Storage, not solar panels, will drive Nigeria’s next renewable energy investment, say Experts
Nigeria’s renewable energy industry is increasingly turning its attention to battery storage and smart energy systems as falling technology costs reshape the economics of clean power.
At the Solar & Storage Live Nigeria 2026 conference in Lagos, industry leaders said the next phase of the country’s energy transition will depend not only on expanding solar generation but also on investing in storage and digital infrastructure to improve reliability.
Speaking with WesternPost on the sidelines of the event, President of the Renewable Energy Association of Nigeria (REAN), Ayo Adedimulua, said the long-held perception that renewable energy is too expensive is no longer supported by market realities.
“Component costs have fallen by more than 100 per cent over the last 10 to 15 years, and in some cases we’re seeing declines of 200 to 300 per cent,” he said.
Adedimulua said declining equipment costs have significantly improved the business case for renewable energy, making solar increasingly competitive with conventional power sources.
“Every naira spent on diesel or petrol is gone the moment it is burned. Every naira invested in solar panels or batteries continues delivering value over the lifetime of the asset.”
He said Nigeria’s renewable energy resources go beyond solar, pointing to hydro, wind, biomass and geothermal energy as sectors with significant untapped potential.
“We have everything we need,” he said. “What we’ve lacked is the conviction to price risk correctly.”
According to him, the strong turnout of equipment manufacturers, developers, investors and policymakers at this year’s conference reflects growing confidence in Nigeria’s renewable energy sector.
Speaking during a panel discussion, the Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, said battery storage would attract the next wave of investment in the country’s electricity market.
“The next wave of capital will not go into generation,” Aliyu said. “It will go into storage. That is where the unlock happens.”
He disclosed that the REA is currently developing 48 interconnected mini-grids with a combined capacity of about 288 megawatts to improve electricity access and strengthen the reliability of rural power systems.
Aliyu added that all new REA-supported mini-grid projects are being equipped with Internet of Things (IoT)-enabled smart meters capable of two-way communication to improve load management, billing and predictive maintenance.
He also revealed that the agency has deployed artificial intelligence to map more than 750,000 communities nationwide, using demographic and economic data to guide project development and investment decisions.
“We know where the people are. We know what they can pay. We know which clusters make commercial sense,” he said.
On policy, Aliyu described the Electricity Act 2023 as a landmark reform that has opened the door for greater private investment by giving states more authority over electricity regulation.
“The reform is consequential, no question,” he said. “States have the authority now. The question is whether they have the ambition to use it.”
