Tapping alternative sources for Nigeria’s power generation

In a bid to address challenges such as higher tariffs and reduction in carbon emissions, power generation companies in Nigeria are increasingly looking towards alternative energy sources. With the price of natural gas on the rise, experts believe that diversifying energy sources is crucial for sustainability. Ejiro Gray, the Director of Governance and Sustainability at Sahara Group, recently discussed the company's installation of 15 wind turbines at Nigeria's Egbin Power Plant in a CNBC Africa interview. The move towards renewable energy comes as a strategic decision to reduce emissions and explore cleaner energy options in the Nigerian power sector. Gray highlighted the importance of a multifaceted approach to sustainability and emphasized the need to innovate in the sector to address environmental concerns. The installation of wind turbines at Egbin Power Plant marked a significant milestone for Sahara Group, demonstrating the company's commitment to exploring alternative energy sources. Gray explained that the wind turbines helped reduce emissions by 35,000 kilograms of CO2 annually, signaling a positive step towards cleaner energy generation. While solar energy remains a popular choice due to its abundance in Nigeria, Sahara Group's foray into wind energy reflects a broader commitment to sustainability and environmental stewardship. Despite the focus on renewables, Gray emphasized the continued importance of gas in driving energy security in Nigeria. He highlighted the need for a gradual transition to renewable energy, acknowledging that the current pace of renewable energy development may not meet the rapid growth demands of the Nigerian economy. Gray underscored the significance of striking a balance between conventional energy sources like gas and emerging renewables like wind and solar. Looking ahead, Sahara Group's expansion plans include a mix of renewable energy and gas to meet the country's growing energy needs. The company's strategy aims to increase installed capacity while integrating renewable energy solutions in a pragmatic manner. Gray noted that while renewable energy presents opportunities for growth, gas remains a critical component in Nigeria's energy mix, particularly for ensuring a reliable power supply. The broader outlook for Nigeria's power sector calls for regulatory reforms and investment in key enablers to drive industry progress. Gray stressed the importance of creating an enabling environment for renewable energy investments and addressing challenges such as liquidity issues and debt owed to power generation companies. He advocated for targeted deployment of renewable energy solutions in underserved areas, complemented by efforts to improve the national grid and enhance gas supply to power plants. In conclusion, Sahara Group's venture into wind energy at Egbin Power Plant signifies a step towards a greener future for Nigeria's power sector. By embracing renewable energy solutions alongside traditional sources like gas, the company is positioning itself as a key player in Nigeria's energy transition. As the sector navigates challenges and pursues growth, the integration of sustainable practices and innovative technologies will play a pivotal role in shaping the future of power generation in Nigeria.