Ask Nigeria Header Logo

Nigeria to spend $1.22t on renewable energy

Photo of author

By Abiodun Okunloye

178,000mw of renewable energy to be generated at $1.22 trillion by 2050.

It is estimated that by 2050, Nigeria could start generating about 178,000 megawatts of Renewable Energy at the expense of $1.22 trillion due to a new Federal Government plan known as the Renewable Energy Roadmap (REmap). Key stakeholders, particularly from related ministries and agencies, defined the transition as a move in the right direction after it was revealed at a National Workshop organized by the Energy Commission of Nigeria (ECN) recently in Abuja. The project would be at an annual cost of $35 billion, and a Transforming Energy Scenario (TES) would convert roughly 92% of energy sources to renewables while also projecting solutions to the country’s climate impacts.

Planned Energy Scenario (PES) and Transforming Energy Scenario (TES) are the two possibilities that are currently being considered. Both of these possibilities involve a significant reduction in the use of fossil fuels and Natural Gas, as well as the prioritization of hydropower, electric vehicles, and Solar Energy, amongst other options. Investing in renewable energy is more economical than taking the traditional route. While providing the same level of energy service as the PES, the TES has lower Investment costs than the PES, coming in at $1.22 trillion (2010) rather than $1.24 trillion (2010).

Renewables Investment is more cost-effective than a conventional pathway.

When expressed in terms of the average yearly value of investments, this equates to $35 billion (2010) per year, whereas the previous figure was $36 billion (2010) per year. This demonstrates that investments in renewable energy are cost-effective because, regardless of the rate of Economic Growth that is achieved, they are less expensive than the planned case. According to the overview of the road map, Nigeria has an abundance of renewable energy resources that are still largely untapped. If the country were to tap into some of these resources, it would be able to provide Sustainable Energy to all of its citizens at an affordable price.

Even after the Privatization of the sector, Nigeria’s Electricity supply remained dismal for many years, which is a point of concern, standing at approximately 4,500 megawatts (mw) in spite of the country’s abundant energy resources. Over eighty percent of grid-connected electricity is generated from gas, and the majority of the energy options for transportation, heating, and lighting are comprised of fossil fuels and biomass. The current installed capacity is primarily dependent on fossil fuels because of this fact.

The initiative would address the climate change challenge.

Taking on the benefit of the initiative, Nigeria’s Minister of Science, Technology, and Innovation, Adeleke Mamora, during his speech at the event, referred to the initiative as an opportunity “leeway” for the country’s Economy. Mamora, who was not present but was represented by the Permanent Secretary of the Ministry, Monilola Udoh, emphasized the importance of adopting energy options that would address challenges posed by Climate Change and energy in order for the country to meet its Sustainable Development goals.

Jidere Bala, the director general of ECN, stated that the roadmap would not only support current national policies and plans on renewable energy but would also inspire confidence in foreign and domestic Investors to enter the market and explore and expand the use of clean and efficient energy resources, improve access to electricity as well as fuels for national development, and mitigate climate change. He added that the move would look into how to maximize the development of renewable energy sources in countries like Nigeria, which would lead to massive long-term prosperity.

A cleaner and more sustainable national energy system has been focused on.

According to Ricardo Gorini, Senior Program Officer and REmap Team Lead at IRENA, Nigeria has a rare opportunity to create an effective energy system based on renewable energy resources, which could aid in socioeconomic development and recovery whilst still addressing strategies for reducing climate change and adapting to it. He asserts that the research offers a specific renewable focus for the creation of a more efficient and environmentally friendly national energy system. Gorini also stated that the approach allows for the rapid expansion of renewable energy as well as the adoption of technology.


Disclaimer

The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. Images included with this information are not real, they are AI generated and are used for decorative purposes only. Our images are not depicting actual events unless otherwise specified. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.