Business News of Monday, 26 June 2023

Source: thenationonlineng.net

REA boosts mini-grid for better electricity supply

Electricity power grid Electricity power grid

The Rural Electrification Agency (REA) has intensified efforts at strengthening mini-grids to reduce the consumption of the Premium Motor Spirit (PMS) petrol for unserved and underserved communities to have electricity supply as alternative and palliative for the removal of petrol subsidy.

The agency’s Managing Director, Ahmed Salihijo Ahmed, an engineer, made this known at the weekend during the inspection of the 200KWp Solar Hybrid Mini- Grid in Danchitagi community in Lavun Local Government Area of Niger State.

The project supplies electricity to the community of about 2,670 people that are predominantly farmers.

Of the 534 consumers of the energy, 13 put the supply to productive use like tailoring, welding, refrigeration, milling of rice and other farm produce.

The project, which was developed by PowerGen Renewable Energy Nigeria Limited, is deployed under the Performance-Based Grant (PBG) program of the Solar Hybrid Mini-Grid component of the Nigeria Electrification Project (NEP).

But, according to the REA boss, the feedback from the beneficiaries of the project, was that they had been depending heavily on petrol powered plants.

Since the community is also connected to power from the grid, they have access to integrated supply and they can alternate to Abuja Electricity Distribution Company (AEDC), but the latter hardly comes.

But with the mini-grid, said Ahmed, they could reduce their purchase of petrol, thus having the all-time supply from solar as their palliative for subsidy removal.

His words: “From the feedback we are getting, most people actually rely on petrol generators and with this mini- grid, it means that they are going to buy less of that petrol.

“That means with the subsidy removal, this could serve as a palliative that will help them cushion the effects of the removal of subsidy.”

He added that being an agrarian community, the consumers are happy with the abundant power supply.

He noted that the intervention is now having economic impacts on the community.

He said with the opportunity for alternative energy, the beneficiaries can now save the money they used to spend on petrol and Diesel as their palliative for the stoppage of PMS subsidy.

Asked to comment on the economic impact assessment of the project, he said, “ What has become clear is that they are going to be saving a lot of money from buying diesel or petrol and this also going to help us when it comes to subsidizing or when it comes to serving as palliative for the removal of the subsidy.

So this is a clear example of what this impact is on this kind of community.”

He said from the feedbacks from the project assessment, the agency realized that the beneficiaries are using high consumption equipment.

He revealed that another component of its project with the African Development Bank will be used to provide grants for the productive use of the appliances.

Ahmed said since the major productive use of the solar project is for milling of farm produce, mostly rice, the waste – rice husk – will be recycled to generate more power.

He pledged to request project developers to deploy the plants (technologies) that can generate energy from the husk for integration into the mini-grid.

Ahmed said, “Firstly, these equipment being used some of them have high consumption.

“We are working with another component of project with the African Development Bank to provide grants for productive use of these appliances.

“So we have taken note of that. And secondly you will be surprised because this is also a rice mill, it is one of the major use we have seen in this community. And that waste coming from the rice can also be used to generate power.

“ So we are going to also talk to the developers to see if they can invest in the sort of plants that can help them use the husk from rice to actually turn it to energy so that they can integrate it into this mini grid.”

He also revealed that the project expansion will depend largely on the demand for the metered solar power.

Speaking with The Nation, Hon. Jibrin Giwa, one of the consumers, said people from other communities are now relocating to Danchitagi because of the constant power supply.

According to him, the supply has addressed their energy needs for business.

He said, “I use this solar for powering my rice mill. I no longer waste my money on diesel or petrol. All I need is to recharge N1,000 in my meter and once I exhaust it, I recharge it.”

Another beneficiary, a tailor called Auwal Mohammed said he was happy that with the constant power supply from solar, he would not disappoint his Salah customers.

“This one is better for me because I have 24/7 light to sew clothes for my customers. I will not disappoint them this Salah.”