Abia Signs MoU with ISA, Adopts Mini-grid Regulatory Framework for Renewable Energy Devt

Emmanuel Ugwu-Nwogo in Umuahia 

Abia State Government has signed a memorandum of understanding (MoU) with the International Solar Alliance (ISA) and formally adopted a regulatory framework for the operations of the state mini-grid power generation and distribution system.

Governor Alex Otti signed the regulatory document yesterday at Government House Umuahia, thereby formalising Abia’s renewable energy development initiative to expand electricity access across the state.

Abia is among the states participating that have keyed into the Distributed Access to Renewable Energy Scale-Up (DARES) programme, a $750 million World Bank intervention for development of renewable energy.

The Abia Mini-Grid Regulation framework, which has become operational, is expected to open up private sector-driven investment in electricity generation and distribution in the state. The primary beneficiaries are the unserved and underserved communities across the state.

Otti said that the adoption of the regulatory framework came about after several months of planning, stakeholder engagements, confidence building, ideation, and reviews by policy experts, investors, and energy consumers.

He said that the framework “would not only expand our options in the push for reliable electricity for everyone, but would ultimately serve as a catalyst for the industrialisation of Abia and economic fulfilment for millions of individuals.”

The Abia governor, who sounded upbeat on the state’s march to renewable energy development, stated that the formal adoption of the Abia State Mini-Grid Regulation Framework “marks the dawn of a new era for households and businesses”. 

He noted that the regulatory architecture was anchored on “the new legal framework, which empowers states, private investors, and institutions to invest in the electricity value-chain” in order to extend access to millions of people, especially in underserved and unserved communities. 

The governor explained that the Abia State Mini-Grid Regulatory Framework “provides unambiguous answers to technical and commercial questions from investors and consumers alike, defining the rights and obligations of stakeholders, and offers pathways to speedy resolution of disputes.

He expressed gratitude to the International Solar Alliance (ISA) for its  support and commitment to the successful delivery of the regulatory framework. 

According to him, ISA has proven to be a reliable partner in Abia’s quest for a carbon-neutral future, adding that his administration was in sync with the global demands for higher volumes of investments in the renewable energy space. 

Abia’s Commissioner for Power and Public Utilities, Ikechukwu Monday, said that as a policy document the Abia Mini-Grid Regulation Framework has set a solid foundation for unlocking access to electricity for unserved and underserved communities.

He stated that Abia has become one of the first sub-national governments in the country “to formally establish a clear, legal and institutional framework for mini-grid development,” thereby sending a strong signal to investors, developers and citizens that Abia is open for energy innovations.

The representative of ISA, Ms. Onyi Iyizoba, who presented the mini-grid regulations, said that the event was a significant milestone for Abia and Nigeria’s broader energy access and transition efforts.

She lauded the Abia government for its commitment in creating an enabling framework for the mini-grid operation, which is a testament to the strong dedication of Otti to improving energy access and security.

Iyizoba was optimistic that the mini-grid regulations would unlock new investments, accelerate rural electrification, enhance quality of life, and boost businesses for a large population of Abia residents.

In a presentation, Mr. Joanis Holzigel, highlighted the key aspects of the mini-grid system, noting that Abia has become the first to adopt a mini-grid regulatory framework.

He said that the new framework guarantees timeliness in registration and permitting procedures, tariff settings and review process, gives room for community engagement, and promotes rural industrialisation.