Nigeria has commercially launched a $300 million Distributed Renewable Energy (DRE) Fund to finance mini-grids, solar home systems, energy storage and other decentralised power projects for communities and businesses with unreliable or limited access to the national grid.

The Nigeria Sovereign Investment Authority (NSIA) and Africa50 will co-manage the fund, with Sustainable Energy for All (SEforALL) providing energy-access leadership and the World Bank serving as a founding partner.

The partners announced the commercial launch on the sidelines of the United Nations General Assembly in New York on September 21, 2026.

NSIA Managing Director Aminu Umar-Sadiq said the initiative demonstrates that Nigeria’s distributed renewable energy market is “investable, credible and ready to operate at scale.”

Africa50 Group Chief Executive Alain Ebobissé said the partnership aims to convert electricity demand into investment opportunities and create a model that can be replicated across Africa.

The World Bank is providing an initial $25 million through the International Development Association, representing about 8.3 per cent of the fund’s $300 million target.

The International Solar Alliance has described the vehicle as the first country-level demonstration linked to a continental financing platform under Mission 300, a World Bank and African Development Bank initiative targeting electricity connections for 300 million people across Africa by 2030.

Funding is expected to support local developers working on solar home systems, isolated mini-grids, battery storage and commercial and industrial installations.

Nigeria’s distributed energy market has already seen significant activity.

Under the earlier Nigeria Electrification Project, developers built 180 solar hybrid mini-grids across 23 states, connecting more than 146,000 households and deploying 19.2 MW of renewable capacity, according to TechCabal reporting.

The need for additional investment remains substantial, with more than 80 million Nigerians reportedly lacking reliable electricity access.

The new fund is expected to strengthen the financing pipeline for renewable projects, although developers will still require bankable project designs, load assessments, storage systems and reliable after-sales services.

Kowatek Solar said the fund’s focus on deployment signals that financing is increasingly aligning with technically proven solar and battery-storage projects already being developed in Nigeria. -OGN/TradeArabia News Service