- The African Development Bank committed $1.2 million to fund a feasibility study on Battery Energy Storage Systems in Nigeria.
- Nigerian officials backed the project, calling BESS vital for integrating renewables and improving power system reliability.
The African Development Bank (AfDB) announced a $1.2 million grant on Wednesday, July 30, to fund a feasibility study on Battery Energy Storage Systems (BESS) in Nigeria. This move marks a key step in strengthening grid reliability and supporting the country’s clean energy transition.
The project, launched at an inception workshop in Abuja, will assess how battery storage can integrate with Nigeria’s national grid, develop bankable business and regulatory models to attract investment and build local capacity for long-term ownership and sustainability. The Transmission Company of Nigeria (TCN), AfDB, and the Sustainable Energy Fund for Africa jointly coordinate the initiative.
Abdul Kamara, AfDB’s Director-General for Nigeria, said the grant falls under the Bank’s Africa Energy Transition Catalyst Programme. Represented by Chigoziri Egeruoh, Kamara stressed that while Africa holds nearly 60% of the world’s best solar potential, it accounts for just 2% of global energy storage capacity, a gap that presents both a challenge and a massive opportunity.
“Battery storage is central to unlocking the full potential of our renewable energy resources and delivering stable, reliable power,” Kamara said. “With this $1.2 million grant, Nigeria is poised to take a bold step toward realising that potential.”
Meanwhile, the feasibility study will evaluate grid integration strategies, simulate technical and financial scenarios, and identify priority locations for BESS deployment. It also aims to align with Nigeria’s Energy Transition Plan, SE4ALL action agenda, and the Renewable Energy Master Plan, reinforcing coherence between energy, climate, and innovation policies.
Kamara emphasised that battery storage is no longer a luxury but a necessity. “It enables frequency stabilisation, reserve capacity, and peak load management,” he said. Yet, technology alone is not enough. We must modernise regulatory frameworks and investment environments to scale these solutions sustainably.”
The Bank is also backing Nigeria’s energy reforms through a $1 billion Economic Governance and Energy Transition Support Programme, half of which has already been disbursed, and a $1 million grant under the Africa Energy Sector Technical Assistance Programme, which supports implementation of the Electricity Act and the creation of state-level electricity markets.
In addition, the AfDB has committed $200 million to the Nigeria Electrification Project to expand mini-grids and off-grid solutions and $250 million to reinforce the national transmission grid. Nigeria is also a priority country in the AfDB’s $20 billion Desert to Power initiative, which aims to generate 10,000 MW of solar energy across the Sahel and provide electricity to 250 million people.
TCN Managing Director Sule Abdulaziz, represented by Executive Director Olugbenga Ajiboye, said frequency instability, peak load stress, and limited reactive power continue to constrain the grid. He noted that BESS offers practical solutions to these technical issues, enabling more efficient transmission and better power quality.
Minister of Power Adebayo Adelabu, represented by Ben Ayangeaor, said the study is a strategic move to modernise Nigeria’s power infrastructure. He noted that energy storage becomes essential for maintaining grid balance and reliability as the country increases its share of solar and wind.
“BESS will play a pivotal role in reducing reliance on fossil fuel-based peaker plants, enabling deeper integration of renewables, and extending clean energy access to underserved areas,” Adelabu said. “Especially significant is the grid-forming capability of advanced battery systems, which can act as virtual generators, stabilising the grid even during outages.”
The study will provide a detailed technical, financial, regulatory, and environmental analysis of BESS deployment. It will also outline practical business models, financing structures, and policy recommendations to mobilise private investment, while identifying clear pathways aligned with Nigeria’s national energy goals.
“As we launch this important feasibility study, let us ensure it produces real, actionable outcomes that reflect Nigeria’s priorities and realities,” Kamara said. “Together, let’s move from megawatts of talk to megawatts of power.”