Nigeria Power EPC Market by Sectors (Power Generation [Thermal, Renewables, and Others] and Power Transmission & Distribution) and Country - Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The Nigeria power EPC market size is expected to register a significant CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the growing investment and supportive government guidelines.

The EPC stands for engineer, procure, and construct. The basic to this idea is one organization that is contractor takes on almost all the aspects of the assignment and offers a single point of responsibility and communication for the holder. The use of EPC agreements in the power generation industry has been constantly developing around last few years as an effect of remarkable changes happening in the industry. About all power generation projects use EPC agreements.

All ideas have to be time bound to be lucrative; though the market still undergoes from natural interruptions due to many reasons, particularly for the greater, difficult ideas that are interrupted because of land acquirement problems and environmental approval matters.

Market Trends, Drivers, Restraints, and Opportunities

• Rising domestic electricity demand led to increased electricity generation. This, factors is expected to spur the growth of the market.
• Government approaching foreign investment for power plant infrastructure to full fill the demand is likely to propel the growth of market in the projected timeline.
• Geopolitical tension and the high fiscal deficit coupled with a high inflation rate can hamper the market growth in the coming years.
• Volatile crude oil prices leading to delay in several upstream projects, can create challenges for the market expansion.
• Emerging markets such as distributed power generation, smart grids, and energy storage are estimated to create lucrative opportunities for the market during the forecast period.

Scope of the Report

The report on the Nigeria power EPC market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Nigeria Power EPC Market Segment Insights

Renewables segment is anticipated to constitute a key market share

In terms of sectors, the market is bifurcated into power generation and power transmission & distribution. The power generation segment is categorized as thermal, renewables, and others. The renewables segment is expected to constitute a key share of the market during the projected period, as government is aiming to rely on renewable energy to provide the electricity demand, the country has abundance of several renewable energy resources, principally wind, hydropower, and biomass. Therefore, future investments, projects, and strategies are anticipated to a significant driver of the power EPC market.

The country is anticipated to get investment around USD 1 billion from the countries renewable energy leading plan. Nigeria’s solar photovoltaic fixed ability got 28 MW in 2019, with an increase of about 47.36% related to 19 MW in 2018. The renewable energy master plan was introduced in 2011 to rise the part of renewable energy in the country by 10% around 2025, and 3% in 2019. In 2019, renewable power plant under construction was around 1436 MW along with small hydropower plants. Solar power represents around 94% of the impending renewable power plants limit in the country. The country transmission foundation is insufficient and is a key element liable for abandoned age limit, which is normal for the country power network while the request is excessively high. The public authority is attempting to assemble new tasks and better transmission offices to serve the development of the country.

Segments

Segments Covered in the Report
The Nigeria power EPC segmented on the basis of:

Sectors

• Power Generation
  • Thermal
  • Renewables
  • Others
• Power Transmission & Distribution

• Nigeria

• Andritz AG
• Alten Energías Renovables
• Gentec Engineering, Ltd.
• Energo Nigeria Ltd

Competitive Landscape

The key players competing in the Nigeria power EPC market are Andritz AG; Alten Energías Renovables; Gentec Engineering, Ltd.; and Energo Nigeria Ltd. Companies are engaging in partnerships with local developers and focusing on creative business strategies to leverage their market position.

In December 2020, European Union increased its investments of the Climate Investor One (CI1) to further increase renewable energy investments in Nigeria.

Mambilla hydropower project is a 3.05 GW hydroelectric capacity being established on the Dongo River near Baruf, Nigeria. The development is started by Nigeria’s Federal Ministry of Power, Construction, and Housing, using the service of China-based investments.