VPP

This report assesses the comparative feasibility of Virtual Power Plant (VPP) deployment in Ikeja Electric (IE) and Kano Electricity Distribution Company (KEDCO) and identifies the most practical pilot pathways for each DisCo. The assessment covers DER aggregation potential, technical and network readiness, digital and data systems, regulatory and market conditions, and business model viability.

This Guide sets out a practical approach for enabling Virtual Power Plant participation in the Nigerian Electricity Supply Industry. It is intended for DisCos, aggregators, DER owners and operators, regulators, state electricity authorities, investors, and development partners seeking a credible pathway to pilot, structure, and scale grid-interactive DER aggregation in Nigeria. The starting point for this Guide is that Nigeria does not yet have a fully mature flexibility market. Accordingly, VPP participation must be designed around operational reality, contractual clarity, network constraints, and the current state of market evolution, rather than around assumptions drawn directly from more advanced electricity systems.