Nigeria's Renewable Energy Industry Shifts Focus to Storage As Solar Costs Fall

Nigeria's renewable energy industry is entering a new phase, with a significant shift in focus towards battery storage solutions, driven by falling solar costs. Industry leaders at the Solar & Storage Live Nigeria Conference discussed this transition, noting that renewable energy is no longer prohibitively expensive.

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Component costs have fallen by more than 100 per cent over the last 10 to 15 years, and in some cases we’re seeing declines of 200 to 300 per cent.

Ayo Adedimulua, President of the Renewable Energy Association of Nigeria (REAN), stated that component costs for renewable technologies have decreased dramatically over the past decade. He emphasized that investing in solar panels and batteries offers long-term value, unlike the immediate expenditure of fossil fuels. Adedimulua also pointed to Nigeria's untapped potential in hydro, wind, biomass, and geothermal energy, stressing the need for correct risk pricing and conviction.

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Every naira spent on diesel or petrol is gone the moment it is burned. Every naira invested in solar panels or batteries continues delivering value over the lifetime of the asset.

The conference highlighted growing confidence in the sector, evidenced by increased participation from manufacturers, developers, financiers, and policymakers. Abba Aliyu, MD/CEO of the Rural Electrification Agency (REA), predicted that the next wave of investment will target storage rather than generation. The REA is actively developing 48 mini-grids with a combined capacity of 288 megawatts to improve electricity access and reliability, incorporating smart meters and AI for project planning.

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We have everything we need. What we’ve lacked is the conviction to price risk correctly.