On Wednesday, the African Development Bank announced that it will provide $1.2 million in grants to help with a feasibility study on Battery Energy Storage Systems in Nigeria.

This initiative aims to assess the effectiveness of these systems in conjunction with the power grid, identify appropriate business and regulatory frameworks to attract investments, and develop the essential skills for ownership and sustainability.

Abdul Kamara, the Director-General of AfDB for Nigeria made this statement during the first workshop for the Nigeria BESS feasibility study, which took place in Abuja. This event was organized by the Transmission Company of Nigeria, AfDB, and the Sustainable Energy Fund for Africa. The workshop gathered experts from government agencies and regulatory bodies to talk about the stability and future of Nigeria’s power grid. Kamara pointed out that the grant is part of the Africa energy transition catalyst program, aimed at encouraging sustainable energy solutions across the continent.

In his speech, which was presented by Chigoziri Egeruoh from the AfDB Nigeria Country Office, Kamara mentioned that Africa has almost 60 percent of the best solar resources in the world, but it only makes up two percent of the global energy storage capacity. He highlighted that this difference not only poses a challenge but also offers a significant opportunity.

“Africa has nearly sixty percent (60 percent) of the world’s top solar resources, yet it only accounts for two percent (2 percent) of the global energy storage capacity.

The current situation offers both challenges and opportunities.

Battery storage is essential for maximizing renewable energy sources and ensuring a consistent power supply. Progress is visible in several countries. For example, in South Africa, a major battery storage project is improving the electricity grid and encouraging the use of solar energy. In Kenya, a project that combines geothermal energy with battery systems is providing dependable electricity to many homes. Now, Nigeria is set to launch similar projects, supported by a $1.2 million grant from a financial institution. This funding will enable a study to assess the viability of battery storage in Nigeria, as noted by Mr. Kamara.

The initiative will be overseen by the Transmission Company of Nigeria (TCN) and will aim to connect battery storage to the grid, create effective business and regulatory frameworks for investments, and develop the necessary skills for project management and maintenance.

This project aligns with Nigeria’s energy transition strategy, its action plan, and the renewable energy master plan, showcasing the connection between energy policy, climate strategy, and innovation. Battery storage is increasingly acknowledged as vital for the future.

As Nigeria’s electricity system changes and grows, battery systems can significantly help in balancing energy levels, supplying additional power when needed, and handling times of high energy use. However, it’s essential to realize that just having the right technology isn’t sufficient. Proper laws and investment opportunities also need to evolve to encourage the growth of these modern solutions.

The African Development Bank (AfDB) is actively supporting this initiative. Our $1 billion program is helping Nigeria make vital changes in the power sector by focusing on economic governance and energy transition support. So far, an impressive sum of $500 million has already been distributed, and the second phase on track.

Moreover, he pointed out that with our $1 million grant for the Africa Energy Sector Technical Assistance Programme, the AfDB is helping to implement the Electricity Act, promote state-level electricity markets, and enhance governance.

“The role of battery storage has shifted from being a luxury to an essential need. As Nigeria’s grid progresses, storage provides practical benefits like frequency stabilization, reserve capacity, and peak load management, among others. Yet, as we all know, technology by itself can’t ensure success. Regulatory frameworks and investment environments need to evolve at the same pace to sustainably scale these innovations.

“Furthermore, we are continually investing directly in energy infrastructure: from the $200 million Nigeria Electrification Project, which improves mini grids and off-grid access, to the $250 million Nigeria Transmission Expansion Project, which strengthens the national grid.

“Nigeria is also actively involved in our flagship $20 billion desert to power initiative, which aims to generate 10,000 megawatts of solar energy across the Sahel and provide electricity to 250 million people. This initiative has incredible potential for Nigeria’s clean energy future. As we start this crucial feasibility study, let’s make sure it produces real, actionable results that align with Nigeria’s priorities and realities,” he stated.

Kamara emphasized that the AfDB is fully committed to supporting Nigeria’s energy transition through funding, technical expertise, and long-term collaboration.

“As we kick off this important feasibility study, let’s ensure it leads to concrete, actionable outcomes that reflect Nigeria’s priorities and realities. This requires your active participation, starting today and continuing through every phase of implementation.

“The African Development Bank is unwavering in its commitment to aiding Nigeria’s energy transition through financing, technical expertise, and long-term collaboration.

Sule Abdulaziz, the Managing Director of TCN, pointed out that the teams working in operations are facing technical problems like changes in frequency and high demand for electricity. These challenges affect the entire electricity system.

Olugbenga Ajiboye, who spoke on his behalf, said that Battery Energy Storage Systems (BESS) can help solve these issues. BESS can help keep the frequency steady and make the electricity grid work better.

Minister of Power Adebayo Adelabu, represented by Ben Ayangeaor, It was noted that conducting a feasibility study is crucial for the modernization of Nigeria’s power infrastructure. This necessity arises particularly due to the challenges faced by the electricity sector, such as frequent power outages and an unreliable grid. He highlighted energy storage solutions, including Battery Energy Storage Systems (BESS), in effectively managing the energy produced from an increasing reliance on solar and wind energy sources, thereby guaranteeing a dependable power supply.

These systems play a crucial role in ensuring the stability of grid frequency, facilitating black start capabilities, and bolstering the resilience of power systems during disruptions or partial outages.

BESS not only functions as a means of energy storage but also actively contributes to grid support, improves power quality, and reduces the likelihood of blackouts.

“The feasibility study being inaugurated today will deliver a thorough technical, regulatory, financial, and environmental evaluation of the implementation of battery energy storage systems in Nigeria. It will identify key areas across the nation for BESS installations, propose feasible business models and funding alternatives, promote policy frameworks that encourage private sector participation, and outline clear strategies for implementation that align with our national energy transition goals,” he said.