Summary

Background

Nigeria, the most populous country on the African continent, ranks only 163 out of a total of 191 countries assessed in the current Human Development Index (HDI), despite being the largest economy in Africa¹. Of Nigeria’s nearly 220 million inhabitants, about 80 million still lack access to electricity, which has a significant impact on education, health and economic opportunities for the population².

In addition, power generation in Nigeria relies mainly on fossil fuels, especially gas, leading to environmental impacts and energy dependency. In 2022, only 0.2% of total electricity consumption came from solar energy³, equivalent to 37 megawatts4. The national grid is also outdated and overloaded, leading to frequent power outages. This is a major problem for both individuals and businesses. Therefore, many people opt for diesel generators, which are, however, a financial burden.

Nigeria has extremely favourable conditions for the optimal use of photovoltaic (PV) systems. These conditions are due to the country’s geographical location and climate, which are ideal for the generation of solar energy.

The Project

The project “Solar Power for Rural Regions in Nigeria” is a joint initiative of PowerGen Renewable Energy Nigeria Limited, a Nigerian company, and the German non-profit gGmbH atmosfair. Other project developers are welcome to join the project. The first goal of the project is to ensure energy supply for over 2,000 customers in Toto, Nasarawa State, and to provide them with access to clean, reliable and affordable electricity.

In Toto, an existing distribution network that had been out of operation for more than two years will be reactivated. In addition, a 350 kWp PV (photovoltaic) system is being installed in combination with a 700 kWh lithium-ion battery storage system, complemented by a 500 kVa diesel generator as a backup system. This solar hybrid mini-grid, which is being developed in collaboration with the national grid, is designed to provide a continuous power supply around the clock, seven days a week. The electrification of other sites is already being planned.

Electrification will drive economic development in the communities as businesses will be able to provide reliable electricity to their operations to run productive energy uses such as mills. Finally, the electricity provided will be more cost-efficient than running diesel or petrol generators for power.

The solar hybrid mini-grid in Toto was awarded Mini-Grid of the Year by the African Solar Industry Association and serves as a model for similar projects throughout Nigeria.

Perspectives from Toto

Abdullahi Musa reports that the electricity from PowerGen is much cheaper than generator electricity. As a result, electricity can be used around the clock and security lights can be on at night. Thanks to the stable power supply, the community is now safer at night and there is no more generator noise. He and his family can now sleep peacefully and the security light installed by private individuals is always on.

Alhaji Mustapha Ahmad owns a yoghurt factory in Toto. By using PowerGen’s electricity instead of the diesel generator, he saves about NGN 11500 (about €60). This means that for the first time he is making a continuous profit from his factory and can work at any time of the day.

Compensation not yet possible, Corresponding Adjustments in preparation

Status check: atmosfair is currently preparing an agreement with the host country to avoid double counting so that the project can be used in the future without restrictions to offset unavoidable residual emissions.

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