Nigerian customers connected to electricity supplied from mini grid power systems which are mostly solar-based, could see their tariff drop by 60% by 2020, the Nigeria mini grid investment report 2018, has disclosed.
Authored and published by the Nigerian Economic Summit Group (NESG) and Rocky Mountain Institute (RMI), the report explained that while people typically paid N200 per kilowatt hour (kWh) of electricity from mini grid systems, tariffs are however expected to continue to fall.
It explained: “In March 2018, RMI and the Nigerian REA convened leading global experts from across the mini grid and investment community to identify a pathway to achieving mini grid tariffs of N70/kWh by 2020.”
“These experts agreed that this is feasible through achievable cost reductions across six categories – hardware, load management, customer engagement, project development and O&M, finance, and policy.”
Painting a promising future for mini grid market in Nigeria, it noted: “In a matter of 12 to 24 months the number of commercial mini grid systems is expected to increase by a factor of ten, while project costs are falling and best practices are being implemented across the sector.”