Nigeria has forged a significant partnership with Czech energy firm RSE Energy, signing a Memorandum of Understanding (MoU) aimed at delivering substantially cheaper and more reliable electricity to the nation’s special economic zones and industrial clusters. This strategic collaboration seeks to dramatically reduce power costs by up to 70 percent for businesses, addressing a critical barrier to industrial growth and economic diversification across the country. The agreement underscores the federal government’s commitment to fostering a conducive environment for manufacturing and agro-processing through sustainable energy solutions.
The landmark signing ceremony took place recently in Abuja at the office of Mr. John Enoh, the Minister of State for Industry, Trade and Investment. Minister Enoh expressed satisfaction with the progress, noting that the initiative’s journey began even before his tenure, culminating in the formal agreement before the year’s end. This timing is designed to facilitate immediate implementation and operational commencement in the upcoming year, signalling a proactive approach to national development.
Minister Enoh articulated the government’s high expectations for the partnership, emphasising the need for tangible results and a clear demonstration of the promised benefits. He highlighted the mutual commitments enshrined in the MoU, with both RSE Energy and the Ministry of Industry, Trade and Investment holding responsibilities to ensure the project’s success. The minister stressed that the initiative’s primary target aligns perfectly with Nigeria’s industrialisation agenda, focusing on critical economic hubs.
RSE Energy proposes an innovative off-grid, embedded power solution leveraging biomass and gas, designed to provide a stable energy pathway. Olena Nedryhailo, CEO of RSE Energy Nigeria, detailed the potential for significant cost reductions, citing an example where the price per kilowatt-hour for Band A zones, currently around N200, could drop to N45-N60 through their decentralised power plants. This substantial decrease is contingent on gas prices, offering a transformative advantage to industrial consumers.
The Idu Industrial Cluster in Abuja has been identified as a pivotal test case for this new energy model. Minister Enoh expressed optimism that RSE Energy would be among the solution providers for Idu, with the aim of establishing a template for reliable and affordable power that can be replicated nationwide. Success at Idu would provide a blueprint for extending these benefits to other industrial parks and economic zones, amplifying the project’s national impact.
Ms. Nedryhailo underscored RSE Energy’s commitment to the partnership, framing it as a long-term venture built on responsibility and foresight. She drew upon the company’s extensive experience over the past three challenging years in Ukraine, where it successfully deployed over 1,020 cogeneration units. These decentralised and resilient generation systems proved crucial in maintaining industrial continuity amidst severe stress on the national energy grid, showcasing RSE’s robust engineering discipline.
The experience in Ukraine provided invaluable insights into the long-term behaviour of energy systems, including their integration into existing networks, scalability, and sustained reliability. This practical knowledge positions RSE Energy not merely as a supplier but as a dedicated partner in constructing a stable, decentralised energy infrastructure for Nigeria. The firm’s readiness to contribute experience, engineering discipline, and unwavering commitment was strongly emphasised.
Ambassador Nura Abba, the Permanent Secretary of the Ministry of Industry, Trade and Investment, affirmed the strategic soundness of the partnership. He revealed that the decision to collaborate with RSE Energy followed a rigorous review by the ministry’s Industrial Development Department and a fact-finding mission to the Czech Republic. These comprehensive assessments concluded that the agreement serves the overall best interests of the Federal Government of Nigeria, paving the way for its endorsement.
Nigeria, Africa’s largest economy, has long grappled with inadequate and costly power supply, which severely hampers industrial productivity and competitiveness. This collaboration represents a concerted effort to mitigate these challenges, providing a direct boost to manufacturing, agriculture, and other key sectors within designated economic zones. By ensuring a stable and affordable energy source, the government aims to attract further investment and stimulate job creation.
The MoU marks a significant step towards unlocking the full potential of Nigeria’s industrial landscape. The successful implementation of these decentralised power solutions could transform economic zones into vibrant hubs of activity, reducing operational costs for businesses and enhancing their global competitiveness. Both parties are now poised to transition from agreement to action, with a shared vision of a more electrified and industrialised Nigeria.
