According to energy experts, capacity building, effective policies will drive financing and valid data are factors that can foster Nigeria’s achievement of its vision 30:30:30. This vision is targeted towards achievement of 30 GW of electricity by 2030, with 30 percent of the energy mix contributed by renewable energy. This statement was made at the 82nd Power Dialogue, under the theme “Vision 30:30:30: Accessing Finance for the Next Phase,”. During the dialogue, experts further highlighted ways through which Nigeria can drive its 30 GW goal.
During the Power Dialogue, a public discourse series that concerns the power sector, President of the Renewable Energy Association of Nigeria (REAN), Ayo Ademilua, stated that it is necessary that Nigeria has validated and harmonized data on its current statistics of access to energy. Identification of the total off-grid, poorly served population is important to reveal the country’s present position. There is also a need to enact policies that will attract investors as framework and policies outlook are the attractions of investors.
Nigeria has only 4GW with about 200 million population.
The president of REAN added that Nigeria should ensure creation of a standard platform for reporting and monitoring for a steady harmonization of the progress it makes. She stated that Egypt has 60-70 GW, with a population of 110 million, while Nigeria, populated with 200 million people, has only 4GW. During her speech, she noted a key challenge in the country’s power sector to be its transmission backbone infrastructure. There is an urgent need for fiscal policies and incentives that can boost foreign capital while providing affordable capital for the projected goals.
Managing Director of Azura Power, Edu Okeke, affirmed that Nigeria has abundant hydropower and sunlight for solar. Therefore, attaining the 30 percent target is not an issue, but building a robust strategy on ways to improve finance for development of the country’s energy is paramount. Nigeria currently lacks enough investors to invest in projects that supports the 30GW vision. As a result, policies are needed to attract financing. Financing is available but it is attracted to places where there are policies to back it.
Overregulation of the government affects the power sector.
Between 2012 and 2013, there were many investors in Nigeria Bulk Electricity Trading, many independent power producers and many developers. Majority of them left Nigeria as a result of newly developed policies. According to Okeke, limitations in the sector are attributed to the policies of the government in the last few years. Reduction of these limitations by the new administration will enhance the achievement of the vision 30:30:30. Asides that, he recognized government’s overregulation as a major problem in the power sector.
Additionally, Ademilua stated that Nigeria should build capacity across the value chain of the power industry. Vision 30GW is in seven years, so there has to be an addition not less that 3 to 4GW every year. The estimated capacity of renewable energy in Nigeria is less than 1GW. There is, therefore, a need to boost renewable energy to at least 2GW by 2024. The energy transition plan has provided needed finances. With $410 billion in the next few years up until 2060, Nigeria will be able to achieve the vision’s policies. As much as there is availability of funding, policies that will attract it should be positioned.
Collaboration with the private sector to achieve the vision was suggested.
Implementation of the energy transition plan in Nigeria, according to estimation, will require an annual $10 billion — a total of $410 billion. Director of Renewable and Rural Power Access at the Federal Ministry of Power, Abubakar Ali-Dapshima, stated that investors desire return on investments, hence the need for energy efficiency. He suggested that the government develops energy projects and policies, as well as collaborate with the private sector for expansion of the mandate and to support the vision 30:30:30.