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Scaling Utility-Enabled Distributed Energy Resources in Nigeria

Scaling Utility-Enabled Distributed Energy Resources in Nigeria

Full Title: Scaling Utility-Enabled Distributed Energy Resources in Nigeria: A Roadmap to Boost Distribution Company Revenues and Improve Power Availability and Reliability for Customers
Author(s): Collins Dadzie, Olatunde Okeowo, Alberto Rodríguez, Sakhi Shah, and James Sherwood
Publisher(s): RMI
Publication Date: June 1, 2024
Full Text: Download Resource
Description (excerpt):

Utility-enabled distributed energy resources (DERs) provide a unique opportunity to address the
persistent challenges of power availability and reliability in Nigeria. Leveraging the momentum
generated by initial “first-wave” projects, this strategic roadmap shows that a more than 20 GW
market opportunity is possible with the rapid expansion of utility-enabled DERs across
Nigeria over the next 10 years. This roadmap recommends solutions to address challenges
encountered by distribution companies (DisCos) and developers in reaching this scale. It
suggests a massive investment opportunity for distributed solar photovoltaics (PV), batteries,
and gas backup technologies that offer clear and tangible benefits for DisCos, project
developers, and customers:

• With new DER assets, each DisCo can increase its revenue by an average of over ₦70
billion (~$50 million) every year over the next decade.

• DisCos can reduce ATC&C losses by up to 20% across their respective territories if
distribution network upgrades are included as part of the DER scope.

• Customers served by DERs can save up to 25% on their energy costs by displacing
existing fossil-fueled self-generated power, such as from diesel generators.

• DERs present an investment opportunity of nearly $14 billion across Nigeria in
generation assets over the next ten years.

• Current regulations support commercial viability by allowing project developers to
charge cost-reflective tariffs.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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