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.