Nigeria Partners with Czech Firm to Deliver Affordable Power

The Nigerian federal government has entered into a Memorandum of Understanding (MoU) with Czech Republic energy company RSE Energy to provide electricity at reduced costs for special economic zones. The MoU was signed on March 12, 2024, in Abuja, during an event attended by Minister of State for Industry, Trade and Investment, John Enoh.

During the signing ceremony, Enoh expressed optimism about the partnership, reflecting on the journey that led to the agreement. He noted, “I am happy that finally we are aware an MoU can be signed between our government and RSE.” He emphasized that the collaboration aims to implement off-grid and embedded power solutions that utilize biomass and gas, which are expected to enhance the reliability of energy in Nigeria.

RSE Energy CEO Olena Nedryhailo highlighted the potential for significant cost savings, stating that their decentralized power plants could reduce electricity costs by up to 70 percent. Currently, the price for one kilowatt in designated areas is around ₦200. With RSE’s technology, this cost could drop to between ₦45 and ₦60, depending on gas prices.

Nedryhailo elaborated on the company’s extensive experience in energy solutions, particularly from the challenges faced in Ukraine. “Over the past three very challenging years, we have been directly involved in the development and deployment of cogeneration solutions,” she said. The deployment of more than 1,020 cogeneration units in Ukraine has allowed for a resilient energy generation network that supports industrial operations even under stress.

The partnership is designed not just to supply power but to foster a long-term collaborative approach to building a stable energy infrastructure in Nigeria. Nedryhailo affirmed, “We see ourselves not simply as a supplier, but as a long-term partner in building a stable, decentralised energy system for Nigeria.”

The Permanent Secretary of the Ministry of Industry, Trade and Investment, Amb. Nura Abba, also commented on the agreement, noting that it aligns with the federal government’s interests. He stated, “Following the successful review by the Industrial Development Department and our mission to the Czech Republic, we have concluded that it is in the overall interest of the Federal Government of Nigeria to go into this partnership with RSE group.”

The agreement aims to address the energy needs of industrial clusters and special economic zones, with the Idu Industrial Cluster identified as a potential test case for this initiative. Enoh expressed hope that this partnership could serve as a model for reliable and affordable power supply throughout Nigeria.

As Nigeria seeks to enhance its industrial capacity and attract foreign investment, partnerships like this one with RSE Energy are crucial for establishing a sustainable energy framework. The government is optimistic that these efforts will lead to meaningful improvements in energy access and will support economic growth in the coming years.