Nigeria to ramp up solar supply as grid collapses intensify

Nigeria is set to improve its solar energy supply within the next two years as an alternative to the national grid, amidst growing concerns over the reliability of the current grid system. Sam Amadi, a Director at the Centre for Public Policy and Research and a former Chairman of the Nigerian Electricity Regulatory Commission, recently shared insights on this development. Amadi highlighted that Nigeria has always considered solar energy development, with existing renewable energy frameworks set by regulatory bodies such as NERC and policies like the Industrial Power Release, Energy Efficiency, and Renewable Energy Policy in place. However, the missing link has been significant fiscal incentives to stimulate developers and increase renewable energy projects. The government is now looking to prioritize policy implementation and provide fiscal support to accelerate renewable energy development. The goal is to gradually phase in renewable energy sources to account for 20% of the energy mix in the coming decade. Amadi explained that there is a global push towards renewable energy due to climate change commitments, but Nigeria also needs to balance its energy needs as a large gas-producing country. He emphasized the importance of ramping up renewable energy capacity to meet the increasing demand for energy in both industrial and commercial sectors. While the government aims for 30% of electricity supply to come from renewable sources, there are ongoing debates on the ideal energy mix for the country. One key aspect highlighted by Amadi is the need to rethink the national grid structure. He proposed moving towards modular grids and off-grid systems that are better suited for renewable energy integration. By diversifying grid systems, including mini-grids, and enabling consumers to generate and sell energy back to the grid, Nigeria can adapt to the evolving energy landscape. Amadi stressed the importance of leveraging technology and regulatory frameworks to achieve a more efficient and sustainable energy network. Amadi addressed the role of the private sector in driving solar energy implementation. While acknowledging the significance of private sector involvement, he highlighted the need for a robust policy framework and possible government support to kickstart solar projects. Government-private sector collaboration, as seen in models like the Ontario program in Canada, could ensure the successful deployment of solar energy initiatives. However, he noted that solar energy might not be a cheaper option compared to traditional sources due to scalability issues. Nonetheless, advancements in technology and economies of scale could lower costs over time. In terms of funding solar energy projects on a national scale, Amadi acknowledged the financial challenges. He highlighted the need for government support, possibly through partnerships with institutions like the World Bank, to supplement existing funds. With constraints on fiscal flexibility, Nigeria may face hurdles in optimizing the energy market and incentivizing consumers to embrace renewable energy solutions. As Nigeria charts its course towards enhancing solar energy supply, the road ahead will require a delicate balance between policy interventions, private sector participation, and financial strategies to navigate the energy transition effectively.