An analysis by Sustainable Energy for All (SEforALL) in partnership with the Lagos State Government has identified almost 4.5 million fossil fuel generator sets (gensets) being used in Lagos State. These are producing total estimated annual emissions of 39 million tonnes of CO2 equivalent (tCO2e) – more than the genset emissions of Togo, Rwanda and Gabon combined.

Nigeria’s ambitious energy transition targets universal access by 2030 and net-zero emissions by 2060, but gensets pose a significant challenge to achieving this net-zero goal. Lagos has the highest electricity demand in Nigeria, but only about 20% of this demand is met by the grid, leading to a reliance on gensets.

This dependence on gensets creates a vicious cycle. Businesses struggle with high fuel costs and unreliable power, stifling productivity and investment. Homes endure erratic electricity, hindering education and essential activities.  

Transitioning these gensets to cleaner alternatives, in line with the nation’s climate and development goals, requires precise data collection around the number of gensets, their locations, usage patterns, and environmental and economic impacts. Therefore, the Lagos State Ministry of Energy and Mineral Resources collaborated with SEforALL on a study that captures these insights and makes them readily available to energy planners from government and their development partners.

The data captured by the study are accessible online through the Nigeria Integrated Energy Planning Tool and are being used to guide the design, development and delivery of a state-wide fossil fuel displacement programme.  

Precise data on gensets across Lagos supports targeted energy policies and interventions and the design of alternative, cleaner power solutions that meet the needs of different customers. Therefore, the study marks a crucial step towards sustainable and scalable renewable energy solutions, aligning with broader national energy transition objectives.

“Displacing small-scale fossil fuel generators with solar and storage solutions is essential for ensuring energy security, supporting economic development, and achieving Nigeria’s ambitious net-zero emissions target under its Energy Transition Plan. This analysis showcases the power that data and insights can have towards catalysing the energy transition in Lagos State and beyond.”

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, and Co-Chair of UN-Energy

“The Beyond Gensets: Advancing the Energy Transition in Lagos State report is more than just a study—it’s a catalyst for action. The study offers insights that systemically should drive Distributed Solar PV (DPV) initiatives such as rooftop solar with backup storage that reduce our reliance on fossil fuels, starting here in Lagos and scaling across the nation. By understanding and working to mitigate the impacts of diesel and petrol generator sets, we are taking decisive steps toward a cleaner, more sustainable energy future for Lagos and Nigeria as a Nation. Together, we can transform these findings into tangible progress, setting the standard for genset displacement nationwide.”

Biodun Ogunleye, Commissioner of Energy and Mineral Resources, Lagos State 

A new study by RMI and Nigeria Energy Transition Office charts a path to sustainable and equitable transportation solutions

Abuja, Nigeria – September 19, 2024: A new report by Sustainable Energy for All’s Nigeria Energy Transition Office (ETO) and RMI (founded as Rocky Mountain Institute), reveals Nigeria’s vast potential to harness economic growth through the production and adoption of electric vehicles (EVs).

By implementing supportive policies, fostering domestic EV assembly and manufacturing, and expanding charging infrastructure powered by reliable energy sources, Nigeria can accelerate its EV transition. With tailored de-risking of EV financing, the country can unlock significant long-term savings, positioning itself as a leader in sustainable transportation.

As Africa’s most populous nation, Nigeria’s economy heavily depends on oil, gas, and agriculture. However, its transportation sector, critical for economic development, faces mounting challenges - particularly as transportation costs rise after the removal of the fuel subsidy. Despite these hurdles, Nigeria has immense untapped potential to revolutionize its transportation landscape with electric mobility, and create jobs, reduce pollution, and ensure a more affordable and sustainable future for its citizens.

Lolade Abiola, Programme Manager, Energy Transition Office Nigeria, stated, "Electric mobility holds the key to Nigeria's sustainable future, offering not just cleaner transport solutions but also paving the way for technological advancement and energy security."

The report emphasizes the need for swift adoption of EVs, including two- and three-wheelers, to offer clean, affordable, and reliable transportation options that improve daily life for Nigerians. Accelerating this transition will generate green jobs, bolster the economy, and improve public health outcomes. Transportation electrification is a key component of Nigeria's broader decarbonization strategy. At COP26, Nigeria committed to achieving carbon neutrality by 2060. Its Energy Transition Plan (ETP) outlines an ambitious goal to deploy 13 million electric vehicles - 60% of the country's total vehicles - by 2050, with 100% deployment by 2060.

Kelly Carlin, Manager, RMI Carbon-Free Transportation Program, noted, "RMI’s analysis shows there’s a tremendous and immediate opportunity for Nigeria to lead in the transition to EVs, and for Nigerians to benefit from the rapidly growing cost-savings of e-mobility over traditional gas-powered vehicles."

The report offers actionable recommendations for public and private stakeholders to propel Nigeria's EV adoption, including:

• Implement favorable EV policies: Adopt fiscal and non-fiscal policies to fast-track EV deployment and support industry growth.
• Expand EV access: The Nigerian manufacturing sector, with government backing, is well-positioned to capture the last stages of the EV supply chain, especially in final assembly.
• Establish EV finance facilities: Affordability is key to driving market growth, with financing solutions critical to accelerating adoption.
• Build charging infrastructure: Reliable, accessible, and scalable charging infrastructure is essential for the success of Nigeria’s e-mobility sector.
• Foster public-private collaboration: Strong partnerships between government and businesses will create a sustainable, thriving EV ecosystem.
• Raise awareness: Promoting the benefits of transportation electrification will encourage smaller fleets and stakeholders to embrace e-mobility solutions.

With its economic strength and regional influence, Nigeria has the potential to not only improve the lives of its own citizens but also to serve as a model for other countries, demonstrating how sustainable transportation can drive economic and social progress.

Download the full report here: https://rmi.org/insight/nigeria-mobility-support/
 

For media inquiries please contact:

Sherry Kennedy, Communications Director, Sustainable Energy for All (SEforALL)

T: +43 676 846 727 237 E: Sherry.Kennedy@SEforALL.org  

Benson Kibiti, Sr. Strategic Communications Manager, RMI

T: +254720 658597 E:bkibiti@rmi.org or RMI’s media team media@rmi.org
 

Notes to Editors

RMI’s Clay Stranger, Managing Director, RMI Carbon-Free Transportation Program, and Lolade Abiola, Programme Manager, Energy Transition Office Nigeria, are available for comments.

About SEforALL

Sustainable Energy for All (SEforALL) is an independent international organization that works in partnership with the United Nations and leaders in government, the private sector, financial institutions, civil society and philanthropies to drive faster action on Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030 – in line with the Paris Agreement on climate change. SEforALL works to ensure a clean energy transition that leaves no one behind and brings new opportunities for everyone to fulfil their potential. Learn more about our work at www.SEforALL.org

About RMI

RMI, founded in 1982 as Rocky Mountain Institute, is an independent nonprofit that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut climate pollution at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; Abuja, Nigeria; and Beijing. More information on RMI can be found at www.rmi.org or follow us on Twitter @RMIAfrica.

ABUJA, NIGERIA | [June 12, 2024] ― Sustainable Energy for All (SEforALL), a global organization dedicated to universal access to sustainable energy, led by its CEO and Special Representative of the UN Secretary-General, Damilola Ogunbiyi, will host a high-level delegation from The Rockefeller Foundation and Global Energy Alliance for People and Planet (GEAPP) focused on expanding universal energy access and accelerating Nigeria’s transition to clean and affordable energy.

The delegation, which includes Dr. Rajiv J. Shah, President of The Rockefeller Foundation; William Asiko, Vice President and head of The Rockefeller Foundation’s Africa Regional Office; Wale Aboyade, interim Regional Head for Africa at GEAPP; Muhammad Wakil, GEAPP’s Country Lead for Nigeria; and other senior participants, will participate in a mix of meetings with key public and private Nigerian stakeholders and visits to renewable energy projects that are fostering economic development, improving health outcomes, and empowering local communities.  

Aligned with the new World Bank and African Development Bank Group’s (AfDB) ambition to provide 300 million people in Africa with electricity access by 2030, these dialogues will also explore ways to leverage combined expertise and resources to accelerate Nigeria’s progress towards achieving universal energy access.  

In support of Nigeria’s climate leadership and progress on addressing energy poverty, the delegation will visit projects that are already exploring innovative solutions for expanding access to distributed renewable energy (DRE) across the country and see first-hand the impact and urgent need to scale deployment.  

One of the visits is to a solar energy project site that is being financed by the Universal Energy Facility (UEF). A results-based finance facility, the UEF is managed by SEforALL and supported by GEAPP, Shell Foundation, The Rockefeller Foundation, Africa Minigrid Developers Association, Bezos Earth Fund, Power Africa, Good Energies, UK aid, Carbon Trust, FCDO TEA, IKEA Foundation, Federal Ministry for Economic Cooperation and Development, Germany (BMZ), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).  

In Nigeria, the UEF provides grants to energy project developers that power small- and medium-sized enterprises (SMEs) clusters, often markets. These projects utilize innovative standalone solar systems and underscore the commitment of the Nigerian government to partners promoting sustainable energy solutions in the country.

Dr. Rajiv J. Shah, President of The Rockefeller Foundation, said: “This is a critical moment for Africa’s energy transformation. With the World Bank and the African Development Bank’s recent commitment to expand energy access to 300 million Africans by 2030, which The Rockefeller Foundation and the Global Energy Alliance for People and Planet are proud to support, Nigeria is leading the way with innovative, people-centered solutions. The model Nigeria uses to empower 100 million people, one-third of that target, can provide a roadmap for Africa and the rest of the world.’’

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, said: “I am extremely pleased to host this visit. Nigeria is an important country to focus on as concerted efforts and greater partnerships are vital if we are to tackle the energy access challenge in this country, and this is why this visit is important as it galvanizes support for greater access to sufficient, affordable, and clean energy for the people of Nigeria.”  

Wale Aboyade, interim Regional Head for Africa at GEAPP, said: “I am excited to join our Alliance partners as part of this important visit, which allows us to connect with our ultimate stakeholders who are the people in the countries that we aim to improve electricity access and livelihoods.  By leveraging the strengths of our respective partners, we are accelerating our common mission to support vital countries like Nigeria in the shift to clean energy that can power inclusive, sustainable economic growth for the millions. In addition to the projects listed above, the trip also builds upon additional ongoing GEAPP-supported programs in the country, including the World Bank-led $750 million Distributed Access through Renewable Energy Scale-up (DARES).’’

About Global Energy Alliance for People and Planet (GEAPP)  

The Global Energy Alliance for People and Planet (GEAPP) is an alliance of philanthropy, governments in emerging and developed economies, and technology, policy, and financing partners. Our common mission is to enable LMIC’s shift to a clean energy, pro-growth model that accelerates universal energy access and inclusive economic growth, while supporting the global community to meet critical climate goals during the next decade. As an alliance we aim to reduce 4 gigatons of future carbon emissions, expand clean energy access to one billion people, and enable 150 million new jobs. With philanthropic partners, IKEA Foundation, The Rockefeller Foundation, and Bezos Earth Fund, GEAPP works to build the enabling environment, capacity, and market conditions for private sector solutions, catalyze new business models through innovation and entrepreneurship, and deploy high-risk capital to encourage private sector solutions, and assist just transition solutions. For more information, please visit www.energyalliance.org and follow us on LinkedIn.

About SEforALL

Sustainable Energy for All (SEforALL) is an international organization that works in partnership with the United Nations and leaders in government, the private sector, financial institutions, civil society and philanthropies to drive faster action towards the achievement of Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030 – in line with the Paris Agreement on climate. SEforALL works to ensure a clean energy transition that leaves no one behind and brings new opportunities for everyone to fulfill their potential.  

Learn more about our work at SEforALL.org and follow us on LinkedIn and X @SEforALLorg.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at rockefellerfoundation.org and follow us on X @RockefellerFdn.

For media enquiries, please contact:

Sherry Kennedy, Director of Communications at SEforALL, Sherry.Kennedy@Seforall.org 

Sustainable Energy for All (SEforALL) today announced the signing of grant agreements with 19 clean energy developers under its results-based financing (RBF) multi-donor fund, the Universal Energy Facility (UEF), Stand-Alone Solar for Productive Use (SSPU) programme, for the deployment of high capacity solar and battery storage systems to businesses and institutions across Nigeria. These systems are expected to be fully installed and operational before the end of this year.

"This marks a significant step forward in our shared vision for a sustainable future. By signing these grant agreements, the UEF is truly making a difference by empowering clean energy developers to bring their innovative solutions to life.” said Joseph Nganga, Interim Chief Executive Officer, Global Energy Alliance for People and Planet (GEAPP). “I'm incredibly proud of the UEF's work and excited to see the positive impact these projects will have on many lives."

Reliable clean electricity for homes, businesses (SMEs), and institutions, transforms daily life. Electricity stays on, harmful petrol and diesel generator sets will be removed, which reduces indoor air pollution and CO2 emissions, equipment runs smoothly, and essential services like healthcare and education can function effectively. This unlocks economic opportunities and improves overall well-being.

“I am proud of the work we have all done to enable a better environment for the private sector to grow within the energy sector. The companies signing the grant agreements today are a testament to the policies that have been put in place and capacity building efforts made in the past decade to build the sector,” said Abba Aliyu, Managing Director, Rural Electrification Agency.

This significant expansion builds upon the success of the UEF's initial launch of the SSPU programme in February 2023 when 10 developers received grants to deploy SSPU units in underserved or unserved communities.  So far, over 1,600 systems have been installed, serving over 1,200 businesses and institutions such as health and educational facilities.  

The UEF has achieved significant progress over the past year, not only in Nigeria but also in Benin, the Democratic Republic of the Congo, Madagascar, and Sierra Leone, with thousands of Africans benefiting from this facility.

The SSPU systems are game-changers; these solar power systems provide a reliable source of electricity, unlocking a range of socio-economic benefits. Businesses can extend operating hours, utilize equipment, and improve product quality, leading to increased income.  SSPUs also stimulate job creation by fostering local businesses that rely on electricity.

The event was attended by distinguished guests, including Ms. Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All; Mr. Shubham Chaudhuri, Country Director, World Bank, Nigeria; Mr. Abba Aliyu, Managing Director, Rural Electrification Agency; and Mr Aminu Umar- Sadiq, Managing Director of the Nigeria Sovereign Investment Authority.

"In combination with innovative financing solutions, such as those we are discussing today through the Universal Energy Facility, among others, the DARES project will scale up productive use and clean energy to not only communities but also to micro, small and medium enterprises (MSMEs) that form the backbone of Nigeria’s economy,” said Shubham Chaudhuri, Country Director, World Bank, Nigeria.

During the event, the attendees engaged in a productive discussion around the Distributed Access through Renewable Energy Scale-up (DARES) initiative, the impact of the UEF, and the role of results-based financing and climate finance in achieving the Sustainable Development Goals (SDGs).

An example of how the UEF has transformed the lives of business owners is demonstrated with Ruth Badejo, a fashion designer at the Ayandburen Market in Lagos, Nigeria, who struggled with unreliable power for her business. Previously reliant on a petrol generator, she faced high prices of petrol, fuel shortages and power cuts, limiting her work hours and turning away clients.

The installation of the 5Kw solar and storage system at her shop by one of the clean energy developers under the UEF SSPU has transformed her business.  With constant, clean energy, Ruth now enjoys uninterrupted power 24/7. This allows her to save money, work longer hours without generator hassles and improves her work efficiency. The reliable power also benefits her clients, who can charge devices and enjoy a cool environment during visits, strengthening customer relationships.

Ruth sees a bright future with the SSPU system. The reliable power not only improves her service quality but also opens doors for business expansion, previously hindered by power issues.  Her story exemplifies the UEF's success in empowering small business owners like Ruth with sustainable energy, bringing positive change to both their professional and personal lives.

The Universal Energy Facility (UEF) is a multi-donor results-based finance facility established to significantly speed up and scale up energy access across Sub-Saharan Africa and beyond, in line with SDG7 and the Paris Agreement. The UEF provides incentive payments to eligible organizations deploying energy solutions and providing verified end-user electricity connections (including mini-grids and stand-alone solar systems) and clean cooking solutions based on pre-determined standards. The facility is managed by Sustainable Energy for All (SEforALL) and supported by the Global Energy Alliance for People and Planet, Shell Foundation, The Rockefeller Foundation, Bezos Earth Fund, Africa Minigrid Developers Association, Power Africa, Good Energies, UKaid, Carbon Trust, IKEA Foundation, Federal Ministry for Economic Cooperation and Development, Germany (BMZ) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).