Nigeria Renewable Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 9.88 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Nigeria Renewable Energy Market Analysis
The Nigeria Renewable Energy Market size in terms of installed base is expected to grow from 3.13 gigawatt in 2024 to 5.01 gigawatt by 2029, at a CAGR of 9.88% during the forecast period (2024-2029).
In the long term, favorable government policies to promote renewable energy generation and advancements in renewable energy technologies are also expected to drive the market's growth.
On the other hand, increasing penetration of natural gas for power generation is expected to restrain the Nigerian renewable energy market between 2024 and 2029.
The technological advancements in solar PV manufacturing will likely create lucrative growth opportunities for the Nigerian renewable energy market from 2024 to 2029.
Nigeria Renewable Energy Market Trends
Hydro Power Generation is Expected 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 increasing demand.
- Hydropower is the second-largest source of electricity in Nigeria after thermal power. As of 2023, the country has around 2851 MW of hydropower installed capacity. Financial issues and delays have negatively affected the country's development of large-scale hydropower projects.
- However, as of February 2024, a few of the hydropower projects under the development stages in Nigeria were Mambilla at 3050 MW, Markudi at 1650 MW, Kainji at 980 MW, Lokoja at 750 MW, and Jebba at 578 MW.
- In October 2023, the country commenced the operation of a 700 MW Zungeru hydropower plant developed by the China National Electrical Equipment Corporation (CNEEC). The new hydropower plant is likely to generate over 2.5 Terawatt hours of electricity annually, which could fulfill the country's 10% annual electricity consumption.
- According to the points above, the hydropower segment won't be able to compete in the Nigerian renewable energy market between 2024 and 2029.
Favorable Government Policies are Expected to Drive the Market
- The government of Nigeria issued the Climate Change Act in 2021 to achieve lower greenhouse gas emissions and sustainable growth. It intends to fulfill this goal by achieving a net-zero target between 2050 and 2070. As of 2023, the country had around 2984 MW of hydropower installed capacity.
- The Renewable Energy Master Plan (REMP) of the Nigerian government stipulates the increase in the share of renewable energy generation to 23% by 2025 and 36% by 2030. In addition, the installed capacity of small hydropower will be increased by 2000 MW, solar PV will be increased by 500 MW, biomass will be increased by 400 MW, and wind will be increased by 40 MW by 2025. Such a scenario signifies the robust development of the Nigerian renewable energy market.
- The 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.
- Through government efforts, solar energy and battery energy storage projects are gaining traction in Nigeria. For instance, in November 2023, Sterling & Wilson Solar Solutions Inc. (SWSS) and Sun Africa grabbed a contract worth about USD 2.2 billion from Nigeria's Ministry of Power. The project would encompass 961 MW of solar energy capacity and 455 MWh of battery storage.
- Owing to the above points, favorable government policies to promote renewable energy generation are expected to drive the Nigerian renewable energy market.
Nigeria Renewable Energy Industry Overview
The Nigerian renewable energy market is semi-consolidated. Some of the major players in the market are Engie SA, TotalEnergies SE, Starsight Energy, Enel SpA, and North South Power Co. Ltd.
Nigeria Renewable Energy Market Leaders
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Engie SA
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TotalEnergies SE
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Starsight Energy
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Enel S.p.A
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North South Power Co Ltd
*Disclaimer: Major Players sorted in no particular order
Nigeria Renewable Energy Market News
- March 2024: The Nigerian government's sovereign fund was declared to construct a solar power plant with 20 MW capacity. The project is the first phase of a 300 MW solar program that is likely to diversify the energy mix and reduce carbon emissions in Nigeria.
- December 2023: The Energy Commission of Nigeria (ECN) signed an agreement with the Global Wind Energy Council (GWEC) and the country's State Government to establish wind energy projects in Nigeria. Such developments are anticipated to help the Nigerian renewable energy market grow between 2024 and 2029.
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 2029
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Recent Trends and Developments
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Favorable Government Policies are Expected to Promote Renewable Energy Generation
- 4.6.1.2 Advancements in Renewable Energy Technologies
- 4.6.2 Restraints
- 4.6.2.1 Increasing Penetration of Natural Gas for Power Generation
- 4.7 Supply Chain Analysis
- 4.8 PESTLE Analysis
5. MARKET SEGMENTATION
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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 and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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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 SpA
- 6.3.8 North South Power Co. Ltd
- *List Not Exhaustive
- 6.4 Market Ranking/Share Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technological Advancements in Solar PV Manufacturing
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.
The Nigerian renewable energy market is segmented by type. By type, the market is segmented into solar, hydro, and other renewable energy sources. The report also covers the installed capacity and forecasts for the Nigerian renewable energy market. For each segment, the market sizing and forecasts are done based on installed capacity (GW).
| By Source | Solar |
| Hydro | |
| Other Renewable Energy Sources |
Nigeria Renewable Energy Market Research FAQs
How big is the Nigeria Renewable Energy Market?
The Nigeria Renewable Energy Market size is expected to reach 3.13 gigawatt in 2024 and grow at a CAGR of 9.88% to reach 5.01 gigawatt by 2029.
What is the current Nigeria Renewable Energy Market size?
In 2024, the Nigeria Renewable Energy Market size is expected to reach 3.13 gigawatt.
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, and what was the market size in 2023?
In 2023, the Nigeria Renewable Energy Market size was estimated at 2.82 gigawatt. The report covers the Nigeria Renewable Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the recent industry developments in the Renewable Energy Sector in Nigeria?
The recent industry developments in the Renewable Energy Sector in Nigeria are a) The launch of the Renewable Energy Policy and commissioning of renewable energy projects b) Growth of local manufacturing and assembly and establishment of training programs and capacity-building initiatives
Nigeria Renewable Energy Industry Report
The Nigerian renewable energy market is experiencing significant growth as the country aims to diversify its energy sources and reduce reliance on fossil fuels. This market encompasses various renewable energy sources, including solar, wind, hydro, biomass, and geothermal energy. Key drivers of this growth include increasing environmental awareness, favorable government policies, declining costs of renewable technologies, and the need for energy diversification. Opportunities in the market are solar radiation, wind resources, and hydropower potential, as well as off-grid and mini-grid solutions for rural electrification. The market is segmented by energy sources, project scale, and end-use sectors, with solar and hydropower being particularly prominent. Solar energy companies in Nigeria are playing a pivotal role in this growth, with market analysis of solar energy in Nigeria indicating significant potential for expansion. The renewable energy sector offers significant business opportunities, enhances energy security, promotes environmental sustainability, and supports job creation and economic growth. For detailed statistics on market share, size, and revenue growth rate, refer to the Nigeria Renewable Energy analysis by Mordor Intelligence™ Industry Reports, which includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
