ADVERTISEMENT
TechEconomy
Friday, May 30, 2025
No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Podcast

Home » State of Power in Nigeria: Mini-Grids vs. National Grid – What Works Better?

State of Power in Nigeria: Mini-Grids vs. National Grid – What Works Better?

…or a hybrid model of national grid and mini-grids might just be the best solution

Joan Aimuengheuwa by Joan Aimuengheuwa
February 24, 2025
in Macro Monday
0
State of Power in Nigeria: Mini-Grids vs. National Grid – What Works Better?
Source: Techeconomy

Source: Techeconomy

RelatedPosts

iPhone 16 Pro Max vs Samsung Galaxy S25 Edge

iPhone 16 Pro Max vs Samsung Galaxy S25 Edge

May 26, 2025

How to Extend Battery Life on Smartphones

May 19, 2025

If Nigeria’s national grid were a student, it would be the one who keeps promising to study harder but still manages to fail every major exam. 

Even with decades of “endeavours,” our power sector always presents the same results: frequent blackouts, high costs of electricity, and an overwhelming reliance on petrol and diesel generators.

Nigeria, Africa’s largest economy serving a population of over 200 million, has an installed generation capacity of 13,000MW, but actual power output does not go beyond 4,000MW—far below the estimated demand of 30,000MW. 

Businesses lose billions annually due to unreliable power, while households are unable to keep the lights on.

Hence, we wonder if Nigeria should continue banking on fixing its dysfunctional national grid, or if it’s time to take up a decentralised alternative—mini-grids? 

While the national grid collapses under systemic failures, mini-grids have been seen as a feasible solution, particularly in off-grid communities. 

But can they scale fast enough to bridge the energy deficit? Or would hybrid just be the best solution?

Let’s discuss! 

The National Grid: Can it be Fixed?

Nigeria’s national grid, managed by the Transmission Company of Nigeria (TCN) and serviced by private electricity distribution companies (DisCos), is unreliable till today. 

The country has experienced repeated grid failures over the years, with 2024 recording 12 collapses, implying systemic weaknesses.

As of February 23, 2025, two major grid failures have already been reported this year. The first occurred on February 12, 2025, at 11:34 a.m., resulting in nationwide blackouts. 

Several electricity distribution companies, including Ikeja Electric and Abuja Electricity Distribution Company, confirmed the outage and worked to restore supply. 

However, the TCN denied that this was a full grid collapse, instead attributing the incident to a transmission line trip at the Omotosho-Ikeja West 330kV line.

While consumers are left in prolonged outages, official explanations downplay the severity of the problem, leaving millions inconvenienced.

Why Does the National Grid Keep Failing?

  • Ageing Infrastructure: Much of Nigeria’s transmission network is outdated and prone to breakdowns.
  • Transmission Bottlenecks: Even when power is generated, it usually cannot be efficiently transmitted due to network limitations.
  • Revenue Shortfalls: DisCos find it hard to recover costs due to electricity theft, billing inefficiencies, and non-cost-reflective tariffs.
  • Regulatory & Political Barriers: Government policies usually interfere with market-driven electricity pricing and investment.
  • Heavy Reliance on Fossil Fuels: The national grid is highly dependent on gas-fired power plants, leaving it vulnerable to fuel supply disruptions.

Nonetheless, the government is working to overcome these challenges and expand and modernise the grid. The Siemens-backed Presidential Power Initiative (PPI) aims to boost generation and distribution capacity. 

However, results have been slow, and many Nigerians are sceptical about whether the grid can ever meet the country’s energy requirements.

Mini-Grids: A Decentralised Alternative

So mini-grids—independent, small-scale electricity systems—might just be the solution to the national grid’s weaknesses.  These decentralised power solutions, often powered by renewable energy sources like solar and hydro, have been particularly effective in rural communities where the national grid is either absent or unreliable.

Advantages of Mini-Grids

  • Reliability: Mini-grids operate independently, meaning they are not affected by national grid failures.
  • Scalability & Faster Deployment: Unlike large power plants, mini-grids can be deployed quickly, often in under a year.
  • Sustainability: Many mini-grids rely on solar and hydropower, reducing dependence on fossil fuels.
  • Lower Transmission Losses: Since they generate power close to consumers, mini-grids avoid the high transmission losses associated with the national grid.

Challenges of Mini-Grids

  • High Initial Costs: Mini-grid projects require high upfront investment, making them difficult to scale without subsidies.
  • Regulatory Uncertainty: Nigerian energy policies are focused on grid expansion, creating hindrances for mini-grid investors.
  • Limited Capacity for Industrial Use: While great for households and small businesses, mini-grids may be unable to support large industries, unless strategically allocated.

With strategic planning and allocation, mini-grids can be designed to support specific industrial activities. For example, integrating productive uses of electricity, such as agriculture, manufacturing, and service sectors, can enhance the economic viability and sustainability of mini-grids.

Several successful mini-grid projects in Nigeria, such as Rubitec Solar in Lagos and Husk Power Systems in Nasarawa, show that this model can be successful. However, general adoption requires policy changes and financial support.

Comparing the Two Models: National Grid vs. Mini-Grids

Factor National Grid Mini-Grids
Reliability Prone to frequent failures and instability More stable in localised areas
Affordability Subsidised but unreliable Higher upfront cost but predictable pricing
Scalability Expensive and slow expansion Faster deployment, modular growth
Sustainability Dependent on gas and diesel Renewable energy-driven
Policy Support Existing infrastructure but bureaucratic Growing support but regulatory limitations 

What Works Best? The Case for a Hybrid Approach

Given the weaknesses and strengths of both models, Nigeria needs a hybrid approach. While the national grid is essential for industrial power needs, mini-grids can provide reliable electricity for communities and small businesses.

Key Recommendations:

  • Grid Modernisation: Invest in smart grids, improved transmission infrastructure, and decentralised generation.
  • Mini-Grid Incentives: Provide subsidies and regulatory support to attract investment in mini-grids.
  • Public-Private Partnerships: Leverage private sector expertise to develop both grid and off-grid solutions.
  • Renewable Energy Integration: Scale up solar, wind, and hydropower generation across both national and mini-grid networks.

Nigeria’s electricity problem demands assertive reforms and innovative solutions. While the national grid is important, its frequent failures ascertain the need for alternative energy models. 

Mini-grids provide a decentralised, renewable, and resilient solution that can complement the national system.

Hence, policymakers need to take up this hybrid vision, or Nigeria’s power sector will continue to operate in the dark.

Loading

Advertisements
MTN ADS

0Shares
Tags: ElectricityElectricity Distribution Companies (DisCos)Macro MondayMini-GridsNational GridNational Grid CollapsesNigeriaState of PowerTransmission Company of Nigeria (TCN)
Previous Post

Google Prices Veo 2 at 50 Cents Per Second, Charging $30 Per Minute for AI-Generated Video

Next Post

7even Interactive Commits to Expand Creativity, Innovation Frontiers in Advertising

Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

Related Posts

iPhone 16 Pro Max vs Samsung Galaxy S25 Edge
Macro Monday

iPhone 16 Pro Max vs Samsung Galaxy S25 Edge

by Joan Aimuengheuwa
May 26, 2025
0

The S25 Edge is the better looker if you're after elegance; the iPhone is a fortress with flair

Read more
How to Extend Battery Life on Smartphones

How to Extend Battery Life on Smartphones

May 19, 2025
New iPhone, Old Android: Why Is Switching Still So Hard?

New iPhone, Old Android: Why Is Switching Still So Hard?

May 12, 2025
How to Make Tech Work for You When You Don’t Work in Tech

How to Make Tech Work for You When You Don’t Work in Tech

May 5, 2025
A Reality Check On Nigeria’s 2025 Growth Projections as Q2 Progresses

A Reality Check On Nigeria’s 2025 Growth Projections as Q2 Progresses

April 28, 2025
Top Trades for 2025

Top Trades for 2025: Predictions, Pitfalls, and Profitable Moves

April 21, 2025
Next Post
7even Interactive | Advertising

7even Interactive Commits to Expand Creativity, Innovation Frontiers in Advertising

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Techeconomy Podcast

Techeconomy Podcast
Techeconomy Podcast

Infowave is brought to you by TechEconomy. Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

Follow us @techeconomyng for more.

TECH TALK EPISODE 2
byTecheconomy

PRODUCTIVITY AND WORK-Life Balance

TECH TALK EPISODE 2
TECH TALK EPISODE 2
May 22, 2025
Techeconomy
CYBERSECURITY ESSENTIALS
April 24, 2025
Techeconomy
Digital Marketing Trends and strategies for 2025 and beyond
February 27, 2025
Techeconomy
Major Lesson for Techies in 2024 and Projections for 2025
December 6, 2024
Techeconomy
Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
November 26, 2024
Techeconomy
Maximizing Profitability Through Seasonal Sales: Strategies For Success
November 8, 2024
Techeconomy
Techeconomy Business Series
October 15, 2024
Techeconomy
PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
May 30, 2024
Techeconomy
Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
February 9, 2024
Techeconomy
The Role of Ed-tech in Life Long Learning and Continuous Education
October 19, 2023
Techeconomy
Search Results placeholder

WHAT IS TRENDING

https://www.youtube.com/watch?v=g_MCUwS2woc&list=PL6bbK-xx1KbIgX-IzYdqISXq1pUsuA4dz

Follow Us

  • About Us
  • Contact Us
  • Careers
  • Privacy Policy

© 2025 Techeconomy - Designed by Opimedia.

No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS

© 2025 Techeconomy - Designed by Opimedia.

Translate »
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.