Affordable electricity in Nigeria via local renewable power networks

In Nigeria, a country with an estimated population of 226 million as of 2023, the energy landscape is undergoing a significant transformation. The energy mix, predominantly reliant on non-renewable, thermal sources like natural gas and coal, is shifting, driven by a focus on renewable energy.

This shift is spearheaded by the Nigerian Rural Electrification Agency (REA), an organisation responsible for electrifying rural and unserved communities. Despite progress, approximately 92 million people in Nigeria still lack power, highlighting the need for continued efforts to expand energy access.

Many rural communities in Nigeria face severe energy poverty, with only about 30% having access to electricity. As a result, they often rely on expensive and polluting diesel generators. This situation not only strains local economies but also negatively impacts essential services like healthcare and education.

However, the situation is changing. Renewable sources in Nigeria have a potential of over 68,000 MW, and the government's energy transition plan, launched in 2021, aims to achieve universal energy access by 2030 and a carbon-neutral economy by 2060. This plan mirrors the recent S&P Global Commodity Insights projection that solar will receive the largest share of clean energy investments in 2024, accounting for about 55% of the total $800 billion expected globally.

The REA has funded and overseen the deployment of renewable energy solutions, resulting in the generation of 600 MW of electricity, impacting about five million people across the country. One such success story is the implementation of solar mini-grid systems. For instance, a 100 kW system powered six communities, providing energy for over 8,155 people, including 5,000 active farmers.

Local renewable grids have made a significant impact on Nigerian communities by providing affordable and reliable electricity. Collaborations have enabled the installation of solar mini-grids in local communities with the implementation of SHS technology and innovative solutions like the CoolCycle initiative, which repurposes discarded generator materials to create solar-powered cooling systems.

The lack of reliable electricity in rural communities hinders economic activities, access to clean water, healthcare services, and educational opportunities. However, as the country continues to invest in renewable energy, these challenges are being addressed. For instance, the Abaribara project in Cross River State installed a 27 kWp solar hybrid mini-grid, drastically improving the power supply of the whole community.

Despite the progress made, there is still a long way to go. As of 2021, the electricity access rate in Nigeria was 59.50%. Nevertheless, Nigeria's focus on solar energy and ongoing partnerships between government, private sector, and local communities indicate a commitment to expanding energy access, promoting economic development, and improving the overall quality of life for its rural population.

The exact number of people in Nigeria who received government-supported off-grid solutions like solar mini-grids and solar systems in 2023 is not explicitly stated. However, multiple projects and initiatives, including partnerships at the state level (e.g., Kaduna State) and efforts to scale mini-grid market development, indicate ongoing deployment and government engagement in off-grid renewable energy solutions.

Developing off-grid alternatives could create a $9.2-billion-per-year market opportunity for mini-grids and solar home systems. By embracing renewable energy, Nigeria is not only addressing its energy needs but also positioning itself as a leader in the global transition to a sustainable energy future and increasing its share of renewables in the energy mix.