Can Integrated Solar Generation and Distribution Cut Nigeria’s Electricity Costs?

Nigeria’s electricity market separates generation companies (GenCos), distribution companies (DisCos) and the transmission network. I believe this structure limits smaller power providers that could generate and supply electricity directly to homes and businesses. I propose allowing a generator, especially a solar provider, to manage its own distribution network or appoint any distributor it chooses. Every customer should be connected through a properly monitored meter so that supplied power is paid for and losses are reduced. A small-scale solar generation and distribution model could serve neighbourhoods at lower tariffs if costs, metering and returns are properly regulated. I argue that government should set reasonable limits on returns on investment while allowing private providers to expand supply alongside the national grid. Large industries could still rely on gas-fired, hydro and other grid-scale plants, while decentralised solar systems serve residential communities.

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