19 states to gain stable electricity as FG launches 48 solar mini-grid projects

Nigeria: Nigeria's push to expand electricity access through renewable energy has entered a new phase as the Rural Electrification Agency (REA) begins the rollout of 48 interconnected mini-grid projects across 19 states. 

The initiative is expected to deliver more than 252,000 electricity connections while adding 213.3 megawatt-peak (MWp) of solar generation capacity supported by battery storage.

The projects are being implemented under the Nigerian Electricity Regulatory Commission's (NERC) revised interconnected mini-grid regulations, which significantly increase the size of renewable energy systems that developers can deploy.

New Rules Expand Renewable Energy Projects

Speaking in Abuja while receiving a benchmarking delegation from the Zanzibar Utilities Regulatory Authority (ZURA), REA Managing Director Abba Aliyu said the updated regulatory framework has reshaped Nigeria's off-grid power sector by allowing larger interconnected and isolated mini-grid systems.

“The mini-grid regulations last year had a cap of one megawatt. We couldn’t build a mini-grid above one megawatt. What we showed the regulator - the economics and the technical data led to a change in the regulation. Now we can build interconnected mini-grids of up to 10 megawatts and isolated mini-grids of up to five megawatts.”

Aliyu said the policy shift followed extensive technical and economic engagements between the agency and the electricity regulator, paving the way for more commercially viable renewable energy investments.

252,505 Connections Planned

The 48 projects are spread across the franchise areas of 10 electricity distribution companies (DisCos) and are projected to provide 252,505 new and upgraded electricity connections to homes, businesses and public institutions.

According to the REA, the programme will deploy 213.3 MWp of solar photovoltaic generation, complemented by 166.1 megawatt-hours (MWh) of battery energy storage and 82.5 megawatts of peak load capacity to improve electricity reliability.

Aliyu noted that Nigeria's renewable energy industry has matured considerably, with indigenous firms increasingly taking on the role of long-term project developers rather than serving only as engineering contractors.

The agency currently collaborates with more than 150 Renewable Energy Service Companies (RESCOs), some of which now manage renewable energy portfolios of around 30 megawatts and are expanding operations beyond Nigeria.

Data-Driven Electrification Strategy

Beyond infrastructure deployment, the REA says it has strengthened its planning process through a comprehensive national energy database designed to guide rural electrification investments.

The database maps more than 700,000 communities, over 51,000 healthcare facilities, 11,129 markets, 170 schools, 7,979 factories, 407 operational mini-grids, 57 dams, and 2,194 electricity distribution feeders across the country.

According to Aliyu, the digital mapping platform enables the agency to determine the most efficient electricity solution for each location, whether through national grid expansion, interconnected mini-grids, isolated mini-grids or standalone solar home systems.

The data-driven approach is intended to improve project planning, reduce deployment costs and ensure electricity investments are directed to communities where they can deliver the greatest economic and social impact.

Economic Outlook

The expansion of interconnected solar mini-grids is expected to reduce dependence on diesel and petrol generators, lowering energy costs for small businesses and manufacturers operating in underserved communities.

Improved access to reliable electricity could also strengthen agro-processing, local manufacturing and other productive sectors, helping to increase domestic output while reducing expenditure on imported fuel and generator equipment.

For households in participating communities, the additional 213.3 MWp of renewable energy capacity promises cleaner, more dependable electricity and offers an alternative to waiting for conventional grid expansion.