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REA holds conference to subsidies mini-grid developers across 7 states

The Project Management Unit (PMU) of the Rural Electrification Agency (REANigeria )’s Electrification Project (NEP) hosted a hybrid Pre-Bid conference on Thursday to solicit bids from mini-grid developers in seven states of Nigeria.

The seminar was for the Minimum Subsidy Tender (MST) program of the Solar Hybrid Micro Grid component, which was funded by the African Development Bank (AfDB) Nigeria Electrification Project, according to a statement by REA (NEP).

The statement read, “The MST is a fundamental component of the NEP, aiming at catalyzing the Nigerian off-grid market while assisting the implementation of solar hybrid mini-grids at scale.

The creation of private sector mini-grids in unserved and underserved areas with significant room for economic growth is supported by the NEP’s Solar Hybrid Mini Grid component.

In order to accelerate the deployment of solar and/or hybrid mini-grid solutions over up to 150 sites divided into seven lots across seven States in Nigeria, the MST is a private sector-driven program that grants subsidies to mini-grid providers.

The pre-bid meeting provided as a technical, knowledge-driven forum for engagement and interaction between the NEP-PMU and potential bidders on the MST program, according to REA, who noted the attendance of over 100 members of the business sector.

“It also offered an opportunity for further clarification on elements of the issued bidding document, allowing an opportunity for comments on the application procedure and program-specific material to enable potential bidders in completing their bids.”

The managing director and CEO of REA, Ahmad Salihijo Ahmad, praised the private sector participants for their interest and zeal while stating that the Minimum Subsidy Tender is an important step in Nigeria’s efforts to provide dependable and sustainable electricity to its citizens, particularly in rural unserved and underserved areas.

He stated, “The REA is dedicated to an open and competitive bidding process that will result in the selection of skilled and capable contractors who will deliver the project on time, within budget, and to the appropriate quality standards.

The MST program is one of the models being implemented, according to Abba Aliyu, Head of the Project Management Unit (HPMU) of the NEP, in part because it offers remote off-grid areas access to power in a transparent and financially sustainable manner.

The off-grid sub-sector would be able to see the viability of employing the MST in supporting developers for energy access to these communities thanks to the NEP’s use of this specific model, Aliyu said.

The Nigerian Federal Government continues to maximize the Nigeria Electrification Project (NEP) to provide off-grid communities across the country with clean, safe, and sustainable energy options. This is done with the assistance of the World Bank and the African Development Bank.

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