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Agusto & Co., a global research organization, told the government of Nigeria that it should diversify its energy sources by using laws and incentives to encourage innovation in renewable energy technology. This would help meet the country’s unmet energy demand of about 20,000 MW.

The Company agrees that grid-connected energy distribution is the best cost-effective option for Nigeria. However, the Company believes that extending gas pipelines and transmission cables to some remote towns in Nigeria with low electricity demand may not be cost-effective.

Gas dominates Nigeria’s current energy mix, accounting for 76% of the country’s installed producing capacity through 23 thermal power plants. After years of underinvestment in the domestic gas market due to price caps, regulatory hurdles, and pipeline vandalism, the commercial sustainability of gas distribution to the power industry has been questioned. 

The International Energy Agency (IEA) forecasts that by 2026, renewable energy sources, notably solar photovoltaics (PV), will account for more than half of the anticipated increase in worldwide power capacity. 

The world’s ability to generate electricity from solar panels, wind turbines, and other renewable sources will rise rapidly during the next few years. The expenditure on renewable energy is projected to climb by 44 percent, from $326 billion in 2017 to $472 billion in 2022. 

About 47% of Nigerians lack access to grid energy, and the remainder of the population frequently experiences power outages. Despite this, the difficulties confronting the Nigerian electricity sector are well-documented, lengthy, and permeate the whole value chain of the industry. 

Nigeria has promised to cut its greenhouse gas emissions by 20% by 2030 and net-zero emissions by 2060. However, Agusto & Co. said that these goals are hard to reach because the country’s national grid doesn’t provide enough electricity to meet demand, which is estimated to be around 20,000 MW (MW).

Agusto highlighted the country’s potential by highlighting its enormous and diverse natural resources, which allow it to create large quantities of clean and renewable energy (particularly solar energy) due to its location within a high sunlight belt. 

The Nigerian Meteorological Agency (NIMET) says that, on average, there are 6.25 hours of sunshine each day in Africa’s most populous country. Northern Nigeria gets about 25.2 megajoules per square metre (MJ/m2) of daily sunlight, while coastal areas get about 12.6 MJ/m2. Nigeria’s Northern region has a lot of dry lands that can be used to make wind power. The country’s large waste output can be used as a source of biomass energy that isn’t being used enough.

Instead of putting up long stretches of transmission wires that could be damaged, renewable energy plants can be built in remote areas. The inconsistent and sporadic power supply from the national grid makes it possible for small-scale installations of renewable energy at homes.

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