DRELT

Glossary of Terms

Quick-reference definitions of acronyms, technical terms and key concepts used in NBC, DD and Credit Committee submissions.

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NBC

New Business Committee — the governance body that reviews project submissions before due diligence.

CC

Credit Committee — approves or declines the final guarantee/credit facility request.

CP

Condition Precedent — a contractual requirement that must be satisfied before financial close.

DD

Due Diligence — systematic verification of project claims by independent technical, legal, financial and ESG advisers.

PMT

Project Management Team — the internal InfraCredit team responsible for managing project lifecycle from origination to close.

DREEF

Distributed Renewable Energy Enhancement Facility — provides TA, capacity building to bankability-stage DRE developers.

DRELT

Distributed Renewable Energy Lending Toolkit — the comprehensive framework for standardising DRE credit assessment.

FCDO

Foreign, Commonwealth & Development Office (UK) — a key funder of the DRE blended finance ecosystem in Nigeria.

DARES

Distributed Access to Renewable Energy Scale-up programme — World Bank-funded subsidy programme for DRE projects in Nigeria.

RSBF

Risk Sharing Backstop Facility — a risk-sharing instrument used to de-risk lending to DRE projects.

O&M

Operations & Maintenance — the ongoing management of installed DRE systems including billing, metering and technical support.

PPA

Power Purchase Agreement — a binding long-term contract between a power provider and an offtaker for electricity supply.

UBO

Ultimate Beneficial Owner — the natural person who ultimately owns or controls an entity, required for AML/KYC compliance.

PEP

Politically Exposed Person — an individual with a prominent public function, requiring enhanced due diligence.

PUE

Productive Use of Energy — income-generating energy applications such as agro-processing, milling, irrigation and cold storage.

MROC

Management Risk & Operations Committee — a governance committee that reviews project progress and risk positions.

EPC

Engineering, Procurement and Construction — the contractor responsible for designing and building the DRE system.

OEM

Original Equipment Manufacturer — supplier of key system components such as panels, batteries and inverters.

DSCR

Debt Service Coverage Ratio — the ratio of project cash flow available to service debt; a key bankability metric.

DSRA

Debt Service Reserve Account — a reserve fund covering a set number of months of debt service, required as a CP.

NERC

Nigerian Electricity Regulatory Commission — the national regulatory body for electricity in Nigeria.

NEMSA

Nigerian Electricity Management Services Agency — issues metering and safety standards compliance certificates.

SONCAP

Standard Organisation of Nigeria Conformity Assessment Programme — product conformity certification.

COREN

Council for the Regulation of Engineering in Nigeria — professional body that certifies engineering designs.

CAC

Corporate Affairs Commission — Nigeria's corporate registry; source for entity verification and UBO reconciliation.

IFC PS

IFC Performance Standards — international ESG standards required for development finance-backed projects.

SPV

Special Purpose Vehicle — a ring-fenced legal entity created specifically for a project, to which contracts are novated.

COD

Commercial Operations Date — the date on which a DRE project begins generating revenue.

IRR

Internal Rate of Return — the annualised return on investment; used to assess project financial attractiveness.

C&I

Commercial & Industrial — a category of DRE offtakers comprising factories, warehouses and industrial clusters.

WTP

Willingness-to-Pay — demonstrated ability and readiness of end-users to pay the proposed tariff.

PAYGO

Pay-As-You-Go — a metered prepayment revenue model common in rural DRE access markets.

BII

British International Investment — UK development finance institution and investor in DRE projects.