Grid to Gigawatts: Nigeria Roadmap to Distributed Power out of Blackouts

Grid to Gigawatts: Nigeria Roadmap to Distributed Power out of Blackouts

Electricity in Nigeria is a nightmare and a dream. Whenever people are at home at night they are reminded that power is a privilege because of the hum of generators that fill the air in the country. The root cause of the relentless blackouts is a more serious struggle to move off of fuel reliance and towards a more intelligent and cleaner, and more equitable energy future.

The Promise and the Paradox

Nigeria has committed to achieving the net-zero emissions by 2060. The Energy Transition Plan provides the plan in which the country plans to transition out of its fossil-intensive economy to renewable energies. Nevertheless, the paradox is that there are people living in darkness even today. Nigeria lacks electricity in over 85 million people and many others receive power that lasts a couple of hours daily.

The world debate is usually concerned with reducing emissions, however, in Nigeria the issue is more basic. How do we have the lights on everybody? Here poverty is not a concept that is based on energy; it is the determinant of how children learn, how money-making businesses fly and how hospitals work. Access, dignity, and opportunity are key areas that clean energy should start.

What is Important About Distributed Renewables?

Nigeria cannot be serviced by the national grid using its present demand and even in the coming future. It is ancient, decayed, and habitually performs less than half service. It will require years and immense investments to expand it. An expedited and more viable route would be distributed renewable energy (DRE) in the form of mini-grids, solar systems and community-based power solutions.

These are small systems that already have started to create an impact both in rural and peri-urban neighborhoods nationwide. They are working in other states such as Ogun, Katsina and Nasarawa where they are showing that people do not need to wait until the grid arrives in their area and they are able to have an efficient power supply. Millions of dollars are being invested in mini-grid initiatives, which combine low cost with community control, by international partnering companies and by individual developers. At such locations, individuals are not consumers anymore, but they have a vested interest in the way their energy is generated and used.

Gas as a Bridge

The future is renewables, and it will not be able to supply power to the industries in Nigeria overnight. Natural gas is still a viable intermediate in this change. In the meantime, gas reserves in Nigeria can be used as an alternative to the use of diesel and coal as alternative energy sources as more renewable capacity increases.

The gas usage should however be tactical. Excessive dependence might put the nation back into a new sphere of dependence. Industries, electricity stabilization, and inappropriate areas should mainly rely on gas to be powered, and renewables are not feasible at the moment. Leak detection should be done properly, methane controls followed strictly and timelines to phase-out should be put in place in case gas should be utilized to achieve its goal without compromising climate goals.

The Financing Challenge

Energy transition is not only about money, but about trust as well. Renewable projects are viewed as risky by local banks, thus making it difficult to access credit by developers. That is slowly changing. Funds raised by donors are intervening to de-risk investments, by concentrating on outcomes instead of installations.

This method charges the companies based on the quantity of electricity delivered and not on installations. It establishes responsibility and vacuity of allowing local entrepreneurs to flourish without a tremendous capital base. These types of financing may serve as the basis of clean energy development in Nigeria in case it is scaled adequately.

The Politics Below the Power Lines.

Nigeria has never been outside of politics in energy reform. The policies change with governments and there are usually vested interests in fossil fuels that act sluggishly towards improvement. The decision to eliminate fuel subsidies was economically viable but politically unpopular especially since there were no adequate support mechanisms to take care of the poor.

To attain momentum of change, it should demonstrate tangible advantages. The citizens must experience a more credible electricity, a cheaper energy source and new employment opportunities produced by clean technologies. Once the fruits of reform are visible, the government will gain more credibility, and the transitioning phase would no longer seem like a far-off promise of the government.

The Way Forward

The future of energy in Nigeria lies in a moderate course. Three things are critical:

            1.         Fix the grid. Invest in transmission, metering and anti-theft systems in order to stabilize supply in urban centers.

            2.         Scale off-grid power. Incentivizing, training and community involvement will help grow solar and mini-grids.

            3.         Use gas wisely. Using it as a path to clean energy, but not as an alternative to it.

When these components are transported together they have the capacity to form a system that serves the homes, industries as well as the schools without intensifying the environmental damages.

A Quiet Revolution

The energy transition in Nigeria is not that of substituting one source of power with another. It is of restoring faith in the systems of the people and providing the citizens with a feeling of control of their future. Every mini-grid switching on a community is not just infrastructure but it is an indication that development can be fair and sustainable.

Should Nigeria make it, the nights will no longer be filled with the sound of generators, but with the silence of an engine that is finally starting and running on its own.

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