Regulations on feed-in-tariff for renewable energy sourced electricity in Nigeria 2015

The feed-in tariff regulation builds on the Electric Power Sector Reform Act 2005 that opened up the sector to competition and supports small producers, It aims to make use of Nigeria’s vast potential for renewable energy by stimulating private investment.

It specifies that a total of 1,000MW by 2018 and 2,000 MW by 2020 should be generated through renewables such as biomass, small hydropower, wind and solar, and connected to the grid. The power distribution companies should source minimum 50 per cent of their total supply from renewables.

A distinction is made between small and large generation plants: electricity procured from small plants (1 MW to 30 MW) can automatically be integrated as renewable energy; for large plants (>30MW) a competitive procurement process needs to be initiated.

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