NEW YORK, Sept 22 – The Nigeria Sovereign Investment Authority (NSIA) and its partners have commercially launched a $300 million Distributed Renewable Energy (DRE) Fund to mobilize private-sector investment in renewable energy and expand electricity access for underserved communities and businesses.
The launch, announced on the sidelines of the United Nations General Assembly in New York, marks the transition of the fund from its structuring phase to active capital deployment.
The initiative brings together the NSIA, Sustainable Energy for All (SEforALL) and Africa50, an infrastructure investment platform established by the African Development Bank and African states.
The fund is designed to finance distributed renewable energy solutions, including mini-grids and standalone solar systems, particularly in communities and businesses that remain underserved by conventional electricity infrastructure.
It also supports Mission 300, the initiative to connect around 300 million people across Africa to electricity by 2030.
World Bank commits initial $25 million
The World Bank Group is a founding partner of the initiative and has committed an initial $25 million through the International Development Association (IDA), according to the NSIA.
Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA, said the commercial launch reflects the growing investment potential of Nigeria’s distributed renewable energy market.
He said the fund comes at a critical point as distributed renewable energy becomes increasingly important to closing electricity-access gaps, supporting economic activity and strengthening energy security.
Alain Ebobissé, Group Chief Executive Officer of Africa50, said the partnership combines local market expertise, pan-African investment capabilities, energy-access knowledge and development financing.
“Together, we are turning Nigeria’s energy needs into investable opportunities and building a model that can scale across Africa,” he said.
Financing distributed energy at scale
Damilola Ogunbiyi, Chief Executive Officer and Special Representative of the UN Secretary-General for Sustainable Energy for All, said the fund would support Nigeria’s electricity-access objectives while contributing to the broader Mission 300 agenda.
“By creating a dedicated financing mechanism to scale distributed renewable energy, Nigeria is demonstrating how country-led action can translate Mission 300’s ambition into concrete investment and connections,” she said.
The fund is intended to address a key constraint in distributed energy markets by creating a dedicated financing mechanism for projects that can expand electricity access without relying solely on conventional grid infrastructure.
Ashish Khanna, Director-General of the International Solar Alliance, described the initiative as a significant financing model for expanding private-sector-led distributed renewable energy across Africa.
“As the first country-level demonstration linked to a continental financing platform, given the ambition and scale in Nigeria, it shows how innovative financial structures can mobilize capital more efficiently, support local market development and accelerate progress towards universal energy access,” he said.
World Bank backs blended financing approach
Anna Bjerde, Managing Director of Operations at the World Bank Group, said reliable and affordable electricity is important for job creation and economic transformation across African economies.
“The World Bank is proud to be a founding partner, and our initial $25 million IDA contribution reflects our commitment to bridging funding sources and delivering real connections to people and communities across the continent,” she said.
The fund is expected to support the development and expansion of African distributed renewable energy companies while providing a financing model that can potentially be replicated in other countries.
For Nigeria, the commercial launch moves the initiative beyond fund structuring toward the deployment of capital into renewable energy projects. At the continental level, it seeks to combine public and private financing with local energy-sector expertise to expand access to decentralized power systems.
The initiative also provides a mechanism for connecting investment capital with one of Africa’s most persistent infrastructure gaps, while supporting the broader expansion of renewable energy markets across the continent.
