Nigeria: Husk Power, AEDC Seal Deal for Interconnected Mini-Grids

8 October 2024
This Day (Lagos)
By Emmanuel Addeh

Abuja — The Abuja Electricity Distribution Plc (AEDC) and Husk Power Systems have signed an agreement to build the first of what is expected to be several interconnected mini-grids.

Solar energy from a Husk mini-grid will be injected into the AEDC service network to enhance service, improve revenue, reduce technical losses and cut carbon emissions, a statement said.

Husk said it had identified a pipeline of more than 50 interconnected mini-grids. across 10 states in Nigeria.

The announcement, the firm said, is a major step in Husk's 250 MW partnership with the Rural Electrification Agency (REA) to scale the renewable energy service company (RESCO) model.

Husk and AEDC, together with Duduguru community in Nasarawa State, signed a partnership agreement to serve peri-urban commercial and residential customers with sustainable, affordable and reliable energy from interconnected mini-grids.

The solar-powered mini-grid in Duduguru, located in Obi Local Government Area (LGA), has a planned average daily energy supply of 656 kW, which will serve about 1,000 customers, roughly 80 per cent households and 20 per cent micro, small and medium-sized enterprises (MSMEs) and small factories.

The signing was attended by AEDC's Acting Managing Director, Chijioke Okwuonkenye, Nigeria Country Director, Olu Aruike from Husk Power Systems and Prince Bulus Iwala, Chief of Duduguru, the stem added.

Interconnected minigrids involve a three-way partnership between mini-grid developers, Distribution Companies (Discos) like AEDC, and the community where the they are located.

In May 2024, Husk and the REA announced a partnership to deploy 250 MW of Decentralised Renewable Energy (DRE) projects in Nigeria, including IMGs. This, Husk said, is part of its strategy to scale the Renewable Energy Service Company (RESCO) model and meet Nigeria's goal of increasing the percentage of renewables in the grid with resilient, distributed energy infrastructure.

Commenting on the announcement, Husk's Co-Founder and Chief Executive, Manoj Sinha, said: "This is a first step in successfully scaling the RESCO model, not only for all of Nigeria, but eventually across Sub-Saharan Africa. It is a clear demonstration of how decentralized renewable energy systems give people and businesses the ability to control their own energy future."

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