A new report has shown that the development of off-grid power alternatives to complement the grid in Nigeria will create a $9.2 billion market opportunity for mini-grids and solar power systems.
The report, titled: “Minigrids in Nigeria: A Major Investment Opportunity”, is an independent assessment of the Nigerian mini-grid market, articulated in a partnership between Rural Electrification Agency (REA), the World Bank (Energy Team) and Rocky Mountain Institute (RMI).
The report stated: “There is an annual $9.2 billion market opportunity today for mini-grids and solar home systems that will save Nigerians $4.4 billion annually.”
The report also pointed out that Nigeria was providing an enabling environment for off-grid market growth, including developer protection through the Nigerian Electricity Regulatory Commission (NERC) Mini-grid Regulations.
Meanwhile, the REA is tasked with developing the Nigerian off-grid power market. The agency created the Off-Grid Electrification Strategy as part of the Power Sector Recovery Programme (PSRP). The strategy’s primary objective was to increase electricity access to rural and under-served clusters.