Nigeria’s Rural Electrification Agency registers 99 community cooperative societies

The Rural Electrification Agency (REA), a Federal Government agency established to assist in providing electricity to rural areas, is inviting offgrid communities across the country to form cooperatives to strengthen their capacity to own and operate power supply systems in their localities, even as it is planning intervention funding for operators in the sector.

Tagged the Rural Electricity Users Cooperative Society (REUCS), the initiative will see rural communities collaborate with private companies in providing the know-how required to operate such systems effectively and efficiently.

According to the information posted on the agency’s website, it has registered 99 community cooperative societies comprising 22 in the northeast, 32 in the northwest, 9 in the north central, 10 in the southwest, 11 in the southeast, and 15 in the south-south, to participate in this novel initiative.

According to the agency, the project was part of its mandate, and it was using it to mobilize and sensitize rural communities across the country to form cooperatives on electricity generation and usage.

There are over 70 million Nigerians who have no connections whatsoever to the national grid and most of these live in rural areas. For many of these people, alternative energy presents the best option to provide them electricity. They now constitute the biggest market for operators in the renewable energy space, however they contend with low earning power.

“Rural communities are expected to own, operate and maintain their electricity networks in collaboration with private companies providing the know-how required to operate such systems effectively and efficiently,” says the agency.

“To promote productive use of electricity for domestic and commercial purposes. To educate rural communities on effective and efficient use of electricity. To partner with Discos and IPPs in their localities for the provision of electricity at an affordable price,” said REA on the objective of the initiative.

It listed further benefits including “to solicit for cooperation, understanding and support of all stakeholders in the electricity business for the provision of electricity in the rural communities,” as part of the objectives.

The benefit of the scheme according to the REA is that it would encourage community participation in the provision of affordable and sustainable electricity in their localities and create platforms for interactions between the rural communities and all the stakeholders in the electricity business in their areas.

It further explained that its advantages would include: “To ensure prompt payment of electricity bills by member through the cooperative society. To encourage members to offer services willingly for the collective benefit of communities. To educate communities on the use of electricity, operation, maintenance and safety through public awareness campaigns.”

The REA says the initiative is voluntary and open to all electricity users in the community irrespective of gender, religion and political affiliation.

“Application for membership shall be made through the secretary of the society. A member shall be admitted after election by the management committee subject to confirmation at the general meeting of the society. A formal letter of membership shall be issued to each duly assigned by the secretary of the society,” explains the agency.

According to an official of the agency, it is creating a Renewable Energy Fund as part of its mandate to provide support and synergy for stakeholders in the sector.

For operators to benefit, they must show proof that they are introducing new and improved technological infrastructure, have data to support their claims and show studies that indicate that their systems, in the case of hydro, would not be hampered by weather elements.

A key reason why investors demonstrate low appetite for investment in the sector is the concern about collections during unfavourable weather. In the case of hydro power, there is a concern that water levels will go so low during dry season and that for solar power, rainy seasons will result in sub optimal production.

However, operators are introducing newer systems to combat this challenges including a mix of both hydro and solar in some mini grid systems like the Smart T technology introduced by Geogrid Energy in partnership with an Austrian firm recently.

ISAAC ANYAOGU