Local currency funding lowers off-grid solar costs in Nigeria

May 19, 2025

Solar energy company Sun King has secured a naira-denominated loan equivalent to $80 million to support the expansion of off-grid solar in Nigeria. The IFC and Stanbic IBTC Bank jointly arranged the financing, with the IFC contributing $50 million. This financing will help low-income earners and small businesses gain access through a pay-as-you-go system.

  • Nigeria has the largest population in Africa without access to electricity. Demand for affordable solar solutions is rapidly increasing, but most people cannot afford the upfront cost of a solar system.

  • Even when financing is available, it can be expensive due to calculations that often factor in currency depreciation. Sun King's local currency financing will help reduce exposure to foreign exchange risks.

  • Our take: Local currency financing is a show of confidence in the potential of Nigeria’s solar market… Read more (2 min)

The government of Ghana will soon launch a competitive bidding process for solar power projects. The initiative aims to attract private investors to address the country's worsening power issues with renewables and accelerate the transition to a greener energy mix. More details about the bidding process are expected in the coming weeks.

  • This initiative sits alongside a government push for the privatisation of the national utility company, the Electricity Company of Ghana (ECG), aiming to improve efficiency and energy service delivery.

  • Examples from other African countries such as South Africa, Zambia, Senegal, and Togo, that have implemented similar procurement methods, suggest positive outcomes in terms of cost reduction and capacity addition.

  • Our take: More African nations need to introduce competitive bidding to accelerate the transition… Read more (2 min)

Data analysis by Renewables Rising shows that Norway-based renewable energy firm Scatec hired 23 senior professionals in the past month. This builds on March’s onboarding, which registered 12 new senior hires. This hiring momentum is in tandem with the company’s growing stake in African renewables in the same period.

  • Scatec entered the African market in South Africa in 2010, capitalising on the country's Renewable Energy Independent Power Producer Procurement Programme. Since then, it has expanded into Mali, Mozambique, Egypt, Chad, Tunisia, and Botswana.

  • In 2024, Scatec's self-funded growth strategy optimised its portfolio and capital. Strong Q1 2025 financials and the company’s growth pipeline suggest that it is hiring more senior people to match ambitious future plans. 

  • Our take: Scatec’s fast-mover advantage and diversified portfolio is the key to its African success… Read more (2 min)

Zambia engineering students after conducting an audit on the Ministry of Energy's progress in reducing electricity use and adopting renewables

Events

🗓️ Attend the Enlit Africa 2025 event (May 20)

🗓️ Sign Up for the ESG & Climate Africa Summit (May 21)

🗓️ Participate in a webinar on Exploring Energy Procurement Options (Jun 11)

Jobs

🦺 Apply for Husk Power Systems Service Engineer role (Nigeria)

🛠️ Become Schneider Electric’s Advanced Technical Support Expert (Egypt)

🕵️ Lead Rubicon’s quality assurance operations (South Africa)

Various 

🔋 Metacon picks Morocco for major wind-to-hydrogen pilot

☀️ Namibia initiates the construction of a 5 MW solar PV project

🔌 Kenya's plans for nuclear power by 2032 are moving forward

💰 Ghana targets year-end reduction of $2.5 billion power producer debt

Seen on LinkedIn 

Eng. Maxwell Ngala, Senior Energy Specialist / Advisor at RTI International, says, “While the bulk of new connections are attributable to Solar Home Systems & grid extension at the moment, mini grids have the best of both.”