Key highlights
- The March 2023 Energy and Utilities Africa Outlook report has outlined some major power projects that are either ongoing or in the study or planning stages.
- These power projects have the capacity to increase Nigeria’s on-grid and off-grid power capacity while reducing reliance on fuel and diesel generators.
- Natural gas has been identified as a vital transition fuel in many energy-poor countries including Nigeria.
The March 2023 Energy and Utilities Africa Outlook report has outlined major upcoming power projects in Nigeria.
These projects are either hydropower, transmission, or natural gas based. According to the report, coal, gas, hydropower and oil are major sources of power generation on the African continent.
The report also noted that Africa still has a strong appetite for conventional fuels, with natural gas identified by many African governments as a vital ‘transition fuel’ in the continent’s journey to reach its net zero carbon emission targets.
Currently, Nigeria is battling with 4000 to 5000 megawatts (MW) of power both for households and businesses. This has resulted in the widespread use of alternative power sources like diesel and premium motor spirit (fuel) generators.
In a January 2023 report by the Energy Commission of Nigeria and the International Renewable Energy Agency (IRENA), Nigeria was named the highest generator importer on the African continent, with 84% of Nigerian households using a generator set and 86% of companies in Nigeria, using a generator set.
In the March 2023 Africa Outlook report from Energy and Utilities, there are several power projects outlined for 2023 and beyond. Nairametrics has compiled the list below;
Nigeria-Chad Power Interconnection
- Project Nature – Power transmission
- Location – West Africa
- Project stage – Planning
- Cost – $700 million
Mambilla Hydropower Project
- Project Nature – Hydropower
- Location – Taraba, Nigeria
- Project stage – Awarded
- Cost – $5.8 billion
Makurdi Hydropower Plant
- Project nature – Upcoming
- Location – Benue, Nigeria
- Project stage – Study
- Cost – $3.5 billion
Zungeru Hydropower Plant
- Project nature – Hydropower
- Location – Niger state, Nigeria
- Project stage – Construction
- Cost – $1.5 billion
Egbin Phase II Project
- Project nature – Natural gas-fired
- Location – Lagos, Nigeria
- Project stage – Plan
- Cost – $2 billion
Kebbi Solar Independent Power Plant
- Project nature – Utility-scale solar
- Location – Kebbi state, Nigeria
- Project stage – Plan
- Cost – $6 billion
Five Solar Plants in Nigeria 961 MW
- Project nature – Utility-scale solar
- Locations – Nigeria
- Project stage – Ongoing
- Cost – $1.5 billion
What you should know
According to the report cited, most African governments insist that natural gas must be allowed to play a role in their electricity supply industries in the short-to-medium term. The report states:
- “The discussion around the financing of power projects in Africa has become inextricably linked with the global push to take action to minimize the damage from climate change. Many western financing institutions are now refusing to support oil and gas projects, or at least heavily prioritizing renewable schemes.”