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Renewable energy in Nigeria consists mainly of hydroelectric energy and biomass energy. The total energy consumption in Nigeria in 2011 was 4.3 quad. Biomass energy accounted for approximately 83% of this, followed by oil, with 11%. Biomass is used in many homes in rural Nigeria as a source of energy for heating and cooking purposes.

Hydropower is the only renewable source used for electricity and it accounts for 21% of the total electricity produced in the country. The remaining 79% comes from fossil fuels.

Rationale for Renewable Energy
Nigeria has been unable to meet the demand for electricity in the nation. The country generates 4000-5000MW of power for a population of 150million people. This is very dismal compared to South Africa for instance, which generates 40,000MW for 50million people. Only 40% of the nation has access to electricity, and of the 40%, rural communities account for 10%.

To solve the power crisis, the government proposed diversifying the energy mix to include more renewable sources of energy. The energy sector is heavily reliant on fossil fuels — oil and natural gas. Fossil fuels are prone to depletion and are therefore not a reliable source of energy. Also, the Niger Delta crisis poses a potential disruption to the supply of oil. In addition, the increased global trend towards environmentally clean and friendly energy sources has necessitated an era of alternative renewable sources. The energy reform proposes increasing hydroelectric energy and incorporating solar energy, wind energy and biomass energy, as part of the energy mix.

Hydroelectric Energy
Hydropower is the only form of renewable energy being used to generate electricity in Nigeria, and there is potential for greater use of the resource. Only 23% of the feasible hydroelectricity is being developed in the country.

There are three dams being used for hydroelectricity generation in Nigeria. The Kainji Dam and Jebba Dam, both on the  river Niger, have a total installed capacity of 1330MW. The Kainji Dam was commissioned in 1968 with an installed capacity of 760MW while the Jebba Dam was commissioned in 1985 with an installed capacity of 570MW. The last dam to be commissioned was the Shiroro Dam on Kaduna River. It was commissioned in 1990 with an installed capacity of 600MW. All three dams operate at full capacity.

The numerous rivers in Nigeria are potential sites for the development of both small and large hydropower plants. There are 278 potential sites that could be developed around the country, producing a total capacity of 734MW. The Federal Government has begun construction of the Kashimbila Dam in Taraba State. The dam should be completed by 2014 and has a total capacity of 40MW. A hydropower plant in Mambilla (2500MW) is also being developed.

Solar Energy
Solar energy has the most potential in Nigeria. The average annual solar energy value in Nigeria is 1.804x 1015 kWh. Given that the sun shines on average 6.5h/day and the total landmass of the country is 924,000km2, total potential solar energy value in Nigeria is 27 times the total energy value from fossil fuels and over 115,000 times the total electricity produced. Solar energy can be used to meet the total demand for electricity in Nigeria if only 0.1% of the total solar energy in Nigeria is converted at a 1% efficiency rate.

There is a plan to install solar plants with a capacity of 420MW across 9 states in northern Nigeria. The states are Adamawa,  Bauchi,  Benue,  Borno,  Gombe,  Kaduna,  Kano,  Nassarawa and  Sokoto. Each state will have a 30MW solar plant. This project is as a result of the Nigerian-German Energy Partnership deal signed in 2008, and will be completely funded by the Germans.

Wind Energy
Wind energy cannot be used for large-scale electricity generation everywhere in Nigeria. This is because the wind speed required for electricity generation is 7 ms-1 and the average wind speed in the country is 3ms-1. However, wind speeds are generally higher in the northern parts of the country, along the coast and in the mountainous regions, therefore, there are some viable locations where wind power can be used to generate electricity.

For the areas with relatively lower speed, wind power can be harnessed for rural electrification, pumping of water and power supply for activities with low energy capacity.

The government has initiated the development of a 10MW project in Katsina State for the harnessing of wind energy.

Biomass Energy
Energy gotten from biomass resources can be used for heating, cooking, transportation and electricity generation. In the rural parts of Nigeria, fuel wood, a biomass resource, is widely used as an energy source for heating wooden stoves used in cooking. However, because of increased demand for wood for other purposes, e.g. construction, there has been a decline in its use for energy production.

There is potential for electricity generation given the abundance of biomass resources. Biomass energy in Nigeria can be produced from sugar cane, cassava, rice husks and cow dung. The government plans to move away from fuel wood sources, focus on other available biomass resources and ensure the efficient conversion of biomass to energy. Sugar cane and cassava plantations are now going to be used for the production of energy.

National Policy
In 2005, the Energy Commission of Nigeria drafted the Renewable Energy Master Plan. The Renewable Energy Master Plan expects renewable energy to contribute to 36% of total electricity in the nation by 2025. Based on this projection, the government has set the following targets : The government has also established organizations and programs to promote the development of renewable energy in the country. In February 2012, the Renewable Energy Programme was created by the Federal Ministry of Environment. Its objectives include developing and implementing strategies to regulate the renewable energy sector, addressing Nigeria’s challenge of moving towards clean energy and ensuring the renewable energy sector develops profitably and sustainably. The Nigerian Electricity Regulatory Commission (NERC) developed feed-in tariffs to maintain  off-grid and mini-grid renewable systems in rural and urban areas.
 * Small Hydropower: 19000MW
 * Large Hydropower:48000MW
 * Solar PV: 500MW
 * Wind:40MW
 * Biomass:800MW
 * Total electrification: 75%

The federal government recently signed a deal with General Electric (GE) for $350million to provide renewable energy to communities that are not connected to the national grid. In addition, the President, Goodluck Jonathan, inaugurated a "Light-Up Rural Nigeria" project, which is aimed at getting electricity to rural communities which are not connected to the national grid.