Powering the Commercial Sector in Nigeria Using Urban Swarm Solar Electrification

Abstract

The commercial sector in Nigeria has been greatly hampered due to the poor availability of reliable electricity. In a 2014 World Bank report, nearly half of the firms doing business in Nigeria identified electricity as a major constraint, with over a quarter of them listing electricity as their biggest obstacle. The business losses due to electrical outages have been significant, with losses averaging about 16% of annual sales. The lack of access to reliable electricity is one of the biggest challenges to economic growth in Nigeria. This paper proposes a means of powering the commercial sector in Nigeria using urban swarm electrification. It outlines a conceptual framework for using a distributed network made up of grid-connected home solar PV systems as a viable option for providing the commercial sector with more reliable access to electricity. It further addresses the policy implications for the commercial sector with the enablement of more electrification options, implications that include strong economic impact, as well as the expansion and creation of new industries.

The Impact of Stand-Alone Systems in Nigeria’s Energy Distribution Sector and Present-Day Challenges Faced

“…Such parties that both produce and consume electricity simultaneously are referred to as prosumers, and they can monetize the excess electricity they provide [7]. In a paper [7] they proposed a medium of providing electricity to the business community via solar energy and He shares that the government can support the model presented in the paper such that households equipped with solar PV systems come together to create a solar home system-based microgrid system, they can function as a Generating Company (GenCo) and receive similar benefits previously exclusive to privately-owned GenCos that generate power from ground-mounted photovoltaic plants that require a vast land area. In cases where solar home systems-based microgrids can benefit from the government's proposed commitment to purchase surplus power generated, it would be advantageous.…”

“…A mini-grid is a renewable-based energy system that has a potential of 10 kW or more, while a micro-grid is also alike but its potential is below 10 kW in agreement with the Ministry of New and Renewable Energy located in India. These systems have an independent operation, but they can also be connected to the power system to trade power which in these cases are called grid-connected mini or microgrids [7]. The World Bank provides a different explanation about the mini-grid system to be a medium of providing electricity to rural areas through the use of isolated generation systems, these microgrids are found to be in span from several kilowatts to numerous megawatts and can also exist in three medium which includes an on-grid operation, an isolated mode, or fused into the grid system legally [8].…”