The Journey to the Renewable Energy Era

Energy plays an important role in the growth and development of any economy, because it propels all productive activities. In order to bridge the energy gap in Nigeria, experts have advocated for the federal government to tap into the potential of the renewable sector. Ugo Aliogo in this report examines

A report has revealed that apart from fossil fuels, Nigeria has abundant potential for renewable energy production, such as solar, hydropower, biomass and wind.

The report remarked that while much of this clean energy potential has gone untapped, present realities provide an ideal opportunity to change its energy mix, and deliver more reliable power to its citizenry.

Nigeria and most sub-Saharan African countries are vulnerable to the effects of climate change.
As a party to the United Nations Framework Convention on Climate Change (UNFCCC) and other frameworks (such as the Kyoto Protocol, Paris Agreement, and nationally determined contributions (NDCs)) aimed at combating climate change and reducing global greenhouse gas (GHG) emissions, Nigeria participated in the 2021 UN Climate Change Conference (COP26) and committed to
achieve net-zero by 2060.

Achieving this will require a shift away from fossil fuels to renewable energy sources like wind and solar—as well as the provision of clean, affordable and reliable energy for the nearly 90 million Nigerians currently living without it.

The Director of the International Renewables Energy Agency (IRENA), Francesco La Camera, said: “Nigeria can provide sustainable energy for all its citizens in a cost-effective manner by using its abundant, untapped renewables. Nigeria has a unique opportunity to develop a sustainable energy system based on renewables that support socioeconomic recovery and development, while addressing climate challenges and accomplishing energy security.”

The renewables report by IRENA shows that renewable energy sources can meet nearly 60 percent of Nigeria’s energy demand in 2050. This could cut the country’s demand for oil by 65 percent and natural gas by 40 percent, and could see renewables account for 47percent of total energy demand by 2030, and 57 percent by 2040, impressive figures for a country without an established history of renewable investment.

Nigeria’s march to renewable energy requires the commitment of the private and public participants. Both players are crucial players in this sector. Stakeholders in the sector have recognised the fact the Nigeria’s energy sector faces numerous challenges, from inadequate infrastructure to policy inconsistencies, and solar power is no exception. Despite the abundance of sunshine, there is need to face the hurdles in harnessing this renewable energy source.

As part of scaling the efforts of the private sector, a colloquium with the theme: “Solar Power in Nigeria-Matters Arising” was organised by Kon-X Limited.

Earlier in his remarks, the Managing Director, Kon-X Limited, Deric Legogie, stated that the adoption of renewable energy in Nigeria is in it very early stages but is growing rapidly.
He also disclosed that the level of adoption also varies across States and cities, adding that Solar power has been much more adopted compared to wind, hydro or biomass.
He hinted that developers in Lagos and Abuja are beginning to use the provision of solar alternative power as competitive advantage in town homes.

Legogie further explained that the federal government has set the target of achieving about 30GW by year 2030 with the aim of ensuring that 9GW of that is through renewable energy, noting that government is working to achieve that target.

He disclosed however that success would be measured through results not just efforts. Therefore while the government work towards the midterm goal of 2030, they should pick the low hanging fruits.

He advocated for policies, waivers, relief, energy credit policy and others, that would create some immediate movement in the sector.
He averred that in view of the high initial investment cost both to solar energy providers and citizens who are the end users, special funding accessible to all deserving should also be provided to enable the lower-middle income class and lower income class adopt solar as power alternatives.

On his part, the President of the Renewable Energy Association of Nigeria, (REAN), Ayo Ademilua, noted that there is a surge in the adoption of renewable energy in Nigeria.
He stated that in the last 10-15years, REAN have been driving the industry for increased adoption of renewable energy sources, adding that presently, people have begun adopting renewable energy because of the challenges the country has with power from the grid.

He further explained that Nigeria is lagging far behind in renewable energy generation and distribution.

According to him, “In terms of global competitiveness of renewable energy, Nigeria is about no 4 on a scale of 1-10. I would say we are between 3 and 4 in terms of awareness and adoption globally. While in African, we are between 5th and 6th positions.

“Government is committed to the renewable energy sector, because they have been driving the growth of the sector in the last 10-15 years. Remember the federal government vision of 30:30:30, which aims at achieving 30 GW of electricity by the year 2030, with renewable energy contributing 30 percent of the energy mix.

“As at 2015, the government rolled out a policy that stated this, so it tells you that government has always been mindful of having renewable energy as co-part of the mix in the energy sector in the country. So, the Nigeria is ready and it is working on getting renewable energy adoption widely spread in Nigeria. Government is working on different policies that would help increase adoption. So, I would say that the government is working on it, although we are not where we are supposed to be yet. But they have demonstrated some will power and intention.”

Domestic Production

As part of efforts to drive local production in Nigeria, in January, 2023, the Nigeria Sovereign Insurance Authority (NSIA) completed the development and construction of a 10MW solar farm in the Kumbotso Local Government Area (LGA) of Kano State on behalf of the Federal Government of Nigeria, the Kano State Government, and Kumbotso Local Government Area.

The $16 million photovoltaic (PV) solar power plant which sits on a 24 Hectare parcel of land, and associated 12km energy evacuation infrastructure is the largest utility-scale solar farm in Nigeria.

The inauguration of the project was a remarkable feat delivered under a very tight timeline despite significant supply chain challenges in the aftermath of COVID-19.

In Nigeria there are top five solar PV plants in developments, and they include; the Argungu Solar PV Park, a 5,600MW Solar PV power project located in Kebbi, Nigeria. The project is currently in announced stage. The project is expected to enter commercial operation in 2027.

The 360MW Gezhouba Lagos Solar PV Park is located in Lagos, Nigeria. It is owned by Falcore Power and Energy.

The Jigawa Solar PV Park is a 1,000MW Solar PV power project in Jigawa, Nigeria. The project is expected to come online by 2025. The project is currently in announced stage.

The Lafia Solar PV Park is a 350MW Solar PV power project. It is planned in Nasarawa, Nigeria. The project is currently in permitting stage.

The 270MW Solar PV project, Gombe Solar PV Park is expected to get commissioned by 2026. It is being developed by Sun Africa; Sterling and Wilson. The project is currently in permitting stage.

The Kon-X Limited MD said a factory has already been commissioned for the manufacturing of solar panels in Nigeria and there are about 2 others working to come onboard, adding that there is progress although not so much in respect of manufacturing solar batteries locally, “we have more of foreign manufacturers who currently partner for local distribution.”

Ademilua espoused that government is really serious about local production and they are driving it, adding that the private sector is there to work with them to see how we can drive local production.
He hinted that in 2023, the sector witnessed the setup and completion of 1megawatts of solar plant in Lagos by one of its members Asolar Nigeria, “so, we look forward to seeing more of that happen from our members and non-members in line with what the government is trying to achieve.”

Energy Transition Plan

The Energy Transition Plan (ETP) seeks to promote a fair, inclusive and equitable energy transition (which posits gas as a “transitionary fuel”) and ensure that Nigeria’s poverty eradication and economic development strategies are configured around energy transition initiatives. The ETP is anchored on poverty eradication through an increase in the standard of living for over 100 million people. ETP is aimed at driving sustainable economic growth in key domestic commercial sectors. It will also provide universal electricity access to the population.

Speaking on the importance of ETP, Legogie, said renewable energy would continue to play a very vital role in the energy transition plan, adding that it is the future and it is one of the few sectors in which stakeholders are gainfully exploring the gift of nature rather than exploiting nature.
He remarked that with the right policies and business environment, the renewable energy space would continue to grow.
He added: “We must engage research to ensure that renewal energy is locally adapted beyond residential use and effectively deployed in healthcare, manufacturing and agriculture.”

Sectoral Growth in 2023

In terms of sectoral growth, Ademilua, stated that in 2023, the sector witnessed slightly greater growth than in previous years due to the launch of the Nigeria Energy Transition Plan two years ago, noting that the energy transition plan has to leverage on renewables and other climate friendly measures.

He said “from where we stopped in 2023, we will do more advocacy, and run more partnership with government to drive the energy transition plan of the government as rolled out. We want to be in the fore front of supporting the government’s initiatives for renewable energy adoption in the country.”

Adoptability and Pricing

The REAN President revealed that the renewable energy sector is an economical driven project, noting that the current economic conditions of the country especially the macroeconomic policies which drives activities of the business men, has not been favourable for doing business in the country.
“At the level of REAN, we are trying to attract some international development finance institutions. We are also working to get some form of instrument that will help de-risk and provide some demand side subsides to make it easier and affordable for consumers to purchase.” he stated.

Carbon Footprints, Energy Financing and Sustainability.

Ademilua reiterated that the essence of the Nigeria transition Energy Plan is to get the country to net zero by the year 2060, pointing out that the government is putting in all efforts to drive Nigeria to net zero carbon emission by 2060 particularly in transportation and domestic usage.

Continuing, he added: “In terms of climate financing in Nigeria, we are beginning to witness interesting times. Before now, we didn’t have the commercial banks and other investors really interested in climate financing. But in the last one to two years, we are beginning to see a lot of interest arising from the banks towards climate financing.

“We also have different funders such as NSIA, The Global Energy Alliance for People and Planet (GEAPP), Chapel Hill Denham (CHD), and others coming to finance climate change related projects in Nigeria. We are expecting that in the years to come, we will witness a lot increase and interest in climate financing in Nigeria.

Energy sustainability in Nigeria is driven by government on one side, but it is also driven by economic hardship on the other side. You will realise that the citizens of Nigeria are trying to get a lot more energy efficient. NTEP act of 2023 is a major catalyst towards the planning for energy sustainability. We are getting more innovative in energy sustainability systems in Nigeria.

There is a measure of will power from the government towards energy sustainability which is essential to ensuring Nigeria achieves her energy goals”.