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Nigeria Unveils Roadmap To 20 Gigawatt Renewable Energy Market

2 Mins read

Report By Juliet Umeh 

To close the energy gap in Nigeria, Rocky Mountain Institute, RMI, a nonprofit organisation and the Global Energy Alliance for People and Planet, GEAPP, at the weekend joined forces to unveil a roadmap for Nigeria’s energy sector. 

This plan outlines a path towards a 20 gigawatt, GW renewable energy market within the next decade, achieved through the rapid expansion of distributed renewable energy sources and battery storage solutions.

The roadmap launch coincided with a high-level visit from representatives of GEAPP, the Rockefeller Foundation, and SEforAll, who came to witness Nigeria’s progress in transitioning to clean energy.

RMI Managing Director, Ije Ikoku Okeke said the initiative leverages the success of initial “first-wave” projects in distributed renewable energy and aims to achieve multiple benefits. 

He said: “It can increase revenue for electricity distribution companies, DisCos, reduce carbon emissions by a significant margin, and bridge the gap in the nation’s power supply.

“Customers can expect lower energy bills by reducing reliance on expensive fossil fuel generators. Renewable energy developers gain access to a wider range of attractive project locations.

“This roadmap arrives at a critical juncture. A recent SDG7 Tracking Report revealed a concerning slowdown in achieving universal access to sustainable energy by 2030, a UN goal. Nigeria, with over 85 million people lacking access to electricity, represents the largest population without power globally.

RMI collaborated with five of Nigeria’s DisCos to conduct a comprehensive analysis, revealing a substantial opportunity for distributed energy resources (DERs) across the country. 

Their findings suggest a potential market of 1 GW annually for these five companies, translating to a national total of approximately 2 GW per year over the next 10 years. This translates to a potential market exceeding $14 billion in generation assets alone over the next decade.

Okeke emphasizes the unique opportunity for DisCos to partner with private developers and stakeholders to leverage DERs. 

He said: “This collaboration can address longstanding challenges with power availability and reliability while bolstering revenue through increased sales and service charges. “Additionally, it would pave the way for a more democratic energy sector and a substantial reduction in carbon pollution.

Nigeria’s power woes are well documented. The lack of adequate and reliable electricity costs the economy an estimated $29 billion annually. DisCos struggle to meet performance targets due to various factors, hindering their ability to deliver efficient services.

Interim CEO at GEAPP, Joseph Nganga, highlights the importance of collaboration and innovative solutions to achieve Nigeria’s energy access and transition goals. This roadmap provides a framework to accelerate DER deployment and connect millions of Nigerians to clean, reliable, and affordable electricity.

The Nigerian Electricity Regulatory Commission, NERC, is actively involved, aiming for at least 10 percent of DisCo energy to come from embedded generation by next year, with half sourced from renewables.

Deputy General Manager of market competition and rates at NERC, Abba Ibrahim Tarab, said: “The DER roadmap provides an action-oriented set of recommendations to guide the acceleration of DER project deployment to help close DisCos’ supply gap.

“By next year, we aim for at least 10 percent of their energy to come from embedded generation, of which 50 percent should be from renewable energy resources.” 

Meanwhile, representatives from various DisCos expressed their commitment to implementing the roadmap. They see DERs as a strategy to provide quality and reliable service to their customers. 

For instance, Head of the business development team at Ikeja electric, Obianuju Okwueze, said: “From the roadmap, we’ve been able to analyze our priorities, starting with securing management support for executing DER projects.”  

In the same vein, General Manager Business Development at Eko Electricity Distribution company, Yinka Adewumi, added: “We can now effectively plan, execute, and collaborate with other stakeholders, fully understanding our mutual expectations.”

This initiative presents a significant step forward for Nigeria’s energy future.

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