AfDB grants $1.2m to support Nigeria’s feasibility study on Battery Energy Storage System

Abuja, July 31, 2025 – The African Development Bank has granted $1.2 million to support the feasibility study on Battery Energy Storage Systems in Nigeria.

Abdul Kamara, a Director in AfDB, said this in Abuja on Wednesday at the inaugural workshop on Nigeria BESS feasibility study.

He said the grant was part of the Africa energy transition catalyst programme to promote sustainable energy solutions in Africa.

Kamara said that Africa accounted for only two per cent of global energy storage capacity in spite of the fact that the continent holds almost 60 per cent of the world’s best solar resources.

He said this gap had presented a challenge that could be turned to an opportunity.

“Africa holds almost sixty per cent (60 per cent) of the world’s best solar resources, yet accounts for only two per cent (two per cent) of global energy storage capacity.

“That gap presents a challenge, but more importantly, an opportunity.

“Battery storage is central to unlocking the full potential of our renewable energy resources and delivering stable, reliable power across the continent.

“We are already seeing inspiring progress. In South Africa, a 1,400 megawatt-hour battery storage project is supporting grid stability and solar integration.

“In Kenya, the Olkaria geothermal-battery hybrid is delivering reliable energy to millions.

“Now, Nigeria is poised to take a bold step in that same direction. This is why the bank has committed a $1.2m grant under the Africa energy transition catalyst programme to support this feasibility study,” he said.

Kamara said the project would assess grid integration, identify viable business and regulatory models to attract investment, and build the capacity needed for ownership and sustainability.

Kamara, who was represented by Chigoziri Egeruoh, an officer in the AfDB Nigeria Country Office, said this initiative aligned perfectly with Nigeria’s energy transition plan, its SE4ALL action agenda, and the renewable energy master plan.

“As Nigeria’s grid evolves, storage offers real solutions: frequency stabilisation, reserve capacity, and peak load management, among others.

“But as we all know that technology alone will not carry the day. Regulatory frameworks and investment environments must evolve in step to scale these innovations sustainably.

“The AfDB is a committed partner in this journey.

“Through our $1bn economic governance and energy transition support programme, we are helping Nigeria advance critical power sector reforms. $500m has already been disbursed, with the second phase on track,” he said.

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