Nigeria launches $500 Million Fund for Solar Energy

Nigeria launched a $500-million fund on Thursday to attract private investment in order to increase solar energy and supplement the country's aging power grid.

At the Sustainable Energy for All Global Forum held in Barbados, it was announced that DRE Nigeria Fund - which stands for Distributed Renewable Energy or electricity generated from renewable sources - would be launched.

The goal is to attract local currency funding by Nigerian pension funds and insurance companies.

Sustainable Energy for All (affiliated with the UN), International Solar Alliance (a group that promotes solar energy) and Africa50 are the partners. Africa50 is a pan-African investor in infrastructure.

The fund said in a press release that it would also help investors overcome problems, such as currency fluctuations. However, it did not give any details on how it would do this.

Africa's largest country, which is also the most populous, is aiming to increase its share of renewable electricity to 50% in 2030 (from 22% currently) to supplement the grid supply that only reaches around half the population.

The DRE Nigeria fund announced in a press release that it would support mini-grids and solar home systems as well as commercial and industrial energy solutions and technologies for energy storage. (Reporting and editing by Barbara Lewis; Isaac Anyaogu)

(source: Reuters)