It has been a busy couple of months for Nigeria as it strives to give its failing power system a renewable energy fix to eradicate the nation’s intense energy poverty.

Not only did the long-awaited privatization of the state power company go into effect, but the fourth Nigeria International Power Expo and Conference was abuzz with the promise of electrifying rural Nigeria with new off-grid projects.

Nigeria’s National Energy Council also announced a joint program with the Germany to deploy nearly 500 megawatts of solar power capacity across nine states in the northern part of the country.

Earlier in October, Enphase Energy, Inc. announced its Clinton Global Initiative Commitment to Action by partnering with Beacon Power Services to provide an innovative solar energy micro-grid system in Abuja. And winners for the initial funding round of the US “Power Africa” Off-Grid Energy Challenge to increase the delivery of off-grid energy to marginalized populations in Nigeria were announced.

The timing could not be better.

Demand for electricity in Nigeria has always exceeded supply due to the failure of the publicly owned and operated electricity system to meet Nigeria’s power needs. Currently, Nigeria generates only about 4,000 megawatts of power for a country of 170 million people.

The National Electric Power Policy of 2001 led to the National Electric Power Policy and President Goodluck Jonathan inaugurated his Power Sector Roadmap in August  2010 in order to change from a public driven power economy to a private one.

With that, Nigeria’s state electricity provider Power Holding Co. of Nigeria passed into the private hands of 15 firms in October to handle generation and distribution across different parts of the country.

The $2.5 billion sale was considered a “milestone” in the privatization effort intended to increase electric power reliability.

USAID Mission Director Michael Harvey said “the U.S. will continue to partner with Nigeria to advance a seamless transition from public to private sector management of the power sector to ensure that the Nigerian people have access to electricity.”

During the fourth Nigeria International 4th Power Expo and Conference,  held October 17-19, Minister of Power Professor Chinedu Nebo told attendees that Nigeria was capable of generating 160,000 megawatts before the end of 2014, noting that “Nigeria produces and consumes 4,000 megawatts of electricity, only 2.5 per cent of what South Africa is producing and consuming.”

Ironically, Nigeria is Africa’s top fossil fuel producer and holds the world’s seventh largest gas reserve, but only generates enough electricity for a few hours a day in the few regions that are connected to the grid while some 80 percent of the rural population go without grid access at all.

In many rural areas, “self-generation”  using diesel  generators is the norm, estimated at around 6,000 megawatts. In fact, Nigeria is reported to be world’s largest importer of diesel generators.

It is hoped the new solar and other renewable projects will address not just intense energy poverty in Nigeria, but also to reduce “black carbon” pollution caused by the use of diesel generators.