Investor Presentaiton
THE BUSINESS CASE
Evaluation of specific sites shows a strong minigrid business case for typical
locations in Nigeria and indicates there are thousands of high potential sites
Unlike many regions in Africa, Nigeria's economy and strong entrepreneurialism mean that
millions of commercially-viable businesses are powered with expensive and/or unreliable
power.
Consequently, there are high densities of power use, large latent demand, and a strong
willingness to switch to more effective alternatives.
Recent efforts by REA have identified hundreds of high potential sites for investment and
demonstrated potential for commercial viability.
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Deep dive analyses in Ogun and Cross River states show numerous sites that are ready
for large-, medium-, and small-scale minigrids, and a significant opportunity to meet
more remedial needs with solar home systems.
For example, a medium-scale system (e.g., 200 kW) can make commercial returns
while covering its cost of capital, creating a return on investment of 3 years—this is a
situation not currently found elsewhere in Sub-Saharan Africa.
Many rural households spend more than $6/month (#2,100/month) on kerosene or
battery powered torches, making a compelling case for solar home systems.
The Nigerian minigrid investment brief is available on the REA website www.rea.gov.ng
RURAL ELECTRIFICATION AGENCY
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