Meeting the Energy Demands: What Options? Dr. Adeoye Adefulu Odujinrin & Adefulu Barristers Solicitors & Notaries Public Barristers, Solicitors & Notaries Public Lagos – Abuja – Port‐Harcourt
Outline Outline • • •
Nigeria’s Electricity Industry Gas as a fuel of choice Renewable Energy
Odujinrin & Adefuluestd. 1972
Nigeria’ss Electricity Industry Nigeria Electricity Industry 200
1600
180
1400
•
160 1200
140
•
1000
120 100
800
80
600
•
60 400
40 200
20 0
0
Ukraine South Africa Population (Million)
Brazil
Pakistan
Generating Capacity (GW)
Nigeria g GDP (Million)
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Installed capacity of just over ll d f 6000 mw with average generation capacity of about half Only 40% of the population has access to electricity Per capita consumption of Per capita consumption of electricity is 100kWh compared to South Africa – 4500kWh, Brazil – 1934kWh and China – 1934kWh d Chi 1379 1379 kWh 66% of the country lives in rural y areas
Adapted from: Oando Odujinrin & Adefuluestd. 1972
Electricity Fuel Mix Electricity Fuel Mix • 67 percent of installed capacity is thermal and the rest is hydro based • A large part of Nigeria’s RE component is in SHP
Odujinrin & Adefuluestd. 1972
Gas as Nigeria’ss electricity fuel Gas as Nigeria electricity fuel •
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Nigeria has an estimated 182 tcf h d f of proven natural gas reserves and is 7th largest natural gas reserves holder in the world Nigeria flares 40 per cent of annual natural gas production annual natural gas production and accounts for 12.5% of the natural gas flared in the world Th The country is estimated to lose i i d l between US$2.5 – 6 billion annually to gas flaring
Odujinrin & Adefuluestd. 1972
The case for Gas as Nigeria’ss electricity fuel The case for Gas as Nigeria electricity fuel • Most of the planned power plants are based g on gas • Gas flaring in Nigeria is sufficient to power half of Africa for a year! of Africa for a year! • Gas for electricity – Cheap(er) – Available – Reduce environmental pollution by reducing flaring Odujinrin & Adefuluestd. 1972
Cost of electricity production from diff different sources cents per Kwh h 45 40 35 30 25 20 15 10 5 0 Mini Hydro
•
Solar PV Biomass
Wind
Natural Gas
Coal
Adapted from the Nigerian Renewable Energy Policy and Kovacs, UN Statistics Division
Odujinrin & Adefuluestd. 1972
What is Renewable Energy? What is Renewable Energy? •
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Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly or indirectly from the sun, or from heat generated deep within the earth. Included in the definition is energy generated from g , hydropower y p and ocean resources,, and biofuels solar,, wind,, biomass,, geothermal, and hydrogen derived from renewable resources. (IEA) Renewable energy resources: Energy resources that are naturally replenishing but flow-limited. They are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. Renewable energy resources include: biomass, hydro, geothermal, solar, wind, ocean thermal, wave action, and tidal action. (EIA) “Renewable electricity” refers to electric power obtained from energy sources whose utilization does not result in the depletion of the earth’s resources. Renewable electricity also includes energy sources and technologies that have minimal environmental impacts, such as less intrusive hydro and certain biomass combustion. These sources of electricity normally will include solar energy, wind, biomass co-generation and gasification, hydro, geothermal, tide, wave and h d hydrogen energy. ((Nigeria i i Renewable bl Energy Policy) li ) Odujinrin & Adefuluestd. 1972
Forms of Renewable Energy Forms of Renewable Energy • • •
• •
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Wind energy ‐ Wi d Ki i Kinetic energy present in wind motion that can be converted to mechanical i i d i h b d h i l energy for driving pumps, mills, and electric power generators. Solar ‐ Solar energy is the sun’s rays (solar radiation) that reach the earth. Solar energy can be converted into other forms of energy such as heat and electricity be converted into other forms of energy, such as heat and electricity. Hydropower ‐ Hydro energy is simply energy that is taken from water and converted to electricity. Hydro energy can be obtained by using many methods of capture. The most common method of using energy from water is a hydroelectric dam, where water coming g gy y g down through an area causes turbines to rotate and the energy is captured to run a generator. Biomass ‐ Organic non‐fossil material of biological origin constituting a renewable energy source. Geothermal energy ‐The heat that is extracted from hot water or steam that is mined from geothermal reservoirs in the earth’s crust. Water or steam can be used as a working fluid for geothermal heat pumps water heating or electricity generation and then is reinjected back geothermal heat pumps, water heating, or electricity generation, and then is reinjected back into the earth. Ocean energy ‐ Energy conversion technologies that harness the energy in tides, waves, and g thermal gradients in the oceans. Odujinrin & Adefuluestd. 1972
Fuel shares of world electricity generation 2004 Gas 19.6%
Non-Renew. Waste 0 3% 0.3%
Nuclear 15.7%
Renewables 17.9%
Oil 6.7%
Other Other** 0.8% Hydro 16.1%
Renewable Combustible s and Waste 1.0%
Coal 39 8% 39.8%
Source: IEA Odujinrin & Adefuluestd. 1972
RE resource base in Nigeria RE resource base in Nigeria Energy Source
Capacity
Small Hydro
734 mw
Animal waste
61 million tonnes/yr y
Crop residue
83 million tonnes/yr
Solar radiation
3.5-7.0 kWh/m2 - day
Wind
2-4 m/second Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans • EPSRA – Section 88(9) – ( ) RE seen mainly in the light of Rural y g Electrification
• • • •
National Energy Policy National Energy Policy Renewable Energy Policy Renewable Energy Action Plan Renewable Energy Master Plan Renewable Energy Master Plan
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans ‐ Hydropower Hydropower • Policies – The nation shall fully harness the hydropower potential available in the country for electricity generation h f l – The nation shall pay particular attention to the development of the mini and micro hydropower schemes y p – The exploitation of the hydro power resources shall be done in an environmentally friendly manner – Private sector and indigenous participation in hydropower Pi d i di i i i i h d development shall be actively promoted
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Hydropower (contd.) Hydropower (contd.) • Objectives – To increase the percentage contribution of hydro electricity to the total energy mix l – To extend electricity to rural and remote areas, through the use of mini and micro hydro power schemes y p – To conserve non‐renewable resources used in the generation of electricity – To diversify the energy resource base T di if h b – To ensure minimum damage to the ecosystem arising from hydropower development y p p – To attract private investments into the hydropower sub‐sector
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Hydropower (contd.) Hydropower (contd.) • Strategies – Establishing and maintaining multilateral agreements to monitor and regulate the use of water in international rivers flowing through the country g g y – Ensuring increased indigenous participation in the planning, design and construction of hydropower stations – Providing basic engineering infrastructure for the production of hydropower plants, equipment and accessories – Encouraging private sector, both indigenous and foreign, in the establishment and operation of hydropower plants – Encouraging private sector, both indigenous and foreign, for the local production of hydropower plants and accessories – Ensuring that rural electricity boards incorporate small‐scale hydropower plants in their development plans development plans – Promoting and supporting R&D activities for the local adaptation of hydropower plant technologies – Initiating and updating data on the development of the hydro potential of our rivers and Initiating and updating data on the development of the hydro potential of our rivers and identifying all possible locations for dams Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Solar •
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Policies l – The nation shall aggressively pursue the integration of solar energy into the energy mix gy – The nation shall keep abreast with worldwide developments in solar energy technology Obj i Objectives – To develop the nation’s capability in the utilization of solar energy – To use solar energy as a complimentary energy resource in the rural To use solar energy as a complimentary energy resource in the rural and urban areas – To develop the market for solar energy technologies – To develop solar energy conversion technologies locally
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Solar (contd.) Solar (contd.) •
Strategies – (i) Intensifying R&D in solar energy technology – (ii) Promoting training and manpower development ( ) g g p p – (iii) Providing adequate incentives to local manufacturers for the production of solar energy systems – (iv) Providing adequate incentives to suppliers of solar energy products and (iv) Providing adequate incentives to suppliers of solar energy products and services – (v) Introducing measures to support the local solar energy industry – (vi) Setting up extension programs to introduce solar technology into the ( i) S tti t i t i t d l t h l i t th energy mix – (vii) Providing fiscal incentives for the installation of solar energy systems – (viii) Setting up and maintaining a comprehensive information system on available solar energy resources and technologies
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Biomass Policies l – The nation shall effectively harness non‐fuelwood biomass energy resources and integrate them with other energy resources g gy – The nation shall promote the use of efficient biomass conversion technologies • Objectives Obj i – To promote biomass as an alternative energy resource especially in the rural areas – To promote efficient use of agricultural residues, animal and human wastes as energy sources – To reduce health hazards arising from combustion of biomass fuel T d h l hh d ii f b i f bi f l
Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Biomass (contd.) Biomass (contd.) •
Strategies – Developing extension programs to facilitate the general use of new biomass energy technologies gy g – Promoting R&D in biomass energy technology – Establishing pilot projects for the production of biomass energy conversion devices and systems i d i d – Providing adequate incentives to local entrepreneurs for the p production of biomass energy conversion systems gy y – raining of skilled manpower for the maintenance of biomass energy conversion systems – Developing skilled manpower and providing basic engineering D l i kill d d idi b i i i infrastructure for the local production of components and spare parts for biomass systems Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Wind Wind •
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Policies l – The nation shall commercially develop its wind energy resources and integrate this with other energy resources into a balanced energy mix g gy gy – The nation shall take necessary measures to ensure that this form of energy is harnessed at sustainable costs to both suppliers and consumers in the rural areas consumers in the rural areas Objectives – To develop wind energy as an alternative energy resource p gy gy – To develop local capability in wind energy technology – To use wind energy for provision of power in rural areas and remote communities far removed from the national grid ii f df h i l id – To apply wind energy technology in areas where it is technically and economically feasible y Odujinrin & Adefuluestd. 1972
Nigeria’ss RE Plans Nigeria RE Plans – Wind (contd.) Wind (contd.) •
Strategies – Encouraging R&D in wind energy utilization – Developing skilled manpower for provision of basic engineering Developing skilled manpower for provision of basic engineering infrastructure for local production of components and spare parts of wind power systems – Intensifying work in wind data acquisition and development of wind if i ki i dd iii dd l f i d maps – Training of skilled craftsmen to ensure the operation and maintenance g p of wind energy systems – Providing appropriate incentives to producers, developers and consumers of wind energy systems consumers of wind energy systems – Developing extension programs to facilitate the general use of wind energy technology Odujinrin & Adefuluestd. 1972
The case for RE The case for RE • Abundant RE resources • Energy demand – Population projected to double – Energy demand to triple
• Environment – Fossil fuel emissions – CDM C
• Security of supply – Non‐renewable nature of fossil fuel – Security of pipeline infrastructure
• An alternate/additional source of power Odujinrin & Adefuluestd. 1972
Issues to address Issues to address • Creation of a Renewable Energy Agency or extension of the mandate of the Rural Electrification Agency • RE law? RE l ? – Feed‐in vs. Renewable Portfolio Standard
• Comprehensive mapping of RE resources Comprehensive mapping of RE resources • Initiation of pilot projects on commercial basis • Introduction of appropriate incentives Introduction of appropriate incentives – Is pioneer holiday sufficient? – Abolition/suspension of import duties? / p p
• Appropriate tariff regime & PPAs
Odujinrin & Adefuluestd. 1972
Thank you Odujinrin & Adefulu 1st Floor, Church House 29 Marina 29, Marina, Lagos
[email protected] Odujinrin & Adefuluestd. 1972