Mr. Rasheed Olaoluwa, managing director/ chief executive officer, Bank of Industry (BoI) has said that plans have reached advanced stage for it to secure license for solar power generation in rural communities across the country.
It is aimed at complementing the efforts of government in its bid to explore other sources of power generation within the energy mix.
Indeed, he said the bank has already opened talks with the Rural Electrification Agency (REA) through the Ministry of Power to secure approval for the project.
He pointed out that power generation below 5 megawatts needs the approval of REA.
Olaoluwa said the project is to be executed in conjunction with United Nations Industrial Development Organization (UNIDO).
The Bol boss informed that the Ministry of Power has already taken the lead in this regard through the commissioning of three projects in the Federal Capital territory under the Light Up Nigeria initiative.
He said the move by Bol to provide light to rural communities was aimed at helping small businesses grow.
He noted that the initiative would further encourage private sector operators to look in this direction.
‘‘As a development bank, our role is very catalytic .We noticed that there have been a lot of talks about diversifying the economy of this country. The Minister of Power has taken the lead in this respect in terms of actually commissioning three projects in the FCT under the light up Nigeria initiatives.
But that is a government project. What we are doing as a development bank is to take the lead in encouraging the private sector to look at a particular area of the energy mix they can key into it. And our renewable energy programme in partnership with UNIDO is to encourage off grid rural energy projects,’’ he said He explained that the pilot scheme would kick off with six communities across the country, adding that off grid rural electricity programme is a commercial concept that is viable.
He said the concept was not for huge power generation capacity but the ability to demonstrate to financial institutions that off grid solar energy is a viable venture
‘‘If you go to the United States, there is a company there that is called Solar City; it is a multibillion dollar business and what do they do? They install solar panels for homes and that is what we are trying to take a lead from as a development bank in Nigeria. It is our believe that other banks would follow suit,’’ he said.