Electricity Distribution Companies (DisCos), would soon hook up to a fresh model that is intended to support and enable energy developers to provide improved electricity services in Nigeria.
This follows a report by RMI that points to a new Renewable Embedded Generation (REG) business initiative.
The unlocking Renewable Embedded Generation in Nigeria, report is based on a feasibility study supported by a grant from the UK Partnering for Accelerated Climate Transitions Program (UK PACT).
The report posits embedded generation could give Discos a way to improve their supply of electricity to customers without relying on the problematic national grid and at the same time maintain control of their franchise area.
Unlocking Renewable Embedded Generation in Nigeria will be of particular interest to Discos which struggle to take advantage of embedded generation in Nigeria. This is mostly because of concerns around their ability to pay for electricity purchased.
Nigeria’s national grid suffers frequent and extensive power outages because of outdated infrastructure and insufficient capacity. Electricity users supplement their power supply with self-generation, mainly through diesel generators. These are expensive to run, create air pollution and contribute to the country’s growing CO2 emissions profile.