Chapel Hill Denham revives mini-grid energy with $4.6m funding
Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) is boosting the Nigeria Electrification Project by championing the construction of 22 mini-grids by Havenhill Synergy Limited (Havenhill).
With this development, NIDF will provide Havenhill long-term financing of N1.8 billion ($4.6 million) to part-finance the roll out of the mini-grids, that would connect 70,000 people and establishments in the host communities to clean, reliable energy supply.
The project is part of the firm’s strategic focus on energy access and clean energy.
The Chief Executive Officer (CEO), NIDF, Anshul Rai, noted that it was quite fulfilling that NIDF is playing a significant role in improving energy access in Nigeria.
“NIDF prides itself in being the leader in financing of clean energy and energy access projects in Nigeria and thus contributing to the achievement of UN’s sustainable Development Goals. In multiple projects such as Havenhill, our unit holders can see their capital in action and generating not only financial returns but also making a strong, positive impact on the daily lives of their fellow citizens,” Rai said.
He said financing of the project would come from the fund’s Series-7 capital raise, which also involved the African Development Bank (AfDB).
“With the support of AfDB, NIDF is also implementing a comprehensive Environmental & Social Management System for the fund and also supporting its borrowers adopt the international best practices in environmental and social sustainability,” he added.
Director Energy Financial Solutions, Policy & Regulation, AfDB, Wale Shonibare, described the investment as a welcome development that would assist in complementing its role to the sovereign loan offered to the Federal Government, which is targeted at supporting the implementation of the Nigeria Electrification Project.
The Chief Executive Officer, Havenhill, Olusegun Odunaiya who expressed satisfaction with the deal, described the NIDF as a reliable ally.
According to Odunaiya, the NIDF team’s commercial savviness has enabled it to implement a highly innovative financing structure that fully addresses the peculiarities of the project and, therefore, ensure its long-term success.
“This milestone serves as a renewal of Havenhill’s commitment to powering Nigeria’s most remote communities and delivering last-mile electricity connections. These mini-grids will catalyse economic activities in host communities, serve healthcare facilities, and overall deliver a transformative multiplier effect. I appreciate the efforts and grit of our team in solving one of the most important problems in the world today,” he added.
The National Bureau of Statistics (NBS) showed that access to reliable electricity in Nigeria is relatively low with a rural electrification rate still hovering around 39 per cent.
In 2019, the International Monetary Fund (IMF) estimated that a lack of access to reliable electricity costs Nigeria an estimated $29 billion yearly.
The inability of the owners/operators of main electricity grid to connect rural communities and provide them with reliable power supply has further amplified the need for decentralised energy systems and other clean alternatives.
Havenhill is addressing these challenges by deploying smart solar mini-grids to commercially viable rural communities across the country.
