The Delta State government and the Rural Electrification Agency (REA) signed a Memorandum of Understanding (MoU) on Wednesday for the deployment of off-grid electricity to 471 unserved communities. The agreement is projected to add approximately USD 2.9 billion to the state's Gross Domestic Product (GDP) and create about 31,220 jobs in the renewables segment of the power sector.

The signing took place in Abuja during the REA's 'State-by-State Roundtable Engagement' themed "Unlocking Distributed Energy Investments for Industrial Growth and Inclusive Access in Delta State." Governor Sheriff Oborevwori pledged the state's readiness to fully utilize the impactful programmes offered by the REA.

State's Renewable Energy Potential

During a presentation by the state government, officials highlighted Delta State's significant potential for renewable energy, particularly solar power. The state boasts an annual average solar radiance of 4.53 kilowatts per hour, making it the highest in the South-south region of Nigeria.

The collaboration addresses critical infrastructure gaps, as electricity supply in rural areas remains largely inadequate. Nearly 70 percent of the coastal rural areas of the state lack access to basic services such as lighting and refrigeration. Despite previous government achievements in rural electrification schemes, the state continues to receive regular requests from rural communities to rehabilitate or reinforce existing dilapidated electricity networks or extend electricity access to areas without national grid connections.

Current Infrastructure Challenges

An estimated 65 percent of rural communities in Delta State are unserved and underserved by electricity infrastructure. This significant gap presents substantial opportunities for Renewable Energy Service Companies (Rescos) operating in the region.

Governor Oborevwori emphasized the broader impact of these energy initiatives, stating: "I must emphasise that we view these programmes not only as energy access initiatives, but as powerful tools for inclusive economic growth, enterprise development, and rural transformation. Access to reliable energy is a cornerstone for unlocking productivity, attracting investments, and enhancing the livelihoods of our people, particularly in communities that have long been unserved and underserved."

The governor committed Delta State to leveraging these programmes to accelerate energy solution delivery that aligns with the state's medium-term development plan and the MORE agenda. He expressed confidence that the initiatives would drive meaningful improvements in healthcare delivery, education, local industries, and job creation across the state.

Investment and Infrastructure Plans

REA Managing Director Abba Aliyu provided specific details about the project scope and economic impact. The agency has identified 531 educational facilities that can be powered using mini-grid systems and 471 off-grid communities throughout Delta State. The mini-grid infrastructure is estimated to support 120,000 connections.

Aliyu explained that addressing the electricity access targets for all communities within Delta State would boost the state's GDP by at least USD 2.9 billion, based on factual data analysis. The project is expected to create 31,220 job opportunities within the state while attracting an investment of approximately USD 158 million.

The REA managing director stressed the cost-effectiveness of mini-grids for remote communities, noting that on-grid power supply would not be economically viable for very far-flung areas.

State Energy Transition Strategy

Governor Oborevwori outlined the advantages of renewable energy sources over traditional fossil fuels, describing conventional energy sources as critically volatile, environmentally unstable, non-renewable, and increasingly expensive. Delta State plans to fully integrate with the federal government's energy transition plan, which ensures access to electricity, renewable energy means, and private sector collaboration as enacted in the State's Power Sector Law (2024).

The state has already established an 8.5 MW embedded power plant, which the governor indicated would be replicated in key public institutions throughout the state. According to the state's electricity policy, Delta State aims to expand operations in the electricity sector through various renewable energy initiatives.

"As encapsulated in our electricity policy, Delta State is ready to widen its operations in the electricity sector. And therefore, we aim for the establishment of solar-powered mini-grids, solar farms for rural communities, hybrid solar wind systems, or any other renewable energy hybrid system for housing and coastal estates, and for businesses," Oborevwori added.

REA Track Record and Achievements

Executive Director of the Rural Electrification Fund (REF) Doris Uboh presented the agency's accomplishments to date. The REF has successfully deployed 125 mini-grids, 25,000 solar home systems, and more than 200,000 electricity connections across 183 rural communities nationwide.

Uboh detailed the agency's broader infrastructure achievements, stating: "We have connected 724 mini-grids with a total capacity of 16.6 megawatts. We have deployed 25,580 solar home systems. Our projects are all-encompassing, and we make sure it gets spread across the entire 36 states."

The comprehensive approach demonstrates the REA's commitment to ensuring renewable energy projects reach communities across all Nigerian states, with Delta State representing a significant component of this national rural electrification strategy.

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