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Chapel Hill, REA signs MoU on solar power adoption

By Kingsley Jeremiah, Abuja
30 May 2023   |   3:03 am
Chapel Hill Denham, independent investment banking and securities trading firm, has joined forces with the Rural Electrification Agency (REA) to drive the adoption of solar power in Nigeria.

Solar power mini grid Photo: NAN

Chapel Hill Denham, independent investment banking and securities trading firm, has joined forces with the Rural Electrification Agency (REA) to drive the adoption of solar power in Nigeria.

The collaboration was solidified with the signing of a memorandum of understanding (MoU) between Chapel Hill Denham and REA at an investor matchmaking event held in partnership with the Power Africa Nigeria Power Sector Programme of the United states Agency for International Development (PA-NPSP, USAID). Its objective is to facilitate financing for off-grid electrification projects.

The investor matchmaking event provided a platform for potential investors to showcase their financial offerings to developers, outlining selection criteria and key terms.

It served as an essential networking and matchmaking forum, bringing together key investors and high-performing developers pre-evaluated by the Solar Power Naija (SPN) team in the power sector.

CEO of Chapel Hill Denham, Bolaji Balogun, expressed his delight about the collaboration, saying it perfectly aligns with the company’s commitment to driving transformative solutions that positively impact the lives of Nigerians. He emphasised the company’s dedication to delivering sustainable solar power projects to contribute to the nation’s economic growth and social well-being.

“Together, we will work tirelessly to deliver sustainable solar power projects that contribute to the economic growth and social well-being of the nation,” Balogun said.

The collaboration marked a landmark partnership in Nigeria’s quest to expand solar power access and accelerate economic development. Through the joint efforts, the partners aim to make significant strides towards achieving Nigeria’s energy access goals and driving positive change in the country’s power sector.

Chapel Hill Denham has made notable contributions to the climate finance space through its investment activities and advisory services, aimed at fostering a low-carbon economy. The firm has played a pivotal role in financing and supporting projects in the renewable energy sector, particularly through various financing solutions for off-grid developers.

As a result, it has been recognized as one of the top 20 financiers of mini-grid developers worldwide by the Energy Sector Management Assistance Programme (ESMAP) of the World Bank.

Additionally, Chapel Hill Denham has actively funded infrastructure projects that promote climate resilience and sustainable development, leading approximately 80 percent of green bond issuances in Nigeria. By integrating sustainability principles and Environmental, Social, and Governance (ESG) considerations into its investment decisions, the firm actively drives positive environmental impact and advances the climate agenda.

The Solar Power Naija Programme, a critical component of Nigeria’s Economic Sustainability Plan (ESP), has a target of providing five million new solar connections in off-grid communities. The initiative is expected to generate an annual increase of N7 billion in tax revenues and contribute $10 million towards import substitution.

The programme’s objectives include expanding energy access to 25 million individuals through the provision of Solar Home Systems (SHS) or mini-grid connections, boosting local content in the off-grid solar value chain, and stimulating the growth of the local manufacturing and assembly industry. Furthermore, it aims to incentivize the creation of 250,000 new jobs in the energy sector.