The Kano Electricity Distribution Company (KEDCO) is ramping up its investment in electricity supply arrangements by allocating 41 prioritized sites to 31 top Renewable and Off-Grid Companies in Nigeria. This initiative aims to significantly improve energy supply to its customers.
The DisCos Utility 2.0 Project is designed to enhance energy security within the KEDCO network by unlocking renewable energy potential in the area and aligning with the Federal Government’s energy transition plan. The selected sites, spread across Kano, Katsina, and Jigawa states, will host interconnected mini-grids and embedded generation projects to augment grid supply and improve reliability.
To reduce losses, all projects will include network infrastructure upgrades similar to the $2 million Zawaciki Solar Power Plant, developed by KEDCO’s core investors, Future Energies Africa (FEA), as a pilot for the Utility 2.0 initiative. KEDCO is actively engaging with relevant stakeholders, particularly the governments of Kano, Katsina, and Jigawa, to ensure the success of these projects.
The areas covered under this scheme include Tokarawa Industrial Area, Amana and Kwankwasiyya Cities in Kano, Charanchi, Malumfashi, and Barhim Estate in Katsina, as well as Kafin Hausa and Gumel towns in Jigawa State.
Earlier, KEDCO announced that several players in the Renewable Energy and Off-Grid space, such as Axxela, PowerGen, DayStar, Elektron, Bagaja, ProServe, Husk, and Westa, expressed interest in working on phase 1 of the Utility 2.0 concept. After a comprehensive procurement process, pre-qualified developers were grouped into two categories—Tier 1 (1MW sites or greater) and Tier 2 (lower than 1MW)—and sites were allocated accordingly.
Pre-qualified developers are required to register, pay fees and security deposits, complete an initial site assessment, and sign agreements within this month to commence work in Q3 2024. An estimated 60MW is being apportioned to developers for the construction of Solar Power Plants, upgrades to distribution infrastructure, and provision of metering infrastructure. Some proposed sites, including Tokarawa and Challawa, are designed to be Embedded Generation projects under a bilateral contracting agreement between KEDCO and the developers.
Utility 2.0, championed by KEDCO’s core investor Future Energies Africa, aims to make KEDCO the first green utility in Africa by viewing off-grid as an opportunity rather than a threat to its business. KEDCO’s Chief Strategy Officer, Engr. Hussaini Sadiq, emphasized the potential for investment and partnerships, particularly in reviving agro-industrial and commercial hubs.
“KEDCO has great potential for investment and partnerships, especially with our host State Governments in reviving agro-industrial and commercial hubs. The proposed sites under the Utility 2.0 initiative have underserved customers with high unsuppressed load, making it a great opportunity for all stakeholders,” said Sadiq.
Chairman of KEDCO, Engr. Adamu Ibrahim Gumel, expressed enthusiasm for exploring all available solutions to resolve energy deficiencies within their network. “Utility 2.0 will continue to grow and evolve. We are already working on phase 2 as 60MW is just a small portion of the energy gap we need to cover. We hope to continue working with developers who excel in this first phase into the future,” Gumel stated.