Solar PV to drive renewable power expansion in Nigeria
The Nigeria renewable energies sector has a multitude of growth possibilities. Nigeria plans to increase the share of renewable electricity production to 23% in 2025 and 36% by 2030. As part of the Renewable Energies Plan (RAID), the country planned to increase the cumulative installed capacities of small hydroelectricity, solar PV, biomass and wind power at 2GW, 500MW, 400MW and 40mw by 2025, respectively. In this context, renewable energy capacity in the country should reach 1.7 GW in 2035, recording an annual growth rate (TCAC) of 18.9% in 2024-2035.
Annual electricity production in Nigeria should increase to a TCAC of 17.5% in 2024-2035 to reach 1.8TW. In the renewable energies sector, Solar PV technology is distinguished as an important perspective of investment. There has been a significant increase in adding PV solar capacity to the country in recent years. A main catalyst for this overvoltage is the rep.
Nigeria is based strongly on thermal sources for its electricity production. The nation has one of the largest natural gas reserves in the world and the most extensive in Africa, which has led to the increasing prevalence of the production of thermal energy in the country.
An important challenge that electricity generators meet is the absence of a guaranteed fuel supply, resulting in the underused of assets. After privatization, there was a lack of infrastructure to promote an environment conducive to the effective execution of fuel supply agreements, which are essential for establishing bankable electricity purchasing contracts.
To overcome this challenge, the country has focused on renewable energies, in particular solar PV, to meet part of its electricity needs. Nigeria, the most populous nation in Africa, is experiencing rapid urbanization, which leads to an increase in household electricity demand for lighting, cooking, refrigeration, cooling, entertainment and various household appliances. The industries with high power intensity such as cement, food transformation and textiles are also important consumers of electricity.
Due to the unreliable supply of the network, many companies use operational diesel or petrol generators, indicating that real energy demand is considerably higher than what grid consumption data suggests. Renewable energy capacity with energy storage will help overcome this problem.
The main catalyst for the adoption of PV solar technology in Nigeria is the serious energy poverty problem and the inconsistency of electricity supply. Consumer preference for solar PV results from the demand for reliable power.
