By Uchechukwu Eke, PhD

Introduction

Nigeria, a country of over 200 million people, faces a crucial challenge in its energy transition, as over 140 million people, according to the International Energy Agency, about 71 percent of the country’s population do not have access to grid power. Nigeria has embraced the global movement towards clean and renewable energy sources, which are not only vital for the planet, but also for the prosperity of its people. Nigeria needs to diversify its energy sources by tapping into the abundant renewable energy opportunities that exist within its borders, as renewable energy is critical for job creation, poverty reduction, and sustainable development.

However, despite government initiating critical steps toward renewable energy adoption through policies such as the National Renewable Energy and Energy Efficiency Policy (NREEEP) and the Rural Electrification Strategy, Nigeria continues to face various challenges in its renewable energy development drive.

This article delves into the opportunities, barriers, and strategies necessary to mainstream renewable energy into Nigeria’s energy system. By delving into the opportunities, barriers, and requisite strategies, this article aims to guide Nigeria’s transition towards a more diversified, sustainable, and inclusive energy landscape.

Nigeria’s Renewable Energy Potential

Nigeria’s renewable energy potential is expansive and diverse, as detailed in the 2023 Renewable Energy Roadmap by the International Renewable Energy Agency (IRENA). The report estimates Nigeria’s total renewable energy potential at a staggering 427 GW, highlighting specific capacities: solar at 387 GW, hydro at 20 GW, wind at 10 GW, biomass at 8 GW, and geothermal at 2 GW. The country’s solar energy abundance stems from its strategic equatorial location, receiving consistent sunlight year-round, conducive for large-scale solar farms and decentralized installations like rooftop solar panels. In addition, substantial wind energy potential exists in the northern regions, complementing the overall renewable energy landscape. Nigeria’s numerous rivers and waterways offer further prospects for hydropower generation, evident in operational hydroelectric dams like Kainji and Jebba. Leveraging its rich agricultural sector, Nigeria possesses ample biomass resources derived from crop residues and organic materials, adding to its renewable energy potential. Although certain regions show promise for geothermal energy, further exploration is necessary to unlock its full capacity. With this diverse range of renewable resources, Nigeria is well-positioned for a multifaceted and sustainable approach to energy production.

Opportunities for Mainstreaming Renewable Energy in Nigeria

Nigeria, rich in natural resources, experiences increasing energy demands. However, reliance on costly and environmentally harmful fossil fuels dominates its energy landscape. Renewable energy—solar, wind, and hydro—offers a viable alternative, providing clean, affordable, and sustainable power for Nigeria’s growth. Key opportunities for renewable energy mainstreaming in Nigeria include:

Rural Electrification: Providing off-grid solutions like mini-grids and solar home systems can bridge the electricity gap for a large population of Nigerians living in rural areas.

Industrial Development: Renewable energy can enhance productivity and competitiveness in Nigeria’s industries by reducing energy costs, improving reliability.

Climate Action: Embracing renewables aligns with Nigeria’s commitment to the Paris Agreement, aiding in emission reduction, climate resilience.

Job Creation and Poverty Alleviation: Renewable energy offers substantial employment opportunities for Nigerians across sectors like manufacturing, installation, and maintenance, potentially lifting incomes and stimulating economic growth.

Barriers to Renewable Energy Mainstreaming in Nigeria

Despite the potential benefits, various economic, technical, policy, and institutional barriers hinder renewable energy integration:

Economic Realities: High upfront costs and limited financing options prevent widespread adoption of renewable energy systems, leaving many, like rural entrepreneur James, unable to afford installations.

Technological Complexities: The intermittency and variability of renewable sources such as solar and wind pose challenges, requiring complementary energy sources or storage systems.

Policy and Regulatory Framework: Nigeria lacks clear and consistent policies and regulations supporting renewable energy development, leading to uncertainty among investors and developers.

Grid Infrastructure Planning: Insufficient grid infrastructure and outdated systems hinder the accommodation and integration of renewable energy sources.

Energy Efficiency Issues: Poor energy efficiency increases energy demand, making renewable energy less appealing and affordable, ultimately hindering mainstream adoption.

Strategies for Overcoming Challenges to Renewable Energy Mainstreaming in Nigeria

To mainstream renewable energy effectively, Nigeria requires a holistic approach involving finance, technology, policy, grid planning, capacity building, and education. Key strategies include:

Financial and Non-financial Incentives: Provide incentives like tax breaks, grants, and technical assistance to reduce costs and risks for renewable energy projects.

Technological Advancements: Leverage advancements like smart grids and standardization for improving efficiency, reliability, and affordability of renewable energy systems.

Policy Reforms: Implement comprehensive policy reforms that encourage renewable energy investment through mechanisms such as feed-in tariffs, renewable portfolio standards (RPS), tax incentives, and Public-Private-Partnerships (PPPs).

Grid Capacity Expansion and Infrastructure Modernization: Prioritize investments, foster public-private partnerships, implement supportive regulations, and continuously evaluate progress for efficient grid expansion.

International Partnerships: Engage in regional and global initiatives for knowledge sharing, capacity building, and technology transfer in renewable energy.

Public Awareness and Education: Conduct awareness programs to promote the benefits of renewable energy and increase social acceptance.

Unlocking Nigeria’s Renewable Energy Potential: Overcoming Barriers for a Sustainable Future

Renewable energy offers a myriad of opportunities for Nigeria, yet it faces challenges of cost, policy gaps, grid limitations, and poor energy efficiency. Confronting these barriers through comprehensive and effectively implemented policies, collaborations, awareness campaigns, and technological advancements can help Nigeria harness its renewable energy potential for a sustainable future. Nigeria must seize this opportunity to combat energy poverty and pave the way for a more sustainable tomorrow.

Dr. Eke, writes from the Observatory for Innovative Policy Analysis (OFIPA)