Nigeria Renewable Energy Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Nigeria Renewable Energy Market Analysis
The Nigerian renewable energy market is expected to reach 2.94 GW by the end of this year and is projected to register a CAGR of 3.54% during the forecast period.
The COVID-19 pandemic negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.
- Over the long term, favorable government policies in order to promote renewable energy generation and advancements in renewable energy technologies are also expected to drive the growth of the market studied.
- On the other hand, increasing penetration of natural gas for power generation is expected to restrain Nigeria's renewable energy market during the forecast period.
- Nevertheless, the technological advancements in solar PV manufacturing will likely create lucrative growth opportunities for Nigeria's renewable energy market in the forecast period.
Nigeria Renewable Energy Market Trends
This section covers the major market trends shaping the Nigeria Renewable Energy Market according to our research experts:
Hydro Power Generation to Dominate the Market
- Nigeria has large rivers and natural falls. However, the primary water resources that provide rich hydropower potential in the country are the Niger and Benue rivers and the Lake Chad basin. The country has an estimated 1,800 m3 per capita per year of renewable water resources available; however, it has been an economically water-scarce country owing to a lack of investment and management to meet the growing demand.
- Hydropower is the second-largest source of electricity in Nigeria after thermal power. As of 2021, the country has around 2.1 GW of hydropower installed capacity. Financial issues and delays have negatively affected the country's development of large-scale hydropower projects.
- In November 2022, the Government of Nigeria announced that it is seeking a bidder for the 700 megawatts (MW) Zungeru hydropower plant in Niger state. The plant comprises a reservoir at an elevation of 230 meters and a powerhouse having four 175 MW turbine/generating units for a total rated output of 700MW.
- Also, in September 2022, the President of Nigeria approved the construction of a mini hydro power plant in the state of Imo in the South of the country. The 10 MW project will be implemented in the water zones of the Otamiri River and the Nvorie River. The new hydropower plants are part of the government's efforts to achieve 100% electrification of the country scheduled for 2030.
- As per the above points, the hydropower segment dominates Nigeria's renewable energy market during the forecast period.
Favourable Government Policies to Drive the Market
- Nigeria is located in the tropics and receives high amounts of solar radiation throughout the year. Due to this, the country has significant solar potential.
- According to International Renewable Energy Agency, Nigeria's renewable power generation capacity reached about 2,154 MW in 2021. In recent years, the country has witnessed a notable rise in renewable capacity, and the government plans to promote cleaner power generation sources to power the urban and rural areas of the country.
- The Renewable Energy Master Plan (REMP) in Nigeria promotes deploying renewable-based power generation systems in the country. As part of this Plan, at the beginning of 2020, the government of Nigeria launched the NaijaSolar Power Project, which targeted around 5 million solar-based connections for off-grid communities.
- Further, in August 2022, the government promoted clean energy technologies for sustainable start-ups and small & medium enterprises (SMEs). This step aims to address environmental challenges in the country by adopting the Global Cleantech Innovation Programme(GCIP) initiative. The United Nations Industrial Development Organisation(UNIDO) launched the initiative to promote cleantech innovation and address environmental challenges.
- In February 2022, the United Kingdom planned to expand low-carbon energy projects throughout Nigeria through a GBP 10 million investment. The investment is expected to scale up renewable energy project developments, such as solar while leveraging domestic capital by blending finance to de-risk transactions.
- Owing to the above points, favorable government policies to promote renewable energy generation is expected to drive Nigeria's renewable energy market.
Nigeria Renewable Energy Industry Overview
The Nigeria renewable energy market is moderately fragmented. Some of the major players in the market (in no particular order) include Engie SA, TotalEnergies SE, Starsight Energy, Enel S.p.A and North South Power Co Ltd.
Nigeria Renewable Energy Market Leaders
Engie SA
TotalEnergies SE
Starsight Energy
Enel S.p.A
North South Power Co Ltd
*Disclaimer: Major Players sorted in no particular order
Nigeria Renewable Energy Market News
- In August 2022, the Nigerian government and the American company Sun Africa signed an agreement to install solar energy production systems in a dozen localities poorly served by the national electricity network. This project is expected to be implemented with a USD 1.5 billion loan from Exim Bank.
- In April 2022, the African-Austrian SME Investment Facility (AAIF) of the Federal Ministry of Finance announced that WestaSolar had acquired a EUR 1.5 million mezzanine loan secured from the Austrian Development Bank (OeEB) to accelerate the development of solar energy projects in Nigeria in order to reduce energy costs and emissions.
Nigeria Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in GW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Source
5.1.1 Solar
5.1.2 Hydro
5.1.3 Other Renewable Energy Sources
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Engie SA
6.3.2 TotalEnergies SE
6.3.3 Starsight Energy
6.3.4 Sinohydro Corp Ltd
6.3.5 JinkoSolar Holding Co., Ltd.
6.3.6 Sterling & Wilson Pvt Ltd
6.3.7 Enel S.p.A
6.3.8 North South Power Co Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Nigeria Renewable Energy Industry Segmentation
Renewable energy is the energy collected from renewable resources such as sunlight, wind, water movement, and geothermal heat that are naturally replenished. Nigeria's renewable energy market is segmented by type. The market is segmented by solar, hydro, and other renewable energy sources. For each segment, the installed capacity and forecasts have been done based on gigawatts (GW).
Nigeria Renewable Energy Market Research FAQs
What is the current Nigeria Renewable Energy Market size?
The Nigeria Renewable Energy Market is projected to register a CAGR of 3.55% during the forecast period (2024-2029)
Who are the key players in Nigeria Renewable Energy Market?
Engie SA, TotalEnergies SE, Starsight Energy, Enel S.p.A and North South Power Co Ltd are the major companies operating in the Nigeria Renewable Energy Market.
What years does this Nigeria Renewable Energy Market cover?
The report covers the Nigeria Renewable Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Nigeria Renewable Energy Industry Report
Statistics for the 2024 Nigeria Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Nigeria Renewable Energy analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
