring.