By Abbas Nazil
Nigeria is rapidly advancing its shift toward renewable energy, driven by increasing electricity demand, unreliable grid infrastructure, and an urgent need to diversify its power sources.
According to GlobalData’s latest report, Nigeria Power Market Outlook to 2035, the country is poised for major growth in renewable energy capacity, with solar photovoltaic (PV) emerging as a critical component of its future energy mix.
From 2024 to 2035, Nigeria’s renewable power capacity is projected to reach 1.7 gigawatts (GW), expanding at a compound annual growth rate (CAGR) of 18.9%.
Simultaneously, overall power generation is expected to grow at a CAGR of 17.5%, reaching 1.8 terawatt-hours (TWh) by 2035.
The Renewable Energy Master Plan (REMP) outlines ambitious targets for increasing the share of renewables in Nigeria’s electricity generation to 23% by 2025 and 36% by 2030.
Specific capacity goals set for 2025 include 2GW from small hydropower, 500 megawatts (MW) from solar PV, 400MW from biomass, and 40MW from wind energy.
The government’s push for renewables is not just an environmental choice but a practical response to systemic challenges in the country’s energy sector.
Despite having one of the largest natural gas reserves globally and the most extensive in Africa, Nigeria’s power sector suffers from a lack of consistent fuel supply.
This fuel availability issue hampers the efficiency of thermal power plants and reduces overall electricity output.
After the sector’s privatisation, inadequate infrastructure has hindered the establishment of reliable fuel supply chains and power purchase agreements, making it difficult to secure bankable investments in thermal energy projects.
To address this, Nigeria has increasingly turned to renewable sources, particularly solar PV, as a strategic solution. Solar power, which has seen steady investment growth in recent years, is supported by favorable policies under the REMP.
This trend is expected to continue, especially as urbanisation intensifies and electricity demand soars across households and industries.
In urban centers, rising demand for lighting, refrigeration, cooling, entertainment, and cooking has placed immense pressure on the already overburdened grid.
Additionally, energy-intensive industries such as cement, textiles, and food processing contribute significantly to the national electricity demand.
The unreliability of grid electricity has forced many businesses and households to rely heavily on petrol and diesel generators, indicating that the actual energy demand is substantially higher than what grid-based data reflects.
Integrating renewable energy systems, particularly solar, alongside battery storage solutions offers a viable pathway to closing this energy access gap.
It presents a sustainable, scalable, and increasingly affordable alternative to fossil fuels.
As Nigeria moves to meet its growing energy needs and climate commitments, renewables are poised to play a central role in reshaping the country’s power landscape.
