Under the Nigerian Energy Support Programme, NESP, the European Union (EU) has provided an additional €15 million to assist the second phase of Nigeria’s renewable energy and energy efficiency sector. Ms Cecile Tassan-Pelzer, Head of Cooperation at the European Union Delegation to Nigeria and ECOWAS, signed the agreement with its co-founder, the German Corporation for International Cooperation, GIZ, yesterday, explaining that Phase II of the NESP has been extended by one year with this new funding.
“With the extension, the EU has awarded extra money of €15 million to the initial €20 million, committed to promoting the Nigerian renewable energy and energy efficiency industry,” she added, explaining that the programme will now finish on November 30, 2022. She stated that the EU has contributed €35 million to NESP II, while the German Federal Ministry for Economic Cooperation and Development, BMZ, has contributed €13 million.
“NESP is a technical support programme co-financed by the BMZ and the EU since 2013,” she says. It is being implemented by GIZ in partnership with Nigerian Federal Ministry of Power, FMP, to encourage investments in renewable energy and energy efficiency, as well as boost access to electricity for disadvantaged rural communities.” Ms Cecile is the Head of Cooperation at European Union Delegation to Nigeria as well as ECOWAS. “The major activities of the NESP are to advise private and public parties on how to best leverage the potential of renewable energy and energy efficiency,” she explained. NESP assisted the Nigerian government in developing essential regulatory instruments and sustainable energy policies, like the National Renewable Energy and Energy Efficiency Policy, the Mini-Grid Regulations, and the Building Energy Efficiency Code, during the first phase of the project (2013-2017).
“The first phase received a total of €24.5 million in funding, with the EU and the BMZ each providing €15.5 million and €9 million.” NESP moved its emphasis from framework assistance to implementation in the second phase, which began at the end of 2017. To assist private developers, two tender processes have been developed: the Mini-Grid Acceleration Scheme and the Interconnected Mini-Grid Acceleration Scheme. “Mini-grids were set up in unelectrified or even underserved rural areas in partnership with regional Distribution Companies.”
Tassin- Pelzer went on to say that The NESP will, among other things, address the policy gap and incubate private sector engagement inappropriate handling of Renewable Energy equipment at end-of-life cycle (primarily used batteries); “Support distribution firms to enhance fee collection efficiency from populations currently living in peri-urban areas”.