Meeting The Energy Demands What Options

Meeting the Energy Demands: What Options?

Dr. Adeoye AdefuluOdujinrin & Adefulu

Barristers Solicitors & Notaries PublicBarristers, Solicitors & Notaries PublicLagos – Abuja – Port‐Harcourt

OutlineOutline

• Nigeria’s Electricity Industry

• Gas as a fuel of choice

• Renewable Energy

Odujinrin & Adefuluestd. 1972

Nigeria’s Electricity IndustryNigeria s Electricity Industry

ll d f

160

180

200

1400

1600 • Installed capacity of just over 6000 mw with average generation capacity of about half

100

120

140

800

1000

1200 • Only 40% of the population has access to electricity

• Per capita consumption of

40

60

80

100

400

600

800 • Per capita consumption of electricity is 100kWh compared to South Africa – 4500kWh, Brazil 1934kWh d Chi 1379

0

20

40

Ukraine South Africa Brazil Pakistan Nigeria0

200– 1934kWh and China – 1379 kWh

• 66% of the country lives in rural g

Population (Million) Generating Capacity (GW) GDP (Million)

yareas

Adapted from: Oando


Adapted from: Oando

Electricity Fuel MixElectricity 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 fuelGas as Nigeria s electricity fuel

h d f• Nigeria has an estimated 182 tcf 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 productionannual natural gas production and accounts for 12.5% of the natural gas flared in the world

Th i i d l• The country is estimated to lose between US$2.5 – 6 billion annually to gas flaring


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

• Most of the planned power plants are based on gasg

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

• Gas for electricity– Cheap(er)

– AvailableAvailable

– Reduce environmental pollution by reducing flaring


flaring

Cost of electricity production from diff hdifferent sources cents per Kwh

45

30354045

15202530

05

10

MiniHydro

Solar PV Biomass Wind NaturalGas

Coal

• 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. 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 h d ( i i bl li )


hydrogen energy. (Nigeria Renewable Energy Policy)

Forms of Renewable EnergyForms of Renewable Energy

Wi d Ki i i i d i h b d h i l• Wind energy ‐ Kinetic energy present in wind motion that can be converted to mechanical 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 electricitybe 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 gdown 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 backgeothermal 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 thermal gradients in the oceans.


g

Fuel shares of world electricity generation 2004

Other**

Non-Renew. Waste0 3%Gas

Nuclear Other0.8%

0.3%Gas 19.6%

15.7%

Hydro 16.1%

Oil 6.7%

Renewables17.9%

Coal 39 8%

Renewable Combustibles and Waste39.8% s and Waste

1.0%

Source: IEA


RE resource base in NigeriaRE resource base in Nigeria

Energy Source Capacity

Small Hydro 734 mwSmall Hydro 734 mw

Animal waste 61 million tonnes/yry

Crop residue 83 million tonnes/yr

Solar radiation 3.5-7.0 kWh/m2 - day

Wind 2-4 m/second


Nigeria’s RE PlansNigeria s RE Plans

• EPSRA– Section 88(9) – RE seen mainly in the light of Rural ( ) y gElectrification

• 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 ‐ HydropowerNigeria s RE Plans Hydropower

• Policies – The nation shall fully harness the hydropower potential available in

h f lthe country for electricity generation

– 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

P i d i di i i i i h d– Private sector and indigenous participation in hydropower 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

ltotal energy mix

– 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 if h b– To diversify the energy resource base

– 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 plansdevelopment 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 – SolarNigeria s RE Plans Solar

l• Policies

– 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 ruralTo 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 t i t i t d l t h l i t th– (vi) Setting up extension programs to introduce solar technology into the 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 – BiomassNigeria s RE Plans Biomass

lPolicies

– 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 h l h h d i i f b i f bi f l– To reduce health hazards arising from combustion of biomass fuel


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 i d i dconversion devices and systems

– Providing adequate incentives to local entrepreneurs for the production of biomass energy conversion systems p gy y

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

D l i kill d d idi b i i i– Developing skilled manpower and providing basic engineering infrastructure for the local production of components and spare parts for biomass systems


Nigeria’s RE Plans – WindNigeria s RE Plans Wind

l• Policies

– 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 areasconsumers 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 i i f d f h i l idcommunities far removed from the national grid

– 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 engineeringDeveloping skilled manpower for provision of basic engineering infrastructure for local production of components and spare parts of wind power systems

if i k i i d d i i i d d l f i d– Intensifying work in wind data acquisition and development of wind maps

– Training of skilled craftsmen to ensure the operation and maintenance g pof wind energy systems

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

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


The case for REThe case for RE

• Abundant RE resources

• Energy demand– Population projected to double

– Energy demand to triple

• Environment• 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 addressIssues 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 & AdefuluOdujinrin & Adefulu

1st Floor, Church House

29 Marina Lagos29, Marina, Lagos

[email protected]


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Meeting The Energy Demands What Options