Promoting Renewable Energy through a Decentralised Electricity Regulatory Framework – An Analysis of Nigeria’s Electricity Act 2023

Abstract

In the ever-evolving landscape of energy production and consumption, Nigeria stands at a pivotal crossroad as it seeks to revolutionize its electricity sector by moving from the use of non-renewable energy sources to renewable sources while improving access, cost and resilience. To promote access to electricity, the paper evaluates the Electricity Act 2023, and discusses opportunities for developing an appropriate regulatory framework that will facilitate and promote the increased integration of renewable energy (RE) into Nigeria’s energy mix. The paper employs qualitative research method by examining the former and the existing electricity law in Nigeria and explores the extent that the regulatory framework promotes the integration of RE into the energy mix. The paper investigates secondary sources by analysing the improvements to the RE framework introduced by the Electricity Act 2023 and builds on decentralization approaches that encourages the involvement of State and local entities in governance and decision-making processes. It discusses specific RE provisions in the Electricity Act 2023 such as the renewable generation obligation and ties it to the opportunities and challenges with respect to increased RE integration in Nigeria’s energy mix. The paper concludes that decentralization could help in strengthening capacity building and technical competence at the state and local level and this is critical for promoting the integration of RE in Nigeria’s energy mix thereby increasing the prospects for meeting Nigeria’s climate commitments with the attendant benefits for the energy transition.