Nigeria’s Renewable Energy – A country with more than 200 million citizens yet it has been reported that the country’s average electricity consumption is only 150 kWh per capita – almost half the amount of what it’s peer countries in Western Africa are consuming who have a significantly lower population.
With only 12 GW installed, and typically just one-third of that delivered, Nigerian power production falls far short of demand. It has become increasingly popular for Nigerian citizens to generate their own electricity using dirty diesel generators. The big question is, exactly how big is the demand-supply gap, and what is the Nigerian government doing to solve the short-fall of electricity to the nation, and is there an opportunity for foreign investors?
In the past month, the news headlines were light up following some significant announcements made by President Buhari as well as the World Bank in a continued effort to increase the supply of electricity in Nigeria.
In June 2020, the World Bank approved a $750 million loan to Nigeria to support the country in solving the lack of electricity and to revive the economy, with a specific focus on the private sector.
On 1 July, President Buhari launched a new $2.6 billion gas pipeline project that will further enhance the country’s energy security. The project will also facilitate the revival of moribund industries in the West African country. The Ajaokuta–Kaduna–Kano (AKK) pipeline is a 614-kilometer (381.5-miles) pipeline developed by Nigerian National Petroleum Corporation (NNPC) to transport natural gas from southern Nigeria to central Nigeria.
The project represents phase one of the 1,300-km (808-mi) Trans-Nigerian Gas Pipeline (TNGP) project, which is being developed as part of Nigeria’s Gas Master Plan to utilize the country’s surplus gas resources for power generation as well as for consumption by domestic customers. (NS Energy).
The country continues to focus on Nigeria’s renewable energy sources
Solar Energy Potential
Nigeria has enormous solar energy potential, with fairly distributed solar radiation averaging 19.8 MJm2/day and average sunshine hours of 6h/day. The assumed potential for concentrated solar power and photovoltaic generation is around 427,000 MW. So if you are in the solar business, investing in Nigeria’s renewable energy should be a business venture to consider. Solar panels are widely available at leading online stores in Nigeria and at leading retailers of solar power solutions in the country. The price of a 200W monocrystalline solar panels starts at around 39,000 Naira.
Hydropower Potential
Hydropower has been a cornerstone of grid-powered generation in Nigeria for decades. 15% of current power generation sources in the country are hydro based. The country is reasonably endowed with large rivers and a few natural falls. In all parts of Nigeria, potential sites for unexploited small hydropower exist, with an estimated total capacity of 3,500 MW.
Biomass Potential
The biomass resources of Nigeria are mainly sourced from crops, forage grasses, shrubs, animal wastes, and waste arising from forestry, agriculture, and municipal and industrial activities. Crops such as sweet sorghum, maize, and sugarcane are the most promising feedstock for biofuel production. According to estimates, the daily production of animal waste in Nigeria is about 227,500 tons, which could lead to about 6.8 million m3 of biogas.
InterGest South Africa specialised in assisting multinational companies enter African Markets. Our strategic focus is on providing comprehensive advice on planning and implementing a business basis in Africa.
If you are interested in learning more about the business opportunities available in Western Africa, we invite you to participate in our Free webinar taking place on 09 July 2020. You can register for the event by licking on the below link – alternatively contact us by sending an email to contact@intergest.co.za
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