NIGERIA – Proparco, a subsidiary of Agence Française de Développement (AFD) with the support of the European Union (EU), has invested USD 3 million equity in Rensource (Holdings), a key player in the renewable energy sector in Nigeria.

“By developing innovative economic models based on renewable energies, SMEs such as Rensource will be playing a key role in the energy sector over the coming years”, explains Jean GUYONNET-DUPERAT, PROPARCO’s regional director in Nigeria.

“Our investment is fully aligned with PROPARCO’s mandate which is to support green and inclusive growth and is 100% in line with the Paris Agreements.”

Proparco said in a statement that its investment in Rensource is the first investment made by the French investor in partnership with the EU under the Africa Renewable Energy Scale-Up facility (ARE Scale-Up).

Rensource develops, builds and operates hybrid solar minigrids that provide clean, reliable and affordable electricity to Nigerian SMEs.

This is especially important for an economy where households and companies still have a challenge in accessing affordable and reliable electricity.

The company, which was set up in 2016, actively participates in Nigeria’s energy transition.

One of Rensource’s flagship projects is Sabon Gari Market minigrid project in Kano which will provide power to over 11,000 shops.

Rensource is currently developing further minigrid projects in twelve markets  across six Nigerian States and for private SME clusters.

The company, which was set up in 2016, actively participates in Nigeria’s energy transition.

Proparco noted that by investing in Rensource, it was supporting the development of innovative solar energy solutions and was also  facilitating energy access in the context of a significant and growing energy gap in Nigeria.

Rensource aims to develop, build and operate over 100 minigrids with a combined power capacity exceeding 35MW over the next five years.

This minigrids are projected to provide clean and affordable electricity to 250,000 SMEs, saving 30,000 metric tonnes of CO2 emissions per year and as a result lead to significant job creation.