Although Nigeria has abundant biomass potential, solar energy has become synonymous with renewable energy in Nigeria. This is not unconnected with the country’s vast natural endowment and solar’s strengthened business case in the face of rising conventional energy costs.

Our research shows that the National Electricity Regulatory Commission, the industry watchdog, has issued no less than 368 licences for off-grid, captive and embedded generation, mini-grid permits (100kW to 1MW) and mini-grid registrations (<100kW) since 2022. Licences granted for off-grid, captive and embedded generation were for solar photovoltaic (PV) or gas plants. However, the majority of mini-grid approvals and licences were for solar PV. This shows a growing appreciation of solar PV in Nigeria. We expect this to continue as the industry begins to produce more referenceable data on solar PV performance.

For our second and third-quarter publications, we will undertake a three-part case review to highlight some of the lessons learned from existing public-private solar initiatives in Nigeria. In line with our aim to showcase the opportunities in the industry, we expect this will help industry stakeholders to remain aware of the challenges and opportunities in the industry. In this first of the series, we will look at donor-funded renewable energy (solar) initiatives in Nigeria.