As the fossil fuel becomes more unpopular the worldover, and governments across the globe clamour for its end, the Nigerian Electricity Regulatory Commission, NERC says it has approved three windows for grid-connected renewable energy projects, as it targets minimum of 2000 megawatts generation this year.
In a new release by the agency it listed the approved projects as net-metering for very small capacities (typically below 1MW), feed-in tariff for capacities up to 5MW of solar, 10MW of wind, 10MW of biomass and 30MW of small hydro.
Apart from the Power Purchase Agreement, PPA based on plant life cycle of 20 years, electricity distribution companies (DisCos) are mandated to procure minimum of 1000MW (50 percent of the total projected renewable sourced electricity.
Also, approved is competitive tender for capacities above these thresholds to be procured through Nigerian Bulk Electricity Traders, NBET.
“Pursuant to its regulatory mandates, NERC established in 2015, a feed-in tariff for renewable energy based power generation in Nigeria.
“Nigeria has an abundance of various renewable energy resources of which solar, wind, biomass and small hydro power, (SHP) are the most ubiquitous. The Nigerian Electricity Regulatory Commission (NERC) is committed to stimulating investment in renewable energy generation in Nigeria” the report, said.
Experts say there is a growing demand for alternative energies in Nigeria.
Executive Secretary of Renewable Energy Association of Nigeria, REAN, Lande Abudu, agreed that many Nigerians are turning towards renewable energy now than before.
“There is already more demand for renewable energy. In any case, in the metering and other issues we all have to work together because the mini-grid still has to be paid for, one way or another. If it is stand-alone system that is another thing. Then that means the market becomes huger for them. Stand-alone system is small. You can’t have 10-work system in the centre of Abuja,” she said