According to power generation firms, Nigeria can create approximately 427,000 megawatts of electricity using solar energy.

Nigeria now produces less than 5,000MW for a population of over 200 million people.

For example, according to statistics acquired from the Federal Ministry of Power on Sunday, power generation on the grid as of 6 a.m. was 3,803.6MW.

Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, stated during a presentation titled “The Electricity Act 2023: Options for Renewable Energy Penetration and the Role of Stakeholders,” that solar energy could create more than 420,000MW of power in Nigeria.

She presented at the Renewable Energy and Energy Efficiency Association-Alliance’s one-day training on renewable energy penetration and stakeholder roles in Abuja.

She said, “The potential of renewable energy in Nigeria is huge. The country has solar radiation of 3.5 to 7.0 kWh/m2 per day, and 427,000MW can be generated in Nigeria from solar alone!

“Hydro resources are estimated at 14,750MW. Wind speeds of 2-5m/s with a potential of 150,000 TJ per year.”

Explaining the current renewable energy situation in Nigeria, the Gencos official 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 benefitted 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 harmonization and standardization in operational, security rules, contractual provisions, and tariffs are concerns.”

The President, REEEA-A, Prof. Magnus Onuoha, said with enough renewable energy capacity, Nigeria could create green jobs, and 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, the rising cost of energy dominant systems and measures, show us that it is time for a very critical rapprochement and behavioral change towards renewable energy and energy efficiency.”