Meeting The Energy Demands What Options

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 s Electricity Industry
Nigeria’s Electricity Industry
200 1600
• Installed capacity of just over
ll d f
180
6000 mw with average generation
1400
160 capacity of about half
1200
140 • Only 40% of the population has
1000
120 access to electricity
100 800
• Per capita consumption of
Per capita consumption of
80 600 electricity is 100kWh compared
60
400 to South Africa – 4500kWh, Brazil
40
200
– 1934kWh d Chi
1934kWh and China – 13791379
20
kWh
0 0
Ukraine South Africa Brazil Pakistan Nigeria
g • 66% of the country lives in rural
y
Population (Million) Generating Capacity (GW) GDP (Million) areas

Adapted from: Oando


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


Gas as Nigeria s electricity fuel
Gas as Nigeria’s electricity fuel
• 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
• The country is estimated to lose
Th i i d l
between US$2.5 – 6 billion
annually to gas flaring


The case for Gas as Nigeria s electricity fuel
The case for Gas as Nigeria’s 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

Cost of electricity production from
different sources cents per Kwh
diff h
45
40
35
30
25
20
15
10
5
0
Mini Solar PV Biomass Wind Natural Coal
Hydro Gas

• Adapted from the Nigerian Renewable Energy Policy and Kovacs, UN Statistics
Division


What is Renewable Energy?
What is Renewable Energy?
• 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
solar, wind, biomass, geothermal, hydropower and ocean resources, and biofuels
, , ,g , y p ,
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
hydrogen energy. ( i i Renewable Energy Policy)
h d (Nigeria bl li )

Forms of Renewable Energy
Forms of Renewable Energy
• Wind energy ‐ Ki i
Wi d 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.


Fuel shares of world electricity generation
2004
Non-Renew.
Waste Nuclear
Gas 0.3%
0 3% Other
Other**
15.7%
19.6% 0.8%

Oil Renewables Hydro
6.7% 17.9% 16.1%

Renewable
Coal Combustible
39.8%
39 8% s and Waste
1.0%

Source: IEA


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


Nigeria s RE Plans
Nigeria’s 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


Nigeria s RE Plans Hydropower
Nigeria’s RE Plans ‐ 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
– Pi
Private sector and indigenous participation in hydropower
d i di i i i i h d
development shall be actively promoted


Nigeria s RE Plans Hydropower (contd.)
Nigeria’s RE Plans – 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
– T di
To diversify the energy resource base
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


Nigeria s RE Plans Hydropower (contd.)
Nigeria’s RE Plans – 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

Nigeria s RE Plans
Nigeria’s RE Plans – Solar
• 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
• Objectives
Obj i
– 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


Nigeria s RE Plans Solar (contd.)
Nigeria’s RE Plans – 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
– ( i) S tti
(vi) Setting up extension programs to introduce solar technology into the
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


Nigeria s RE Plans
Nigeria’s 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
• Obj i
Objectives
– 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
– T d
To reduce health hazards arising from combustion of biomass fuel
h l hh d ii f b i f bi f l


Nigeria s RE Plans Biomass (contd.)
Nigeria’s RE Plans – 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
– D l i
Developing skilled manpower and providing basic engineering
kill d d idi b i i i
infrastructure for the local production of components and spare parts
for biomass systems


Nigeria s RE Plans Wind
Nigeria’s RE Plans – Wind
• 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


Nigeria s RE Plans Wind (contd.)
Nigeria’s RE Plans – 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


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


Issues to address
Issues to address
• Creation of a Renewable Energy Agency or extension of the
mandate of the Rural Electrification Agency
• RE l ?
RE law?
– 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


Thank you

Odujinrin & Adefulu
1st Floor, Church House
29, Marina,
29 Marina Lagos
enquiries@odujinrinadefulu.com


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