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By TAYO ELEGBEDE
After several years of struggle with intermittent electricity access, Makoloki, a rural community in Ogun has finally been electrified through Nigeria’s first rural commercial undergrid minigrid.
An initiative of Rocky Mountain Institute (RMI), Ibadan Electricity Distribution Company (IBEDC), and Nayo Tropical Technology (Nayo Tech), with the support from the Nigerian Rural Electrification Agency (REA).
The project being first of its kind in the country is set to power 230 households and over 60 commercial and public enterprises, including the local health center.after three months of operations.
Using a modular design approach, the solar-hybrid minigrid is initially providing 100 kW of generation for an estimated peak load of 88 kW, with an expansion plan in place for anticipated load growth.
According to Managing Director of REA, Ahmad Salihijo, the Mokoloki project demonstrates a financially viable business model that could provide electricity access to millions living in underserved rural communities throughout the country, adding that what makes the project unique, beyond being Nigeria’s first commercial undergrid minigrid in a rural community, is the social and economic transformation that the project ultimately brings to the community.
The Chief Operating Officer of IBEDC, EngineerJohn Ayodele, was optimistic that by the time the project stabilises, Mokoloki will be like a town because they will have more regular power supply than cities.
He was elated that IBEDC was the first Nigerian distribution company to initiate a tripartite contract negotiation with a rural community as required for interconnected minigrids by regulation. “We are happy with the Mini Grid Regulation.”
An estimated 40 million rural residents are underserved by the main grid in Nigeria, and of these, close to 35 percent could be served by over 4,000 commercially viable undergrid minigrid systems nationwide,which translates to a revenue opportunity from these minigrids is approximately N400 billion ($1 billion) per year.
The bustling market and proximity of the community to main trade routes promised major commercial activity, making it an ideal site for an undergrid minigrid.
This undergrid minigrid pilot embodies recommendations from recent reports by RMI and partners at EMRC, Cleantech Hub, and All On.
Under the Grid outlines the business opportunities for undergrid minigrid development in sub-Saharan Africa, while Electrifying the underserved expands on specific business models to guide project implementation.
“Mokoloki’s undergrid minigrid shows how utilities, developers, and communities can collaboratively develop innovative power solutions, and this willingness to test new approaches has unlocked a new option for increasing energy access,” Principal at RMI. James Sherwood added.
RMI hopes the success of this undergrid minigrid, as a replicable solution, will jump-start similar partnerships that serve customers across Nigeria and sub-Saharan Africa. Both IBEDC and Nayo Tech intend to scale up their undergrid portfolios and are actively exploring project and investment opportunities.
ELEGBEDE TAYO OREDOLA , a journalist with five years professional experience is self motivated and a team player. Her experience came from diverse media, like The Guardian Newspaper, Radio Nigeria among others and now with the INSIDEBUSINESS in the bid to explore the new media.
Email: [email protected]
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