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REA highlights cost-saving benefits of renewable energy

The Managing Director/CEO of the Rural Electrification Agency (REA), Engr. Ahmad Salihijo Ahmad, on Friday, highlighted the cost-saving benefits of renewable energy, as the agency continued its inspection of a solar hybrid mini-grid project in Danchitagi Community, Lavun LGA, Niger State.

The agency had last week paid similar visits to projects in Lagos, Osun, and Ogun States. Ahmad who was particularly about the recent removal of fuel subsidies, said beneficiaries can now rely on clean energy to power their homes and businesses instead of costlier alternatives like petrol and diesel generators.

Ahmad assured that the Agency would continue its accelerated deployment of impactful energy access projects while maintaining standardized implementation. He emphasized the importance of placing people at the center of energy access programs and initiatives. 

REA’s mini-grids continue to catalyze productive use of energy, driving socioeconomic development” , he stated 

ENERGY TIMES reports that the purpose of the visit was to evaluate the project’s impact on beneficiary communities and ensure compliance with approved technical standards set by the Agency. 

“These inspections exemplify the hands-on approach of the MD/CEO in implementing projects and demonstrate the Agency’s commitment to providing energy access to rural areas nationwide”, the company stated

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The Danchitagi Village project developed by Power Gen and located in Lavun LGA, is a fully operational 200kWp solar hybrid mini-grid with 450kWh Li-ion batteries, benefiting over 700 users and 13 productive users in the predominantly farming community. It was deployed under the Performance-Based Grant (PBG) program of the Solar Hybrid Mini Grid component of the Nigeria Electrification Project, with funding from the World Bank.

During the visit, the REA team assessed the mini-grid’s impact on micro, small, and medium-sized enterprises (MSMEs) in Danchitagi village. 

They observed how the project efficiently powers the community’s rice mill, hair salons, cold drink stores, welding businesses, as well as residential homes. 

Through the NEP-PBG initiative, over 80 similar mini-grids have been deployed across the country, ensuring equitable access to electricity.

The community rice mill in Danchitagi serves as a prime example of productive use of energy (PUE) and is part of the pilot equipment tested under the REA’s Energizing Agriculture Programme (EAP).

The program, implemented by the agency with support from the Rocky Mountain Institute (RMI) and the Global Energy Alliance for People and Planet (GEAPP), aims to boost Nigeria’s GDP, accelerate renewable energy adoption, and unlock agricultural productivity. 

The successful impact of the EAP pilot in Danchitagi village showcases the potential for replication in other locations nationwide.

Speaking during the visit, Mallam Mahmoud, a tailor in Danchitagi, expressed his gratitude to the REA for the mini-grid technology’s positive impact on his business. 

He stated, “I am personally happy with the electricity as it has improved my business, especially during this Eid season. I now work overnight using this electricity to make clothes for customers, and in return, I make more money.”

Alhaji Muhammed Danchitagi, a community member and a local cold room operator located in the community market equally commended the project explaining that “it has greatly improved patronage to my business as the mini-grid enables me to keep my refrigerators fully functional for my customers”

Numerous other business owners in the community have similarly benefited from the completed and activated project. The REA remains dedicated to empowering rural areas by providing clean, safe, reliable, and sustainable electricity, one community at a time.

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