Nigeria has launched a $300 million fund to support renewable energy projects and expand access to electricity.
The Distributed Renewable Energy Fund will invest in off-grid and other clean energy projects.
Nigeria’s sovereign wealth fund announced the commercial launch of the initiative.
The move means the fund can now begin deploying capital into projects.
Fund targets renewable energy projects
According to Reuters, the Nigeria Sovereign Investment Authority said the fund will bring together public and private capital to finance clean-energy projects.
It will focus on distributed renewable energy projects.
These projects can provide electricity without relying entirely on large national power grids.
As a result, they could help bring power to communities with limited or unreliable electricity access.
The initiative has a wider goal of supporting electricity access for around 300 million people across Africa by 2030.
World Bank provides initial funding
The World Bank Group is a founding partner in the initiative.
According to the NSIA, the World Bank has provided an initial $25 million through the International Development Association (IDA).
The IDA provides financing and other support to lower-income countries.
The wider $300 million fund is expected to bring together additional public and private investment.
Off-grid power expands across Africa
Off-grid renewable energy has become an important part of efforts to improve electricity access across Africa.
Solar systems and other distributed energy projects can provide power in areas where extending the main electricity grid is difficult or expensive.
Nigeria, Africa’s most populous country, continues to face major electricity challenges.
Therefore, renewable energy projects could play a larger role in expanding access.
The new fund aims to provide financing for projects that can support that transition.
Reuters reported that the initiative has now moved from its structuring stage to capital deployment.
That could allow investment in clean energy projects to begin as the fund seeks to expand its reach across Nigeria and other African markets.