Nigeria has taken a significant step towards expanding its renewable energy capacity by securing a $200 million (Ksh.25.8 billion) deal with WeLight, a pan-African Distributed Renewable Energy (DRE) company. The agreement aims to deploy hundreds of renewable mini grids, providing reliable electricity to millions of people in rural communities and peri-urban areas.
As Africa’s most populous country, Nigeria has been striving to increase the share of renewable energy in its electricity mix from the current 22% to 50%. This partnership aligns with the country’s ambitious renewable energy goals, leveraging private sector investments to enhance energy access and drive economic development.
The initiative, backed by the World Bank and the African Development Bank, will oversee the development and operation of 400 mini grids and 50 MetroGrids across predominantly rural regions. This expansion is expected to improve electricity access for an estimated 1.5 to 2 million people, catalyzing economic growth by enabling businesses and households to benefit from a stable and sustainable power supply.
WeLight, which is backed by major international investors including Axian Group, Sagemcom, and Norfund, formalized the partnership through a Memorandum of Understanding (MoU) signed on Monday with Nigeria’s Rural Electrification Agency (REA). The REA is a government entity dedicated to increasing electricity access for millions of Nigerians currently living without power.
Romain de Villeneuve, Chief Executive Officer of WeLight, expressed optimism about the collaboration, stating, “This MOU not only represents a leap toward providing clean electricity to millions in Nigeria but also supports WeLight’s ambition to become a truly pan-African company.”
The deployment of mini grids will play a crucial role in bridging Nigeria’s energy gap, particularly in remote regions where traditional grid extension is economically unfeasible. These renewable energy systems will contribute to environmental sustainability by reducing dependence on fossil fuels, in line with global climate action goals.
This deal marks a milestone in Nigeria’s renewable energy journey, fostering both energy inclusivity and economic resilience. With strong backing from international financial institutions and private investors, the country is well-positioned to accelerate its transition towards a cleaner, more reliable energy future.
