The World Bank has sanctioned a $750 million loan for the Nigeria Distributed Access via Renewable Energy Scale-up (DARES) project, marking a significant stride in the nation’s journey toward sustainable electrification. The official statement released on December 16, 2023, reveals that the project is poised to leverage over $1 billion of private capital, accompanied by substantial parallel financing from esteemed development partners.
Financed by the International Development Association (IDA), with additional support from the Global Energy Alliance for People and Planet ($100 million) and the Japan International Corporation Agency ($200 million), the DARES project aims to address the pressing issue of inadequate electricity access in Nigeria. With a focus on inclusivity, the project is a collaborative effort involving partners such as USAID, the German Development Agency (GIZ), SEforAll, and the African Development Bank (AfDB).
The ambitious initiative aspires to provide new or improved access to electricity for approximately 17.5 million Nigerians through the DARES program. In a country where over 85 million people lacked electricity access as of 2021, this project emerges as a beacon of hope, ushering in a transformative era of widespread electrification.
The DARES program empowers the Nigerian government to coordinate and fund off-grid electrification endeavors, offering technical assistance to states for institutional capacity and policy frameworks related to rooftop solar installations. With a strong emphasis on gender and inclusion, the program builds upon the National Electrification Project’s (NEP) initiatives to facilitate electricity access for female-headed households and women-led businesses.
Shubham Chaudhuri, the World Bank Country Director for Nigeria, expressed the significance of the $750 million Nigeria DARES project, noting it as the largest-ever single distributed energy project globally. The project aims to benefit over 17.5 million unserved Nigerians while replacing over 280,000 polluting generator sets.
The Minister of Power, Adebayo Adelabu, conveyed his excitement about contributing to this revolutionary movement, stating, “The DARES programme unlocks the full potential of the off-grid sector, propelling forward clean energy solutions and empowering unserved and underserved communities.”
The DARES program aligns seamlessly with Nigeria’s commitment to closing its electricity access gap and transitioning toward sustainable, efficient, and economically viable electricity supply.