Renewable energy in Oyo State

By Femi Oladele

IMAGINE an Oyo State where there is constant power supply—where people can sleep and wake up to uninterrupted electricity; where businessmen and women enjoy a steady power supply to run their enterprises, ultimately contributing to a reduction in the cost of food. Currently, 55 percent of Oyo State residents suffer from irregular electricity, and the state records a power deficit of over 400 MW. About 41% of businesses generate their own electricity, significantly increasing operational costs. To industrialise successfully, Oyo must secure reliable, sustainable, and inclusive energy. Renewable energy offers the most strategic path forward. Renewable energy comes from naturally replenished sources such as the sun, wind, water, and organic matter. Unlike fossil fuels, these sources do not deplete or emit high levels of greenhouse gases. Examples include solar, wind, hydroelectric, biomass, and geothermal energy. They are not only cleaner but also provide long-term cost and energy security. Industrial powerhouses like Singapore and Rwanda demonstrate that energy is foundational to economic growth. Singapore prioritised energy security early on, while Rwanda invested in rural electrification and improved its energy mix, enabling growth in manufacturing and agriculture. For Oyo State, industrialisation must begin with power. Factories, data centers, cold storage, and even small businesses require reliable electricity. If power remains a barrier, industrial ambitions will remain stalled. But if harnessed innovatively, energy can be Oyo’s greatest enabler.

What can Oyo State do? 1. Expand Solar Energy Infrastructure: With abundant sunshine year-round, solar is Oyo’s most viable renewable energy source. Projects like the hybrid mini-grids in Otefon and Otu should be expanded. Oyo State is also set to launch a 500-megawatt solar project in Itesiwaju LGA to boost energy supply and promote energy independence before the end of Governor Makinde’s administration. The project aims to generate locally, export surplus power, and attract private investors. The recently inaugurated 11 MW Ibadan Hybrid Power Plant—combining solar and gas—signals progress. Built under a public-private partnership (PPP), it shows how effective BOOT models can be when the state provides an enabling environment. 2. Deploy off-grid & community-based solutions: Large parts of Oyo State remain off the national grid. Rather than wait for federal expansion, the state can deploy off-grid solutions like solar mini-grids, wind turbines, and biogas. Electrifying rural communities in Oke Ogun and Ibarapa, for example, could catalyse agro-processing and year-round irrigation. Oyo should promote solar-powered irrigation in farming zones and support private ventures like ElektronEnergy, which commissioned the first phase of the Oyo Independent Power Project in 2024. 3. utilise gas reserves and infrastructure: Oyo also has vast natural gas potential. The government’s partnership with Shell Nigeria Gas on a $100 million gas distribution network is commendable. If developed responsibly, Oyo could emerge as a regional gas-powered energy hub. This would attract multinationals and provide clean energy to urban industries.

4. Hydropower: Despite having 14 dams, most—including the Ikere Gorge and Asejire dams—are underutilised for electricity. This must change. Thankfully, the Federal Government has approved the revival and concessioning of the Ikere Gorge Hydropower Plant, expanding its capacity from 6 MW to 20 MW through a 30-year PPP with Quaint Power & Infrastructure. A new 2 x 60 MVA substation is also planned for the Lalupon/Ejioku axis under the Siemens-supported Presidential Power Initiative. These projects will help reduce outages in Ibadan and power underserved communities in Oke Ogun and beyond.

Waste-to-energy (WTE): turning trash into power

Ibadan generates over 120,000 metric tonnes of waste monthly. Instead of filling dumpsites like Aba Eku, Lapite, and Awotan, Oyo can convert waste into energy using biogas digesters and incineration plants. The Oyo government has already begun discussions with the Kingdom of the Netherlands to promote a circular economy. A dedicated Circular Economy Desk has been established in the Ministry of Environment. The next step is execution: build a 50–100 tonne/day WtE plant in Ibadan, pilot digesters in markets, and partner with UI and IITA for research and training. The most successful energy transitions—from Rwanda to Singapore—depend on strong PPPs. Oyo must deepen collaboration with global and local energy firms. Tax incentives, land access, and a stable regulatory framework will attract more investment. The state should also encourage businesses to adopt green energy by integrating energy conservation and solar installations into their operations. This reduces costs and aligns with the state’s broader sustainability goals. Challenges remain: weak technical capacity, poor maintenance culture, and federal-state coordination gaps. The state still over-relies on the national grid and lacks a clear renewable energy policy.

To overcome this, Oyo should: establish a Renewable Energy Training Centre in partnership with UI, LAUTECH, or The Polytechnic Ibadan, create an Oyo State Renewable Energy Policy with clear energy targets, off-grid incentives, and mandatory solar panels on new public schools and health facilities, and offer fiscal incentives for WtE, solar, and hybrid energy investors. Mandate waste segregation at source in major LGAs.

In conclusion, energy is not just a commodity; it is the foundation for economic growth, social inclusion, and sustainable development. Oyo State stands at a turning point. With its sunlight, gas reserves, dams, and growing investor interest, it has all the raw materials to become Nigeria’s clean energy leader. But this future depends on action—from the government, businesses, and citizens. Yes, switching may require upfront investment, but the long-term gains for our economy, environment, and livelihoods are worth it.

Oladele is a student at the Nigerian Law School, Lagos

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