Nigeria's Power Sector Faces Net Billing Crossroads
Nigeria's power sector is grappling with the potential implementation of net billing for solar energy, a move that could significantly impact the country's energy landscape. While some experts hail it as a 'game-changer', others caution against its premature adoption due to persistent issues within the sector.
Dr. Sam Amadi, a former NERC chairman, has warned against rushing into net billing. He believes that Nigeria should first address basic market inefficiencies, such as inaccurate billing, inadequate metering, and weak customer service. These issues, along with poor regulatory enforcement and lack of data infrastructure, pose significant challenges to the sector's stability.
Engr. Charles Ugwu, an energy policy analyst, sees potential in excess solar power to help stabilize the grid in the long run. However, an industry operator has raised concerns about the readiness of distribution companies to fairly credit solar producers, highlighting a potential hurdle in the implementation of net billing.
Nigeria's solar energy capacity has grown rapidly, with solar panel imports valued at over $200 million in 2023 alone. Experts believe that the proposed regulation could unlock new financing opportunities for renewable energy installations, potentially accelerating Nigeria's energy transition.
The Nigerian Electricity Regulatory Commission (NERC) has proposed a regulation allowing solar power users to sell excess electricity back to the national grid. While this move is viewed as a positive step by some, such as Dr. Funke Olayemi, a renewable energy consultant, others like Dr. Amadi warn of potential risks, including increased costs if not properly managed in Nigeria's fragile grid. As the debate continues, stakeholders agree that addressing the sector's fundamental issues will be crucial for the successful integration of net billing.
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