• Nigeria is the biggest and most attractive off-grid opportunity in Africa, and one of the best locations in the world for minigrids
  • Nigeria has the largest economy in Sub-Saharan Africa (GDP of $405 billion), has 180 million people, and flourishing growth (CAGR of 15% since 2000)
  • A significant amount of the economy is powered largely by small-scale generators (10–15 GW) and almost 50% of the population have limited or no access to the grid.
  • As a result Nigerians and their businesses spend almost $14 billion annually on inefficient generation that is expensive ($0.40/kWh or ~₦140/kWh or more), poor quality, noisy, and polluting
  • Developing off-grid alternatives to complement the grid creates a $9.2B/year market opportunity for minigrids and solar home systems that will save $4.4B/year for Nigerian homes and businesses.
  • There is large potential for scaling—installing 10,000 minigrids of 100 kW each can occur for 10 years and only meet 30% of anticipated demand
  • Getting off-grid solutions to scale and commercial viability in Nigeria will unlock an enormous market opportunity in Sub-Saharan Africa across 350 million people in countries with smaller demand and/or less-robust economies
  • The Rural Electrification Agency (REA), tasked with developing the Nigerian off-grid power market, created the Off-Grid Electrification Strategy
  • $9.2 billion (₦3.2 trillion) annual market opportunity to supply off-grid and underserved customers with minigrids and solar home systems
  • With 8% economic growth through 2030 there is an additional $670 billion (₦235 trillion) value proposition
  • This estimate is based on current expenditures, but customers may pay more for superior service
  • This shift would save Nigerians customers $4.4B/yr (₦1.5T/yr) over current energy costs
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Nigeria has strong development partner support and has established the Rural Electrification Fund for off-grid development

  • REA established the Rural Electrification Fund (REF) to support the Federal Government of Nigeria’s (FGN) Rural Electrification Strategy and Implementation Plan (RESIP), in order to help finance rural electrification expansion in Nigeria.
  • A significant amount of the economy is powered largely by small-scale generators (10–15 GW) and almost 50% of the population have limited or no access to the grid.
  • There is strong support from World Bank, who is working with the FGN to develop a five-year Nigeria Electrification Project (NEP), expected to be finalized by The World Bank in April 2018 and implemented by REA.
  • Developing off-grid alternatives to complement the grid creates a $9.2B/year market opportunity for minigrids and solar home systems that will save $4.4B/year for Nigerian homes and businesses.
  • The World Bank’s contribution for NEP is expected to be $350 million, with $150 million allocated to minigrids.
  • Minigrids developed under NEP are expected to serve 300,000 households and 30,000 local enterprises.
  • The project is nationwide in scope, with early activities expected in Niger, Plateau, Ogun, Sokoto, and Cross River states.
  • The NEP will be implemented under a market-based approach—private firms are expected to develop minigrids, with subsidies from REA, and roughly 1,200 minigrids are expected to be developed under the project

Government, development partners, and the private sector are actively working together in Nigeria to create enabling conditions for successful minigrid development

  • Nigeria is providing an enabling environment for off-grid market growth, including:
  • Developer protection through the NERC Minigrid Regulations
  • An innovative and best practice site-selection process to de-risk projects has already identified over 250 promising sites
  • The selection process has also screened for baseload demand (e.g., schools), population/energy density and productive use.
  • Partnering with World Bank to line up finance, streamline competitive tendering, and to provide technical assistance.
  • The government and development partners are inviting the private sector to work with them to capture this opportunity, while saving Nigerians money and powering economic development to further expand the market
  • With an enabling environment, continued cost reductions, and targeted finance, the Nigerian minigrid market can scale rapidly to over 10,000 sites by 2023, powering 14% of the population with capacity up to 3,000 MW and creating an investment potential of nearly $20 billion and annual revenue opportunity exceeding $3 billion.
Get permit for an interconnected Mini-Grid above 100kW

To get a permit for an interconnected Mini-Grid with capacity up to 1MW and distribution above 100kW, follow the steps below:

Get permit for an insolated Mini-Grid above 100kW

To get a permit to own an isolated Mini-Grid with capacity up to 1MW and distribution above 100kW, follow these steps below:

Get permit for an isolated Mini-Grid below 100kW

To register an isolated Mini-Grid below 100kW, follow these steps below: