Leveraging Data to Advance the NESI

The Nigerian Energy Supply Industry (NESI) is experiencing rapid transformations and transitions that significantly impact energy generation and distribution. Hence, effectively leveraging data to advance the NESI by addressing evolving energy needs is crucial.

Data is information translated into a form efficient for movement or processing. It is essential in promoting sound energy policy and improving electricity distribution systems. Data provides cost analysis, performance metrics and highlights expected improvements in reducing losses and lowering consumer tariffs.

The NESI faces challenges requiring innovative solutions, driving a growing need for data. The sector can leverage internal data (e.g., from supply chain and trade), external data (e.g., consumption data, mobility, macroeconomic factors, brand sentiments, weather) and advanced algorithms to forecast consumption at a customer level and transmission at a location level. As a result, companies are better positioned to meet demand, avoid being surprised by disruptions or changes in conditions, and even eliminate unnecessary shipment, and, thus, fuel use and emissions.

The following ways stakeholders can leverage data to advance the NESI include:

Smart Grid Technologies: Smart grid technologies use advanced sensors and monitoring systems to collect data on energy usage, grid performance, and equipment health. This data can be used to optimize energy distribution and consumption, reduce outages, and improve the overall efficiency of the electricity supply system. Smart grids can also help to integrate renewable energy sources, such as solar and wind power, into the electricity supply mix. Renewable energy sources are increasingly becoming more affordable and accessible in Nigeria, and their integration can help to reduce dependence on fossil fuels and mitigate the impacts of climate change. In this respect, several studies project that the proper use of advanced analytics implies energy savings of between 5 and 7.5 per cent.

Predictive Analytics: Predictive analytics utilizes customer data analytics, which involves collecting and analyzing data on behaviour, preferences, and usage patterns to develop targeted marketing campaigns, improve customer engagement, and promote energy efficiency. These campaigns can include personalized energy efficiency recommendations, such as upgrading to energy-efficient appliances or adjusting usage during peak demand.

In addition, there’s a wealth of information in the grid. Capturing it, compiling it and analyzing it yields insights that help stakeholders, investors, developers and operators make better decisions, pre-emptively correct problem areas and prioritize the use of resources. 

However, leveraging data to advance the NESI could face some challenges, one of which is data quality. In Nigeria, data quality is often poor due to inadequate data collection processes and systems. As a result, it is challenging to derive meaningful insights from data, limiting the effectiveness of data-driven initiatives. Another challenge is data privacy and security. As the electricity supply industry increasingly relies on data, it becomes more vulnerable to cyber threats and data breaches. Utility companies must prioritize data privacy and security to ensure that customer data is protected and not compromised.

Finally, there is a skills gap in Nigeria regarding data analytics. The electricity supply industry must invest in training and development programs to equip employees with the necessary skills to collect, analyze, and leverage data effectively. There’s no silver bullet to address all the challenges in the energy space. However, leveraging data to advance the NESI can improve the efficiency and reliability of the power supply, reducing costs for consumers and businesses alike.