The Executive Secretary of the Association of Power Generation Companies, APC, Dr. Joy Ogaji, has stressed that Nigeria has the potential to generate over 42O,000 megawatts of electricity from solar radiation.
Nigeria currently generates less than 5,000MW for more than 200 million people from both her hydro and thermal sources.
Ogaji, who disclosed this while making a presentation titled, “The Electricity Act 2023: Options for renewable energy penetration and role of stakeholders”, said more than 420,000MW of power could be generated from solar energy in Nigeria.
“Hydro resources are estimated at 14,750MW. Wind speeds of 2-5m/s with a potential of 150,000 TJ per year”, she said.
Explaining the current renewable energy situation in Nigeria, the GenCos representative said there was no renewable energy generation connected at the distribution, or transmission level, though there were targets.
She said, “Majority (of the energy generation) are off-grid, solar home systems and rooftop solar, though there is no clear data. The cost of renewable energy in Nigeria at approximately $0.55 to $0.6/kWh is not competitive compared to utility, which is approximately $0.105/kWh.
“Achieving set targets with mini-grids will be a slow process. If 1,000 mini-grids of 1MW each are built, we will only achieve 1GW, gigawatts.”
On the challenges in the renewable market, she said domestic demand in West African countries was too low to attract investments in large projects that benefited from economies of scale.
Ogaji said, “Lack of effective planning and monitoring has led to reliance on emergency rental plants, which further inflates costs. Imbalance in bilateral contracts for the purchase and sale of electricity, especially for deliveries beyond the borders, payment defaults of buyers, as well as the failures to deliver the electricity promised by several sellers.
“There is a lack of synergy in the regulatory frameworks of some member states. Differences in contractual arrangements and disparities in the organization of national markets are challenges. Lack of harmonisation and standardization in operational, security rules, contractual provisions, and tariffs are concerns.”
Also speaking, the President, REEEA-A, Prof. Magnus Onuoha, said with enough renewable energy capacity, Nigeria could create green jobs, entrepreneurs and evolve women and youth empowerment.
Onuoha said, “Beyond installation and deployment of renewable energy and energy-efficient technologies, there are millions of ancillary jobs/efforts that accrue from there.
“There are so many activities, new dynamics, technologies, interventions, measures, policies, and relationships flowing around the renewable energy and energy efficiency sector.
“Globally, the Russia-Ukraine war showed us that beyond energy transition, we need to look vigorously at energy security. Here in Nigeria, the fuel subsidy removal, the Electricity Act recently signed into law, and the rising cost of energy-dominant systems and measures, show us that it is time for a very critical rapprochement and behavioural change towards renewable energy and energy efficiency.”
