Nigeria’s Rural Electrification Agency (REA) and CarbonAi have signed a Memorandum of Understanding (MOU) to develop rural solar energy projects.
The agreement is to identify and develop small-scale solar energy projects in that country. The projects will be funded through revenues from carbon credits generated through CarbonAi-funded and developed flare gas capture projects in Nigeria.
REA will apply its knowledge of Nigeria’s rural electrification requirements and programs to identify relevant project opportunities and engage with local communities. CarbonAi, in turn, will apply its carbon financing and project development expertise to finance, design and build projects. The company will also quantify, verify and monetize greenhouse gas (GHG) emissions reductions using its personal data management platform.
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“We are delighted to work with REA as our CarbonAi Climate Dividend Program partner in Nigeria. We believe in win-win outcomes and believe that our Climate Dividend Program captures the spirit of the energy transition by using immediate reductions in today’s energy system to build tomorrow’s energy system in Nigeria,” said CarbonAi’s Chief Carbon Officer, Yvan. champagne.
Managing Director/CEO of REA Nigeria, Ahmed Salihico Ahmed, added that REA’s collaboration with CarbonAi is timely and solution-based. “The offline space in Nigeria is at a commendable stage of development. With the opportunities available, key stakeholders must take responsibility for leveraging these opportunities to accelerate sustainable impact at the country level. This is another strategic and innovative way to finance climate resilient infrastructure in Nigeria while reducing energy poverty.”
Nigeria has one of the lowest per capita net electricity generation in the world, with about 50% of the population without access to electricity. The parties believe that this Memorandum of Understanding will be an important step in providing reliable renewable energy to existing local communities. in addition to improving local air quality due to gas flaring, it is underutilized and underserved.