Agusto Tasks Government For The Implementation Of Renewable Energy Sources And Energy Diversification
The Nigerian government has been tasked with using regulations and incentives to stimulate innovation in renewable energy technology in order to diversify its energy sources, as the country has an unmet energy demand of roughly 20,000 megawatts (MW).
The company observes that although if grid-connected electricity supply continues to be the most affordable source of energy in Nigeria, it is not always economically advantageous to build gas pipelines and/or transmission cables to some isolated settlements with low electricity demand.
With 23 thermal plants accounting for 76% of the country’s installed generating capacity, gas dominates Nigeria’s present energy mix. However, due to price limitations, regulatory barriers, and pipeline vandalism, the domestic gas market has underinvested for years, raising concerns about the commercial feasibility of gas delivery to the power sector.
The International Energy Agency (IEA) estimates that by 2026, renewable energy sources will be responsible for roughly 95% of the growth in the world’s power capacity, with solar photovoltaics (PV) accounting for more than half of that growth.
In the coming years, the world’s ability to produce electricity from renewable sources like solar cells, wind turbines, and other sources will greatly increase. Renewable energy is expected to receive $472 billion in investment in 2022, a 44% increase from the $326 billion invested in the sector in 2017.
With over 47% of Nigerians lacking access to grid electricity and those who do endure frequent power outages, the problems facing the country’s power sector are widely known, extensive, and cut across the whole value chain of the sector.
Agusto & Co also cautioned that although Nigeria has committed to reducing its greenhouse gas emissions by 20% between now and 2030 and to achieve net-zero emissions by 2060, those goals are rather lofty given that the nation still struggles with insufficient national grid electricity supply, with unmet demand estimated to be around 20,000 megawatts (MW).
In spite of these obstacles, Agusto noted that potential exists because the nation has a significant solar energy potential and has access to abundant and diverse natural resources that allow it to produce significant amounts of clean and renewable energy (particularly solar energy). This is because the nation is situated within a high s BMTunshine belt.
Agusto & Co. is of the opinion that renewable energy sources need to be added to the current energy mix.
According to the Nigerian Meteorological Agency (NIMET), “the average yearly daily sunshine in Africa’s largest economy is 6.25 hours. Nigeria’s Northern region enjoys average solar radiation of about 25.2MJ/m2 (megajoule/square metre) per day, with an average of 12.6MJ/m2 in coastal areas. Wind speeds ranging between 2.5m/s and 6.5m/s in the Northern region of Nigeria, owing to the large expanse of dry land, also present opportunities to generate wind power, while biomass remains a potential and untapped source of bio-energy given the amount of waste produced.
“Renewable energy plants can be constructed in remote areas as an alternative to running several kilometres of transmission cables, which are subject to vandalism. The poor and erratic power supply from the national grid also provides opportunities for small-scale renewable projects for individual households.”