Nigeria rises to second in renewables country ranking

From the newsletter

The West African nation of Nigeria climbed to second position in the Renewables Rising country ranking for May. This comes after the announcement of 1,900 MW in solar projects and the country's approval of its National Integrated Electricity Policy. Our ranking assesses countries based on a combination of policy, funding, projects, events and advertised jobs.

• South Africa remained the country in the top spot, while Egypt swapped places with Nigeria. Following recent policy and investment activity, Zambia replaced Uganda in fifth place, behind Kenya in fourth.  

• Among the top 10 companies, Scatec, JA Solar, and Jinko Solar maintained their positions in the top three. Collectively they accounted for over 60% of all new hires in May. The number of “senior” staff across the top 10 companies reached 1,600, based on LinkedIn data.

More details

• We rank companies by people metrics: Size (number of staff, number of sales staff, number of country locations with 3+ staff), growth (increase in staff, increase in number of sales staff) and maturity (experience, tenure, number of top degrees).

• The renewables sector saw an increase in advertised jobs, partly driven by companies such as SunKing, which secured $80 million for expansion in Nigeria and has since advertised over 30 senior positions there. Additionally, Engie is significantly expanding its hiring across Africa. Major players like Scatec, AMEA Power, and ACWA Power are also broadening their recruitment to include new specialisations, such as battery energy storage experts.

• South Africa maintained its top position in the country rankings. The nation has launched numerous private sector-led projects and streamlined its policies to enhance electricity market operations. Notably, solar home customers received a one-year fee extension, and power wheeling regulations were enacted. 

• However, a recent policy proposes imposing import duties on all renewable energy products used in manufacturing renewable energy technologies. While this is intended to promote localisation, it risks increasing import costs and could stifle sector growth.

• Nigeria moved into second place, displacing Egypt, after approving a National Integrated Electricity Policy. This policy is designed to unlock over $122 billion in investments by 2045 and opens up the market for increased private sector participation.

Our take

• Recent successful funding rounds for renewable energy projects paint a positive picture of investor confidence in the sector. With more policies opening up the market for private sector investment, we anticipate an increase in funding.

• Countries aiming to promote local manufacturing of renewable technologies require more than just import taxes. A balanced approach is needed, involving subsidies for local production to ensure it can compete effectively with cheaper Chinese imports.

• The competition from numerous energy companies, including foreign entities, significantly raises the bar for securing deals. To succeed, companies must structure their offers optimally with price, quality, and delivery speed being the critical competitive factors in bidding processes.