PROJECTS

Competitive Tender Regime for Renewable Energy Generation in Nigeria

The problem

Nigeria lacks electricity generation capacity and so suffers from constant power cuts and low levels of electrification. Developing local renewable energy resources through competitive procurement of privately-financed generation could expand power availability and reduce costs. However, Nigeria had little experience with renewable energy, and no system for competitive procurement of such capacity.

How we helped

Castalia designed a process for the Government to competitively procure utility-scale renewable energy from Independent Power Providers (IPPs). We drafted tender documentation, reviewed the regulatory framework, showed how competitive procurement of renewable generation could work within it, and drafted process documents and guidelines. We assessed the transmission network and system stability to estimate the maximum quantities of variable renewable energy that could be added at various locations without overloading transmission or threating system stability. We also analyzed cashflow through the Nigerian electricity value chain to pinpoint were financial viability and credit-worthiness problems arose.

Impact

Several IPPs were negotiating PPAs with the Nigeria Bulk Energy Trader. The threat of competitive procurement led them to drop the prices by a third, allowing PPAs to be signed at much more reasonable prices.

Our team

David Ehrhardt

David Ehrhardt

Chief Executive
Gianmarco Servetti

Gianmarco Servetti

Practice Leader
Jonathan Walters

Jonathan Walters

Senior Advisor

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

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WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Level 1 Kyle House, 27-31 Macquarie Place
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap