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Enugu backs $220m solar power project to expand electricity access

Enugu State Governor Peter Mbah has endorsed a $220 million solar hybrid electricity project designed to improve power supply across the state, with an initial phase targeting 30 communities.

The proposed 100-megawatt Solar Hybrid Interconnected Networks for Enugu (SHINE) programme, valued at approximately ₦310 billion, marks the first major investment breakthrough facilitated by the state’s Climate and Development Investment Platform (CDIP).

The project advanced following a strategic meeting between state officials and Eauxwell Nigeria Limited at the Government House. Under a three-year phased implementation plan, the company will deploy solar hybrid plants across peri-urban clusters linked to the existing electricity distribution network.

The first phase will involve a 10MW solar plant equipped with battery storage to serve the Eha-Amufu and Owo cluster. The installation is expected to supply 30 communities across two local feeders at an estimated cost of ₦31 billion ($22 million).

The engagement was facilitated by CDIP, led by Professor Chukwumerije Okereke, the governor’s Special Adviser on Climate Policy and Sustainable Development. The platform’s role is to connect private investors with government decision-makers, regulatory institutions and communities to advance investment projects.

Participants included Secretary to the State Government Professor Chidiebere Onyia, who chairs the CDIP Steering Committee, alongside state commissioners, project delivery advisers and energy regulators.

Olufemi Akinyelure, Head of the Nigeria Electrification Programme at the Rural Electrification Agency, also joined the meeting virtually to strengthen coordination between state and federal stakeholders.

Akinyelure explained how the project could be integrated into the Distributed Access through Renewable Energy Scale-up (DARES) framework. The arrangement is expected to support Eauxwell’s blended financing model, combining equity, debt and federal grant funding.

Governor Mbah described the initiative as an economic opportunity for the state, stressing that Enugu’s recent assumption of regulatory oversight over its intra-state electricity market should support a competitive and dynamic energy sector.

Consumer affordability featured prominently in the discussions, with the governor examining Eauxwell’s financial projections and proposed tariff structures. He maintained that although investors need to recover reasonable costs, electricity prices must remain affordable for households and local businesses.

Eauxwell assured the state government that final tariffs would be determined through detailed consultations with state electricity regulators.

Mbah also urged the developers to shorten the implementation schedule, pledging government support to accelerate regulatory approvals, land arrangements and commercial agreements.

Once implemented, the SHINE programme is expected to provide more reliable electricity to residents, commercial shops and agricultural processing hubs within the targeted clusters, supporting local economic activity.

The meeting also reviewed progress on the separate Aninri electrification project, which state authorities are working to advance towards construction in the coming weeks.

The coordinated participation of government officials, regulators and federal energy representatives highlighted the strategic importance of CDIP, which Mbah had previously placed directly under his office.

With government support and investor participation aligned, the state is seeking to translate the proposed ₦310 billion investment into improved electricity access and sustainable economic growth.

Source: BusinessDay

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