The federal government of Nigeria is intensifying its efforts to boost the deployment of Renewable Energy across the nation. Speaking during a summit in Abuja, Adebayo Adelabu, the Minister of Power, emphasized that it is crucial to identify, de-risk, and implement distributed energy solutions nationwide. As such, the government has issued an order requiring Electricity Distribution Companies (DisCos) to comply with the 5 percent clean energy standard set by the Nigerian Electricity Regulatory Commission (NERC). This order is aimed at increasing the penetration of clean energy in the national grid
According to the minister, Nigeria’s commitment to developing renewable energy is evident in the current policies and action plans, such as the Nigeria’s Energy Transition Plan (ETP), which aims to achieve net-zero Emissions by 2060, the National Renewable Energy Action Plan (NREAP) which provides a comprehensive framework for the development and deployment of renewable energy in Nigeria, and the Nationally Determined Contribution (NDC) targets, which outlines the country’s commitment to reducing Greenhouse gas emissions. With these initiatives, the country aims to achieve 30 gigawatts of Power Supply capacity by 2030, with 30 percent derived from renewable energy sources.
Current administration committed to ending years-long grid failure.
It is expected of all stakeholders to support the government’s efforts to boost the system’s adoption of renewable energy. The current administration is committed to ending the years-long grid failure that has reduced economic output, discouraged foreign investment, and exacerbated Unemployment and economic stagnation. The minister clarified that President Bola Tinubu had given directive to provide all Nigerians with affordable, dependable, sustainable, and environmentally friendly energy sources. The federal government has strategically intervened in the energy value chain since assuming office in an effort to release stalled capacity and increase the sector’s liquidity.
With the launch of the $500 million Renewables Investment Platform for Limitless Energy (RIPLE) program by the Nigeria Sovereign Investment Authority, the government aims to support the development and operation of various renewable energy initiatives in the country. The World Bank’s $750 million Distributed Access through Renewable Energy Scale-up (DARES) facility is another noteworthy investment that has sparked growth in the industry. It is designed to bridge Infrastructure gaps, increasing access to electricity, and fostering inclusive and Sustainable Development across the nation.
Gov’t is enhancing grid transmission discharge capacity.
Massive metering investments are being implemented through the Presidential Metering Initiative (PMI) and the World Bank’s Distribution Support Recovery Programme, with the goal of deploying 1.5 million and 2 million meters per year, respectively, in an effort to lessen Discos’ inefficiencies. Under the ongoing Presidential Power Initiative (PPI), which has raised transmission capacity by 463 MW so far, the government is also enhancing the grid’s transmission discharge capacity. The 700 MW Zungeru hydropower plant’s commissioning represents a major advancement in the capacity expansion of sustainable on-grid generation.
NERC introduced PIPs for Discos to maximize investments and boost Productivity in the power industry, The Regulatory Commission is also making a concerted effort to establish favourable conditions for investments in green energy. This encompasses the creation of performance improvement plans to maximize industry investments and regulatory mandates for discos. The country has issued green Bonds to fund activities aimed at promoting Environmental Sustainability and renewable energy. This facilitates the influx of foreign exchange and Private Sector investment.
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Moreover, the government is collaborating on renewable energy projects and technical support with foreign partners including the EU and Germany. Such collaboration is crucial for implementing creative fixes and funding sources to increase the usage of clean energy. For example, the European Union (EU) and German government-backed Interconnected Mini-Grid Acceleration Scheme (IMAS) seeks to establish 23 mini-grids in 11 states, providing electricity to over 138,000 Nigerians. With a greater dependence on renewable energy sources, the government is attempting to promote sustainable development, diversify its energy mix, and improve energy security.