Nigeria is Africa’s most populous country and one of the largest economies on the African continent. The country’s growing population and rapid urbanisation have placed immense pressure on its existing energy infrastructure. Meanwhile, the global shift towards sustainable energy practices presents both a challenge and an opportunity.
The energy landscape in Nigeria
Nigeria is clinging desperately to fossil fuels while millions of its citizens live in darkness. Despite being an oil giant, a staggering 43 percent of the population lacks access to electricity. This is a national emergency. The economic and social costs of this energy poverty are undeniable. It is time to break free from our dependence on dirty fossil fuels and embrace a brighter future powered by clean, renewable energy.
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To overcome this problem, renewable energy is a sustainable solution, providing a pathway to development and energy security. In recent years, Nigeria has made significant progress in the adoption of renewable energy technologies, supported by both local and international investments as well as government policies and development.
Renewable energy projects in Nigeria
1.Wind energy:
Wind energy potential in Nigeria is moderate compared to solar, with the most viable locations for wind farms being in the northern regions and along the coastline. The country’s first wind farm, the 10 MW Katsina Wind Farm, illustrates the potential of this energy source.
The 10-MW Katsina Wind Farm became operational in 2020, making it Nigeria’s first utility-scale wind farm. This project is a partnership between the Nigerian government, the French Development Agency, and the Danish wind turbine manufacturer Vestas. It consists of 37 N0 wind turbines with a rated power of 275 KW each, with pitch regulation and variable speed. According to Consegic Business Intelligence, the wind turbine pitch systems market is estimated to reach over USD 2,115.46 million by 2030, showing the significant growth of wind power.
Another project, the 50 MW Gurara II Wind Farm in Niger State, is currently under development and aims to contribute to Nigeria’s goal of generating 30% of its electricity from renewable sources by 2030.
2.Solar energy
Being closer to the equator, Nigeria has abundant solar resources, receiving an average daily solar radiation of about 5.5 kWh/m2. This makes solar energy one of the most promising renewable energy sources in the country. Several mega-solar energy projects include the Federal University of Agriculture, Bayero University, Tulip Cocoa Processing Ltd., etc.
The Federal University of Agriculture, Makurdi’s Solar PV Park, is an 8.25 MW solar power project. Another notable project is the 1.52 MW solar hybrid project at the Lower Usuma Dam Water Treatment Plant, which provides clean energy to the Federal Capital Territory, Abuja. Additionally, Nigeria’s Rural Electrification Agency (REA) has played a key role in implementing solar mini-grids and standalone solar systems across rural communities.
3.Hydropower
Hydropower is one of Nigeria’s most established renewable energy sources, contributing significantly to the national grid. The country has numerous rivers and potential sites for both large and small hydropower projects.
The Kainji and Jebba hydropower plants have a combined capacity of 1,338.4 MW. They are located 100 kilometres apart and generate about 20 percent of Nigeria’s power. Kainji, commissioned in 1968, has a capacity of 760 MW, while Jebba, commissioned in 1985, has a capacity of 578.4 MW.
Small hydropower (SHP) projects are increasingly being developed to serve rural and off-grid communities. These projects, typically ranging from 1 MW to 10 MW, can provide reliable and sustainable power to areas not reached by the national grid.
4.Biomass energy
Biomass is the primary energy source in Nigeria, accounting for about 80% of the country’s energy supply. The agricultural sector in Nigeria produces a significant amount of biomass waste, which can be harnessed for energy production. Biomass energy projects make use of resources such as crop residues, wood waste, and animal dung to generate electricity and heat. The technology for biomass energy includes biogas digesters and biomass gasification plants.
Read also: Paving the path to a sustainable future: The shift to renewable energy and decarbonisation
Investments in renewable energy
1. Government initiatives and policies
Thankfully, Nigeria has a strong policy framework, the National Renewable Energy and Energy Efficiency Policy (NREEEP), to support the transition to renewable energy. This plan is a great first step, but we need more than just words on paper. We need swift and decisive action to turn this policy into tangible results for the millions living without electricity. The Renewable Energy Master Plan (REMP) confidently outlines Nigeria’s strategy to diversify its energy sources and assertively aims to generate 30 percent of the country’s electricity from renewable sources by 2030. The Nigerian Electrification Project (NEP), funded by the World Bank and the African Development Bank, boldly aims to increase access to electricity in rural and underserved areas through solar hybrid mini-grids and standalone solar systems, with a substantial budget of over $550 million.
2. Private sector and international investments
The Power Africa Initiative, spearheaded by the United States Agency for International Development (USAID), is dedicated to boosting electricity access in sub-Saharan Africa. In Nigeria, Power Africa actively champions multiple renewable energy projects, securing more than $1 billion in investments. The initiative’s goal is to install a minimum of 30,000 megawatts (MW) of cleaner, more dependable electricity generation capacity and achieve 60 million connections by 2030.
Africa Renewable Energy Fund (AREF), managed by Berkeley Energy, is a $200 million fund that invests in small to medium-scale renewable energy projects across sub-Saharan Africa. In Nigeria, AREF has financed several solar and hydropower projects. The Green Climate Fund (GCF) has provided significant funding to support climate-resilient energy projects in Nigeria. For instance, the GCF approved a $100 million loan to co-finance the Nigeria Solar IPP Support Programme, which aims to develop 1 GW of solar power capacity.
Future prospects and opportunities in renewable energy in Nigeria
The future of Nigeria’s energy sector is gleaming with possibility. By harnessing the power of the sun, wind, and water, we can illuminate homes, empower businesses, and create a cleaner, healthier environment for all Nigerians. Embracing renewable energy is not just an option; it’s an imperative. The time to act is now.
Nigeria’s rapidly growing population and burgeoning economy will undoubtedly propel the electricity demand. Renewable energy stands out as a robust and scalable solution to effectively meet this escalating demand while significantly reducing the country’s carbon footprint.
The unwavering commitment of Nigeria to the Paris Agreement and its Nationally Determined Contributions (NDCs) distinctly underscores the country’s steadfast dedication to reducing greenhouse gas emissions and promoting sustainable development. Renewable energy projects are unequivocally positioned to play a pivotal role in achieving these ambitious climate goals.
Remarkable advancements in renewable energy technologies, including significantly enhanced solar panel efficiency, more robust wind turbines, and increasingly cost-effective energy storage solutions, will undoubtedly bolster the feasibility and attractiveness of renewable energy projects.
The continued unwavering support from international organisations, development finance institutions, and foreign governments will be pivotal in propelling renewable energy development in Nigeria. These collaborative endeavours have the potential to provide the requisite funding, technical expertise, and policy support necessary to expeditiously accelerate the transition towards a sustainable energy future.
Final thoughts
Renewable energy projects and investments are critical for addressing Nigeria’s energy challenges and promoting sustainable development. Addressing technical challenges and leveraging innovative financing models can pave the way for a greener energy future. Continued commitment from the government, private sector, and international partners is essential for achieving these goals.
Saurabh Bhandari is a Professional Content Writer at Consegic Business Intelligence, with expertise in the Energy and Power Industry.
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