Distributed Generation in Nigeria’s Post-Privatised Power Sector - Challenges and Prospects

Abstract

Nigeria's electricity infrastructure is inadequate, outdated and ill-maintained thereby resulting in perennial epileptic power supply to the industrial, commercial and residential sectors of the nation's economy. More than half of the country's population has no access to electricity and in order to make electricity available to more consumers, many independent power producers (IPPs) are adopting the distributed generation (DG) technologies. This paper investigated the challenges and prospects of DG in Nigeria's post-privatized power sector through the extensive review of reports, position papers, legislative acts, policy documents etc. from statutory institutions and authorities in and outside Nigeria. The findings of the study show that despite the current challenges posed by underfunding, long investment neglect etc. of the energy sector, Nigeria has abundant natural resources to successfully implement and reap the full benefits of DG technologies. The paper recommends the prioritization of DG by power sector stakeholders and government at all levels in the country in order to achieve electricity supply security for the nation's industrial, commercial and residential sectors. The findings of this study will facilitate proper integration of smart grid technology into the national grid and help achieve adequate, stable and reliable electricity supply in Nigeria.