BEYOND GENSETS: ADVANCING THE ENERGY TRANSITION IN LAGOS STATE

The study estimates that Lagos State has approximately 19 GW of genset capacity, producing 39 million tons of CO2 equivalent annually. High upfront costs are the primary barrier to solar adoption, despite strong interest from households and MSMEs. The report advocates for lease-to-own models and standardized solar designs to replace petrol and diesel generators.

• Lagos State possesses an estimated total genset capacity of approximately 19 GW, which significantly exceeds the average available generation capacity of Nigeria's national grid, reported at 4.2 GW in Q3 2023.
• Annual emissions from gensets in Lagos are estimated at 39 million tons of CO2 equivalent (tCO2e), a figure nearly four times the total annual emissions of countries such as Togo, Rwanda, or Gabon.
• In the residential sector, approximately 72% of households own at least one genset, with 97.7% of these units using petrol. The total estimated residential genset capacity ranges between 7.3 GW and 8.8 GW.
• Micro, small and medium-sized enterprises (MSMEs) show a high reliance on gensets, with approximately 94% owning at least one. Diesel is the most common fuel for this sector (59%), and the total estimated capacity for MSMEs is 10.4 GW.
• Lagos markets are predominantly powered by petrol gensets (99%), with an estimated total capacity of 192 MW across 276 markets.
• The primary obstacle to solar adoption in Lagos is the high initial capital expenditure. While solar PV is 10 to 15 times more expensive than petrol gensets in terms of upfront costs, it is only 20% pricier over a 10-year total cost of ownership period.
• There is strong latent demand for renewable energy: 75% of households and 64% of MSMEs express interest in solar, yet current usage remains very low at 2% for households and 3% for MSMEs.
• The removal of fuel subsidies has forced a reduction in energy usage, with 79% of surveyed industries reporting a decrease in their typical hours of genset operation.
• The study suggests that while standardized bulk procurement of solar systems could work for households and market shops, MSMEs require tailored energy audits and different incentives, such as results-based financing (RBF), due to their diverse energy needs.

APA

Sustainable Energy for All (2024). BEYOND GENSETS: ADVANCING THE ENERGY TRANSITION IN LAGOS STATE. https://www.seforall.org/system/files/2024-10/SEforALL%20Beyond%20Gensets%20LASG%20Extended-final.pdf

Chicago

Sustainable Energy for All. BEYOND GENSETS: ADVANCING THE ENERGY TRANSITION IN LAGOS STATE. 2024. https://www.seforall.org/system/files/2024-10/SEforALL%20Beyond%20Gensets%20LASG%20Extended-final.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=BEYOND GENSETS: ADVANCING THE ENERGY TRANSITION IN LAGOS STATE |date=October 2024 |url=https://www.seforall.org/system/files/2024-10/SEforALL%20Beyond%20Gensets%20LASG%20Extended-final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2024beyond, author = {{Sustainable Energy for All}}, title = {{BEYOND GENSETS: ADVANCING THE ENERGY TRANSITION IN LAGOS STATE}}, institution = {Sustainable Energy for All}, year = {2024}, month = oct, url = {https://www.seforall.org/system/files/2024-10/SEforALL%20Beyond%20Gensets%20LASG%20Extended-final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }