The Rocky Mountain Institute and Nigeria’s Rural Electrification Agency have partnered to reduce the costs of energy generated from mini-grids.
The two have developed a framework set to be implemented over the next three years to achieve $0.20/kWh from electric mini-grid technology by 2020.
The framework will be issued on May,1 2018 and will highlight the capital required, associated risks and other requirements needed to help the West African state expand its rural energy infrastructure.
Mini-grid market expansion
In developing the framework, the two parties have worked with 50 industry leaders and experts and discussed six key areas requiring attention to expand the mini-grid market in Nigeria.
The six topics discussed include grid-in-a-box hardware, better load management, effective customer engagement, efficient project development and operations and maintenance, affordable finance and supportive policy.
Expanding the mini-grid market is expected to help Nigeria improve access to affordable energy to approximately 85 million people living in energy poverty conditions.
“The electricity market for off-grid energy in Nigeria is huge and profitable for developers. Installing 1,000 mini-grids each year for the next 10 years would provide power to millions of Nigerians currently off-grid,” said Damilola Ogunbiyi, CEO of the Rural Electrification Agency.
Market expansion will unlock billions of dollars towards the economy, consumer savings and in profits to operators of mini-grids.
To date, Nigeria is spending up to $14 billion annually on off-grid power. Read more: Nigeria: Solar energy initiative secures funding from AfDB
Read more about the development on our sister publication, Metering.com