Productive Use of Equipment: REA targets 24,500 MSMEs for energy efficiency

The Rural Electrification Agency (REA) says it aims to provide 24,500 Micro, Small and Medium Enterprises (MSMEs) with energy-efficient electricity through the Productive Use of Equipment (PUE) and appliances.

The REA management in a statement in Abuja on Sunday said that the initiative, which would ensure that 1,050,000 people have improved access to energy services, would be done under the Nigeria Electrification Project (NEP).

According to the agency, the PUE is part of its efforts to ensure that rural and underserved communities have unhindered access to energy-efficient and electricity productive equipment.

The Managing Director of REA, Mr Salihijo Ahmad, speaking during the grant agreement signing of the use of the equipment and appliance, said that the project is being supported by the African Development Bank (AfDB).

He explained that the PUE would drive the sustainability of off-grid energy infrastructure across communities in the country.

“The PUE will encourage the use of low-cost productive appliances in unserved and underserved communities to improve rural productivity, economic growth and also rural development.

“We are here for the grant agreement signing for the productive use Appliances Component of the Nigeria Electrification Project (NEP) under the African Development Bank funding stream.

“At REA, our mandate is to provide access to electricity to unserved and underserved households and MSMEs in rural communities of Nigeria,” he said.

Ahmad said that the agency from inception has continued to collaborate and support private-sector participation in its dedication and commitment to achieve this mandate.

He said that beyond keeping the lights on, REA was deliberate about the optimisation of productive use of equipment and appliances to catalyse socio-economic development in off-grid communities.

“We understand how important it is for beneficiaries of off-grid technologies to appreciate the windows of possibilities sustainable energy presents. This is why this component is very important.

“Through NEP, which is funded by the World Bank and the African Development Bank, established to increase access to electricity services to unserved and underserved households.

“MSMEs in the rural communities as well as Federal Universities and Teaching Hospitals throughout Nigeria,” Ahmad said.

According to him, the event marks a milestone in the implementation of the ADP funded NEP where Energy Access Companies (EACs) are supported through the energy efficient productive use subsidy programme.

“To encourage the use of low-cost productive use appliances at unserved and underserved communities in order to improve rural productivity, economic growth and also rural employment.

“I would like to use this opportunity to appreciate the energy access companies for their continuous cooperation.

“I urge you all to align fully with the impactful objectives of this programme in order to achieve transformative change.

“We have achieved a lot through the NEP but you will agree with me that there is so much more to be done, and we must continue to push forth to achieve our objectives,” he said.

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