Developing E-mobility Infrastructure in Existing Microgrid Projects Across Nigeria

The Nigerian Electrification Project (NEP), launched by the Nigeria Rural Electrification Agency (REA), aims to enhance electricity access in rural regions across the country. Despite the project’s successes, including the deployment of 125 solar mini-grids and the ongoing development of 261 more, serving approximately 5.5 million Nigerians, these mini-grids face challenges such as underutilization of capacity, financial constraints, and supply chain bottlenecks.

To address these challenges, the Capstone team explored the feasibility of integrating electric vehicles (EVs) into mini-grids in Nigeria’s rural regions, aiming to leverage surplus solar energy for EV charging, thereby creating a new revenue stream and promoting cleaner transportation in rural areas. The Capstone team utilized a comprehensive multi-method approach, including stakeholder interviews, market research, case studies, and financial modeling. The team also leveraged in-country visits, including mini-grid site visits and community interviews in local communities, to gain an in-depth and grounded understanding of the challenges. The analysis suggests that EVs, despite higher initial costs, offer lower total operating costs compared to internal combustion engine vehicles, becoming more economically feasible with increased usage. The analysis also recommends lease-to-own and battery swapping models to ease EV adoption by reducing upfront costs and simplifying operations for users. Recommendations for the REA include adopting favorable policies, reducing import duties, and supporting local assembly to foster the EV market. The REA’s role in facilitating these changes, along with collaboration from local and international partners, is essential for the successful implementation of these strategies and achieving broader renewable energy and transportation goals.