Renewables
Nigeria starts 17.7MW mini-grid projects in Oyo State
Federal authorities have broken ground on interconnected mini-grid infrastructure in Oyo State to decrease commercial reliance on diesel and petrol generators.
Key points
- The initiative targets five communities in Ibadan with a combined 17.7MW generation capacity.
- A 17.74 megawatt-hour battery storage system is included to manage demand fluctuations.
- Paras Energy, the Rural Electrification Agency, and local partners are developing the project.
What happened
The Federal Government has initiated construction on 17.7 megawatts of interconnected mini-grid capacity across five communities within Oyo State, according to Investors King. Minister of Power Joseph Tegbe stated at the groundbreaking ceremony that the infrastructure aims to boost electricity availability for manufacturers, artisans, and shop owners.
The installations will serve Bola, Jiboye, Molade-Adelubi, Ogo-Oluwa, and Sooko-Elega. In addition to the generation assets, the plans feature an accompanying battery storage rating of 17.74 megawatt-hours and 18 newly installed distribution transformers. Paras Energy and Natural Resources Development Limited is executing the build alongside the Rural Electrification Agency and the Ibadan Electricity Distribution Company.
Why it matters
Commercial entities in the targeted areas frequently face supply deficits, forcing them to run costly fuel-driven backup generators. According to World Bank figures from 2024, Nigeria's electricity use per person stands at 140.6 kWh, compared to a global average of 3708.5 kWh. High self-generation expenses reduce working capital available for business expansion.
The government targets a daily supply duration of at least 20 hours once the infrastructure becomes operational. Unlike standalone setups, these interconnected networks interface directly with the local distribution grid to augment regional capacity.
What comes next
Project developers have not yet published a final commissioning timeline, total capital expenditure figures, or retail tariff schedules for end users. The ultimate financial relief for local enterprises will depend on these upcoming pricing structures and the reliability of the delivered power.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
22.0% of electricity in Nigeria was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
