The RECoN (Renewable Energy Cooperatives in Nigeria) project, funded by DANIDA under a budget of DKK500,000 was implemented between June 2019 and June 2020 in collaboration with Arla. The project consisted in a feasibility study which aimed at determining the financial, social, environmental and technical viability of a solar mini-grid managed by an energy cooperative. The object of the study was communities of the Kaduna region which main activity is milk farming. The milk farmers being already part of milk cooperatives managed by Arla, the aim of the study was to evaluate the potential interest of those communities in their inclusion into an electricity cooperative. The project had the aim to improve the living conditions of communities living in remote rural areas by proposing sustainable access to electricity. The technical feasibility and financial viability were the object of extended analyses, notably through the elaboration of a cost-benefit analysis.
How we did it
The data collection consisted of desk research coupled with field missions. The study includes:
- A Background section providing information about the region, the country, the economic activities, the population characteristics as well as the environmental issues
- A Selection section informing of the interest of the target population and affordability.
- A Legal section describing Nigerian regulations and policies in place
- A Technical Feasibility section demonstrating the project’s viability in terms of land use, sunlight intensity, and configuration of the target areas, while precising the size of installation as well as its cost as well as consumer tariffs.
- A cost-benefit analysis section showing the financial feasibility of the project.
- A section on Market Assessment and Financing Opportunities presenting different financing opportunities focused on renewable energies and rural electrification in Nigeria.
- A Maintenance and Management Needs section providing inputs for the implementation of a training programme addressed to the managers of the cooperative and with the aim to make the project efficient and sustainable.
The following sectors related to rural electrification were expected to be impacted by the implementation of such a solution:
- Rural electrification would stimulate rural development by opening entrepreneurship and education opportunities (through the possibility to study after nightfall) to the local community and creating jobs, as well as would provide business development possibilities through the possibility for cooling and storage of dairy products.
- Health and safety through the elimination of gender-based violence occurring during firewood collection (executed by women) made possible through electrical cooking stoves.
- Women’s empowerment through project ownership and stimulation of women’s entrepreneurship, as well as time gain, since women would not need to spend time on firewood collection and transportation, allowing them to dedicate their time to other activities.
- Economic growth, through better and more important dairy production, as well as job creation.
Functioning of the energy solution
Extract of the cost-benefit analysis
Extract of the technical feasibility section