Despite government efforts to develop a renewables policy, the lack of a robust regulatory and institutional framework, as well as policy insecurity, will mute private investment in Nigeria’s renewables sector into the long term.
NBET has reportedly renegotiated power purchasing agreements that it had signed in 2016 with 14 investors looking to build utility-scale solar power plants.
Against the backdrop of lacking regulation regarding IPPs’ renewable energy projects, we expect this to weigh on investor confidence.
Nigeria is endowed with abundant energy resources, both conventional and renewable, which can potentially provide the country with a sufficient capacity to meet the ambitions of both urban and rural Nigerians of a full, nationwide electrification level.
Yet, Nigeria has one of the lowest consumption rates of electricity per capita in Africa.
With the demand superseding the generation, there is inequitable access of rural communities to the electricity service in the country.
There are inherent obstacles militating against the effective implementation of an orderly energy policy in Nigeria.
The inefficiencies overshadowing the allocation of energy resources coupled with the near depletion of fossil fuels, make it imperative for the country to exploit its huge natural renewable resources to avoid a worsening energy supply scenario and provide feasible electricity to rural dwellers.
This paper presents a review of renewable energy potentials in Nigeria to be tapped for useful and uninterrupted electric energy supply.
The extent of renewable energy resources is described and existing government policies are articulated. Various polices, that could possibly incentivize the realization of wider renewable energy applications in rural Nigeria, are proposed.
The challenges and future prospects of renewable energy are also discussed.
Dissemination of decentralized renewable energy resources will not only improve the wellbeing of rural Nigerian communities, but also enhance Nigeria’s energy and economic prospects for potential global investment.