By Faridat Salifu
In an effort to extend clean energy access to 17.5 million Nigerians, the World Bank has given the green light for the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project.
This vital initiative is set to be financed by a substantial $750 million International Development Association (IDA) credit, in addition to leveraging over $1billion of private capital and substantial parallel financing from development partners.
The project will see significant support from various development contributors, including a $100 million commitment from the Global Energy Alliance for People and Planet and a $200 million contribution from the Japan International Cooperation Agency (JICA). Additionally, the United States Agency for International Development (USAID), the German Development Agency (GIZ), SEforAll, and the African Development Bank (AfDB).
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The DARES project’s core objective is to provide over 17.5 million Nigerians with enhanced or new access to electricity through distributed renewable energy solutions. Leveraging innovative financing approaches, the project aims to scale up private sector-led clean electricity provision in Nigeria.
Addressing critical energy access gaps, the DARES initiative will build upon the achievements of the World Bank-financed Nigeria Electrification Project (NEP). NEP’s impact that has been substantial, with the establishment of 125 mini grids and the successful sale of over a million Solar Home Systems, providing electricity access to more than 5.5 million Nigerians.
Furthermore, the NEP has been a catalyst for job creation, with over 5,000 private-sector green jobs generated in Nigeria. The DARES program will enable the Federal Government of Nigeria to coordinate and finance all off-grid electrification efforts, while providing states with technical assistance to develop institutional capacity and policy frameworks for rooftop solar.
The initiative places a strong emphasis on gender inclusion, building on NEP’s gender-related actions to facilitate electricity access for disadvantaged female-headed households and women-led micro, small, and medium enterprises (MSMEs). It also aims to increase the employment of women within the energy sector.
The DARES project, being the largest single distributed energy project financed by the World Bank globally, is a significant demonstration of the institution’s commitment to expanding clean energy-based access in Nigeria.
