The case for Solar Energy in Nigeria

Increasing Demand for Renewables
Nigeria is experiencing an acute shortage in electricity, with growing demand and a shortfall in electricity supply expected throughout the next decade. This scarcity of sufficient and reliable electricity is severely constraining economic growth and development. In order to combat this issue, the Federal Government of Nigeria (FGN) has publicly committed to promoting the energy sector by encouraging private sector participation, as stipulated in its 2010 Roadmap for Power Sector Reform. Furthermore, the FGN has set an objective to ensure that at least 7.2 GW of its 40 GW energy targets will be generated from renewable energy sources by 2020.

This huge unmet demand for renewable energy electricity, coupled with a strong government commitment to support renewable independent power producers (IPPs), has made a strong business case for investment in solar energy projects in Nigeria.

High Solar Radiation

Solar energy potential is extremely strong in Nigeria, especially in the north, providing a prime resource to harness for meeting the government’s ambitious capacity addition goals quickly. NSCP has carried out a number of studies and evaluations which have confirmed that northern Nigeria is an optimal location for solar energy.
This strong solar potential provides us with the opportunity to develop renewable energy projects that will boost the Nigerian energy supply, mitigate the damaging effects of fossil fuel, and generate compelling returns for our investors.


The Case for Solar Energy in Bauchi State

Strong Need for Reliable Electricity
With only a few exceptions, all established power generation plants providing electricity to the national grid are based in the central and southern belt of the country. The concentration of power in the south has meant that access to grid-connected power in the north is scarce, leading to a reliance on expensive diesel generators. The local cost of diesel-generated electricity in Bauchi State is between $0.55 and 0.60 per kWh, well over twice the cost of solar PV generated electricity. Moreover, the electricity tariffs for both residential and commercial end-users in Bauchi represent the highest electricity prices in all of Nigeria.

Through the development of solar energy, NSCP will provide the people of Bauchi with clean and reliable electricity that will improve the region’s power supply shortfalls while reducing its reliance on expensive diesel generators. Our proposed 100 MW Bauchi project is expected to generate approximately 220,000 megawatt hours (MWh) of electricity annually, sufficient to power hundreds of thousands of Nigerian households and businesses.

Optimal Location for Solar Energy

The highest solar radiation levels in the country are in the central northeastern parts of Nigeria. NSCP has carried out a number of solar studies and evaluations in the Bauchi region and results have shown that it is an optimum location for solar PV. Bauchi also possesses a vast area of flat land, which is a necessary component of large-scale PV solar plants.

High Development Impact

Creating public-private partnerships with socially impactful endeavors is core to our company mission. Accordingly, we seek to operate in disadvantaged and underserved location so that we can bring about meaningful and measurable social value to the local communities.

According to the Nigeria National Bureau of Statistics (NBS), Bauchi State represents one of the poorest regions of Nigeria, where almost two-thirds of the region’s population live in absolute poverty. As such, we have the unique opportunity to provide not only jobs, but also the additional benefits of a dedicated corporate social responsibility program, which will deliver energy, water, sanitation, and healthcare to one of Nigeria’s poorest and under-developed communities. Learn more about our social impact.