How plant-to-grid coordination can help Nigeria’s industrialisation quest

As Nigeria grapples with an overwhelming energy demand that has skyrocketed beyond 98,000MW for a population tipping over 200 million, the stark reality of the nation’s energy crisis is laid bare—over half of the population is ensnared by the lack of reliable electricity. In stark contrast to the formidable installed capacity of 12,522MW, the reality is a power infrastructure crippled by rampant outages and grave inefficiencies. Despite the infusion of resources into ambitious initiatives like the National Integrated Power Projects and sweeping privatisation efforts, the anticipated surge in energy provision remains an unrealised dream. However, the Nigeria Liquefied Natural Gas on Bonny Island paints a different picture—one of self-sufficient power generation and substantial community contributions, pointing to the latent potential of a decentralised energy generation approach. A replication of this model, bolstered by comparable incentives, could propel an array of Nigerian industries to the forefront of the energy sector, satisfying their consumption needs and supplementing the national grid.

This presents a golden opportunity for policymakers in Nigeria to recalibrate the role of the industrial sector within the national energy agenda. The landmark ratification of Nigeria’s Electricity Act (Amendment) of 2024 marks a legislative milestone, offering new powers to states, businesses, and individuals for electricity generation, transmission, and distribution. The earmarking of a portion of GENCOs’ operational expenditures for the uplift of host communities is indicative of a seismic shift towards a more equitable and community-centric energy generation model.

Nonetheless, the forward-leaning posture of the Act doesn’t mask the looming challenges. The persistent shortfall in energy access, the underutilisation of Nigeria’s abundant renewable resources, and deep-rooted sector inefficiencies necessitate a strategic re-evaluation. This legislative backdrop amplifies the urgency for a more cohesive, sustainable, and decentralised approach to energy generation. Policymakers are now poised to steer the industrial sector towards embracing plant-to-grid systems, incentivising the amalgamation of renewable energy solutions that could significantly tighten the energy deficiency gap. This strategy ushers in alignment with the national vision of a robust, sustainable, and industrialised future, charting an essential trajectory towards energy sovereignty and economic fortitude.

Plant-to-grid coordination is conceptualised as a revolutionary industrial strategy that recasts manufacturing plants as both energy consumers and producers. It advocates the integration of renewable systems, such as solar PV or wind turbines, into industrial operations. These installations not only cater to the plants’ power needs but also have the capability to contribute surplus energy to the national grid, fostering a mutually beneficial relationship between industrial productivity and energy provision.