Policy measures for Renewables Nigeria

Gilbert Igwe
Energy Policy, Politics, Business Structures and Finance.
What Policy Measures Are Needed To Promote The Widespread Adoption of Renewable
Electricity Generation In Nigeria & What Would Be Their Wider Impacts?

Energy Policy: Policy Measures for Driving Renewables Adoption in Nigeria - April 2016
Page | 1
ABSTRACT
Majority of Nigerian households meet their electricity needs through privately owned
generators, which costs more per kilowatt than grid electricity.
Renewable energy could help to solve Nigeria's energy poverty, particularly by
improving electricity access to rural areas lacking grid connection.
Well-designed policy measures could ameliorate the energy situation by enabling the
widespread adoption of renewable energy in Nigeria if such measures are robust
enough to trigger investors' confidence and trust in the viability of the renewables
market and the electricity industry.
This paper reflects the need for renewables in the Nigeria energy mix and highlights
key policy measures that are critical to the establishment of an effective renewable
energy market in Nigeria.

Page | 2
DECLARATION
I, Gilbert Igwe, declare that this work is original and was completed by sole effort
without any external assistance. The total word count of the main body including the
abstract is 4007.

Page | 3
TABLE OF CONTENTS
ABSTRACT.........................................................................................................................................................1
DECLARATION.................................................................................................................................................2
TABLE OF CONTENTS...................................................................................................................................3
Chapter 1: Introduction ________________________________________________4
Chapter 2: Drivers For Supporting Renewables _____________________________5
2.1 Energy availability..................................................................................................................................5
2.2 Transportation Losses..........................................................................................................................6
2.3 Energy Affordability...............................................................................................................................6
2.4 Economic Development.......................................................................................................................6
2.5 Rural Electrification...............................................................................................................................7
2.6 Sustainability ............................................................................................................................................7
Chapter3: EXISITINGPOLICY MEASURESINNIGERIA _____________________________________9
3.1 The objectives of the FiT......................................................................................................................9
Chapter4:PROPOSEDPOLICY MEASURES__________________________________________________11
4.1 Long-term Power Purchase Agreements (PPA) for renewable energy generators.11
4.1.1 Impact.....................................................................................................................................................11
4.2 Reducing Entry Barriers ....................................................................................................................11
4.2.1 Impact.....................................................................................................................................................11
4.3 Feed-in Tariffs........................................................................................................................................11
4.3.1 Impact.....................................................................................................................................................12
4.4 Investment Risk Insurance...............................................................................................................12
4.5 Solar PV Installment Credit ..............................................................................................................12
4.5.1 Impact.....................................................................................................................................................12
4.6 Off-grid and Mini-grid Schemes......................................................................................................13
4.6.1 ESCO (Energy service Companies) ............................................................................................13
4.6.1.1 Impact.................................................................................................................................................13
4.6.2 Green Energy Microfinance Funds.............................................................................................14
4.6.2.1 Impact.................................................................................................................................................14
4.6.3 Subsidizing Renewables.................................................................................................................14
4.6.3.1 Impact.................................................................................................................................................15
Chapter 5:.POTENTIALBARRIERSTO DEPLOYMENT_____________________________________16
5.1 Market Risks............................................................................................................................................16
5.2 Administrative Risks ...........................................................................................................................16
5.3 Infrastructure Risk ...............................................................................................................................16
CONCLUSION___________________________________________________17
TABLE OF FIGURES _____________________________________________18
BIBLIOGRAPHY_________________________________________________19
APPENDIX______________________________________________________21

Page | 4
1. INTRODUCTION
Nigeria, the largest African economy and the most populated country in Africa, has
one of the world’s lowest electricity consumption per capita and electricity production
per capita (Africa, n.d.) (Nations, n.d.) (Bank, n.d.). Since electricity is a vital enabler
for economic growth, Nigeria's economic development is constrained by the lack of a
commensurate electricity supply. Consequently, most economic activities are driven
by privately owned generating assets estimated to account for about 48% of industrial
energy demand (Govt, n.d.), with negative impacts on the cost of production.
Nigeria's 12,522 MW installed capacity is constrained to a mere 3,879MW due to gas
supply failures caused by gas pipeline vandalism, and technical breakdowns. The
generation portfolio comprises of gas and hydro with gas accounting for
approximately 85% of total installed capacity (see figure 1 and table 1) (Govt, n.d.).
With cataclysmic energy poverty particularly in rural areas where 53% of the total
population resides without access to the grid, the government desperately seeks to
improve energy security by recalibrating the energy mix to reduce dependence on gas
and to incorporate renewable energy sources with a particular focus on solar power.
Studies have shown that Nigeria has enormous renewable energy resources spread in
various parts of the country although there has been a partial deployment of hydro
(Shaabana & Petinrin, n.d.). Renewable energy technologies have the potential of
solving the energy challenges facing Nigeria: reducing dependence on gas, providing
clean and affordable energy in rural areas with and without grid access, and providing
a cost competitive balance to the overall electricity industry. However, there exists a
problem with domestic financial and technical resources and a reputation of systemic
inefficacy. These limitations may impede the inflow of foreign investments unless
well-coordinated measures and policy support instruments are instituted to create an
enabling environment that will boost investors’ confidence and incentivize renewable
energy deployments.
This paper describes the need for policy support instruments and the necessary policy
measures to promote the widespread adoption of renewable electricity in Nigeria
including the requisite impacts of such development.
The paper also briefly covers the existing policy measures in Nigeria and potential
barriers to renewable deployments and recommends solutions for the observed
obstacles.
Figure 1 - InstalledCapacity
Gas;
10,592;
85%
Hydro;
1,930;
15%
Installed Capacity
Gas
Hydro
Available Total 7141 MW
Constraints Total 3262 MW
Constraints in MW Gas - 1,995
Water – 444
Grid - 179
Distribution- 84
Other - 560
Operational Total 3879 MW
Table 1 - Capacity Profile

Page | 5
2. DRIVERS FOR SUPPORTING RENEWABLES
From the perspective of the current energy situation in Nigeria, the reasons for
promoting a widespread adoption of renewable energy technologies in the generation
mix would be:
To ensure energy availability;
To drive energy affordability;
To reduce transportation losses;
To drive economic development;
To promote sustainability;
To drive rural electrification, which is essential for integrating rural, agro-based non-
grid connected communities to stimulate economic development;
When one considers the current energy scenario in Nigeria marred by fuel poverty
and low grid penetration, it becomes imperative to appeal for the recalibration of the
existing energy system especially the power generation portfolio, to accommodate
necessary modifications for achieving energy security through sustainable and reliable
sources, to drive economic development and improved standard of living especially in
the hinterlands, and to address the global concerns for the reduction of greenhouse gas
emissions.
Availability is defined by dictionary.com as "readily obtained; accessible". This
implies that energy availability should translate into a sufficient supply of energy
sources required for the generation of electricity and a reliable infrastructural system
for transporting the sources to the point of power generation. Therefore, the Nigerian
gas supply chain comprising of the processing plants and the pipelines (which the
existing electricity generation structure is entirely dependent on) should always be
reliable and available to supply gas to the power stations. This definition is
theoretically perfect, however, in reality, we must always accommodate uncertainties,
and the energy supply chain is not an exception particularly in Nigeria where the gas
supply chain is susceptible to recurring vandalization. Therefore, a realistic definition
of energy availability must imbibe diversity of sources and delivery pathways as a
strategic concern to avoid even the minutest interruptions. The generation portfolio
must comprise of different energy sources and pathways to ensure a balanced risk
exposure and to achieve parallel risk hedging.
A typical example of the urgent need for a widespread renewable deployment in
Nigeria is the recent attack on the forcados gas pipeline which decimated national gas
supply by about 50% and reduced operational generation capacity by about 51%,
causing significant disruptions to economic activities (ThisDay, n.d.).
Had there been complementary renewable generation sources in other parts of the
country, the impact on the overall electricity system could have been lessened.
Finally, it holds true that supporting renewable energy and generating a significant
share of electricity from renewable energy technologies can supplement energy
availability, reduce the dependence on gas and ensure a reliable generation portfolio
with a balanced risk exposure even though they are not the cheapest sources of
energy.

Page | 6
The electricity grid infrastructure in Nigeria is obsolete and seriously ailing due to
aging assets and a poor maintenance culture, with transmission and distribution losses
estimated at 7.4% and 12.5% respectively. (2)
Adopting renewable technologies for distributed (captive) generation could reduce the
need for long-distance transmission and consequently drive a reduction in
transmission losses. Also, considering the cost of augmenting the current wheeling
capacity of 5,338MW, adopting a distributed generation model based on renewable
technologies can improve the economic efficiency of the existing electricity
transportation infrastructure without necessarily increasing the wheeling capacity of
the national grid network.
Having about 40% of grid electricity penetration, Nigeria requires massive
investments in the expansion of the grid infrastructure to absorb the 60% (mostly in
rural areas) that are currently not connected to the grid. Non-grid connected
renewable energy technologies (like solar, wind and micro-hydro) can provide
environmentally sustainable and more economically viable electricity than other
sources that are dependent on fuel (like diesel and gas plants) for some of the 60%
that cannot be connected to the grid. For the 40% grid-connected consumers where
the little available capacity is dependent on fossil fuel, which is susceptible to both
price volatility and price uncertainty, they incur the cost of volatility when there are
large fluctuations in the prices of fuel. However, a balanced generating portfolio of
both fossil and renewable technologies can reduce the impact of price volatility,
which can be absorbed by the lower operating costs of renewable technologies. Once
again we see clearly the need to develop policy mechanisms that can promote the
widespread adoption of renewable technologies to ensure sustained affordability to
consumers.
Nigeria currently faces the risk of economic recession because of dwindling revenue
from crude oil sales, which accounts for 95% of export earnings (Uni, n.d.). There
exists an imperative necessity to diversify the economy and to reduce the current
account dependence on fossil commodities. A major export opportunity exists for
Nigeria in the West African electricity market if the existing interconnectors are
utilized to transport power to Benin, Togo, and Ghana where the electricity demand
significantly exceeds supply (Operator, n.d.). However, tapping into this latent market
will require significantly increasing available capacity. Nigeria has good untapped
solar, wind and hydro resources that can support the desired expansion if an enabling
policy is designed to promote the exploitation of these sources of natural capital. The
benefit of promoting green technologies will be evident in the development of " green
industry" which could lead to positive net employment effects. A United Nations
Environment Program report found that the renewable energy industry employs more
human capital than the fossil fuel industry. It also found that that the renewable
energy industry provides more jobs per unit of installed capacity, per unit of power

Page | 7
produced and per unit of money invested when compared with fossil fuel-based
generation (UNEP, n.d.).
Many Nigerians reside in isolated rural areas with no grid infrastructure and with little
or no future connection plans because of the huge infrastructural costs. Areas like the
Niger Delta surrounded by massive bodies of water, the hilly areas in the East
surrounded by mountains and the forest surrounded settlements in the Northern part
of the country have existed without electricity since the inception of Nigeria while
some are fortunate to have diesel generating sets donated to them by development
agencies.
For these rural localities, off-grid renewable technologies can provide cost-effective
and sustainable electricity, even as an alternative to the diesel plants donated to some.
Providing power for them through renewable energy sources can displace the use of
harmful archaic technologies like kerosene lamps and lanterns (figure 2), and wood
stoves. Other African countries like Kenya and Tanzania have successfully adopted
similar initiatives (AIChe, n.d.). Renewable energy deployment in rural areas can
foster economic activities through the development and growth of agro-based cottage
industries.
Figure 2 - Reading with a Kerosene Lamp
The gas resources that currently power Nigeria's electricity industry will be exhausted
some day, maybe not now but one day in the future. The replenishment of the
extracted resources occurs through a process that takes millions of years to culminate

Page | 8
into fossil resources. This means that we cannot replace what is being depleted in this
lifetime and therefore must create alternatives that can help us reduce the rate of fossil
energy depletion. Although generating electricity from fossil fuel is relatively cheaper
than some renewable sources, we cannot depend on an energy system that cannot
assure us of uninterrupted future supplies. Going back to my initial definition of
energy availability (which is a fundamental component of energy security),
sufficiency is a keyword for including an energy source in the generation portfolio.
Therefore, an energy source whose long-term availability cannot be sustained should
not be entirely relied upon. In the light of the above, fossil fuels cannot be completely
depended on because their continuous availability is unsustainable, whereas
renewable sources like wind, solar and water are inexhaustible, and their continuous
availability is sustainable.
From an environmental perspective, the current national pattern of fossil fuel
production and consumption will lead to increase in global greenhouse gas emissions,
and consequently, a rise in temperature levels, which may result in climatic changes
detrimental to the agricultural industry and marine habitats that drive fishing activities
- two key employment sources in Nigeria (Konrad-Adenauer-Stiftung, n.d.).
In conclusion, when the future of the nation with regards to the security of energy
supply and environmental changes are considered, the long-term benefits of
renewable electricity generation become evident as it provides a secure energy
system.

Page | 9
3. EXISTING POLICY MEASURES IN NIGERIA
In 2015, Nigeria enacted the National Renewable Energy and Energy Efficiency
Policy (NREEEP), which outlined renewable energy targets and instruments to
achieve the targets. Under this policy, the Nigerian Electricity Regulatory
Commission (NERC) is mandated to promote a Feed-in-Tariff (FiT) guaranteed by
the Nigerian Bulk Electricity Trading Company (NBET). The FiT came into effect in
February 2016.
 Establishing a guaranteed fixed income from electricity produced from
renewables for a defined period to ensure an adequate return on investment.
 Providing renewable electricity generators access to the grid and an obligation
to purchase power generated.
 Providing a fair competition between renewable and conventional electricity
generation; attracting private sector investment to fulcrum the establishment
of a progressive renewables market.
The tables and figures below outline highlights of the policy and the policy measures.
(NERC, n.d.) (Govt, n.d.)
Information Data
Cap 2000MW
Capacity Coverage 1MW - 30MW
Connection Type Grid Connected or Distributed Generation
Technologies Covered
Wind (onshore), Small hydro (<30MW), Biomas (+MSW), Solar
PV
Target 1000MW (2018) and 2000MW (2020)
Review Period 1st five years, then 3 years
Regulator NERC
Contrat Method Power Purchase Agreement
Duration of PPA 15 years, with possibility of 5 years extension.
Table 2 - Feed-in Tariff Highlights
Technology Capacity Limit (MW)
Solar 387
Wind 412
Small Hydro Power 675
Biomass 526
Table 3 - Technology SpecificTargets

Page | 10
Technology
Capital Cost
US$/kW
Fixed Cost
US$/kW
Capacity
Utilization
Factor
Auxiliary
Power
Requirement
Useful Life
(years)
Wind 1165 1823 32% 1% 20
Small
Hydro 1560 5064 45% 1% 20
Solar PV 2025 2228 19% 1% 20
Biomass 901 4861 60% 10% 20
Table 4 - Feed-in Tariff Computation Assumptions
Figure 3 - FiT Target Limit by Technology
Figure 4 - FiT Cost Assumptions
387
412
675
526
0
100
200
300
400
500
600
700
800
Solar Wind Small Hydro
Power
Biomass
Capacity Limit (MW)
Solar
Wind
Small Hydro Power
Biomass
1165
1560
2025
901
1823
5064
2228
4861
0
1000
2000
3000
4000
5000
6000
Wind Small Hydro Solar PV Biomass
Capital Cost US$/kW
Fixed Cost US$/kW

Page | 11
4. PROPOSED POLICY MEASURES
In this section, I will provide an overview of policy measures that can promote the
establishment of the renewable energy industry in Nigeria. Some of these measures
(or tools) are either already in practice or still in the planning phase.
The current PPA available to feed in tariff generators is valid for 15 years with the
possibility of a 5-year extension. However, extending the PPA up to 30 years may
even be more attractive to potential investors. This is because it allows the investor to
spread his payback time and asset amortization over a longer period thereby reducing
the upward pressure on the feed-in tariff rate and the cost to electricity consumers.
This measure will improve investors' confidence in the viability of the renewables
industry because returns are guaranteed over a time sufficient to recoup investments.
Reducing regulatory requirements for market entry in sustainable energy investments
can drive investments in the renewable energy sectors. Currently, the feed-in tariff
regulation requires that an investor must procure electricity-generating license to
qualify for the scheme. This will cost the investor money and time, and may
discourage some. However, if the regulator waives the need for power generating
licenses for small-scale generators below a threshold (say <5MW) it can encourage
investors to enter into the renewables industry.
Ease of entry will improve competition, drive cost-cutting innovations, help to reduce
government expenditure through feed-in tariff readjustments, and increase the value
delivered to consumers by reduced price.
Feed-in tariffs assure the renewable electricity generator a defined price per unit of
electricity. The tariff is designed to cover the period of support, which is usually 15 to
20 years. Some regulations cap the annual, or entire amount of capacity that can
benefit from the feed-in tariff scheme. The sense of revenue assurance it creates
provides the investor a security of his investments and thus drives deployments.
Nigeria enacted its first feed-in tariff program in February 2016.

Page | 12
In addition to risk insurance and long-term PPAs, this initiative should create revenue
assurance and a sense of investment security to investors. It would drive deployments.
With the imminent economic recession and a raging currency crisis, investors and
foreign lenders currently view Nigeria as a high-risk destination for foreign direct
investments and project financing. Therefore, there is a need to develop policy
measures for abating investors’ risk in renewable energy projects through an
insurance product specifically designed for renewables, to attract foreign investors
and to improve credit conditions.
The poor supply of electricity in urban centers compels households to purchase
generators, which produce electricity at a cost higher than grid electricity with even
consequences that outweigh the benefits they provide. According to reports, over
10,000 deaths were attributed to generator fumes between 2008 and 2014 (Vanguard,
n.d.). Creating a long-term credit finance modeled after a conventional installment
loan system can promote private adoption of solar energy for residential use. The
scheme will provide citizens the opportunity to acquire solar energy assets on credit
with the payment spread over an extended period, say five to six years. Government
or official development assistance from development agencies may fund the project.
This is essential because the public lacks information on the usefulness of renewable
products and may not be willing to make purchase investments directly on their own.
This initiative will become even more attractive to the public and can draw huge
followership if the feed-in tariff scheme is restructured to accommodate and
compensate small-scale generators in the region of 1kw to 30kw. For example, the
feed-in tariff in the United Kingdom pays small renewable energy producers with
capacity less than 10kW (Ofgem, n.d.).
Two key direct results of this initiative will be a sharp reduction in noise and air
pollutions from generators and death from generator fumes. Also, it will reduce
households' cost of gasoline purchases, reduce government expenditure on fuel
subsidy because of reduced demand as 60 million Nigerians are estimated to self-
generate electricity with petrol (and some diesel) generators (Nigeria, n.d.)
(Vanguard, n.d.); and a reduction in greenhouse gas emissions.

Page | 13
To support the rapid deployment of clean and reliable energy in rural Nigeria, off-grid
and mini-grid initiatives must be adopted to ensure cost effectiveness. This is because
installing renewable energy assets come with a one-off capital cost and negligible
running costs whereas grid connection will require investment in grid infrastructure,
the generating assets, and fossil fuel for running the generating assets. This is a
problem because the consumers cannot afford to buy electricity hence studies have
shown that most rural inhabitants earn less than $2 per day (Development, n.d.).
Setting up the renewable electricity system requires huge upfront capital investments,
and securing the finance for such projects often seem difficult because of huge risks
associated with project size, the market profile (lowest income earning class), lack of
local expertise in the renewables, and lack of subsidy or government support. The
opposite is the case for grid connected electricity because financial institutions are
readily willing to provide funds to generating companies with power purchase
agreements. Therefore, solutions should be developed into policy measures to provide
financing succor, technical training, and cash grants for local entrepreneurs to
establish small-scale off-grid or mini-grid applications.
It is my resolve to treat off-grid and mini-grid schemes as a sub-subject in this
section. The policy measures that can drive the development of off-grid and mini-grid
based renewables are explained below.
An idea that originated in Zambia in 1998 and financed by Swedish International
Development Corporation Agency (Institute, n.d.), generation facilities, usually solar
PV systems, are loaned to service companies with a repayment window up to 20
years, who then rents them to users at a fixed monthly price. The ESCO installs solar
equipment such as PV cells and a battery storage system in households and small
business locations for a monthly service fee. This concept is identical to the
broadband Internet industry where subscribers pay an installation fee and then a fixed
monthly rate as subscription fee. The ESCO earn a monthly fee for energy services
delivered to their clients while they retain ownership of the solar PV and battery
installed at consumer's site. Replicating this project in Nigeria will require the
partnership of the government and development agencies or microfinance institutions.
As proven by the Zambian project, this will increase energy access in remote
locations, create local entrepreneurs and improve the standard of living in rural
places. This measure is most suitable to isolated communities in the Niger Delta and
northern areas (see fig 3 and 4).

Page | 14
The role of microfinance, a crucial rural development tool, cannot be ignored if rural
electrification is a top priority. Developing a microfinance fund for mini-grid or
micro-grid projects will impact the deployment of renewable energy technologies like
solar PV, micro-hydro and biomass-based plants (in areas with relatively high
population density and potentials for grid expansion), and biomass cooking stoves.
The fund can be designed to finance mass projects rather than single household
procurements like a modular solar PV system. For example, funding the development
of a solar irrigation pump for the entire village, or solar lamps and transistor radios
distributed to the entire villagers. This is essential because individual households
might have difficulties with repaying secured debts (single household procurement) to
the microfinance as their income levels are low, and the installations will not improve
their earnings.
This initiative can replicate results similar to Grameen Shakti's Green Microcredit
Scheme (Shakti, n.d.) (world, n.d.). It will reduce the villagers’ expenditures on
kerosene, improve the standard of living; create local technical expertise and
increased access to energy in rural Nigeria.
Although there exists a subsidy program for gasoline in Nigeria, reports have
suggested that the intended beneficiaries (the poor and vulnerable) do not benefit so
much from it because of corruption and mismanagement (IISD, n.d.). Therefore, it
becomes imperative to redirect, at least, some of the fossil fuel subsidy funds to
programs that will directly impact the poor and vulnerable in the society. Energy
poverty in Nigeria mostly affects rural inhabitants who cannot afford self-generation
and therefore depend on traditional biomass, which they utilize in an unsafe and
unsustainable manner. Providing grid electricity for these rural settlers may be
uneconomical because of huge infrastructural costs and a homogenous1 load profile
that can undermine returns. The most appropriate solution, therefore, is decentralized
renewable electricity with capital costs either wholly or partially subsidized by
government grants (redirected from fossil fuel subsidies) or rural electrification
donors. The grant will reduce the capital cost of establishing the generating asset
thereby increasing returns on investment, as the operating cost is negligible. So the
issue of load homogeneity will have little impact on the overall operating profit of the
asset because renewable energy does not operate on fuel, except for biomass-based
systems. Several East African countries have successfully developed the framework
for driving rural electrification through subsidy programs allocated as partial or whole
grants to entrepreneurs investing in renewable energy systems, and this initiative is
stimulating investments in new renewables-based generation. For example, the
1 Homogenous in this context implies a uniform consumption pattern of a short peak period and very
small demand for the rest of the day, which will require a generator to charge high prices to cover
dormant capacity.

Page | 15
Energy for Rural Transformation (ERT) Project in Uganda provides business and
development services to rural electrification investors and entrepreneurs and enables
market entry through cost-sharing grants (Agency, n.d.).
Drawing inferences from the ERT post-implementation impact assessment, this
initiative is expected to improve access to energy for rural communities, create a
conducive academic environment as village based institutions can utilize computers,
there will be an improvement in security as common areas become illuminated.
Overall this should improve the standard of living and enable the development of
cottage industries in rural centers. This programme is expected to improve energy
access to 53% of the Nigerian population as empirical data estimates the rural
population at approximately 53% (bank, n.d.).

Page | 16
5. POTENTIAL BARRIERS TO DEPLOYMENT
When potential investors begin to consider investment opportunities in the Nigerian
renewables industry, the purview of their analysis may cover considerations beyond
policy enablers (measures). They’ll instead be more concerned with the risk profile of
the Nigerian renewables market and overall economy. Therefore, it is crucial to
discuss some of the potential risks that pose a threat to market entry and proffer
solutions where necessary.
The government must ensure that outstanding debts owed to generating companies are
settled (Hub, n.d.), and effective measures are established to guarantee prompt
payment to renewable electricity generators. The fear of bad debts could impede the
attractiveness of well-structured policy enablers.
The lead-time for procuring permits and licenses must be cut down considerably by
establishing a one-stop-shop agency. One licensing body should handle all
documentations
The Transmission Company of Nigeria should be allowed to raise capital from initial
public offering (capital market) to extend the grid network, as its current wheeling
capacity of 5338MW might disincentivize investments in renewable electricity.

Page | 17
6. CONCLUSION
Nigeria currently finds itself in an energy quagmire that has endured for decades.
With a population of 180 million and only 40% grid electricity access, 3879MW of
operational capacity constrained by gas supply bottlenecks, and a current account
balance that cannot sustain ambitious expansion projects, there is an urgent need to
develop a cost-competitive alternative for reducing energy poverty, providing energy
security, and improving its citizens' access to electricity. Renewable energy
technologies have the potential to serve this purpose as they have low operating costs
and are best suited to decentralized electricity applications. However, since
renewables are less developed than conventional electricity generation technologies,
the use of policy measures as support mechanisms is necessary for driving
deployments. Renewable energy technologies have the potential for providing
sustainable and reliable electricity to 53% (bank, n.d.) of people living in rural
Nigeria without access to electricity grid through off-grid and mini-grid projects, and
balancing the energy portfolio to dilute reliance on gas through the deployment of
diverse applications in different areas of the country where renewable resources
abound.

Page | 18
TABLE OF FIGURES
Figure 1 - Installed Capacity..........................................................................................4
Figure 2 - Reading with a Kerosene Lamp ....................................................................7
Figure 3 - FiT Target Limit by Technology.................................................................10
Figure 4 - FiT Cost Assumptions.................................................................................10
Figure 5 - Map of Niger Delta Area.............................................................................21
Figure 6 - Isolated Village in the North .......................................................................22
Table 1 - Capacity Profile ..............................................................................................4
Table 2 - Feed-in Tariff Highlights................................................................................9
Table 3 - Technology Specific Targets..........................................................................9
Table 4 - Feed-in Tariff Computation Assumptions....................................................10

Page | 19
BIBLIOGRAPHY
1. Nations, U., n.d. Energy Use. [Online] Available at:
http://data.un.org/Data.aspx?d=WDI&f=Indicator_Code%3AEG.USE.ELEC.KH.PC.
2. Bank, W., n.d. Electric power consumption (kWh per capita). [Online] Available
at: http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC.
3. Africa, A., n.d. Top 10 African Economies. [Online] Available at:
http://answersafrica.com/largest-economies-africa.html.
4. Govt, E.U.&.N., n.d. The Nigerian Energy Sector P. 36. [Online] Available at:
https://www.giz.de/en/downloads/giz2015-en-nigerian-energy-sector.pdf.
5. Shaabana, M. & Petinrin, J.O., n.d. Renewable energy potentials in Nigeria:
Meeting rural energy needs. Science Direct, p.73.
6. Govt, N., n.d. Nigeria Power Baseline Report. Nigerian Government.
7. ThisDay, n.d. Nigeria: Nationwide Darkness Worsens. [Online] Available at:
http://allafrica.com/stories/201604050243.html.
8. Uni, M.S., n.d. Nigeria: Economy. [Online] Available at:
http://globaledge.msu.edu/countries/nigeria/economy.
9. Operator, N.S., n.d. West African Interconnectors. [Online] Available at:
http://www.nsong.org/App_Themes/Blue/images/WAPMap.jpg.
10. UNEP, n.d. Green Jobs: Towards decent work in a sustainable, low-carbon
world. United Nations Environmental Programme. page 6.
11. AIChe, n.d. Smart Grid Kenya. [Online] Available at:
http://www.aiche.org/chenected/2016/02/new-smart-solar-microgrids-speed-rural-
electrification-kenya.
12. Konrad-Adenauer-Stiftung, n.d. NIGERIA IN THE DILEMMA OF CLIMATE
CHANGE. [Online] Available at: http://www.kas.de/nigeria/en/publications/11468/.
13. NERC, n.d. DRAFT FEED-IN TARIFF REGULATIONSFORRENEWABLE
ENERGY SOURCED ELECTRICITY IN NIGERIA. [Online] Available at:
https://www.infoafrica.it/wp-content/uploads/2015/11/Draft-feed-in-tariff-
regulations-for-renewable-energy-sourced-electricity-in-Nigeria.pdf.
14. Govt, N., n.d. NATIONAL RENEWABLE ENERGY AND ENERGY EFFICIENCY
POLICY. [Online] Available at:
http://www.power.gov.ng/download/NREEE%20POLICY%202015-
%20FEC%20APPROVED%20COPY.pdf.

Page | 20
15. Vanguard, n.d. Generator Fumes. [Online] Available at:
http://www.vanguardngr.com/2014/08/nigeria-records-10000-deaths-generator-
fumes/.
16. Ofgem, n.d. FIT Payment Rate. [Online] Available at:
https://www.ofgem.gov.uk/system/files/docs/2016/04/01_april_2016_tariff_table.pdf.
17. Nigeria, E.C.o., n.d. Nigerian Generator Owners. [Online] Available at:
http://www.energy.gov.ng/index.php?option=com_content&view=article&id=74.
18. Vanguard, n.d. Generator expenses. [Online] Available at:
http://www.vanguardngr.com/2013/01/nigeria-spends-n3-5trn-annually-on-power-
generators/.
19. Development, I.I.f.E.a., n.d. ACCESS TO SUSTAINABLE ENERGY: What role for
international oil and gas companies? [Online] Available at:
http://pubs.iied.org/pdfs/16022IIED.pdf. page 6.
20. Institute, S.E., n.d. RURAL ENERGY SERVICE COMPANIES. [Online] Available
at: https://www.sei-
international.org/mediamanager/documents/Projects/Climate/PV_ESCOs_phase_I_fin
al_report_high.pdf.
21. Shakti, G., n.d. Grameen Shakti. [Online] Available at: http://www.gshakti.org/.
22. world, M., n.d. Grameen Shakti, the green microcredit success. [Online]
Available at: http://www.microworld.org/en/news-from-the-field/article/grameen-
shakti-green-microcredit-success.
23. IISD, n.d. Fuel Subsidies in Nigeria. [Online] Available at:
https://www.iisd.org/blog/fuel-subsidies-nigeria-there-are-better-ways-help-poor-and-
economy-and-environment.
24. Agency, R.E., n.d. Uganda Energy for Rural Transformation Project
Implementation Plan Section 4.5 Private Sector Foundation. [Online] Available at:
http://rea.or.ug/phocadownload/psf%20pip%20%20.pdf.
25. bank, W., n.d. Rural population. [Online] Available at:
http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS.
26. Hub, N.E., n.d. FG Owes Power Firms N213bn, Says GenCos. [Online] Available
at: http://www.nigeriaelectricityhub.com/?p=6075.

Page | 21
APPENDIX
Figure 5 - Map of NigerDelta Area

Page | 22
Figure 6 - Isolated Village in the North

Page | 23

Policy measures for Renewables Nigeria

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (13)

Ähnlich wie Policy measures for Renewables Nigeria

Ähnlich wie Policy measures for Renewables Nigeria (20)

Policy measures for Renewables Nigeria