Research Summary: Nigeria Mini-Grid Opportunity
Rocky Mountain Institute highlights why Nigeria is the biggest mini-grid show on earth, with a US$8 billion annual revenue opportunity. It has the potential to electrify 14% of its population by building 10,000 mini-grids by 2023.
Nigeria has a large mini-grid market because of the low electrification rate and high demand in rural areas and bad grid electricity quality. The market can realize an annual revenue potential of US$8 billion.
Only 36% of Nigeria's rural population has access to electricity. Not only is electricity access rate low, the quality of access is a day-to-day challenge. More than 80% of the Nigerian businesses have cited quality of power supply as one of their biggest challenges. On average, they experience 8 hours of power outage everyday. This results in an annual economic loss of US$25 billion. Nigeria’s large economy, low access rate and access quality, and growing energy demand make it an ideal market for mini-grid development. To satisfy the booming demand for better energy supply, Nigeria has the potential to electrify 14% of its population by building 10,000 mini-grids of 100kW each by 2023. In total, the Nigerian mini-grid market offers potential revenue of US$8 billion annually.
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