With an undisclosed amount of fundraising for Rensource Energy this year, the Lagos-based distributed energy serviced company received an investment into its first micro-utility project Sabon Gari Energy from NEoT Offgrid Africa based in Paris.
NEoT Offgrid Africa is a NEoT Capital-managed platform that invests in distributed renewable energy projects in Africa, backed by infrastructure development giant, Meridiam, and French electricity utility, Electricite de France (EDF) Group.
The investment firm takes control of the board of Sabon Gari Energy Solutions, partnering existing investors Rensource, Solad Power Holdings, Sissli and System Trade Services.
From the stables of this development, we are informed that the investment will be used in the completion of purchase and installation of solar panels, power electronics, batteries and smart meters for the micro-utility, expanding and energy provision to all merchants trading in the Sabon Gari Market in Kano State.
On the sidelines of the investment deal, the CEO of NEoT Capital, Pierre Devillard said that the Sabon Gari energy project is an excellent example of what the company is on the lookout for in Africa – an environment where they can deploy distributed solar energy solutions at a scale to provide clean, reliable and competitive energy to customers. He also expressed his excitement about the partnership with Rensource, while NEoT anticipates replicating the project in other markets.
Sabon Gari Energy, which was launched in 2018, provides electricity to Micro, Small and Medium Scale Enterprises at the Sabon Gari Market, one of the biggest commercial centers in Nigeria’s second largest city.
Then, Rensource, founded in 2015, which is the developer company of the Sabon Gari Energy project, is reported to be rapidly disrupting the status quo of energy provision and distribution in Nigeria. The company partners with project sponsors to develop, fund and manage decentralized energy projects to address the energy drop in Nigeria – by providing reliable energy to consumers, growing businesses and industrial clients.
The narrative from Rensource reveals that its CEO, Ademola Adesina, said that NEoT’s investment critically validates Rensource’s thesis that a decentralized model is the most sustainable and cost-effective approach to solving Africa’s energy deficit. According to him, the strategy does not only tailor energy provision to end users but also reduces the burden on existing power infrastructure.
This new investment round solidifies Rensource’s place as Nigeria’s market leader in the frontier of decentralized energy provision, also serving as a springboard for rolling out more energy projects distribution to close the energy gap in the country.