[SPECIAL REPORT]
1. Power Generation: On-grid and Off -grid
With the privatisation of power generation, there has
since been a myriad of opportunities to invest in this arm of
the power sector. As a result of the immense power defi cit,
vis-à-vis the high cost of self-generation, there is a large and
ready market for on-grid power generation in Nigeria.
There are also opportunities for investment in off -grid
power solutions or ‘mini-grids’ which typically provide for
smaller communities; such as rural areas, industrial clusters
and residential estates. It is estimated that about 42 percent
of Nigerian businesses generate their own power supply to
augment the national grid supply.
2. Power Distribution
Given the fact that electricity consumption in should
be four to fi ve times the amount it is today, Nigeria also
contains a bed of opportunities in the distribution phase of
the power value chain. The federal government has no direct
equity interest in Nigeria’s distribution companies, popularly
known as ‘DisCos’ — there is a ready market for Nigerians
who are willing to get on-grid and pay for their electricity
consumption.
3. Manufacturing of Equipment
There are also opportunities in the manufacturing of
power sector tools and equipment. Most of these equipment
are currently being imported, which therein presents
opportunities in import substitution.
Manufacturing of transformers,
meters,
control
panels,
switchgears, cables, and other
electrical related equipment
are considered as pioneer
products/industries.
Renewable Energy – Targets
The present administration has expressed its commitment
to pursuing and developing alternative sources of power with
a special focus on renewable energy.
With respect to the renewable energy market, the FGN
introduced Feed-In Tariffs (FIT) as a tariff regulatory
mechanism to accelerate investment in renewable energy
sources. The FIT regime guarantees a stable price for
electricity generated from renewable sources for a fi xed
duration, thereby securing adequate returns on investment.
In 2015, Nigerian Electricity Regulatory Commission
(NERC) approved new regulations that aim to:
• Promote investments in renewable energy sources, and
• Boost power generation through the inclusion of
renewable energy
Under listed are the expected renewable energy projections:
• 18 percent of electricity from renewable energy by 2025
• 20 percent of electricity from renewable by 2030
• 100MW of small hydropower by 2015 and 760MW by
2025
• 300MW of Solar PV by 2015 and 4000MW by 2025
30 • Nigeria-India• 2018