Current approach to off-grid electricity needs to be changed – PwC

A new approach that better recognises the part that off-grid technology can play is needed, according to PwC in a report released yesterday, “Electricity beyond the grid: accelerating access to sustainable power for all.”

It notes that the time is right for policymakers in Nigeria to reappraise their approach to energy access.

On current trends, two-thirds of the world’s population will remain without electricity by 2030, which is the target year to achieve the newly agreed post-2015 UN Sustainable Development Goal of universal access to energy.

According to Pedro Omontuemhen, partner and lead, Power and Utilities, PwC Nigeria, for the millions of people who do not currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities.

“In Nigeria, we estimate that only one in five people have access to power from the electricity grid. This leaves four in five people living in urban and rural communities having to fend for themselves with makeshift and localised power solutions.

“Faster progress is needed, and we believe it can be achieved if national energy policies adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by standalone renewable technology and mini-grids,” Omontuemhen said.

Current electrification strategies, according to Olumide Adeosun, associate director, PwC advisory practice, tend to focus on national grid extension plans.

“It is critical that Nigerians take steps to understand and embrace the new starting points for energy provided by stand-alone renewable technology and mini-grids. We believe these solutions provide a viable, bottom-up solution to the patchy availability of electricity in Nigeria.

“Some of the enablers, such as mature mobile payment platforms and data analytics capabilities are already in place. Others will require investors and communities engaging policymakers to formulate an integrated energy access strategy, and then working together in their communities to accelerate momentum in the electrification of Nigeria’s urban and semi-rural locations,” Adeosun said.

The report foresees a major transformation of the electricity sector in the period ahead and sets out five recommendations for accelerating the increase of electrification. The recommendations include developing an integrated energy access plan and map so that everyone can plan with more certainty for either off-grid or grid extension solutions.

Others are creating an enabling environment for off-grid development, including clearer criteria for mini-grid development, support for skills and training and more supportive regulation to allow private players to unlock the off-grid market potential; recognising the value of and promoting the growth of mobile infrastructure, micro loans and payment solutions in supporting energy access; establishing an off-grid innovation and development fund and having a high-level energy access champion that can drive results to cut through bottlenecks and monitor results.

“‘Advances in technology are rapidly changing the options available beyond the grid. Falling solar technology costs have spurred the growth of standalone home systems and are changing the economics of mini-grid systems. Battery storage technology is fast evolving to the point where it is going to play a significant role in utility-scale solar power storage and is beginning to feature in smaller-scale off-grid solutions,” Omontuemhen said.