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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy A distributed energy system that generates electricity at a centralised location from one or a combination of energy sources and distributes to end-customers typically through a low-voltage grid. mini-grids can be isolated or interconnected with the main grid. Throughout the Country Briefs, a small IPP is defined as any grid-tied system below 10 MW that operates on a power purchase agreement (PPA), with the exclusive goal of feeding energy into the grid (no self-consumption). SHS are off-grid solar products with peak capacities generally between 11 Wp and 350 Wp, powering lights and other small DC appliances such as fans and televisions. They include battery storage for electricity supply outside periods of generation. Pico solar systems are typically below 11 Wp, offering basic energy services such as lighting and cellphone charging. Captive power systems are defined as being ‘behind the meter’ systems whose primary purpose is self consumption. These systems can be off-grid or grid-connected. For the purposes of the Country Briefs, this includes clean cookstoves, improved cookstoves, biogas and liquefied petroleum gas (LPG) cooking systems.

Small Independent Power Producers

Overview
IPPs in Nigeria either sell to the various regional electricity distributors, depending on locations, or to the Nigeria Bulk Electricity Trading Company (NBET). A large number of IPPs have been signed in Nigeria, but few have reached operations. For example, in 2016, NBET signed power purchase agreements with 14 IPPs for a total of 1.2 GW solar PV, with projects ranging from 50 MW to 100 MW each. By 2019, none of these have reached financial close. Similarly, the Rural Electrification Agency, in 2018, announced that it will implement a programme to procure 1 GW of solar from IPPs in Jigawa state. To date, no developments have been announced. Two different programmes, namely the Power Sector Recovery and Implementation Programme and the Nigeria Solar IPP Support Program have been formulated to resolve the causes for delay.

A handful of small IPPs are operational or under construction. In Ogun state, Naanovo Energy is developing the 5 MW Abeokuta waste to energy plant. Elemi Power Solutions operates a 1 MW solar project, selling to the Benin Regional Electricity Distributor. The 10 MW Katsina wind farm, initially developed by Vergnet, was partly completed in 2017 but was stalled following security concerns. Crown Resources Development Company took over the project in 2019 and rehabilitation of installed turbines and installation of outstanding ones were scheduled for completion by May 2020.
Regulations
The Power Sector Reform Act of 2005 liberalised the power sector at large. It stipulates that all private sector companies must have a licence for electricity generation and distribution.
The NERC Licence and Operating Fees Regulation of 2010 specify the fees payable for a generation licence (systems of more than 1 MW).
The Health and Safety Code Version 1 specifies the rules that ought to be followed to ensure safety during installation, operations and maintenance of electricity infrastructure. It applies to all NERC licencees unless exempted.
The National Environmental (Energy Sector) Regulations of 2014 stipulates the requirements for environmental compliance of all energy infrastructure in Nigeria. It lists requirements such as environmental audits, environmental impact assessments and pollution control. However, some systems are exempt by parallel regulations.
The NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations of 2010 outlines the procedures to be followed in applying for, amending, renewing, extending and cancelling an operating licence.

Minigrids

Overview
Nigeria has benefited over the last few years from its relatively progressive mini-grid policies. These include the development of the cost-reflective multi-year tariff order (MYTO) tariff calculator and supportive regulation such as the Nigerian Electricity Regulatory Commission’s Mini Grid Regulation of 2017. Inbound investment and donor funding have increased substantially and Nigeria now hosts some of the largest donor funding initiatives on the continent.

The proliferation of domestic mini-grid developers and foreign developers setting up offices in Nigeria are evidence of the potential this well populated, unconnected and relatively economically vibrant market holds.

Most of the mini-grids planned or under construction are being developed through a variety of tender and results based financing schemes, some of which are available only to local developers (to boost the domestic sector) and some of which are only offering large lots of sites in an effort to start proving that the sector is ready to scale.

There are a large number of commercial players in the Nigerian mini-grid sector. These include A4&T Power Solutions, Acob Lighting Technology, Arnergy, Ashdam Solar, Atanya Solar (Energicity), Auxano Solar, Blue Camel Energy, Cloud Energy, Community Research and Development Centre (CREDC), Darway Coast Nigeria, Eauxwell, Eitech Energy, EM-ONE, Gee Dee Global Engineering, GoSolar Africa, GVE Projects, Havenhill Synergy, Income Electrix, JRB Solar, Leading Diagonal Engineering, Linksoft, Nayo Tropical Technology, New Moon Nigeria, PowerCorner, PowerGen Renewable Energy, Prince Albert Company, Renewvia Solar Nigeria, Rensource Energy, Rubitec Solar, Solar Force Nigeria, Sosai Renewable Energies, SunMoyo, Vaya Energy, Waste-2-Watt / Ajima Farms and Zylab Technologies.
Regulations
The Power Sector Reform Act of 2005 opened the power sector for private participation. It stipulates that all private sector companies must have a licence for electricity generation and distribution.
The 2016 mini-grid regulations apply to mini-grids below 1 MW. It states that isolated mini-grids of less than 100 kW require only registration with NERC. Isolated mini-grids larger than 100 kW (but smaller than 1 MW) are required to have a permit. mini-grids smaller than 100 kW can voluntarily apply for a permit. A permit allows for protection against grid encroachment. Permit holders are required to use the Multi-Year Tariff Order (MYTO) (cost reflective) methodology when determining tariffs, to comply with national technical codes and standards and to conduct an environmental impact assessment. When applying for a permit, a developer must submit detailed information on the generation and distribution infrastructure of the planned mini-grid.
Interconnected mini-grids are required to submit a tripartite contract between the community, developer and DISCO.

The NERC Regulations for Independent Electricity Distribution Networks of 2012 specifies the regulations for independent distribution grids, which includes mini-grids above 1 MW (mini-grids smaller than 1 MW are governed by the 2016 mini-grid Regulations). The 2012 regulations outline the prerequisites for obtaining distribution licences and prohibits operators from generating and distributing electricity in the same system.
The Metering Code Version 2 specifies the technical operational procedures and required accuracy and calibration of commercial meters. Some systems (such as mini-grids smaller than 100 kW) are exempt from having to comply with the code.
The Distribution Code Version 2 specifies technical criteria for the design and operations of distribution infrastructure in Nigeria. It applies to any operator of distribution infrastructure (mainly DISCOs and operators of mini-grids larger than 100 kW).
The Health and Safety Code Version 1 specifies the rules that ought to be followed to ensure safety during installation, operations and maintenance of electricity infrastructure. It applies to all NERC licencees unless exempted.
The NERC Licence and Operating Fees Regulation of 2010 specifies the fees payable for a generation licence (systems of more than 1 MW).
The NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations of 2010 outlines the procedures to be followed in applying for, amending, renewing, extending and canceling an operating licence.
The National Environmental (Energy Sector) Regulations of 2014 stipulates the requirements for environmental compliance of all energy infrastructure in Nigeria. It lists requirements such as environmental audits, environmental impact assessments and pollution control. However, some systems are exempt by parallel regulations.
The Nigerian Electricity Smart Metering Regulations of 2017 stipulates the minimum physical, functional, interface and data requirements for smart meters deployed in Nigeria. It applies to all energy systems operating with smart meters.

SHS/Pico Solar

Overview
In 2019, 301,694 solar home systems and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global in Nigeria, up from 286,913 in 2018. In 2019, 33% of these products were sold on a PAYGO basis, up from 29% in 2018. The remaining share of products were bought with cash. The market has attracted a number of players to date, with approximately 18+ companies operating. These include Asolar (distributor of Azuri systems), Azuri Technologies, BBOXX, d.light, Fenix, Greenlight Planet, Jua Energy, Leks Environmental, Little Sun, Lumos / Txtlight Power Solutions, Oolu Solar, PEG Africa, Rural Spark, Smarter Grid International, SolarCreeds, SolarMate Engineering, Solar Sisters, Solatrify, and ZOLA Electric.

The market looks set to grow. The Nigeria Renewable Energy Master Plan aims for the deployment of 4 million solar home systems by 2025. In SE4All’s Agenda for Nigeria, mini-grids and solar home systems combined will add up to a capacity of 8 GW by 2030, signifying 18% of total capacity.
Regulations
The National Environmental (Energy Sector) Regulations of 2014 stipulates the requirements for environmental compliance of all energy infrastructure in Nigeria. It lists requirements such as environmental audits, environmental impact assessments and pollution control. However, some systems are exempt by parallel regulations.

Captive Power

Overview
Captive power is popular in Nigeria due to the frequency of extended grid outages. As a result, diesel and petrol generators are common. Renewable energy systems are increasingly competing with incumbent technologies as they become more efficient and cost effective.

In January 2019, the country had an estimated 20 MW of commercial and industrial (C&I) solar power installed. In Nigeria, as in many other African countries, captive power systems are often not well documented and actual installed capacity may be far higher. The country has more than 30 local and international companies operating in the captive power sector. These include Arnergy, Ashdam Solar, Asteven International, Atlantic Waste Power Systems, Blue Camel Energy, Consistent Energy Limited, Covenant Plus Engineering, Creeds Energy, Eitech Energy, EM-ONE, Enerwhere Sustainable Energy, Leks Environmental, Metka, OEIE Solar, Pan Africa Solar, Privida Energy, Protergia Clean Energy, Protogy Global, SolarCentury, Solar Centric Technologies, Solar Force Nigeria, Solynta Energy, Starsight, Sterling & Wilson and others.

The Nigeria Electricity Regulatory Commission’s (NERC) first solar captive power license was granted in 2009 to Wedotebary Nigeria for the 5 MW ground mount solar plant in Bukuru, Plateau state. Since then, a number of captive power projects have come online. Government institutions have also been able to reduce downtime through the installation of captive power systems. EM-ONE is installing a 1.5 MW solar system at government offices in Mabushi, Abuja. They also implemented 213 off-grid solar systems across 10 municipal areas, as well as 40 systems at health centres across Kaduna state.

Through a MoU with the government, Renaissance Impex Energy plans to power model schools in Ikenne, Ago-Iwoye and Ewekoro by generating a combined 8 MW from solar. Sholep Energy plans to light the newly established Ogun State Polytechnic in Ipokia with 5 MW of solar power. Tido Tech International aims to power the federal airport in Wasimi with 5 MW solar.

Industrial users, including commercial breweries and shopping centres are utilising renewable energy to improve efficiency and lower costs. For example, Nigerian Breweries’ Ibadan plant has a rooftop solar installation (650 kW) as does Jabi Lake Mall (600 kW), both operated by Crossboundary Energy. Gateway Brewery has a solar plant (105 kW) generating both heat and electricity while Sunti Golden Sugar Estates are utilising electricity generated from their 6 MW bagasse power plant.

The government, in its SE4ALL Action Agenda, envisages 5000 MW of installed renewable energy captive power capacity by 2030. This represents 12% of total expected installed capacity in 2030.
Regulations
The Power Sector Reform Act of 2005 opened the power sector for private participation. It stipulates that all private sector companies must have a licence for electricity generation and distribution.
The NERC Permits for Captive Power Generation Regulations of 2008 are only applicable to captive power sites of more than 1 MW. It states that all captive power plants require a licence. The regulations outline the procedures involved with applying for a licence for a captive power plant of more than 1 MW. Examples of documents to be submitted include environmental impact assessments, financial statements, building permits, etc.
The Metering Code Version 2 specifies the technical operational procedures and required accuracy and calibration of commercial meters. Some systems (such as mini-grids smaller than 100 kW) are exempt from having to comply with the code.
The Health and Safety Code Version 1 specifies the rules that ought to be followed to ensure safety during installation, operations and maintenance of electricity infrastructure. It applies to all NERC licencees unless exempted.
The NERC Licence and Operating Fees Regulation of 2010 specifies the fees payable for a generation licence (systems of more than 1 MW).
The NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations of 2010 outlines the procedures to be followed in applying for, amending, renewing, extending and cancelling an operating licence.
The NERC Eligible Customer Regulations of 2017 states that any customer that consumes more than 2 MWh per month can buy power directly from a grid-connected generation facility.
The National Environmental (Energy Sector) Regulations of 2014 stipulates the requirements for environmental compliance of all energy infrastructure in Nigeria. It lists requirements such as environmental audits, environmental impact assessments and pollution control. However, some systems are exempt by parallel regulations.
The Embedded Generation Regulations of 2012 outlines the framework for granting licences to embedded generators.
The Nigerian Electricity Smart Metering Regulations of 2017 stipulates the minimum physical, functional, interface and data requirements for smart meters deployed in Nigeria. It applies to all energy systems operating with smart meters.

Clean Cooking

Overview
About 90% of the Nigerian population use traditional fuels for cooking. Wood is used by 72% of the population, and kerosene by 23% of the population. Charcoal, dung, coal and liquid petroleum gas (LPG) are less commonly used. An estimated 70,000 improved cookstoves are distributed annually in the country. Prime Cookstoves, Envirofit International and Toyola Energy sell energy efficient biomass cookstoves. Through its network of women, Solar Sister distributes charcoal efficient cookstoves. Project Gaia and SME Funds distribute ethanol fuel. In 2020 alone, Project Gaia has coordinated the donation of 23,000 liters of ethanol. Other organisations that sell improved cookstoves in Nigeria include Creeds Energy, Envirofit and Sosai Renewable Energies. The Nigerian Alliance for Clean Cookstoves aims to introduce 10 million fuel-efficient and clean cookstoves to Nigerian homes and institutions by the end of 2020, while the Nigerian government aims to replace 80% of firewood consumption with improved cookstoves by 2030.
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