Supported by a US$10mn financing facility the new programme to be known as Demand Aggregation for Renewable Technology (DART) will ensure that Nigeria will gain access to much needed affordable and high-quality solar products.
This programme will be piloted in Nigeria before being rolled out to four additional countries in Africa.
“We are excited to launch the DART program in Nigeria as an important part of the Global Energy Alliance for People and Planet, which is accelerating the transition to renewable energy access for all, reducing emissions and creating jobs. Aggregating the procurement of standardised DRE products will ensure low-cost, reliable, and clean energy is empowering people and businesses in Nigeria,” said Eric Wanless, Managing Director of Innovation for the Alliance.
Accelerating Nigeria’s renewable energy sector
With the DART programme, All On, Odyssey and GEAPP hope to accelerate the growth of the renewable energy sector not only in Nigeria but other parts of the continent as well.
DART will combine demand pooling, aggregated purchasing of solar equipment, access to affordable finance, and coordinated logistics processes to develop scalable economies for the solar industry as well as deliver cost savings for end-users.
For those already approved by the Rural Electrification Agency (REA), All On’s managed finance facility will provide companies with debt funding furthering the Nigeria Electrification Program (NEP) and allowing companies to purchase lower-cost solar equipment through DART.
The US$10mn finance facility for the equipment is being funded by matching investments of US$5mn from All On and The Alliance. All On will manage the global platform to ensure the standardisation of equipment, process solar company orders, manage supplier relationships, and link developers with finance partners.
“We are particularly excited about this deal which will inject much-needed capital into the renewable energy sector in Nigeria. This innovative partnership provides a solution to industry challenges such as high finance costs and lack of scale, by ensuring price competitiveness, supply chain optimisation and unlocking local currency financing,” said Wiebe Boer, CEO, All On.
“We are excited about the potential for demand aggregation and centralisation of procurement and logistics services to dramatically drive down the cost of key distributed renewables equipment, and accelerate project deployment,” added Emily McAteer, Odyssey CEO.
2020 Sustainable Energy For All report
Commissioned by All On and conducted by Sustainable Energy for All (SEforAll), the 2020 report on the solar sector in Nigeria identified that aggregated procurement and logistics for solar equipment can significantly lower costs and unlock bottlenecks in the supply chain.
“The DART mechanism is a huge win for Nigeria,” said Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy. “It would go a long way in achieving much-needed economies of scale by bringing together finance providers, aggregated procurement agents, and specialised logistics. This is an example of the kind of innovation and collaboration needed to close the energy access gap, enable a just and inclusive energy transition, and unlock a sustainable future for all.”
DART’s ambitions are to ensure affordable, high-quality solar products reach the most marginalised communities, as well as improve the overall investment of the renewable energy sector, attracting more international and local investors.
“I am particularly impressed by this collaboration between All On, Odyssey, and the Global Energy Alliance and that Nigeria has been selected as the country in which to kick start this initiative. This could be a breakthrough in bridging the finance gap that hinders the growth of small and medium-sized enterprises in the nascent renewable energy sector in Nigeria,” concluded Ahmad Salihijo, MD, the Rural Electrification Agency.
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