Nigeria is facing the need for larger electricity supply and improved grid reliability and security.
The Renewable Energy Master Plan (REMP) seeks to increase the supply of renewable electricity from 13% of total electricity generation in 2015 to 23% in 2025 and 36% by 2030. Renewable electricity would then account for 10% of Nigerian total energy consumption by 2025.
The Plan also encompasses installed capacity targets for a set of suitable renewable energies, declining as follows:
- Small-hydro: 600 MW in 2015 and 2, 000 MW by 2025;
- Solar PV: 500 MW by 2025;
- Biomass-based power plants: 50 MW in 2015 and 400 MW by 2025;
- Wind: 40 MW for wind energy by 2025;
Simultaneously to this increase in power supply, the REMP targets higher electrification rates, from 42% in 2005 to 60% in 2015 and 75% by 2025.
The REMP also implements a set of fiscal and market incentives to support RE deployment. On the short term, the plan includes a moratorium on import duties for renewable energy technologies. On the longer run, the plan advises the design of further tax credits, capital incentives and preferential loan opportunities for renewable energy projects.