- IRENA says Nigeria needs stronger policies, technical skills, certification, safety standards and open metering to expand solar mini-grids with battery storage.
- Nigeria holds the largest near-term solar mini-grid market among four West African countries, with nearly 400 MW of potential capacity serving millions of people.
The International Renewable Energy Agency (IRENA) has urged Nigeria to create a stronger enabling environment for solar mini-grids with battery storage as the country works to expand electricity access.
In its report, Unlocking Battery Storage Potential for Sustainable Mini-Grid Electrification in West Africa, IRENA recommended that Nigeria develop technical skills, expand certification programmes, establish safety standards and promote open metering systems as the mini-grid market matures.
The agency also called on Nigeria to introduce local-content policies tailored to the country’s available resources to encourage domestic production of solar and battery-related equipment.
IRENA assessed solar-storage mini-grid opportunities in Nigeria, Burkina Faso, Mali and Senegal and found that solar photovoltaic (PV) technology could serve more than 98 per cent of sites identified as suitable for mini-grids. Hydropower could serve less than 2 per cent, while wind could serve less than 0.1 per cent.
The agency identified a near-term solar PV mini-grid market of 568 MW across the four countries. The market covers about 42,700 settlements and could provide electricity to approximately 21 million people.
Nigeria accounts for the largest portion of the potential market, with almost 400 MW of solar PV capacity. Burkina Faso follows with 91.7 MW, Mali with 56.3 MW and Senegal with 20.3 MW. IRENA noted that Africa had only 149 MW of installed solar PV mini-grid capacity as of last year.
IRENA assessed several electricity supply scenarios based on demand levels, grid expansion and mini-grid costs. The agency found that standalone solar systems could serve the largest share of users under low-demand scenarios, reaching between 70 million and 122 million people.
However, mini-grids become more important from Tier 3 demand levels, while standalone solar systems mainly serve remote and sparsely populated communities.
IRENA said mini-grids could become particularly important when power utilities face persistent challenges that limit grid expansion. Under restricted grid-expansion scenarios, mini-grids could provide electricity access to between 60 million and 110 million people across the four countries.
The agency also estimated that about 397,270 settlements could receive electricity through battery-supported mini-grids.
To achieve universal Tier 2 electricity access by 2030, the four countries would need about 2.25 GWh of battery storage. Nigeria would require the largest share at 1.59 GWh, followed by Burkina Faso at 367 MWh, Mali at 220 MWh and Senegal at 75 MWh.
IRENA said the required storage capacity corresponds to about 815,217 units of a typical 2.76 kWh/51.2-volt lithium iron phosphate battery system available on the market.
The report also introduced a “value of storage” metric to measure the economic benefit of integrating batteries into mini-grids. Using two systems serving a typical community of about 500 people, IRENA found that battery storage could deliver approximately $20,000 in discounted lifetime value.
Although batteries increase upfront costs, IRENA said reduced diesel consumption can generate enough fuel savings to offset those additional costs and produce overall savings.
The agency stressed that West African countries must significantly accelerate mini-grid deployment to achieve universal electricity access. It recommended integrating off-grid solutions into national electrification strategies, strengthening geospatial electrification planning, mobilising finance and developing business models and de-risking mechanisms.
IRENA said volatile diesel prices, continued dependence on fossil fuels and persistent electricity-access challenges have increased the urgency for countries to adopt cleaner and more reliable energy solutions.
The agency noted that landlocked countries face additional challenges because transporting diesel overland from coastal ports increases fuel costs and supply risks.
Against this backdrop, IRENA said battery storage can improve energy security, reduce electricity costs and accelerate the transition away from diesel-powered electricity generation.