Attachment_J.43_Renewable_Energy_Master_Plan_(November_2012).pdf

RENEWABLE ENERGY

MASTER PLAN

EN

ER

GY COMMISSI O

N

OF NI GERI A

REVISED EDITION

ECN UNDP

NOVEMBER 2012

ii

Contents

Acknowledgement iii Foreword iv

Acronyms v

Executive Summary viii

1.0 Introduction 1

1.1 Preamble 1

1.2 Energy Resources, Energy Supply and the Economy 1

1.3 Drivers of Renewable Energy Development in Nigeria 3

1.4 Objectives of the Renewable Energy Master Plan 3

1.5 Overview of the 1st Edition of the REMP 3

1.6 Overview of Renewable Energy Policies in Nigeria 4

2.0 Renewable Energy Programmes and Targets 6

2.1 Renewable Energy Programmes 6

2.2 Energy Demand and Supply Projections for Nigeria 6

2.3 Renewable Energy Targets/Milestones/Timelines 8

3.0 The Renewable Energy Action Plan 11

3.1 Introduction 11

3.2 Assessment of Resource Base/Data Acquisition 11

3.3 Renewable Energy Policies, Regulations and Institutional Framework 12

3.4 Capacity Building and Skills Development Program 15

3.5 Public Awareness/Sensitization 18

3.6 Development of Financing Options Program 20

3.7 Development of RE Projects 24

3.8 Incentives for RE Development 31

3.9 Research and Development 34

3.10 Standards, Codes of Practice and Specifications 37

3.11 Local Manufacturing & Commercialization 39

4.0 Economic and Fiscal Incentives 41

4.1 Introduction 41

4.2 Economic Incentives 41

4.3 Fiscal Incentives 42

5.0 Risk Identification and Analysis 44

5.1 Introduction 44

5.2 Policy and Political Risks 44

5.3 Market Risks 45

5.4 International Development Risks 47

5.5 Standards and Quality Control Risks 48

5.6 Research and Development Risks 49

5.7 Environmental Risks 49

6.0 Conclusion 51

iii

Acknowledgment

The Energy Commission of Nigeria wishes to express its sincere gratitude to the United Nations Development Programme (UNDP) for the financial support provided for the review of the 2005 draft Renewable Energy Master Plan (REMP). This draft review was therefore carried out in 2011 by the Grayfun International Limited under contract Number: ECN/UNDP/7CP/2011A of the UNDP. The invaluable criticisms by various national and other international stakeholders expressed and conveyed in various fora that added value to this review is also highly appreciated. Finally, the editorial work carried out by Prof. E. J. Bala, Director, Renewable Energy Department and Engr. O. N.

Ekpenyong, Deputy Director, Energy Management, Training and Manpower Development Department of the Energy Commission of Nigeria is hereby duly acknowledged.

Prof. A. S. Sambo, OON, NPON Director General/CEO, Energy Commission of Nigeria iv

Foreword

The development of renewable energy is central in the National Energy Policy as well as the National Energy Master Plan (NEMP). Renewable energy reduces sole dependence on fossil fuels and thus improves security of energy supply, reduces greenhouse gas emissions creating environmental and social benefits, while delivering green jobs to the economy. The Renewable Energy Master Plan (REMP) sets out in the short, medium and long terms within the national energy supply mix as well as articulate strategic approach and measures to meet the targets.

The Nigerian government’s commitment to accelerating the development of renewable energy in the country is set out in the National Energy Policy and the Vision 2020-20.

For Nigeria to be among the twenty (20) largest economies in the world by 2020, adequate and reliable energy supply, climate change mitigation and adaptation and creation of employment, which are inter-related challenges, must be addressed through the transformation of Nigeria’s economy from one based mainly on fossil fuel to a low carbon economy based around renewable energy and energy efficiency.

Government’s ambitions for renewable energy and the related national targets are in line with global quest for a long term energy security and clean environment for sustainable development.

An interrelated and integrated approach, involving all relevant public sector Ministries, Departments and Agencies in all tiers of government and the private sector will be critical for delivery of this plan over the next decade. In setting out to achieve a significant transformation of the energy landscape, Government recognizes the strategic role of the public and private sectors in supporting the new infrastructure required to deliver change.

This challenge will need to be progressively addressed in the course of the implementation of the REMP.

This REMP is therefore a roadmap for actualization of Government’s commitment to create the necessary enabling environment for sustainable energy supply for national development with active participation of the private sector. It is divided in to programmes with targets, timelines and activities. Incentives to promote the attainment of the programmes as well as generally grow the renewable energy market are also provided.

Some risks have been identified and highlighted.

Prof. Bassey Ewa Okon Honorable Minister, Federal Ministry of Science and Technology Abuja v

Acronyms

AC Alternating Current ADP Agricultural Development Programme AfDB African Development Bank APPA African Petroleum Producers Association ARCEDEM African Regional Centre for Engineering Design and Manufacture ASDB Asian Development Bank ASL Above Sea Level AU African Union BOI Bank of Industry CASHPP Capital Alliance for Small Hydro Power CBN Central Bank of Nigeria CDA Caribbean Development Authority CO2 Carbon dioxide DC Direct Current DPR Department of Petroleum Resources DPs Development Partners DTCD Department of Technical Cooperation for Development ECN Energy Commission of Nigeria ECOWAS Economic Community of West African States EIA Environmental Impact Assessment EIA Energy Information Administration (US Department of Energy) EMV Expected Monetary Value ERCs Energy Research Centres FAO Food and Agricultural Organization FCT Federal Capital Territory, Abuja FEPA Federal Environmental Protection Agency FIRS Federal Inland Revenue Service FMA & RD Federal Ministry of Agriculture and Rural Development FMAv Federal Ministry of Aviation FMoD Federal Ministry of Defence FMEd Federal Ministry of Education FMEnv Federal Ministry of Environment FMF Federal Ministry of Finance FMH&UD Federal Ministry of Housing & Urban Development FMoI Federal Ministry of Information FMJ Federal Ministry of Justice FMoN-D Federal Ministry of Niger Delta FMoP Federal Ministry of Power FMST Federal Ministry of Science and Technology FMT&I Federal Ministry of Trade and Investment FMW&SD Federal Ministry of Women Affairs and Social Development FMWR Federal Ministry of Water Resources FMYD Federal Ministry of Youth Development FORMECU Forestry Monitoring and Evaluation Coordinating Unit GEF Global Environmental Facility GJ Giga Joule (Giga = 109) GW Gigawatt GWh Gigawatt-hour vi

Ha Hectares HGS High growth scenario IAEA International Atomic Energy Agency ICRC Infrastructure Concession Regulatory Commission IC – SHP International Centre for Small Hydro IDB Inter-American Development Bank IMF International Monetary Fund IPP Independent Power Producer ITF Inter-Tropical Front Kg Kilogramme kJ Kilojoule Km/h Kilometre/hour kW Kilowatt KWh/m2 Kilowatt hour per square meter kWh Kilowatt-hour LHP Large Hydro Power LGA Local Government Area LGS Low growth scenario M Metre M3 Cubic Metre M3/s Cubic Meter per Second MAED Model for the Analysis of Energy Demand MAN Manufacturers Association of Nigeria MCM Million Cubic Meters MESSAGE Model for the Energy Supply Strategy Alternatives & their General

Environmental Impact MFO Market Facilitation Organization MJ Megajoule MOU Memorandum of Understanding MPR Ministry of Petroleum Resources MToe Million Tons of oil equivalent MW Megawatt MWh Megawatt-hour NACCIMA Nigerian Assoc. of Chambers of Commerce, Industry, Mines & Agric.

NAPEP National Poverty Eradication Programme NAPTIN National Power Training Institute of Nigeria NARICT National Research Institute for Chemical Technology NASENI National Agency for Science and Engineering Infrastructure NASS National Assembly NBRRI National Building and Roads Research Institute NBS National Bureau of Statistics NBTE National Board for Technical Education NCAM National Centre for Agricultural Mechanization NCCE Nigerian Commission for Colleges of Education NCERD National Centre for Energy Research and Development NDE National Directorate of Employment NEEDS National Economic Empowerment and Development Strategy NEP National Energy Policy NEPA National Electric Power Authority NEPAD New Partnership for African Development vii

NERC Nigerian Electricity Regulatory Commission NERDP New Energy Research and Development Programme NESREA National Environmental Standards and Regulations Enforcement Agency NGO Non Governmental Organization NIMET Nigerian Meteorological Agency NIMOR Nigerian Institute of Marine and Oceanographic Research NIPC Nigerian Invesment Promotion Commission NIREDA Nigerian Renewable Energy Development Agency NNPC Nigeria National Petroleum Corporation NNRA Nigerian Nuclear Regulatory Authority NOA National Orientation Agency NPC National Planning Commission NRSE New and Renewable Sources of Energy NUC National Universities Commission NYSC National Youth Service Corps O & M Operation and Maintenance OPEC Organization of Petroleum Exporting Countries OTEC Ocean Thermal Energy Conversions PJ Picojoule PSP Private Sector Participation PTDF Petroleum Technology Development Fund PV Photo Voltaic RBDA River Basin Development Authority REA Rural Electrification Agency RIs Research Institutes R&D Research and Development REMP Renewable Energy Master Plan RET Renewable Energy Technology RMRDC Raw Materials Research and Development Council RS Reference scenario SASSs State Assemblies SERC Sokoto Energy Research Centre SGs State Governments SHESTCO Sheda Science & Technology Complex SHP Small Hydro Power SHS Solar Home Systems SMEDAN Small and Medium Enterprises Development Agency of Nigeria SON Standard Organization of Nigeria TIs Tertiary Institutions TJ Terajoule Toe Tons of oil equivalent TPES Total primary energy supply (demand) TW Trillion Watt TWh Trillion Watt Hour (Tera –1012) UEMOA Economic and Monetary Union of West Africa UN United Nations UNCDF United Nations Capital Development Fund UNDP United Nations Development Program UNESCO United Nation Educational Scientific and Cultural Organization UNIDO United Nations Industrial Development Organization viii

Executive Summary

The first draft of the Renewable Energy Master Plan (REMP) was produced in 2005 under the sponsorship of the United Nations Development Programme (UNDP). It has since created greater awareness on the benefits of renewable energy and its technologies.

Greater contribution of renewable energy into the nation’s energy supply mix for sustainable socio-economic development has since began to be achieved at both federal and state levels.

However, seven years down the line, new policy guidelines and developments have taken place both locally and internationally. Secondly, the first edition was voluminous and needed to be concise and precise. This 2nd draft edition has therefore concentrated on concisely bringing out the renewable energy programmes of biomass, solar energy, hydropower, wind, emerging technologies and framework programmes with targets and timelines in the short (2013-2015), medium (2016-2020) and long term (2021-2030). The framework programme presented as action plan has articulated activities that are common to the other programmes and ensures that the activities are mutually supportive.

Economic and financial incentives required to specifically reduce the initially high investment cost of renewables and generally enhance penetration into the nation’s energy supply mix are proffered.

Finally, a risk analysis of factors that may stifle the activities in the action plan for attainment of the set targets are also provided. On the long term, renewable electricity is expected to contribute about 20% to the total electricity supply in the country; while the national fuel supply is to be supported by 10% - 20% renewable fuels (biofuels).

Dependence on fuelwood as a source of fuel for cooking and heating is to decline over the years.

1.0 INTRODUCTION

1.1 Introduction

Renewable energy is energy derived from a source that regenerates itself within a relatively short time through natural process. This document is the revised version of the 1st draft Edition of the Renewable Energy Master Plan (REMP). In 2005, the United Nations Development Programme (UNDP) supported the Energy Commission of Nigeria (ECN) to produce the Renewable Energy Master Plan (REMP) for Nigeria to remove common barriers to renewable energy development in Nigeria. Greater awareness on the benefits of renewable energy and its technologies has since been created. To this effect, greater contribution of renewable energy into the nation’s energy supply mix for sustainable socio-economic development has been achieved.

However, seven years after the 1st draft Edition of the Renewable Energy Master Plan was produced, many developments have taken place within Nigeria and even globally.

Secondly, the 1st Edition was voluminous and needed to be appropriately trimmed and made precise.

1.2 Energy Resources, Energy Supply and the Economy

Nigeria is endowed with abundant fossil, nuclear and renewable energy resources. The fossil type include crude oil, natural gas, tar sands and coal; while the renewable energy resources include large hydro, small hydro, solar, biomass (fuelwood, animal wastes, agric residues, energy crops) and wind. Others are tidal and ocean waves as well as geothermal. Tables 1 and 2 show the potentials of these resources, while Table 3 shows quantitatively energy supply and the Nigerian economy between 2003 and 2010.

Table 1: Fossil Energy Resources and Nuclear Energy Sources

S/N Resource Reserves Production (2010) Domestic Utilization (2010)

1. Crude Oil 37 billion barrels 0.896 billion barrels 0.164 billion barrels

2. Natural Gas 187 Tscf 2.392 Tscf 75.7% - Fuel, Industries, re-injection and gas lift.

24.3% - gas flare

3. Coal 2.7 billion tonnes 0 Negligible

4. Tar Sands 31 billion barrels of oil equivalent 0 0.224 million tonnes

5. Nuclear Yet to be quantified 0 30kW experimental nuclear reactor

Source: NNPC (2010), CBN (2010)

Table 2: Renewable Energy (RE) Potentials

Resource Potential Remark Large Hydropower 11,250 MW 1900 MW exploited

Small Hydropower 3,500 MW 64.2 MW exploited

Solar 4.0 kWh/m2/day - 6.5 kWh/m2/day

15 MW dispersed solar PV installations.

(estimated)

Wind 2-4m/s @ 10m height mainland

Electronic Wind Information System (WIS) available; 10 MW wind farm in Katsina in progress.

Biomass (non-fossil organic matter)

-Municipal waste -Fuelwood

- 18.5 million tonnes produced in 2005 and now estimated at 0.5kg/capita/day

- 43.4 million tones/yr fuelwood consumption

Animal Waste 245 million assorted animals in 2001 -Agric Residue -Energy crops

-91.4 million tonnes /yr produced -28.2 million hectares of arable land;

8.5% cultivated

Source: REMP (2005) and FMEnv.

Table 3: Energy Supply and the Nigerian Economy

S/N Items 2003 2004 2005 2006 2007 2008 2009

1. Electricity

Generation (billion kWh)

22.03 23.9 24.22 (503)* (10,695)**

23.8 23.3 21.27 (562)* (18,603)**

20.8

2. Energy Consumption per capita (Kgoe/Capita)

151.3 125.5 132.6 (680)* (1,780)**

87.1 81.4 80.8 (670)* (18,603)**

83.1

3. Electricity Consumption per capita (kWh/Capita)

174.6 176.4 181.4 (563)* (2,596)**

167.6 161.2 142.9 (571)* (2,782)**

135.2

4. GDP per capita (US$/Capita)

620.7 658.0 826.3 (2,314)* (8,492)**

1030.3 1223.5 1,286.3 (2,540)* (9,550)**

1,106.8

5. Energy Intensity (Kgoe/US$)

0.244 0.191 0.161 (0.294)* (0.210)**

0.085 0.067 0.063 (0.264)* (0.192)**

0.075

6. GDP Growth Rate (%)

9.6 6.6 6.5 6.0 6.5 6.0 6.7

Source: CBN (2005 - 2010), NCC Osogbo (2009), *Africa Average – IEA (2007, 2010), **World Average – IEA (2007, 2010)

1.3 Drivers of Renewable Energy Development in Nigeria

Interest in the use of alternative energy in the form of renewable energy has increased substantially because of its potential to long term sustainable energy supply for the economy, since petroleum may not last beyond 80 years at the 2010 rate of production and reserves. There are also substantial environmental benefits in reduced GHG emissions as compared with conventional energy sources. Renewable energy has great potentials for job and employment creation.

1.4 Objectives of the Renewable Energy Master Plan

The specific objectives of the Renewable Energy Master Plan are to:

• Enhance national energy security;

• Expand access to energy especially in the rural areas;

• Stimulate employment, economic empowerment and growth and reduce poverty;

• Increase the scope and quality of rural services, including, schools, health services, water supply, information, entertainment and stemming the migration to urban areas;

• Reduce environmental degradation and health risks, particularly to vulnerable groups such as women and children;

• Improve learning, capacity-building, research and development on various renewable energy technologies in the country; and

1.5 Overview of the 1st Edition of the REMP

Contents and Structure The first version of the Renewable Energy Master Plan (REMP) is a 235 – page booklet, broadly divided into three sections – Executive Summary, Main Body and Annexes. The main body consists of six chapters, 52 tables and 13 figures. It has several annexes and references.

1.5.1 Chapter 1: The first chapter is the introduction, which highlights the rationale for, vision and objectives of REMP, under the following sub-headings: the Energy Situation in Nigeria; Development and Energy Challenges; Drivers for change; Rationale for the REMP; Nigeria’s Renewable Energy Vision; Objectives of the REMP; and Expected Outputs.

1.5.2 Chapter 2: The second chapter focused on the Renewable Energy Resources, Technologies and Markets. This Chapter considered each renewable energy resource in this order: Hydro power, Solar, Biomass, Wind, Hydrogen Cell, Marine, Ocean and Geothermal Energy. For each renewable energy source, the chapter considered the resource base, status of data availability including its adequacy and gaps. Also, overview of the various technologies in each renewable energy type was extensively discussed. The market situation and the comparative international experiences were discussed in details, as well as the gaps and barriers to the development of each renewable energy technology market.

1.5.3 Chapter 3: Targets

Targets are critical tools in achieving the vision of the REMP. Since the major areas for the utilization of renewable energy are electricity, automotive fuel production and other thermal or heat production (cooking, heating, drying, etc.), targets were set for RE in the short (2005 – 2007), medium (2008 – 2015) and long (2016 – 2025) terms, guided by the energy demand and supply projections for the nation, produced by the Energy Commission of Nigeria, under various economic growth rates or scenarios from the reference or base.

1.5.4 Chapter 4: Planned Activities and Milestones

To ensure that the REMP targets outlined in chapter 3 were achieved, concrete activities and milestones were identified in the short, medium and long term. These activities and milestones were organized under specific sub-sectoral programmes: Framework Programme on Renewable Energy Promotion, National Biomass Energy Programme, National Solar Energy Programme, National Small Hydro Energy Programme, National Wind Energy Programme and Emerging Energy Research and Development Programme.

The action plan was presented in tabular form featuring: Activity Area, Project, Description of activities, Year and Estimated cost and participating agencies. These activities are grouped into the short-term (2006 – 2007), Medium term (2008 – 2015) and Long-term (2016- 2025).

1.5.5 Chapter 5: Strategy and Implementation Issues

Key strategic implementation issues discussed in this chapter included Policy, Legal and Regulatory Framework; Institutional Framework; Economics and Financing; Capacity Building; Public Awareness; Inter-Agency Collaboration (including public-private partnership); Research and Development and Monitoring and Evaluation.

1.5.6 Chapter 6: Risk Identification and Analysis

This section discussed potential risk factors that may hinder the implementation of the REMP, which included Policy and Political risks; Market risks, Standards and Quality Control risks; Research and Development risks; and Environmental risks.

It is stressed that the identification and analysis of these risks will allow stakeholders in the renewable energy economy to factor in these risks, or seek alternative approaches to reaching national renewable energy targets and objectives.

1.6 Overview of Renewable Energy and Related Policies and Regulations in Nigeria The main constraints in the rapid development and diffusion of technologies for the exploitation and utilization of renewable energy resources in the country are the absence of market and the lack of appropriate policy, regulatory and institutional framework to stimulate demand and attract investors. The comparative low quality of the systems developed and the high initial upfront cost also constitute barriers to the development of markets. Therefore, to unleash the enormous potential of its renewable energy resources on its drive to achieve the MDG’s and NEEDS targets, the Federal Government of Nigeria has formulated many renewable energy related policies, namely:

• National Energy Policy, which contians renewable energy, initiated by the Energy Commission of Nigeria and approved by the Federal Government in 2003.

• Draft Renewable Energy Electricity Policy initiated by the Federal Ministry of Power in 2006.

• Nigerian Biofuels Policy Incentives initiated by the NNPC and approved by FEC in 2007.

• Vision 20-2020 Document initiated by National Planning Commission and approved by FEC in 2012.

• National Climate Change Policy initiated by the Federal Ministry of Environment and approved by FEC in 2011.

• National Environmental Regulations (2009, 2011) initiated by the National Environmental Standards and Regulations Enforcement Agency (NESREA)

• Electric Power Sector Reform (EPSR) Act of 2005, which libelarized the electricity sector, unbundled the PHCN in preparation to its privitization, and established the Nigerian Electricity Regulatory Commission (NERC) as the sector regulator.

• Regulation on Independent Electricity Distribution Networks (IEDN) and Embedded Generation initiated by NERC.

• Feed- In- Tariff for electricity from renewable energy sources initiated by NERC.

2.0 RENEWABLE ENERGY PROGRAMMES AND TARGETS

2.1 Renewable Energy Programmes

The Renewable Energy Master Plan (REMP) is basically structured into the following programmes with short (2013–2015), medium (2016–2020) and long term (2021–2030).

The programme under the Master Plan includes:

National Biomass Energy Programme National Solar Energy Programme National Hydropower Programme National Wind Energy Programme Emerging Energy Programme Framework Programme for Renewable Energy Promotion

The Framework programme articulates issues that are common to all other sub-sectoral programmes and ensures that activities within the sub-sectors are mutually supportive, e.g, Legal, Regulatory and Institutional framework Incentives (Financial and Fiscal) Capacity Building (Human and Infrastructural) Inter-Agency/Governmental Collaboration Research and Development Monitoring and Evaluation RE Portfolios and Feed-in-Tariff

2.2 Energy Demand and Supply Projections for Nigeria

Nigeria has envisioned growing its economy at a rate of 11% - 13% so that it can be reckoned within the 20 largest economies in the world by 2020. Energy demand and supply studies conducted by the Energy Commission of Nigeria under various growth scenarios and taking into consideration the economic vision, demography, available energy resources and modern developmental path, using MAED and MESSAGE energy planning models of IAEA, has indicated that huge amount of energy in the form of electricity, fuel and heat would be required to meet this vision.

The following growth scenarios were considered:

Reference Growth Scenario:

• GDP grows by an average of 7% per annum

• The main driver of growth is the manufacturing sector

• Manufacturing accounts for 15% of GDP by 2020 from 4% in 2011

• Consistent with the MDG objective of reducing poverty by half by 2015

High Growth Scenario:

• GDP grows by an average of 10% per annum

• Manufacturing contributes 22% to GDP by 2030 from 4% in 2011

• Nigeria is transiting from an agrarian economy to an industrializing nation

Optimistic Growth Scenario:

• GDP grows by an average of 13% per annum

• Manufacturing contributes 22% to GDP by 2030 from 4% in 2011

• Nigeria is transiting from an agrarian economy to an industrializing nation

Table 4: Projected Access to Grid Electricity by Household for Nigeria

Scenario 2010 2015 2020 2025 2030 Reference growth (7%) 60 75 80 85 90

High growth (10%) 72 86 93 94 95

Optimistic growth (13%) 72 86 93 94 95

Table 5: Electricity Demand Projections per Scenario, MW

Scenario 2009 2010 2015 2020 2025 2030 2035 2040 Reference growth (7%) 4,052 7,440 24,380 45,490 79,798 115,674 161,651 213,122

High growth (10%) 4,052 8,420 30,236 63,363 103,859 196,875 333,444 487,510

Optimistic growth (13%) 4,052 10,230 41,133 88,282 170,901 315,113 573,289 979,326

Table 6: Projected Total Energy Demand for Fuel Petroleum Products for Nigeria (Million Litres)

Year PMS DPK AGO Fuel Oil LPG 7% 13% 7% 13% 7% 13% 7% 13% 7% 13%

2009 5096.94 5096.94 356.06 356.06 565.64 565.64 120.01 120.01 74.16 74.16 2010 6180.00 8890.00 464.00 902.00 791.68 1177.85 160.00 270.00 93.20 132.90 2015 14460.00 19510.00 3788.00 7039.00 2301.86 3651.10 1800.00 3380.00 1107.00 1871.20 2020 28170.37 35587.13 9038.71 22704.49 4176.76 6270.84 4632.07 9277.93 2862.50 5733.51 2025 39769.44 55459.38 15984.94 44285.43 6231.84 11408.42 7806.10 20797.42 4823.96 12852.25 2030 56457.15 88369.15 22064.93 77255.68 8902.43 21349.73 11374.64 45443.40 7029.22 22903.70

Table 7: Projected Electricity Supply by Fuel Type Based on 13% Economic

Growth Rate (MW) 2009 (Based Yr) 2010 2015 2020 2025 2030 Coal 0.00 3352.98 3352.98 12,121.79 14,011.27 20398.63 Electricity Import 0.00 0 0 0 0 67727 Gas 3803.00 13109.77 26426.06 49,996.47 120,512.45 164,306.85 Hydro 1930.00 4157 11207.00 12132 12132 12132 Nuclear 0.00 0.00 3599.99 7199.99 7199.99 7199.99 Small Hydro 20.00 105 319.9 759.85 1660.05 3502.1 Solar 0.00 490.35 2543.30 6417.27 15969.94 39737.5 Wind 0.00 23 36 41 47 54 Biomass 0 0 5 30 65 100 Supply 5746.00 21,238.09 47,490.24 88,698.37 171,597.69 315,158.07

2. 3 Renewable Energy Targets/Milestones and Timelines

The renewable energy programmes’ activities with Targets/Milestones and Timelines are as follows:

Table 8: Biomass Programme Targets S/

N

Activity/Item Timeline/Quantity

Short Term Medium Term Long Term

1 Biomass Electricity (MW) 5 30 100

2 Improved Woodstoves (No.) 300,000 500,000 1,000,000

3 Biogas Digesters (No.) 500 6,000 8,000

4 Biomass Briquetting Machine (No.) 30 50 80

5 Biofuel (ML/day)*

- Bio ethanol (B10)

- Biodiesel (B20)

5.3 2.0

9.7 3.4

24.2 11.7

* Based on 13% Growth rate Supply Projections of PMS and AGO.

Table 9: Solar Programme Targets

(i) Electricity

S/N Activity/Item Timeline/Quantity Short Term Medium Term Long Term

1 Solar PV Home Systems (SHS)

(MW)

5 10 15

2 Solar PV Water Pumping (MW) 50 1,000 5,000 3 Solar PV Community Services

(MW)

45 500 3,000

4 Solar PV Refrigerators (MW) 20 500 2,000 5 Solar PV Street and Traffic Lighting

(MW)

100 1,000 10,000

6 Solar PV Large Scale PV plants (1MW capacity)

80 990 9,990

7 Solar Thermal Electricity (1MW capacity)

300 2,136 18,127

Total (MW) 600 6,136 48,132

(ii) Thermal

S/N Activity/Item Timeline/Quantity Short Term Medium Term Long Term

1 Solar Water Heaters (No.) 4,000 60,000 150,000 2 Solar Cookers (No.) 2,000 50,000 150,000 3 Solar Dryers (No.) 150 2,000 6,000 4 Solar Stills (No.) 100 3,000 2,000 5 Solar Pasteurizers (No.) 300 4,000 10,000

Table 10: Hydropower Programme Targets

S/N Activity/Item Timeline/Quantity Short Term Medium Term Long Term

1 Large Hydropower (MW) 4,000 9,000 11,250 2 Small Hydropower (MW) 100 760 3,500 Total (MW) 4,100 9,760 14,750

Table 11: Wind Programme Targets

S/N Activity/Item Timeline/Quantity

Short Term Medium Term Long Term

1 Wind Electricity (MW) 23 40 50

2 Windmill Water Pumping Systems (No.)

20 100 200

Table 12: Summary of Renewable Energy Targets

(i) Renewable Electricity Supply Projection in MW (13% GDP Growth Rate)1

S/N

Resource Now Short Term Medium Term Long Term

1 Hydro (LHP) 1938 4,000 9,000 11,250

2 Hydro (SHP) 60.18 100 760 3,500

3 Solar PV 15.0 300 4,000 30,005

4 Solar Thermal - 300 2,136 18,127

5 Biomass - 5 30 100

6 Wind 10.0 23 40 50

All Renewables 1985.18 4,628 15,966 63,032

All Energy Resources 8,700 (installed capacity 2012)

47,490 88,698 315,158

% of Renewables 23% 10% 18% 20%

% RE Less LHP 0.8% 1.3% 8% 16% *From Supply Projections based on 13% GDP growth

1CBN, NPC

Short Term: 2013 – 2015; Medium Term: 2016 – 2020; Long Term: 2021 - 2030

(ii) Non-Electricity (Thermal)

Activity/Item Timeline/Quantity

Short Term Medium Term Long Term

Total thermal Energy Production (GWh)

193,709 202,128 248,809

Renewable Energy Share (%) 85 80* 79*

Other non-renewable Share

15 20 21

* Note that the decline over the years is due to the planned decrease in the consumption of fuelwood

(iii) Fuels (bio fuels) Targets*

Item Timeline/Quantity

Short Term Medium Term Long Term

Bio Ethanol (E10) 1935 3541 8833

Biodiesel (B20) 730 1251 4271

* Based on 13% GDP growth

3.0 THE RENEWABLE ENERGY ACTION PLAN (REAP)

3.1 Introduction

To ensure that the REMP targets outlined are achieved, concrete supportive activities are identified in the short, medium and long term. These activities are organized under the framework programme that makes it supportive to all other programmes.

• Assessment of Resource Base/Data Acquisition

• Renewable Energy Policies, Regulatory and Institutional Frameworks

• Capacity Building and Skill Development Programme

• Public Awareness/Sensitization

• Development of Financing Options Program

• Development of Renewable Projects

• Incentives for Renewable Energy Development

• Research and Development

• Standards, Codes of Practice & Specifications

• Local Manufacturing and Commercialization

The action plan is presented in tabular form featuring: Targeted Outcome, Activity Area, Responsible agencies, Proposed Funding Sources and Time line broken into Short, Medium and Long-term. These activities are grouped into the short-term (2012– 2015), Medium term (2016 – 2020) and Long-term (2021- 2030).

3.2 Component – 1: Assessment of Resource Base/Data Acquisition The assessment of renewable energy resource is essential for the appropriate design and successful operation of any renewable energy system.

Table 13: Assessment of Resource Base/Data Acquisition

Targeted Outcome

Activities Responsible Proposed Funding Sources

Timeline Short Term

Medium Term

Long Term

Databases for each renewable energy resource established

Conduct comprehensive survey of biomass energy resources by State, type, utilization, potential and uses.

NIMET, ECN,

NBS, FMoP, FMA&RD, FMEnv, FMWR

FGN(ECN),

OPS, DPs

Conduct National Solar Radiation Database and Mapping

NIMET, NBS,

ECN, FMoP

FGN(ECN),

OPS, DPs

Conduct comprehensive mapping and National Survey and Inventory of all SHP sites by State, River Basins and Local Government

NIMET, NBS,

FMST, RCs, RIs, TIs, OPS, DPs

FGN(ECN),

OPS, DPs

Establish Renewable Energy Databank at Federal and State Levels

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs

FGN(ECN),

OPS, DPs

Review and Update the existing Wind Resource Map - National Wind Energy Information System (Wind Map)

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs, FMoP

FGN(ECN),

OPS, DPs

Collect, collate and analyze data from existing meteorological stations

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs, FMA&RD, FMWR, RBDA

FGN(ECN),

OPS, DPs

Establish more meteorological stations

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs

FGN(ECN),

OPS, DPs

Assess potentials of new and emerging RE resources- hydrogen, ocean tides and geothermal in Nigeria

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs, FMAv

FGN(ECN),

OPS, DPs, NNPC

Periodic Review and Update of Databases of each RE resource

FMAv, NIMET, FMST, RCs, RIs, TIs, OPS, DPs

FGN(ECN),

3.3 Component – 2: Renewable Energy Policies, Regulations and Institutional Frameworks Clear policies, regulations and institutional frameworks are essential in the attainment of renewable energy programmes. The following are thus, articulated in table 3.2.

Table 14: Renewable Energy Policies, Regulations and Institutional Frameworks

Targeted Outcome

Activities Responsible Proposed Funding Sources

Timeline Short Term

Medium Term

Long Term

RE Policies, Regulations and Institutional Frameworks established

Implementation of RE policies, programs and regulations to support large-scale renewable energy development

FMST, FMEnv, NNRA, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC, FMW&SD

FGN(ECN),

Production of Draft Legislation for a Solar Water Heating Obligation in the residential, commercial & institutional sectors

FMST, FMEnv, NNRA, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC, NASS

FGN(ECN),

OPS, DPs

Advocacy to ensure the approval

CBO, NGO,

NIPC

FGN (ECN),

OPS, DPs

Strengthening of leadership and implementation capacity at Federal, State and Local governments levels

FMST, FMEnv, MPR, FMWR, NNRA, NNPC, NERC, OPS, DPs

FGN (ECN),

Development of mechanisms to mobilize investments through financial and fiscal incentives, improve access to financing (microfinance) and provide targeted subsidies

MPR, DPR,

NNPC, OPS,

DPs, FMF, BOI, NIPC

FGN (ECN),

OPS, DPs, FMF

Streamline and harmonize all policies on renewable energy for a unified target setting

ECN, MPR,

DPR, NNPC,

OPS, DPs

FGN (ECN),

OPS, DPs

Enhance coordination of institutions involved in the development of renewable energy, and clearly define the roles of each institution and stakeholder.

FMST, FMEnv, NNRA, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

OPS, DPs

Pre-determine Feed – In Tariffs for Renewable energy

NERC NERC * * *

Conduct the assessment of Standard PPAs and Set up a standard PPAs (Power Purchase Agreements) for electricity from renewables, as well as other incentives

NERC, FMoP FGN(ECN), Compile directory of all policy instruments on renewable energy in Nigeria

ECN FGN (ECN) * * *

Support existing nation-wide and sub-regional networks designed to promote the exchange of policy experiences, model policy case examples and lessons learned in renewables development

FMST, ECN,

FMEnv, NNRA, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

OPS, SON

Quality assurance and standards for the renewables sub-sector

FMST, FMEnv, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC, SON

FGN(ECN),

OPS, DPs

Periodic Review of the Renewable Energy Master Plan

FMST, FMEnv, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

OPS, DPs

Institutional Framework established

Amend ECN law to make ECN National focal point for Renewable Energy and Energy Efficiency

FMST, FMEnv, FMW&SD, FMWR, DPR, MPR, DPs, NNPC, OPS, NGO, NERC, NASS

FGN(ECN),

OPS, DPs

Strengthen existing Renewable Energy Associations

FMST, ECN,

FMWR, DPR,

MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

OPS, DPs

Promote the establishment of more Renewable Energy Specific professional and industry associations

FMST, FMEnv, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

Coordinate the Renewable Energy Related activities in various Agencies, Ministries and departments

FMST, NIPC,

FMWR, DPR,

MPR, DPs, NNPC, OPS, NERC

FGN(ECN),

OPS, DPs

Encourage other Federal and State institutions to mainstream renewable energy development into their development efforts – like Ministries of Works, Water Resources, Agriculture, etc…

FMST, FMEnv, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC, NPC

FGN(ECN),

OPS, DPs

Establishment of Renewable Energy Development Agency

(REDA)

FMST, FMEnv, NNRA, FMWR, DPR, MPR, DPs, NNPC, OPS, NERC, NGOs

FGN(ECN),

OPS, DPs, NGOs

3.4 Component – 3: Capacity Building and Skills Development Program Relevant and adequate human capacity and skills are essential for implementation of renewable energy programmes. Thus, the following are articulated:

Table 15: Capacity Building and Skills Development Program

Targeted Outcome

Activities Responsible Proposed Funding Sources

Timeline Short Term

Medium Term

Long Term

Training Workshops organized

Organise Training and Re-training Workshops on all renewable energy types for Engineers

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMST, RMRDC, MAN, NAPTIN, NGOs

FGN, OPS,

DPs, NNPC, PTDF

Organise Training and Re-training Workshops on all renewable energy types for Technicians and Craftsmen

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMST, RMRDC, MAN, NAPTIN, NGOs

FGN, OPS,

DPs, NNPC, PTDF

Organise Training and Re-training Workshops on all renewable energy types for relevant Ministries, Agencies and Departments at Federal, State and Local Governments

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMST, RMRDC, MAN, NAPTIN, NGOs

FGN, OPS,

DPs, NNPC, PTDF

Capacity and training to improve skills necessary for local design and manufacture of renewable energy technologies

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMST, RMRDC, MAN, NAPTIN, NGOs

FGN, OPS,

DPs, NNPC, PTDF

Organise Training and Re-training Workshops on the Design, Construction and Installations and Maintenance of renewable energy technologies

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMST, RMRDC, MAN, NAPTIN, NGOs

FGN, OPS,

DPs, NNPC, PTDF

Renewable Energy Mainstreamed into the Nation’s Education Curricula

Organise On-the-Job Training for NYSC

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, FMST, FMYD, NAPEP, NYSC, NDE, NAPTIN

FGN, OPS,

DPs

Organise Advanced Training (Overseas and Local) Courses on specific renewable energy type

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs

FGN, OPS,

DPs

Organise training on the preparation of pre-feasibility and feasibility assessments on viability of renewable projects

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs

FGN, OPS,

DPs

Short Courses and postgraduate programs overseas on various renewable energy sources

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs

FGN, OPS,

DPs

Introduce Renewable Energy into the nation’s educational Curriculum

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs

FGN, OPS,

DPs

Developing indigenous human and institutional capacities in the genetic manipulation of fast growing tree species.

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, FMST

FGN, OPS,

Conduct periodic national renewable energy manpower survey to determine the actual Re Expert base of the country

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, SGs, LGAs

FGN, OPS,

DPs

Develop and Implement Specialized Renewable Energy Curricula into the nation’s higher educational system

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, FMST, NUC, NBTE, NCCE

FGN, OPS,

DPs

Conduct a Study on the Nigeria’s Renewable Energy Manpower Stock and Needs

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE

FGN, OPS,

Develop Curricula for primary, Secondary and Tertiary Institutions on different Renewable Sources

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, FMST, NUC, NBTE, NCCE

FGN, OPS,

DPs

Establishment of Barefoot-College for the training of local artisans and end users on the installation, utilization, maintenance and safety of renewable energy technologies

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, FMST, NAPEP, NDE, FMoD, NBTE

FGN, OPS,

DPs

Establish linkages/collaboration between tertiary institutions, research centres and industries

NNPC, ECN,

NBS, FMEd., OPS, PTDF, DPs, NBTE, FMoP, NGOs, BOI, NUC, NBTE, NCCE

FGN, OPS,

3.5 Component – 4: Public Awareness/Sensitization

Even-though the Energy Commission of Nigeria and many other organizations have been organizing several workshops and sensitization programmes on renewable energy, many Nigerians are still ignorance of the benefits of renewable energy and its exploitation. The following are some of the awareness and sensitization activities and projects that should be embarked upon to create greater awareness.

Table 16: Public Awareness/Sensitization

Targeted Outcome

ACTIVITIES Responsible Proposed Funding Sources

TIMELINE

Short Term

Medium Term

Long Term

RE Awareness Created among Nigerians

Setting up of renewable energy awareness programs (including solar villages in each state)

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMST, FMoP, FMoI, RCs, Media

FGN, OPS,

DPs

Organise regular programs on radio and TV to demonstrate the role of renewable energy

FMST, FMoI, Media

FGN, OPS,

Develop awareness creation & public enlightenment programmes on different renewable energy technologies for the print and electronic media

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, FMST, NESREA, ERCs, Media

FGN, OPS,

DPs

Develop awareness creation & public enlightenment programmes on different renewable energy technologies for primary, secondary schools

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, FMST, FMYD, FMWA, FMoN-D, ERCs, Media

FGN, OPS,

DPs

Develop awareness creation & public enlightenment programmes on different renewable energy technologies for the Federal, State and governments assemblies

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, FMST, ERCs, Media

FGN, OPS,

DPs

Develop awareness creation & public enlightenment programmes on different renewable energy technologies for the Fed.

Ministry Officials, Youth & Women groups

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, ERCs, Media

FGN, OPS,

DPs

Publications in print media on renewable energy resources, development and technologies

ECN, FMoI, DPs

FGN, OPS,

DPs

Institute periodic international fairs on specific renewable energy source

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, Judiciary, NASS, SASSs, LGAs, ERCs, Media

FGN, OPS,

Organize Awareness and Sensitization Seminars for Law and Policy makers

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, ERCs, Media

FGN, OPS,

DPs

Organise Annual Renewable Energy Week

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, Energy Research Centres, Media

FGN, OPS,

DPs

Organize Community based information and communications technology dissemination training for NYSC

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, ERCs, Media

FGN, OPS,

DPs

Organise Advanced Training (Overseas and Local) Courses on specific renewable energy type

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, PTDF, ERCs, Media

FGN, OPS,

DPs, PTDF

Production of handbills, leaflets, postcards, calenders, jingles and documentaries on renewable energy technologies

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, ICRC, FMST, Nollywood, ERCs, Media

FGN, OPS,

DPs

Build up partnerships between government, private sector and civil society for renewable energy development.

ECN, NOA,

NGOs, CBOs, DPs, OPS, FMoP, FMoI, FMT&I, ERCs, Media

FGN, OPS,

3.6 Component – 5: Development of Financing Options Program

Renewable energy ventures often have high up-front cost, and many projects require government support in the initial start-up phases. Access to affordable finance is a major constraint. Traditional banks are often unwilling to finance renewable energy projects due to market uncertainties and perceived high risks, such as, high initial capital costs on a per kW basis; higher transaction costs in the case of smaller renewables; uncertainty of the resource base; limited number of developers with the skills to prepare financing packages that meet the requirements of financial institutions; price uncertainty in the market for final renewable energy service; and, lack of off-takers for renewable energy produced. In some cases, there are limited data and information on the renewable energy industry to guide investors and financiers in making sound judgments and decisions in renewable energy projects development.

The activities in this component is geared towards increasing availability of information on renewable energy project investments, and enhancing collaboration between the various stakeholders, to ensure successful renewable energy project investments.

Financing for RETs can be in the form of assets, venture capital, private equity, loans and grants, or multiple combinations of these.

The key question that needs to be addressed is: what are the options and strategies for mobilizing domestic and international capital to finance the investment requirements of sustaining long term energy and socio-economic development in Nigeria?

In the light of the above question, some measures need to be put in place in addressing the key issues. For instance, energy projects should be properly chosen, designed and packaged to be attractive to domestic and foreign investors. Moreover maximum advantage should be taken of the international funds available for environmentally sound energy projects.

In Nigeria access to energy finance is affected by:

• Inadequate national support system that guarantees the attraction and security of investment,

• Inadequate financial capacity for energy investment

• Slow judicial process in settling dispute

• Inadequate strategies for attracting offshore financing

• Political and regulatory risks for investment in energy infrastructure

• Inadequate incentives to business to invest in new technologies

Some of the remedial measures to counter these, especially for the energy sector, have been enumerated in this REAP such as establishing a tax holiday scheme, Introducing tariffs that guarantee good rate of return on investment etc. Moreover some of the identified niche products that could be employed in financing energy projects are Equity financing mechanism, bond market, financial collaboration between government/private with bilateral and multilateral institutions etc.

Table 17: Development of Financing Options Program

Targeted Outcome

Activities Responsible Proposed Funding Sources

Timeline Short Term

Medium Term

Long Term

Enabling environment for private sector investments for Renewable Energy development created

Assist institutions and project developers in financial analysis of renewables investment

REA, FMF,

OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN

(FMEnv)

Producing draft legislation for a Fossil Fuel Levy Act to finance Renewable Energy development projects in the country

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC,

NIPC, BOI

FGN

(FMEnv)

Establish Renewable Energy Development Fund

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN

(FMEnv)

Provide fiscal incentives:

suspension of import duties, tax holiday, investment grants, operational grants, etc..

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC,

NIPC

FGN

(FMEnv)

Partner with financial institutions to develop financing options for renewables

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC,

BOI

FGN

(FMEnv)

Develop a portfolio of renewable investment projects which can be developed as pilot projects

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF) * * *

Support training on renewables project development targeted at accessing carbon finance

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF) * * *

Develop pipeline of projects that can access carbon financing

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF) * * *

Introducing tariffs that guarantee good rate of return on investment (E.G, Feed- In – Tariff, etc..)

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF) * * *

Instituting a scheme for accelerated depreciation of equipment in respect of (foreign) loans invested in energy projects.

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF)

Establishing special risk fund scheme for commercialization of new and emerging energy technologies such as RET

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF * ) * *

Attracting long-term financing from international institutions

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF)

Providing adequate security for energy infrastructural facilities

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF)

Ensuring the provision of basic physical infrastructural facilities to enterprises involved in the development of the energy sector.

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC

FGN (FMF)

Introducing environmental regulations that encourage investment in environmental friendly technologies

NERC, REA,

FMF, OPS, DPs, FMST, ECN, MSMD, FMJ

NASS, MPR,

DPR, NNPC,

NESREA

FGN (FMF)

Feed-In-Tariff

(i) Large Hydro Plant

2012 2013 2014 2015 2016 Wholesale contract prices (N/MWh) 4,898 5,290 5,715 6,174 6,671

(ii) Small Hydropower (SHP)

2012 2013 2014 2015 2016

(N/MWh) 23,561 25,433 27,456 29,643 32,006

(iii) On-Shore Wind Plant

(N/MWh) 24,543 26,512 28,641 30,943 33,433

(iv) Solar Power Plant

(N/MWh) 67,917 73,300 79,116 85,401 92,192

(v) Biomass Power Plant

Wholesale contract prices (N/MWh) 27,426 29,623 32,000 34,572 37,357

Source: NERC (2012): Multi-Year Tariff Order, 1st June 2012 – 31st May 2017

3.7 Component – 6: Development of RE Projects

Nigeria is well endowed with a wide range of renewable energy resources, including hydro-electricity, biomass, solar, wind, and other renewables, most of which are currently under-exploited. Based on experience from various initiatives that have been undertaken to date, the use of these renewable energy resources could contribute significantly to the development of the energy sector in many African countries.

If successfully exploited, renewables can significantly contribute to addressing two key challenges facing the energy sector in Nigeria: Energy Access: Increasing access to modern energy for the wider majority in pursuit of poverty reduction, MDGs, and more equitable socio-economic development; Energy Security: Responding to the increased burden of the high cost of fossil fuels compounded by power shortages triggered by lower investment flows to the power sector and drought.

Renewables can contribute to poverty alleviation and assist in addressing the Millennium Development Goals (MDGs), by providing modern improved energy services to the poor.

Renewables are particularly suited to meet the decentralized energy needs of poor rural remote community institutions such as hospitals, dispensaries, schools, and farmer training centers. This is particularly true of small-scale renewables that are made locally and run on locally available resources.