22 mini-grids for Nigeria’s electrification project
As part of its strategic focus on energy access and clean energy for Nigerians, Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF), the first listed infrastructure debt fund in Nigeria and Africa, announced the successful financial close of the construction of 22 mini-grids under development by Havenhill Synergy Limited (Havenhill) under the Nigeria Electrification Project.
Recent data obtained from the National Bureau of Statistics revealed that access to reliable electricity in Nigeria is relatively low with a rural electrification rate still hovering around 39%. In 2019, the International Monetary Fund (IMF) also estimated that lack of access to reliable electricity costs Nigeria around US $ 29 billion per year.
The inability of the owners / operators of the main electricity grid to connect rural communities and provide them with reliable power supply has further magnified the need for decentralized energy systems and other clean alternatives. Havenhill addresses these challenges by deploying smart solar mini-grids in commercially viable rural communities across the country.
Speaking on the conclusion of the groundbreaking deal, NIDF CEO Anshul Rai noted that it was quite gratifying to note that NIDF is playing an important role in improving access to energy in the world. Nigeria. “NIDF is proud to be the leader in financing clean energy and energy access projects in Nigeria and thus contributes to the achievement of the UN Sustainable Development Goals. In several projects such as Havenhill, our unitholders can see their capital in action and generate not only financial returns but also have a strong and positive impact on the daily life of their fellow citizens “, Rai said
He revealed that the financing of the project will be financed by the round 7 fundraising recently concluded by the fund, which also involved the participation of the African Development Bank (AfDB).
“With the support of the AfDB, the NIDF also implements a comprehensive environmental and social management system for the fund and also helps its borrowers to adopt international best practices in the area of environmental and social sustainability”, he added.
For his part, the Director – Energy Financial Solutions, Policy & Regulation, African Development Bank, Wale Shonibare, described the investment in the project as a welcome development that would help complement its role in relation to the sovereign loan offered to the federal government. of Nigeria which aims to support the implementation of the Nigeria electrification project.
While expressing satisfaction with the outcome, Havenhill CEO Olusegun Odunaiya said it was very exciting to have NIDF as a long-term partner for the mini-grid deployment project. According to Odunaiya, the commercial know-how of the NIDF team has enabled it to set up a very innovative financing structure which fully meets the specificities of the project and, consequently, to ensure its long-term success.
“This milestone represents a renewal of Havenhill’s commitment to powering Nigeria’s most remote communities and providing last mile power connections. These mini-grids will catalyze economic activities in host communities, serve health facilities. health and overall will provide a transformative multiplier effect. I appreciate the efforts and courage of our team to solve one of the most important problems in the world today, “ he added.
Chapel Hill Denham Nigeria Infrastructure Debt Fund is the premier listed infrastructure debt fund in Nigeria and Africa. NIDF is a closed fund, domiciled in Nigeria and denominated in Naira. The Fund is structured to allow investors to access the infrastructure asset class, while providing the benefits of predictable returns from long-term infrastructure debt investments.
Havenhill Synergy Limited (Havenhill) is a clean technology utility company committed to improving energy access in rural and urban areas of Nigeria using clean energy sources. In rural areas, Havenhill is deploying smart solar mini-grids in commercially viable rural off-grid communities. In urban areas, Havenhill helps businesses (like factories, large farms, etc.) lower their energy costs and provide them with more reliable access to energy through its commercial and industrial (C&I) solar offering. Havenhill is currently pioneering a new structure to power healthcare facilities through the electrification of 23 healthcare facilities as part of its Energizing Healthcare initiative in partnership with the Power Africa Off-Grid (PAOP) project. USAID and the United States African Development Foundation (USADF).
Source: Havenhill Synergy Limited
Top image: Wikipedia