Report | 2022
Improving Electricity Supply for Large Customers in Nigeria
In Nigeria, a new business model enables utilities to provide reliable electricity to large commercial and industrial customers.
Industrialization is gaining pace in many sub-Saharan African countries. However, large commercial and industrial (C&I) customers in Nigeria continue to be hampered by unreliable electricity supply from the national grid. Consequently, most large C&I customers have resorted to fossil fuel-powered self-generation which increases costs and reduces profitability. To reduce fossil fuel self-generation costs, large C&I customers are beginning to take advantage of declining renewable energy prices to install their own captive distributed energy resource (DER) systems.
The Improving Electricity Supply for Large Customers in Nigeria report provides a new collaborative business model for distribution companies (DisCos) and DER developers to provide C&I customers with cleaner, more reliable, and more affordable electricity.
To support the broader sector in considering the business model’s use, the report includes template contract documents to provide a starting point for collaborative project development including:
- A generic request for proposal (RFP) to enable DisCos and their large C&I customers to jointly procure a qualified DER developer.
- A generic Tripartite Agreement to stipulate the contract terms among the DER developer, the DisCo, and the customer throughout the installation, operation, and maintenance of the project.
- A scoring matrix to assist in evaluating proposals received in response to the RFP.