Nigeria to cut power generation costs by 60%

The government of Nigeria has plans to cut power generation costs by 60%. This is after the Rural Electrification Agency (REA), entered into a partnership with the Rocky Mountain Institute (RMI) on behalf of the Federal government, to ensure there is success in minimizing the power generation cost which is through mini power grids across the country.

RMI and the REA kicked off a three-day mini-grid charrette that brings together the leading global stakeholders and investors to create a road map that is both actionable and scalable.

The project is said to focus on addressing issues such as system cost, demand stimulation and enabling policy in the nation.

It was also noted that the project, which is a multi-billion-dollar revenue opportunity, would create sustainable energy for hundreds of millions of people and would also combine the power of global supply chains with local market entrepreneurs and communities.

According to the Managing Director of REA, Damilola Ogunbiyi the aim of REA is to rapidly roll out 10,000 mini-grids to support the under -deserved communities in Nigeria and the current regulatory landscape. “Nigeria is the best market to do mini-grids,” he added.

Also speaking, the Chief Executive Officer of the Rocky Mountain Institute, Jules Kortenhorst said that he is positive to have the right people in the room and that they will deliver a viable financial solution that will truly be a game changer for the market and more importantly, for the people and communities who will gain access to power for the first time in the nation.