Nigeria is ramping up its drive to harness renewable energy sources, as the government seeks to address the country’s chronic power challenges. This was evident in a national summit held in Abuja, where key stakeholders convened to discuss strategies for accelerating the deployment of renewable and distributed energy resources.
The Minister of Power, Adebayo Adelabu, underscored the government’s commitment to transitioning to a cleaner energy mix, citing existing policies such as the National Renewable Energy Action Plan (NREAP) and the Nigeria Energy Transition Plan (NETP) as evidence of this resolve.
“Our goal is to achieve 30 gigawatts of power supply by 2030, with 30 percent coming from renewable sources,” Adelabu stated. “This is an ambitious target, but it is achievable with the right policies, investments, and collaboration.”
Discos Under Mandate to Embrace Renewable Energy
A significant step towards this goal is the recent directive from the Nigerian Electricity Regulatory Commission (NERC) compelling Distribution Companies (Discos) to procure a minimum of 5% of their energy from renewable sources.
“This is a clarion call for all stakeholders,” said Adelabu. “The era of unreliable grid supply, characterized by frequent power outages and load shedding, must come to an end.”
The minister emphasized the devastating impact of power shortages on businesses, industries, and households, hindering economic growth and discouraging foreign investment.
Government Unveils Incentives and Reforms
To catalyze renewable energy investment, the government has introduced several initiatives. The Nigeria Sovereign Investment Authority’s Renewables Investment Platform for Limitless Energy (RIPLE) program, with a $500 million fund, is dedicated to supporting renewable energy projects across the value chain.
Additionally, the World Bank’s Distributed Access through Renewable Energy Scale-up (DARES) facility, worth $750 million, aims to expand electricity access and promote sustainable development.
The government is also addressing the power sector’s financial challenges. The payment of legacy gas debt to gas companies is expected to improve market discipline, while massive investments in metering through the World Bank’s Distribution Support Recovery Programme and the Presidential Metering Initiative (PMI) are aimed at reducing Discos’ inefficiencies.
Strengthening the Grid and Expanding Renewable Capacity
Efforts to enhance grid capacity are underway through the Presidential Power Initiative (PPI), which has already added 463 megawatts of transmission capacity. The commissioning of the 700-megawatt Zungeru hydropower plant is another step in this direction.
To promote off-grid solutions, the Interconnected Mini-Grid Acceleration Scheme (IMAS) is expected to deploy 23 mini-grids across 11 states, benefiting over 138,000 people.
Regulatory Framework and Industry Collaboration
The Chairman of NERC, Sanusi Garba, emphasized the regulator’s role in creating an enabling environment for renewable energy investments. “We are committed to developing an efficient electricity market and establishing a regulatory framework that promotes rapid investments,” he said.
Garba called on investors to take advantage of the opportunities presented by Nigeria’s abundant renewable resources. The summit, he added, provides a platform for stakeholders to share experiences and explore viable project development pathways.
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While acknowledging the challenges facing the power sector, both the minister and the NERC chairman expressed optimism about the future. They emphasized the need for innovation, collaboration, and sustained efforts to overcome these hurdles.
If You Ask Me
While the government’s commitment to renewable energy is evident, significant challenges remain. These include securing adequate financing, addressing grid integration issues, and creating a conducive regulatory environment. However, the growing investor interest in Nigeria’s renewable energy sector presents a significant opportunity for the country to achieve its energy goals.
The increased adoption of renewable energy in Nigeria is expected to have far-reaching benefits beyond improved power supply. It could create new jobs, stimulate economic growth, and reduce the country’s dependence on fossil fuels. As the government and private sector collaborate to unlock the potential of renewable energy and driving sustainable economic growth, Nigeria is poised to become a leader in clean energy in Africa.
