Nigeria’s power generation landscape could witness a monumental transformation, as power generation companies reveal that the country has the capacity to harness a staggering 427,000 megawatts of electricity from solar energy. Presently, with a population exceeding 200 million, Nigeria struggles to generate a meager 5,000 megawatts. According to data from the Federal Ministry of Power, recent power generation stood at a mere 3,803.6 megawatts.
In a compelling presentation titled “The Electricity Act 2023: Empowering Renewable Energy Penetration and Stakeholder Engagement,” Joy Ogaji, CEO of the Association of Power Generation Companies, highlighted the massive potential of solar energy in Nigeria. Speaking at a workshop organized by the Renewable Energy and Energy Efficiency Association-Alliance, Ogaji stated that solar radiation levels in the country range from 3.5 to 7.0 kWh/m² per day, with the potential to generate over 420,000 megawatts from solar sources alone.
However, challenges loom in the transition to renewable energy. Ogaji underscored that the majority of energy generation remains off-grid, primarily through solar home systems and rooftop solar installations. She pointed out that the cost of renewable energy, currently around $0.55 to $0.6 per kWh, remains higher than traditional utility costs of approximately $0.105 per kWh. Achieving targets through mini-grids presents a gradual process, with building 1,000 mini-grids of 1 megawatt each resulting in a total capacity of just 1 gigawatt.
Amidst these challenges, harmonization of regulatory frameworks, contractual arrangements, and market organization emerge as vital concerns. The lack of synergy among member states and discrepancies in operational rules, security measures, and tariffs impede progress in the renewable energy sector.
In light of the immense potential, Prof. Magnus Onuoha, President of the Renewable Energy and Energy Efficiency Association-Alliance, emphasized the transformative impact of renewable energy. He noted that beyond direct energy generation, the sector could create numerous ancillary jobs and opportunities, driving green job creation, entrepreneurial ventures, and empowerment for women and youth.
As global events underscore the importance of energy security, Nigeria is positioned to embrace a critical shift towards renewable energy and energy efficiency. With recent legislative changes and mounting challenges in traditional energy systems, the path to a greener future becomes increasingly essential.