Small hydropower (SHP) development in Nigeria: An assessment

This paper evaluates small hydropower (SHP) development and examines the current situation in Nigeria with respect to the established policies and Energy Power Sector Reform (EPSR) Act 2005. Hydropower sector witnessed about 360% growth between 1971 and 2005 and yet only about 5% of the vast small hydropower (SHP) potential is tapped by the few plants built between 1923 and 1964. Operating and maintenance costs are in favor of SHP development in the country, being the lowest when compared with the situation in European countries. The Nigerian Government has taken steps to diversify energy sources in order to promote renewable energy development by encouraging private investments in the energy sector through reforms, but this may not be adequate as there remain barriers against SHP development in the country. It is concluded that government must incorporate subsidies, feed-in-tariffs, and framework for Price Purchase Agreements (PPA) into the policies in order to further promote renewable energy and attract both indigenous and foreign investments for quick adoption and rapid expansion of SHP technologies.