(Paris, 26 September 2022) – UNEP in collaboration with Frankfurt School, today announced the recipient of the CCI Programme Call for Proposals in Nigeria.
The CCI programme will support Powergen Nigeria under type 2 grant funding (Financing Vehicle Costs) to establish a special purpose vehicle (SPV). The financing vehicle will enable project developers to undertake projects which are otherwise not feasible due to expensive debt financing. The refinancing will further help free the tied-up capital in debt, enabling developers to build new projects. The investment will demonstrate financial and economic viability of a unique refinancing mechanism in Nigeria.
In addition, a captive solar powered installation will be implemented at the Eye Foundation Center in Ijebu Imushin, Nigeria. The pilot project will overcome the high cost of electricity faced by the health care sector, creating value for them and reducing the burden on the grid operator. The initiative will establish a track record for captive solar in the healthcare sector, thereby helping to reduce perceived risks.
The project aligns with CCI programme’s objective and will also contribute to the African Green Development Stimulus Programme. It demonstrates the financial and economic viability of captive renewable energy (RE) on commercial sites and introduce replicable business models for scalability.
PowerGen Renewable Energy is a micro-grid developer, implementer, and operator in East and West Africa and has been deploying solar renewable energy projects across Africa for 10 years. PowerGen pioneered the solar mini-grid sector in Africa and is a founding member of the Africa Mini-grid Developers Association (AMDA).
