According to power generation firms, Nigeria can create approximately 427,000 megawatts of electricity using solar energy. Nigeria now produces less than 5,000MW for a population of over 200 million people.
The Federal Ministry of Power on Sunday said that power generation on the grid as of 6 a.m. was 3,803.6MW. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, stated during a presentation titled “The Electricity Act 2023: Options for Renewable Energy Penetration and the Role of Stakeholders,” that solar energy could create more than 420,000MW of power in Nigeria.
She presented at a one-day workshop in Abuja organized by the Renewable Energy and Energy Efficiency Association-Alliance on renewable energy penetration and stakeholder roles.
“The majority (of energy generation) is off-grid, solar home systems, and rooftop solar,” she noted, despite the lack of clear data. Renewable energy costs roughly $0.55 to $0.6/kWh in Nigeria, which is not competitive with utility costs of approximately $0.105/kWh.
“Achieving set targets with mini-grids will take time.” We will only attain 1GW (gigawatts) if 1,000 mini-grids of 1MW each are installed.”On Sunday, the REEEA-A made the presentation available to our correspondent.
“The potential of renewable energy in Nigeria is enormous,” she remarked. The country receives 3.5 to 7.0 kWh/m2 of solar radiation every day, and solar alone can generate 427,000MW in Nigeria! “The hydropower resources are projected to be 14,750MW. Wind speeds of 2-5m/s with a potential energy output of 150,000 TJ each year.”
The Gencos representative explained the existing renewable energy scenario in Nigeria, saying that there was no renewable energy generation connected at the distribution or transmission level, despite targets.
“The majority (of energy generation) is off-grid, solar home systems, and rooftop solar,” she noted, despite the lack of clear data. Renewable energy costs roughly $0.55 to $0.6/kWh in Nigeria, which is not competitive with utility costs of approximately $0.105/kWh.
“Achieving set targets with mini-grids will take time.” We will only attain 1GW (gigawatts) if 1,000 mini-grids of 1MW each are installed.”
Concerning the renewable market’s challenges, she stated that domestic demand in West African countries was too low to attract investments in major projects that benefited from economies of scale.
“Lack of effective planning and monitoring has resulted in reliance on emergency rental plants, which further inflates costs,” Ogaji said. Imbalance in bilateral contracts for the purchase and sale of power, particularly for delivery across borders, buyer payment defaults, and failures to provide the electricity promised by multiple sellers.
“There is a lack of synergy in some member states’ regulatory frameworks.” Contractual differences and inequalities in the organization of national marketplaces are obstacles. Concerns have been raised about the lack of harmonisation and standards in operational, security, contractual terms, and prices.”
Prof. Magnus Onuoha, President of REEEA-A, stated that with enough renewable energy capability, Nigeria could develop green jobs, entrepreneurs, and evolve women and youth empowerment. Onuoha stated that there are millions of secondary jobs/efforts that result from the implementation of renewable energy and energy-efficient technologies.
“The renewable energy and energy efficiency sectors are teeming with activities, new dynamics, technologies, interventions, measures, policies, and relationships.””
Globally, the Russia-Ukraine war demonstrated that, beyond energy transition, we must prioritize energy security.”
Here in Nigeria, the withdrawal of fuel subsidies, the newly signed Electricity Act, and the rising cost of energy dominant systems and measures indicate that it is time for a fundamental reconciliation and behavioral change toward renewable energy and energy efficiency.”
