Power & Alternative Energy 

The Nigerian power sector has undergone so many reforms in recent years. The ultimate objective of these reforms is to ensure that the Nigerian power sector becomes the engine for growth, for jobs, and for improvements in social welfare. Ultimately, economic success would translate to an additional $12bn in annual GDP for each additional 1,000 MW's. Nigeria has projected that by 2020, the country's power generation capacity will be in the excess of 40GW and energy mix will consist 69% thermal generation; 17% Hydro; 10% Coal; and about 4% renewable. This aspiration of 40GW by 2020 will move Nigeria to a much more stable socio-economic position.

 

The 2015-2017 power projection is underpinned by several Memorandums of Understanding's (MOU's) with different organizations. Power China is to build 20,000MW capacity thermal power plants and 10,000km of transmission lines. MOUs with the likes of General Electric, Siemens AG, Electrobras, Daewoo E&C to facilitate the development, financing, procurement, manufacture, commissioning and operations of 10,000MW and promote private sector investment in Nigeria's Power development have been signed. Each of these MOUs presents opportunities for new ventures by serious Nigerian-led power development consortiums. The MOUs are designed to make significant equity contribution in kind or cash, as well as provide credibility for IPPs seeking international financing.

 

Only recently, The Federal Government has concluded plans to launch a National Policy on Renewable Energy and Energy Efficiency to boost power supply in the country. The policy will harness and provide a focal point for all national efforts on renewable energy and seeks to provide an integrated framework for all stakeholders, especially investors, in clean energy for power generation and the general development of renewable energy in Nigeria. The Nigerian Government is committed to using clean energy and harnessing solar, wind and hydro resources to address the power challenge in the country. It is projected that we would generate about 30,000MW from renewable sources to augment supply from the national grid over the next decade. A Presidential Initiative on Renewable Energy for power generation is in the works that will provide the needed political support at the highest level of government for local and foreign investment and drive in solar, wind, small hydro and bio-mass power.