Nigeria’s renewable energy industry is entering a new stage of development as falling equipment costs and smarter infrastructure reshape the sector, according to industry leaders, with battery storage now seen as the next major frontier for investment.
“Component costs have fallen by more than 100 per cent over the last 10 to 15 years, and in some cases we’re seeing declines of 200 to 300 per cent,” said Ayo Adedimulua, president of the Renewable Energy Association of Nigeria, adding that the old perception of renewables as prohibitively expensive no longer reflects market realities. “Every naira spent on diesel or petrol is gone the moment it is burned. Every naira invested in solar panels or batteries continues delivering value over the lifetime of the asset,” he said, noting that Nigeria’s renewable potential extends well beyond solar into hydro, wind, biomass and geothermal resources still largely untapped.
“The next wave of capital will not go into generation. It will go into storage. That is where the unlock happens,” said Abba Aliyu, managing director and chief executive of the Rural Electrification Agency, who said the agency is developing 48 interconnected mini-grids with a combined capacity of about 288 megawatts to connect isolated electricity systems. He said all new REA-supported mini-grids use internet-enabled smart meters for two-way communication, improving load management, billing and predictive maintenance, while the agency has used artificial intelligence to map more than 750,000 communities nationwide to guide investment decisions.
Aliyu said the Electricity Act 2023 has opened new opportunities for private investment by devolving electricity regulation to state governments, though implementation has varied. “The reform is consequential, no question,” he said. “States have the authority now. The question is whether they have the ambition to use it.”
Source: (thisdaylive.com)