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Meeting the Energy Demands: What Options? Dr. Adeoye Adefulu Odujinrin & Adefulu Barristers , Solicitors
Meeting the Energy Demands: What Options? Dr. Adeoye Adefulu Odujinrin & Adefulu Barristers , Solicitors

Meeting the Energy Demands: What Options?

Dr. Adeoye Adefulu Odujinrin & Adefulu Barristers, Solicitors & Notaries Public Lagos – Abuja – PortHarcourt

Outline

Nigeria’s Electricity Industry

Gas as a fuel of choice

Renewable Energy

Odujinrin & Adefulu estd. 1972

Industry • Gas as a fuel of choice • Renewable Energy Odujinrin & Adefulu e s

Nigeria’s Electricity Industry

200 180 160 140 120 100 80 60 40 20 0 Ukraine South Africa Brazil
200
180
160
140
120
100
80
60
40
20
0
Ukraine
South Africa
Brazil
Pakistan
Nigeria
Population (Million)
Generating Capacity (GW)
GDP (Million)

1600

1400

1200

1000

800

600

400

200

0

Insta lle d capacity o f just over 6000 mw with average generation capacity of about half

Only 40% of the population has

access to electricity

Per capita consumption of electricity is 100kWh compared to South Africa – 4500kWh, Brazil – 1934kWh an d China 1379 kWh

66% of the countr y lives in rural areas

Ada ted from: Oando

p

Odujinrin & Adefulu estd. 1972

Electricity Fuel Mix

Electricity Fuel Mix • 67 percent of installed capacity is thermal and the rest is hydro

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 & Adefulu estd. 1972

Gas as Nigeria’s electricity fuel

Nigeria h as an estimate d 182 tc f of proven natural gas reserves and is 7 th largest natural gas reserves holder in the world

Nigeria flares 40 per cent of annual natural gas p roduction and accounts for 12.5% of the natural gas flared in the world

Th e country is est i mate d to lose between US$2.5 – 6 billion annually to gas flaring

d to l ose between US$2.5 – 6 billion annually to gas flaring Odujinrin & Adefulu

Odujinrin & Adefulu estd. 1972

The case for Gas as Nigeria ’s electricity fuel

Most of the planned power plants are based on gas

Gas flaring in Nigeria is sufficient to power half of Africa for a year!

Gas for electricity

Cheap(er)

Available

Reduce environmental pollution by reducing flaring

Odujinrin & Adefulu estd. 1972

– Reduce environmental pollution by reducing flaring Odujinrin & Adefulu e s t d . 1

Cost of electricity production from different sources cents per Kwh

45 40 35 30 25 20 15 10 5 0 Mini Solar PV Biomass Wind
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

Odujinrin & Adefulu estd. 1972

Renewable Energy Policy and Kovacs, UN Statistics Division Odujinrin & Adefulu e s t d .

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 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. (Nigeria Renewable Energy Policy)

Odujinrin & Adefulu estd. 1972

wave and hyd rogen energy. (Ni ger ia Renewabl e Energy Po li cy ) Odujinrin

Forms of Renewable Energy

Wi nd energy Kinetic energy present in w ind motion that can be converted to mechanica 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.

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 usin g energy from water is a hydroelectric dam, where water coming 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 geo therma l heat pumps , water heating , or electricity generation, and then is re injecte d b ac k into the earth.

Ocean energy Energy conversion technologies that harness the energy in tides, waves, and thermal g radients in the oceans.

Odujinrin & Adefulu estd. 1972

energy in tides, waves, and thermal g radients in the oceans. Odujinrin & Adefulu e s

Fuel shares of world electricity generation

2004

Non-Renew. Waste

Nuclear

Gas 0.3% Oth er ** 15.7% 19.6% 0.8% Renewables Hydro Oil 17.9% 16.1% 6.7% Coal
Gas
0.3%
Oth
er
**
15.7%
19.6%
0.8%
Renewables
Hydro
Oil
17.9%
16.1%
6.7%
Coal
39 8%
.
Renewable
Combustible
s and Waste

Source: IEA

Odujinrin & Adefulu estd. 1972

1.0%

Coal 39 8% . Renewable Combustible s and Waste Source: IEA Odujinrin & Adefulu e s

RE resource base in Nigeria

Energy Source

Capacity

S

ma

ll H

y

d

ro

7

3

4

mw

Animal waste

61

million tonnes/yr

Crop residue

83

million tonnes/yr

Solar radiation

3.5-7.0 kWh/m 2 - day

Wind

 

2-4 m/second

Odujinrin & Adefulu estd. 1972

Nigeria’s RE Plans

EPSRA

Section 88 ( 9 ) – RE seen mainl y in the li g ht of Rural Electrification

N at i ona l Energy Policy

Renewable Energy Policy

Renewable Energy Action Plan

Renewable Energy Master Plan

Odujinrin & Adefulu estd. 1972

Renewable Energy Action Plan • Renewable Energy Master Plan Odujinrin & Adefulu e s t d

Nigeria’s RE Plans Hydropower

Policies

The nation shall fully harness the hydropower potential available in t h e country for e lectricity generation

The nation shall pay particular attention to the development of the mini and micro hydro p ower schemes

The exploitation of the hydro power resources shall be done in an environmentally friendly manner

Private sector an d in digenous part ic ipat i on in hyd ropower development shall be actively promoted

Odujinrin & Adefulu estd. 1972

pat i on in hyd ropower development shall be actively promoted Odujinrin & Adefulu e s

Nigeria ’s RE Plans Hydropower (contd.)

Objectives

To increase the percentage contribution of hydro electricity to the tota l energy mix

To extend electricity to rural and remote areas, through the use of mini and micro hydro p ower schemes

To conserve non renewable resources used in the generation of electricity

To divers if y t h e energy resource b ase

To ensure minimum damage to the ecosystem arising from hydro p ower develo p ment

To attract private investments into the hydropower sub sector

Odujinrin & Adefulu estd. 1972

private investments into the hydropower sub ‐ sector Odujinrin & Adefulu e s t d .

Nigeria ’s RE Plans Hydropower (contd.)

Strategies

Establishing and maintaining multilateral agreements to monitor and regulate the use of water in international rivers flowin g throug h the countr 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 smallscale hydropower plants in their development plans

Promoting and supporting R&D activities for the local adaptation of hydropower plant technologies

d

d

d

h

d

l

f h

h d

l

f

d

Initiating an up ating ata on t e eve opment o t e y ro potentia o our rivers an identifying all possible locations for dams

Odujinrin & Adefulu estd. 1972

o our rivers an identifying all possible locations for dams Odujinrin & Adefulu e s t

Nigeria’s RE Plans Solar

Po l icies

The nation shall aggressively pursue the integration of solar energy into the energy mix

The nation shall keep abreast with worldwide developments in solar energy technology

Obj ecti ves

To develop the nation’s capability in the utilization of solar energy

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 & Adefulu estd. 1972

– To develop solar energy conversion technologies locally Odujinrin & Adefulu e s t d .

Nigeria’s RE Plans – Solar (contd. )

S trategies

(i) Intensifying R&D in solar energy technology

( ii ) Promotin g trainin g and man p ower develop ment

(iii) Providing adequate incentives to local manufacturers for the production of solar energy systems

(iv) Providin g ade qu ate incentives to s upp liers of solar energy p rod u cts and services

(v) Introducing measures to support the local solar energy industry

( v i) S etti ng up ex tensi on programs to i ntrod uce sol ar tech no l ogy i nto th e 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 & Adefulu estd. 1972

system on available solar energy resources and technologies Odujinrin & Adefulu e s t d .

Nigeria’s RE Plans – Biomass

Po l icies

The nation shall effectively harness non fuelwood biomass energy resources and inte g rate them with other energy resources

The nation shall promote the use of efficient biomass conversion technologies Obj ecti ves

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 re d uce h ea lt h h azard s arising f rom comb ust ion o f biomass f ue l

Odujinrin & Adefulu estd. 1972

h h azard s arisi ng f rom comb ust ion o f bi omass f

Nigeria ’s RE Plans Biomass (contd.)

S trategies

Developing extension programs to facilitate the general use of new biomass energy technolo g ies

Promoting R&D in biomass energy technology

Establishing pilot projects for the production of biomass energy conversion d evices an d systems

Providing adequate incentives to local entrepreneurs for the p roduction of biomass energy conversion systems

raining of skilled manpower for the maintenance of biomass energy conversion systems

D evelop ing skille d manpower an d providi ng b asic eng ineering infrastructure for the local production of components and spare parts for biomass systems

Odujinrin & Adefulu estd. 1972

production of components and spare parts for biomass systems Odujinrin & Adefulu e s t d

Nigeria’s RE Plans – Wind

Po l icies

The nation shall commercially develop its wind energy resources and inte g rate this with other energy resources into a balanced energy mix

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

Objectives

To develo p wind energy as an alternative energy resource

To develop local capability in wind energy technology

To use wind energy for provision of power in rural areas and remote commun it ies far removed f rom t h e nat iona l grid

To apply wind energy technology in areas where it is technically and economicall y feasible

Odujinrin & Adefulu estd. 1972

in areas where it is technically and economicall y feasible Odujinrin & Adefulu e s t

Nigeria’s RE Plans Wind (contd. )

S trategies

Encouraging R&D in wind energy utilization

Develop in g skilled manp ower for provision of basic en g ineerin g infrastructure for local production of components and spare parts of wind power systems

Intensif y ing work in win d d ata acqu is it ion an d d evelopment o f win d maps

Trainin g of skilled craftsmen to ensure the o p eration and maintenance of wind energy systems

Providing appropriate incentives to producers, developers and consumers of wind energy systems

Developing extension programs to facilitate the general use of wind energy technology

Odujinrin & Adefulu estd. 1972

to facilitate the general use of wind energy technology Odujinrin & Adefulu e s t d

The case for RE

Abundant RE resources

Energy demand

Population projected to double

Energy demand to triple

Environment

Fossil fuel emissions

C DM

Security of supply

Non renewable nature of fossil fuel

Security of pipeline infrastructure

An alternate/additional source of power

Odujinrin & Adefulu estd. 1972

infrastructure • An alternate/additional source of power Odujinrin & Adefulu e s t d . 1

Issues to address

Creation of a Renewable Energy Agency or extension of the mandate of the Rural Electrification Agency

RE l aw ?

Feed in vs. Renewable Portfolio Standard

Comprehensive mapp i ng o f RE resources

Initiation of pilot projects on commercial basis

I ntro d uct i on o f appropriate i ncent i ves

Is pioneer holiday sufficient?

Abolition /susp ension of im p ort duties?

Appropriate tariff regime & PPAs

Odujinrin & Adefulu estd. 1972

of im p ort duties? • Appropriate tariff regime & PPAs Odujinrin & Adefulu e s

Thank you

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

Odujinrin & Adefulu estd. 1972

Church House 29 , Marina , Lagos enquiries@odujinrinadefulu.com Odujinrin & Adefulu e s t d .