Solar: Affordable Power in Nigeria and Africa:Enter SOLAR and its Enabling Policies-Part 4
The energy in sunlight is trapped by a solar panel, generating direct current (DC). The DC is converted to Alternating current (AC) by an inverter system. This electricity is now available for our electricity needs. Combined with a battery storage system, electricity generated during the day can be stored for use at night when there is no sunlight.
Types of Solar Systems
Solar systems are divided into Off-Grid and Grid-connected solar system.
A. Off-Grid systems which is the emphasis of this project can be further divided into Pico-Solar, Stand-alone Solar Home systems (SHS) and Mini-Grid.
1. Pico-Solar are very small capacity solar systems that are used to power lightbulbs, lamps and phones
2. Stand-alone Solar Home Systems systems are typically roof mounted solar systems. This range from 5W to 5kW and are cost comparable with kerosene lamps or diesel generators.
3. Mini-Grids are community-based grids that generate and distribute power at the point of power use. Their capacities could range from 50kW up to 10MW. The components of a solar mini-grid include the solar modules, combiner boxes/breaker panel, inverter, smart meters, battery bank, distribution pole/wires, fuses, and lightning arresters.
B. For Grid-connected systems, the generated power through solar is injected into the transmission grid. This system is not considered in this study.
Enabling Policy
The key enabling policies of the Off-Grid market are:
· Section 4.4.2 of the NEPP which states that the clear separation of business activities between generation, transmission, distribution, and sales would not apply to off-grid systems
· The EPSRA excludes all integrated power systems below 1 MW from NERC regulation
· The Rural Electrification Agency (REA), is responsible for developing the Nigerian off-grid power market, and has created the Off-Grid Electrification Strategy
· Tariff flexibility is currently allowed
The key points of the Mini-Grid Regulation are:
· For Isolated Mini-Grids (less than 100kW) only registration with the NERC is required for such small projects
· For Isolated Mini-Grids (100kW — 1 MW) only one permit is needed per location
This policy provides a unique market opportunity for capacities less than 1MW.
Next Up we will explore the Solar Market and Mini-Grid Opportunity
Thank you for reading,
Nero
