Nigeria Renewable Energy Policy Handbook, 2023 Update
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Nigeria plans to increase renewable electricity generation to more than 30% by 2030. The country also has plans to increase the cumulative installed capacities of small hydropower, solar PV, biomass, and wind power by 2025.
Major policies and incentives | Renewable Energy Master Plan (REMP), National Renewable Energy and Energy Efficiency Policy (NREEP), Off-grid Electrification Strategy, Multi-Year Tariff Order (MYTO), Feed-in Tariffs (Fits), Net Metering, Competitive Procurement, Nigerian Economic Sustainability Plan, and Solar Hybrid Mini Grid Fund |
The Nigeria renewable energy policy handbook offers comprehensive information on major policies governing the renewable energy market in the country. The report discusses renewable energy targets and plans along with the present policy framework, giving a fair idea of overall growth potential of the renewable energy industry. The report also provides major technology specific policies and incentives provided in the country.
Nigeria Renewable Energy Market Trends
Nigeria’s economy is fossil fuel driven, with its heavy dependence on the export oil products. The country has enormous natural energy resources; crude oil, natural gas, solar (particularly in the north), hydropower, and wind (mainly in the north and along the coastal line). Nigeria is facing the need for larger electricity supply and improved grid reliability and security. Furthermore, there are several attempts being taken by the government to develop renewable energy policies in the country. The Nigerian Government together with the United Nations Development Program (UNDP) created the Renewable Energy Master Plan (REMP) in 2006, which was reviewed in 2012, to bring in structured development to the renewable energy market.
Nigeria Renewable Energy Market - Major Policies and Incentives
The major policies and incentives in the renewable energy industry in Nigeria are Renewable Energy Master Plan (REMP), National Renewable Energy and Energy Efficiency Policy (NREEP), Off-grid Electrification Strategy, Multi-year Tariff Order (MYTO), Feed-in Tariffs (Fits), Net Metering, Competitive Procurement, Nigerian Economic Sustainability Plan, and Solar Hybrid Mini Grid Fund.
Nigeria Renewable Energy Market - Master Plan
The REMP implemented a set of fiscal and market incentives to support renewable energy deployment in the country. In the short term, the plan includes a moratorium on import duties for renewable energy technologies. In the longer run, the plan advises the design of further tax credits, capital incentives, and preferential loan opportunities for renewable energy projects.
National Renewable Energy and Energy Efficiency Policy
The National Renewable Energy and Energy Efficiency Policy provides a general legislative framework for renewable energy and energy efficiency sectors and is followed by the creation of the National Renewable Energy Action Plan (NREAP), National Energy Efficiency Action Plan (NEEAP) and introduction of policy tools supporting renewable energy deployment. The major objectives of the policy are – development of Nigeria’s energy resources by diversifying the energy mix to achieve national energy security and an efficient energy delivery system, promotion of investments for the renewable energy and energy efficiency sectors, establishment of appropriate financing mechanisms that support private investment in the renewable energy and energy efficiency sub-sectors, effective coordination and collaboration among all key stakeholders in the renewable energy and energy efficiency sub-sectors in Nigeria.
Nigeria Renewable Energy Market - Off-grid Electrification Strategy
The Off-grid Electrification Strategy is aimed towards providing clean and sustainable electricity to all houses in Nigeria. The major objectives of this strategy are- promoting the use of decentralized energy solutions to power households, communities & businesses, developing 10,000 mini grids by 2023, providing uninterrupted power supply in federal universities and university teaching hospitals, deploying 5 million solar standalone systems for residential and Small and Medium Enterprises (SMEs) by 2023, supporting the Nigerian Government’s climate change obligations under the Paris Agreement, with respect to promoting renewable and reducing carbon emissions.
Nigeria Multi-Year Tariff Order
One of the primary functions of the NERC under the EPSRA, 2005 is to ensure that the prices charged by licensees are fair to customers and sufficient to allow the licensees to finance their activities and obtain reasonable profit for efficient operations. Multi-Year Tariff Order (MYTO), established by the NERC, is about the regulated prices to be paid to licensed electricity generation companies in providing electricity to distribution and retailing companies, pursuant to the authority given under the EPSRA, 2005.
Nigeria Feed-in Tariffs
The Government of Nigeria approved a new regulation for Feed-in Tariffs in November 2015 with an effective date from February 2016. The Long Run Marginal Cost (LRMC) and Levelized Cost of Energy (LCOE) was the methodology used to set the FiT rates. The FiT is subject to review every three years from the date of publication and the revised FiTs shall be applicable only to the new plants commencing operations after the review. The PPA stands valid for a term of 20 years from the commercial date of operation. As per the FiT regulations, the tariffs are supposed to be reviewed every three years. Accordingly, the revision was scheduled in 2019; however, the same has not happened.
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Scope
- The report covers policy measures and incentives used by Nigeria to promote renewable energy.
- The report details promotional measures in Nigeria both for the overall renewable energy industry and for specific renewable energy technologies that have potential in the country.
Reasons to Buy
The report will enhance your decision-making capability in a more rapid and time sensitive manner. It will allow you to:
- Develop business strategies with the help of specific insights about policy decisions being taken for different renewable energy sources.
- Identify opportunities and challenges in exploiting various renewable technologies.
- Compare the level of support provided to different renewable energy technologies in the country.
- Be ahead of competition by keeping yourself abreast of all the latest policy changes.
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Frequently asked questions
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What are the major policies and incentives in the Nigeria renewable energy market?
Renewable Energy Master Plan (REMP), National Renewable Energy and Energy Efficiency Policy (NREEP), Off-grid electrification strategy, Multi-Year Tariff Order (MYTO), Feed-in Tariffs (FiTs), net metering, competitive procurement, Nigerian Economic Sustainability Plan, and Solar Hybrid Mini Grid Fund are some of the major policies and incentives in the renewable energy market in Nigeria.
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