Nigeria has commercially launched a USD 300 million Distributed Renewable Energy (DRE) Fund to mobilise investment in off-grid and distributed renewable energy projects and widen electricity access, according to New Telegraph.
The launch moves the vehicle from structuring into active capital deployment, creating a dedicated financing platform for mini-grids, standalone solar systems and other distributed renewable energy projects across the country, New Telegraph reported.
Ripples Nigeria reported that the fund was launched by the Federal Government and its development partners to accelerate off-grid electricity and distributed renewable energy projects nationwide. It is aimed at communities and businesses that remain inadequately served by the national grid.
The Nigeria Sovereign Investment Authority (NSIA) and Africa50, a specialist Africa infrastructure investor, co-manage the fund, according to Engineering News. Ripples Nigeria reported that the joint management structure is designed to attract both public and private capital into mini-grids, standalone solar systems and other decentralised power projects.
The World Bank has committed an initial USD 25 million to the platform through the International Development Association (IDA), as a founding partner, according to New Telegraph and Ripples Nigeria.