The Rural Electrification Agency (REA) has launched the Renewable Asset Management Company (RAMCO), a new initiative aimed at ensuring the effective management, maintenance and long-term sustainability of publicly funded renewable energy assets in universities and teaching hospitals across Nigeria.
The Managing Director of the REA, Abba Aliyu, disclosed this on Wednesday in Abuja during the official launch of RAMCO. He said the company was established in response to the deterioration of renewable energy projects after their commissioning, particularly due to inadequate maintenance and revenue systems.
Aliyu revealed that the REA had deployed 82 megawatts of solar hybrid power across 22 federal universities and three teaching hospitals since 2017 under its Energising Education Programme. However, an assessment of seven projects delivered during the programme’s first phase showed that only three remained in good or usable condition.
According to him, the decline in the performance of the projects was not caused by engineering failures but by the absence of sustainable maintenance structures, reliable revenue mechanisms and clearly defined institutions responsible for managing the assets throughout their operational lifespan.
He explained that RAMCO would serve as the institutional solution to the challenge by professionally managing government-funded renewable energy infrastructure. Its responsibilities will include engaging competent operators, metering electricity consumption, billing and collecting payments, as well as maintaining the equipment.
The initiative was launched in collaboration with the Ministries of Power, Education, Health and Social Welfare, Finance, the Ministry of Finance Incorporated (MoFI), the Budget Office of the Federation and the Infrastructure Corporation of Nigeria (InfraCorp).
Aliyu said RAMCO would also establish a dedicated financial mechanism to fund the replacement of critical components, including batteries and inverters, once they reach the end of their useful life. This, he noted, would eliminate the need to repeatedly seek government appropriations for routine replacement and maintenance.
He stressed that RAMCO was not established to generate profits from institutions where the government had already financed the capital assets. Rather, its sustainability model would ensure that electricity tariffs cover the cost of operating, maintaining and eventually renewing the systems.
The REA boss added that beneficiary institutions would be required to contribute to the sustainability of the projects by paying for the electricity they consume.
Using Alex Ekwueme Federal University, Ebonyi, as an example, Aliyu said its solar power plant, commissioned in 2019, serves more than 9,500 staff and students. He disclosed that the project generated approximately N1.8 billion in combined savings from avoided diesel purchases and electricity costs within its first five years, while also preventing about 2,367 tonnes of carbon emissions.
He explained that the sustainability tariff should not be viewed as an additional financial burden on universities, but as a redirection of part of the funds institutions would otherwise spend on expensive diesel and electricity.
Aliyu said the RAMCO model would reduce dependence on repeated government appropriations for renewable energy infrastructure while creating opportunities to attract private investment into the sector. He added that renewable energy assets with predictable revenue streams could eventually be aggregated and financed to support the development of additional electrification projects.
The REA Managing Director further disclosed that the agency was working with MoFI and InfraCorp to promote local manufacturing of solar modules, batteries, inverters, street-lighting equipment and solar asset recycling. He said about $425 million had been invested in the manufacturing cycle as of last year.
He added that the agency would complete the valuation and technical assessment of existing renewable energy assets before transferring them to the RAMCO partnership. The process will also include establishing operation and maintenance arrangements for projects under the Energising Education Programme.
According to him, the REA will engage beneficiary institutions, the National Universities Commission, the Ministries of Education and Health, and the Budget Office to develop transparent and accountable tariff and payment arrangements.
Speaking at the event, the Chairman of MoFI expressed support for the initiative, recalling that several Federal Government projects had been abandoned after completion due to poor maintenance.
He disclosed that MoFI had developed a national asset register containing Federal Government projects that had been inspected, verified and evaluated. He urged the government to ensure that universities are fully involved in the RAMCO initiative, particularly in establishing effective tariff and payment systems.
The launch of RAMCO marks a significant step towards protecting Nigeria’s investment in renewable energy infrastructure and ensuring that publicly funded projects continue to deliver reliable electricity and economic benefits long after commissioning.
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