The Nigerian and United Kingdom governments are seeking private sector investment to develop and rehabilitate three small hydropower projects across Oyo, Kano and Plateau states, in a move to expand electricity generation and improve access to power in underserved communities.

The initiative, supported by the UK Partnering for Accelerated Climate Transitions (UK PACT), covers the Ikere Gorge project in Oyo State, Ghari Dam in Kano State and the NESCO hydropower cascade in Plateau State.

The three projects were discussed at an investor roundtable in Abuja on Wednesday, according to a statement issued on Tuesday. The meeting brought together policymakers, financiers and project developers to explore ways of advancing the initiatives from technical preparation to financial close.

Africa PPP Advisory and Ratio Consulting are implementing the programme, which has provided support for feasibility studies, dam safety assessments, environmental and social safeguards, energy audits, financial modelling and transaction structuring.

Speaking at the meeting, British Deputy High Commissioner, Vicky Seymour, said the UK was collaborating with Nigerian partners to mobilise private capital for renewable energy development.

She explained that the partnership was designed to move the projects beyond technical assessments into implementation, while expanding electricity access and stimulating economic activities in beneficiary communities.

Nigeria’s Minister of Power, Joseph Olasunkanmi Tegbe, represented by the Special Adviser to the President on Power, Martin Olajide, reaffirmed the Federal Government’s commitment to establishing an enabling environment for renewable energy investment.

He noted that the Electricity Act 2023 had opened up opportunities for state electricity markets and broadened private sector participation in power generation and distribution.

“Our task today is to advance these opportunities towards financial close, and I expect the deal rooms to resolve outstanding questions on hydrology, evacuation, power purchase agreements, and payment security,” Tegbe said.

He stressed that the projects must also incorporate community benefits, dam safety and environmental protection to guarantee their long-term sustainability.

Managing Partner of Africa PPP Advisory and Programme Director of the UK PACT Clean Energy Transition Run-of-River Small Hydropower Programme, Dr Gori Daniel, highlighted the potential of combining hydropower and solar energy to increase electricity generation and ensure more reliable power supply across different seasons.

Using the NESCO hydropower cascade in Plateau State as an example, Daniel explained that integrating solar energy could raise its potential generating capacity from approximately 30 megawatts to at least 100 megawatts.

Established in 1929, the NESCO system consists of eight dams and eight power stations. Its installed capacity stands at 25.5 megawatts, although ageing equipment has limited its performance. The ongoing rehabilitation programme is targeting an increase in capacity to approximately 40.25 megawatts.

In Oyo State, the Ikere Gorge project has remained inactive for decades. However, technical assessments have identified the site as having hydropower potential of up to 14 megawatts. The proposed hybrid development, which includes solar energy, is targeting a combined capacity of 100 megawatts.

The project is being advanced in partnership with concessionaire Quaint Energy, the Oyo State Government and the Federal Government.

Representing the Rural Electrification Agency, Jaafar Dikko disclosed that Nigeria has more than 3,500 megawatts of small hydropower potential, much of which remains undeveloped.

According to him, existing dams could be utilised to supply electricity to rural communities, waterworks and agro-processing facilities. He added that the agency was ready to support commercially viable projects through public-private partnerships and financing arrangements.

The investor roundtable also featured the presentation of the zero draft of Nigeria’s National Small Hydropower Policy. The proposed policy is expected to establish a framework for developing the sector and attracting investment.

Discussions further examined regulatory provisions under the Electricity Act 2023, alignment with the World Bank’s SPIN master plan and a Small Hydropower Deployment Toolkit developed to guide state governments, project developers and financiers.

During the technical sessions, Senior Transactions Specialist for UK PACT Run-of-River Small Hydropower, Dr Mike Imafidor, and hydropower specialist, Engr Emmanuel Katepa, identified reliable hydrological data, electricity evacuation arrangements, commercially viable power purchase agreements and credible payment-security mechanisms as essential requirements for attracting investors.

The meeting concluded with separate project discussions involving Quaint Energy and Africa PPP Advisory on the Ikere Gorge project, the Kano State Government and Africa PPP Advisory on Ghari Dam, and NESCO and Africa PPP Advisory on the Plateau hydropower cascade.

SOURCE: PUNCH Newspaper