Nigeria—Value Chain Analysis of Energy Sector

Client: Niger Delta Partnership Initiative Foundation

Duration: 2014-2016

Region: Sub-Saharan Africa

Country: Nigeria

Solutions: Sustainable Business

The Sustainable Business Group provided technical and project advisory support to the Niger Delta Partnership Initiative Foundation (NDPI)’s initiative to attract investment in small-scale power generation and energy access solutions. 

Working closely with NDPI and Chevron staff, the SBG team conducted a value chain analysis of the Nigerian electricity sector to understand the potential for electricity distribution projects in underserved and off-grid areas. The analysis identified three sites for prospective investment using political economy, cost, and economic analyses, and developed detailed investor briefings for each of the three identified sites. The report provided detailed financial modeling of recommended project types; analyzed peak and potential loads; described consumers’ willingness and ability to pay; and explained the relevant policy, regulatory, and financing requirements. These documents outlined the business case for well-defined, small-scale projects, as well as helped investors understand the current landscape in Nigeria for distributed power investments.

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