Nigeria’s Arnergy raises $9mn for renewable energy

Nigeria-based renewable energy company, Arnergy, has successfully raised $9 million in a Series A round of financing aimed at scaling up its operations and providing affordable solar power solutions to homes and businesses across the country. The funding round was led by renewable energy-focused investment firm, Breakthrough Ventures, with participation from the government of Norway, the United Nations fund for developing countries, Electrify, and others. Femi Adeyemo, the co-founder of Arnergy, expressed excitement over the investment, highlighting the opportunity it presents to address Nigeria's significant energy deficit. Adeyemo pointed out that despite the progress made, the country is far from meeting its industrialized nation energy goals, stating that the current generation capacity of 4,000 megawatts falls short of the required 200,000 megawatts. The $9 million funding will be utilized to implement scalable and modular solar power solutions that aim to power 35,000 homes and businesses within the next 36 months. Arnergy's innovative business model involves providing the solar assets at no cost to customers, who then sign a 10-year renewable contract to pay a fixed amount monthly, leading to significant cost savings compared to traditional diesel generators. The company's ultimate vision is to enhance energy reliability and productivity for small businesses and homes, particularly focusing on key sectors such as healthcare, hospitality, education, finance, and real estate. Adeyemo emphasized the importance of providing reliable power sources to enhance productivity and economic growth, particularly in urban areas like Lagos, Abuja, Kano, and Port Harcourt. Looking ahead, Arnergy aims to become a market leader in the renewable energy sector, with plans to leverage both equity and debt financing to further expand its reach and impact. Adeyemo hinted at ongoing discussions with debt providers to secure additional funding for future growth initiatives. In alignment with the government's efforts to increase electricity access, especially in rural areas, Arnergy is actively engaging with governmental agencies and supporting initiatives such as the 'willing buyer, willing seller' scheme championed by the vice president. The company sees itself as a key player in complementing the government's electrification agenda, leveraging innovative technologies like Internet of Things (IoT) to enhance monitoring, control, and payment reliability. Through technology-driven solutions, Arnergy aims to build investor confidence, unlock more capital, and drive sustainable energy access for all Nigerians. As the renewable energy landscape continues to evolve, Arnergy remains committed to driving positive change, empowering communities, and reshaping Nigeria's energy narrative for a brighter and more sustainable future.