RE ELECTRICITY IN NIGERIA - WAY FORWARD2.pdf

1RENEWABLE ENERGY ELECTRICITY IN NIGERIA:THE WAY FORWARD*

BY

PROFESSOR A.S. SAMBO, OON, NPOM, FNSEDirector General/CEO

Energy Commission of NigeriaAbuja

*Paper presented at the Renewable Electricity Policy Conference held at Shehu MusaYaradua Centre, Abuja, 11-12 December 2006

2Prof. A. S. Sambo

CONTENTS

1. Introduction2. The Policy Framework on Renewable Energy in

Nigeria3. Institutional Framework for Renewable Energy in

Nigeria4 Renewable Electricity Technologies in Nigeria:.5. Renewable Electricity Production in Nigeria 6. Targets for Renewable Electricity in Nigeria7. Challenges Towards Renewable Electricity in

Nigeria8. The Way Forward9. Conclusions

3Prof. A. S. Sambo

1. Introduction Electricity is highest grade of energy.

Electricity is thus essential for economic growth, national development and improved standard of living.

All forms of energy may be transformed to electricity.

4Prof. A. S. Sambo

Fig. 1 Effect of Total Energy Consumption on GDP in Nigeria, 1999 - 2004

y = 2.3739x + 242.85

250

270

290

310

330

350

370

390

410

430

0 10 20 30 40 50 60 70Energy Consumption(TCEx106)

G

D

P

(

N

b

i

l

l

i

o

n

)

GDP(Nx109)

Linear (GDP(Nx109))

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y = 10.094x + 170.24

200

250

300

350

400

450

0 5 10 15 20 25 30

Electricity Generation(GWhx103)

G

D

P

(

B

i

l

l

i

o

n

N

a

i

r

a

)

GDP(Nx109)

Linear (GDP(Nx109))

Fig. 2: Electricity Generation against GDP in Nigeria, 1999 - 2004

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Introduction . Contd

Nigeria is blessed with abundant natural energy carrier resources.

Fossil are hydrocarbon substances include crude oil, natural gas, bitumen (from tar sands) and coal are depletable.

Renewable energy resources being are available on periodic or cycle basis are inexhaustible and include solar, wind, hydro and biodegradable biomass.

7Prof. A. S. Sambo

Table 1: Types of Energy Resources, the Reserves, Production and Domestic Utilization Levels.

Domestic S/No Production Utilization

Energy Units (Btoe*) (Natural units)1 4.76 2.5 million

barrels/day450,000 barrels/day

2 4.32 6 Billion SCF/day 3.4 billionSCF/day

3 1.92 22.1 tonnes/day 22.1 tonnes/day

4 4.22 - -

5 1.11 (over 38years)

1,938 MW (167.4 million MWH/day

167.4 MillionMWh/day

6 0.25 (over 38 years)

30 MW (2.6 million MWh/day

2.6 million MWh/day

7 15.0 (38 years and 0.1% Nigeria land area)

Excess of 240 KWp of solar PV or 0.01 million MWh/day

Excess of 0.01million MWph/day of solar PV

8 8.14 (4m/s@ 70m height 20m windmill, 0.1% land area of Nigeria over 38 years)

- -

9 Fuelwood 11 million hectares of forest and woodland Excess of 1.2

- 0.120 million tonnes/day

0.120 million tonnes/day

Biomass

Animal waste 211 million assorted animals

tonnes/day - 0.781 million tonnes of waste/day

Not available

Energy Drops and Agric Residue

72 hectares of Agric. Land

- 0.256 million tonnes of assorted crops/day

Not available

10 - - -

*Billion Tonnes of oil equivalent

Not yet qualified

Small Hydropower

Solar Radiation

Wind

3,500 MW

3.5 - 7.0 KWh/m2/day (485.1 million MWh/day using 0.1% Nigeria land area)

(2-4) m/s at 10m height

Natural Gas

Coal and lignite

Tar Sands

Nuclear Element

(Natural UnitsResource Type

Reserves

15,000 MWHydropower large

35 bi llion barrels

187 Tri llion SCF

2.175 bi llion tonnes

31 bi llion barrels of equivalent

Crude Oil

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Introduction . Contd

Despite the abundance of energy resources in Nigeria, the country is in short supply of electrical power.

Only about 40% only of the nations over 130 million has access to grid electricity.

At the rural level, where about 70% of the population live, the availability of electricity drops to 15%.

The objective of this presentation is to highlight how the nations renewable energy resources could be utilized to increase electricity access for sustainable national development.

9Prof. A. S. Sambo

2. The Policy Framework on Renewable Energy in Nigeria

Federal Government approved the National Energy Policy (NEP) in 2003.

The NEP articulates the sustainable exploitation and utilization of all viable energy resources.

The policy is hinged on private sector development of the energy sector.

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2. The Policy Framework on Renewable Contd

Hydropower: The NEP provides that:- The nation shall fully harness the hydropower

potential for electricity generation- The nation shall pay particular attention to the

development of the mini and micro hydropower schemes

- The exploitation of the hydropower resources shall be done in an environmentally sustainable manner

- Private sector and indigenous participation inhydropower development shall be actively promoted.

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Fuelwood: The NEP provides that:- The nation shall promote the use of alternative

energy sources to fuelwood- The nation shall promote improved efficiency in the

use of fuelwood- The use of wood as a fuel shall be de-emphasized in

the nations energy mix- The nation shall intensify efforts to increase the

percentage of land mass covered by forests in the country.

Solar Energy: The policy provides that:- The nation shall aggressively pursue the integration

of solar energy into the nations energy mix.- The nation shall keep abreast of worldwide

development in solar energy technology.

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Biomass: The NEP provides that:- The nation shall effectively harness non-fuelwood biomass

energy resources and integrate them with other energy resources- The nation shall promote the use of efficient biomass

conversion technology Wind: The Policy provides that:

- The nation shall commercially develop its wind energy resource and integrate 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.

Hydrogen: The policy provides that:- The nation shall integrate hydrogen as an energy source in the

energy mix of the country Other Renewables: The policy provides that:

- The nation shall maintain an interest in other emerging sourcesof renewable energy such as geothermal and ocean related energy.

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3. Institutional Framework for Renewable Energy in Nigeria

The overall strategic planning and coordination of the nations policies in the field of energy in all its ramifications rests on the Energy Commission of Nigeria. Sub-sectoral policies within the overall concepts of the National Energy Policy lie in the mandates of the following organizations:- Electricity: Ministry of Power and Steel and the Nigerian

Electricity Regulatory Commission (NERC)- Oil and Gas: Ministry of Petroleum Resources and

Department of Petroleum Resources (DPR)- Coal and Tar sands: Ministry of Solid Minerals- Nuclear: National Atomic Energy Commission (NAEC)

and the Nigerian Nuclear Regulatory Agency (NNRA)

- R&D in Energy: Ministry of Science and Technology, TertiaryInstitutions and Research Centres.

- Energy and Environment: Ministry of Environment

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3. Institutional Framework . Contd

For renewable energy policies, the relevant organizations are Ministry of Power and Steel and the NERC for renewable electricity; Science and Technology as well as the tertiary institutions for R&D inrenewables; while the Energy Commission provides the overall policy planning and coordination.

The NNPC recently created a Renewable Energy Division which is introducing ethanol biofuel to the Nigerian market.

National Committee on Energy Masterplan (NCEM) was constituted to prepare the roadmap for the implementation NEP.

The National Energy Masterplan (NEM), to be prepared by the NCEM will have a renewable energy component.

So far, private sector participation in renewable energy implementation is by importing and marketing components

The regulation of renewable energy industry is still undefined, except for renewable energy electricity of capacities of 1MW and above.

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4. Renewable Electricity Technologies Bioelectricity:

- This is electricity generated from biodegradable biomass e.g. residues and wastes from agriculture, forestry and related industries, municipal and industrial wastes as well as energy crops and plantations.

- The conventional technologies of power production, through the Rankine/Otto/Diesel cycles, are often employed. The energy supplied at the boiler is sourced from the biodegradable energy carrier, through either:- Direct combustion and co-firing- Pyrolysis- Gasification, or- Anaerobic digestion.

- Ordinary bioelectricity plants have efficiencies of about 20%, while the combined heat and power plants (CHP) may have higher efficiencies.

- Bioelectricity is often accompanied with environmental problems of greenhouse gas emissions, of varying magnitudes.

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4. Renewable Electricity Technologies . Contd

Solar Electricity- Electricity from solar energy may be obtained through (i) Solar

thermal process and (ii) Solar Photovoltaic (PV)- Electricity from solar thermal processes is similar to that in

bioelectricity using the Rankine cycle. - Solar photovoltaics refers to the direct and silent conversion of solar

energy into electricity, usually DC form, using a solar cell.- Solar cells may be made from (i) Polycrystalline silicon (ii) single

silicon (iii) amorphous silicon or (iv) thin film silicon- A solar cell can have an output of about 0.5V, 3.5 amp dc and

efficiency of up to 16%.- A solar module or panel consist of many solar cells, suitably

arranged, to give an output of greater than 12V and 3.5-7 amps at 1kW/m solar intensity.

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- Modules can last up to 25 years.- A solar array consists of many modules connected

together.- Thus a solar PV generator is made up of:

- Solar cells - Solar modules - Solar arrays

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- The complete components of a solar PV systems include:- Solar PV generator - Deep cycle, heavy duty

lead-acid or Gel-cell lead acid, batteries,

- Controllers for the regulation of charging and discharging of the batteries

- Inverters for the conversion of dc to ac

- Other balance-of-system components are: mounting hardware, switches, cables, circuit breakers, connectors and lighting arrestor.

Fig. 3: PV Characteristics: Effect of Solar Intensity

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Wind Electricity- Wind energy exists as a form of kinetic energy.- Electricity from wind energy is produced using an

aerogenerator, which is an electro-mechanical system.

- Aerogenerators could be mounted on towers up to 100m.

- The tower may be self-supporting or guyed.

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Fig. 4: Main Components of a Wind Electricity Generator


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- The mechanical power output of a wind machine may be expressed as:

- Pout = Cp ( SAV)- Where Cp is Beltz limit ( 0.59)

A is Rotor swept AreaS is density of airV is wind speed

- Maximum theoretical efficiency of wind machine is about 59% (Beltz limit). Typical practical aerogeneratorefficiencies lie between 10% and 30%.

- Aerogenerators may produce ac or dc current, depending upon the types of generators.

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- Wind electricity is often generated onshore for single unit capacities of up to 5MW.

- Wind electricity can also be generated from both the shallow and deep offshore waters for single unit capacities greater than 5MW, because of higher wind.

- Wind turbines have life spans of 20 25 years.

Fig. 5: A Typical Power Output Curve of a Wind Powered Turbine (Ge Power System 1.5 SL)

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Hydroelectricity- Hydroelectricity comes from the conversion of potential

energy water into electricity by water turbines and electric generator system.

- Large hydro systems have the disadvantage of displacement of people, land and ecosystem submersion, dam induced earth movements, and GHG emission.

- Large hydro systems are those rated greater than 30MW while small hydro systems are less than or equal to 30MW.

- Small hydro is further classified into: Pico: < 5kW Micro: 5kW-100kW Mini: 100kW-1MW Small: 1MW-30MW

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Hydrogen Fuel Cell Electricity

- In fuel cell, the chemical energy of the fuel is converted directly to electrical energy.

- The most advanced fuel cell is the hydrogen oxygen fuel cell. The system consists of porous electrodes, an electrolyte, hydrogen as the fuel and oxygen as the oxidant. The output from the system is electricity and water.

Fig. 6: Schematic representation of a hydrogen oxygen fuel cell

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- The reactions are as follows:

H2 + 2OH = 2H2O + 2e2e+ O2 + H2O = 2OHH2 + O2 =H2O

- Fuel cell can have efficiency of up to 83%. Fig. 7: Steady-flow process of a fuel cell

26Prof. A. S. Sambo

Table 2: Cost Estimates of RE Electricity Systems

Technology Investment Cost [$/kW]

Low-Side Generation

Costs [Cents/kW

h]

High-Side Generation Costs [Cents/k

Wh

Life-Span [Yrs]

Large Hydro 1,000 2,000

3 6 5 10 20 - 30

Small Hydro 1,000 5,000

2-3 9-15 20-30

Solar PV 4,500 -7,000

18-20 25 80 20 - 30

Solar Thermal Electricity (Concentrating)

3,000 -6,000

10 - 15 20 -25 15 - 25

Bioelectricity 500 4,000 2 - 3 10 - 15 15 - 25

Wind Electricity 850 1,700 3 - 5 10 - 12 20 - 25

Source: IEA (2003)

Cost Comparison of Renewable Electricity Technologies


27Prof. A. S. Sambo

5. Renewable Electricity Production in Nigeria:

Out of the five renewable electricity technologies highlighted in section 4, only the following are being employed in Nigeria:- Hydroelectricity,- Solar Photovoltaics,- Wind electricity.

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5. Renewable Electricity Production Contd

Hydroelectricity This Table shows that

hydroelectricity contributed about 38.5% of the total grid electricity production in Nigeria between 1999 and 2004. This contribution is mainly from the three large hydropower stations in Kainji(760MW), Jebba (578MW) and Shiroro (600MW) owned by Government, as well as the small hydropower station owned by NESCO in Jos of 30MW capacity.

Year Grid Electricity Produced (TWh)

Thermal Hydro Total

1999 8.673 7.619 16.292

2000 8.443 6.784 15.227

2001 8.610 6.194 14.804

2002 13.208 6.390 19.599

2003 13.258 7.753 21.011

2004 16.122 8.087 24.209

Source: NBS (2005)

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Solar Electricity- As at 1999 about 239 kWp of Solar PV modules

ere installed nationwide. It is useful to note that:- This is equivalent to about 1.88 TWh/annum of r

electrical energy using 6 hours of sunshine daily.- It comes to about 25% of the hydroelectric energy

produced that year.- The installations consisted of 52% for water

pumping, 24% for lighting, 15% for lighting in offices and 9% for powering health clinics.

- The current estimate of the total solar PV installations are in excess of 350 kWp.

30Prof. A. S. Sambo

(a) 5.5 kWp Solar PV Plant at Laje in Ondo State, (b) Solar street lighting in Yanagoa, Bayelsa State


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(c) : 2.85 kWp Solar PV Plant at Itu-Mbauzo, Abia State


32Prof. A. S. Sambo


Wind Electricity

- Wind electricity has not been significantly harnessed in the country despite the great potentials.

- The only functional wind electricity system in the country is the 5kW aerogenerator, which supplies electricity to Sayya Gidan GadaVillage in Sokoto State..

Fig. 9: 5kW aero generator in Sayya Gidan Gada, Sokoto State

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Fig. 10: Wind Turbine Development in U.S.A.


34Prof. A. S. Sambo

6. Targets for Renewable Electricity in Nigeria

A Study conducted by the Presidential Committee on a 25-year power development plan, constituted in 2005, came up with a projected electricity demand profile for the nation of about 15,000 MW; 30,000 MW; and 190,000 MW in the short, medium and long terms on the basis of a 10% economic growth rate scenario.

With these projections, a study by the Energy Commission of Nigeria indicated that renewable electricity is expected to contribute about 14%; 23%; and 36% of the total electricity demand in the short, medium and long terms, respectively as dictated by the National Energy Policy.

The end of the short; medium; and long-terms are 2008; 2015; and 2030, respectively.

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Table 4: Targets for Renewable Electricity Generation (MW) in Nigeria

S/N. RESOURCE SHORT MEDIUM LONG1 Hydro (large) 1930 5930 48,000

2 Hydro (small) 100 734 19,000

3 Solar PV 5 120 500

4 Solar Thermal - 1 5

5 Biomass - 100 800

6 Wind 1 20 40

All Renewables 2,036 6,905 68,345All Energy Resources 15,000 30,000 190,000% of Renewables 14% 23% 36%

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7. Challenges Towards Renewable Electricity in Nigeria

Capacity Limitation:- The technical expertise to develop, deploy and manage

renewable energy is inadequate, and worst still, not relied upon in the country as expertise is often sourced from outside the country.

- The infrastructure for the manufacture of renewable electricity system components is not available in the country. Supply of systems and components is, thus, dependent on imports.

Financial and Fiscal Incentives:- Financial and fiscal incentives are not available to fast-

track the development of the supply and demand sides of the RE electricity market.

37Prof. A. S. Sambo

7. Challenges Towards Renewable Contd

Lack of Awareness:- There is the general lack of awareness of the benefits of RE electricity.

Inadequate Resource Assessment:- Reliable resource database to assist investment decisions for RE

electricity industry is absent. Inadequate Institutional Framework:

- With the mandate of the NERC limited to electricity plant capacities of 1MW and above, there is no agency to licence smaller capacities that are often associated with RE electricity.

Intermittency of Resource Availability- All renewable resources for electricity generation are available

intermittently and cyclic. The challenge of energy storage and system management during periods of lack of resource add to the complexity of the systems.

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7. Challenges Towards Renewable Contd

Zero Resource Cost:- Apart from bioelectricity, resource for RE electricity is free. Even

though this is an advantage for reducing the operating cost of RE electricity systems, the challenge is to make RE electricity systems overwhelmingly competitive.

High Initial Investment Cost:- RE electricity systems have high initial cost. This has limited the

penetration of the system into the electricity market.

Deregulated and Liberalized Energy Industry:- With the deregulation and liberalization of the energy sector in

Nigeria, a conducive atmosphere is created for appropriate tariffs on electricity services in the country. This opportunity would enable RE electricity to be competitive in the market, in the medium to long term.

Adequate Policy Framework on RE:- Having approved the National Energy Policy a major challenge is

to get the National Energy Masterp;an to also be approved and implemented.

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8. The Way Forward

Immediate completion and approval of the National Energy Masterplan

Institutionalization of the National Energy Policy and the National Energy Masterplan through an Act of the National Assembly for sustainability.

Establishment of a Renewable Energy Fund to serve as the instrument for the provision of financial incentives to local manufacturers, suppliers and users of RE electricity, especially with reference to the rural areas.

Provision of adequate fiscal incentives to local suppliers and manufacturers of RE electricity system components.

Sustenance of the energy sector reforms by successive governments.

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8. The Way Forward . Contd

Intensification of promotional and advocacy activities on RE electricity by the Energy Commission of Nigeria and all stakeholders.

Intensification of R and D into RE electricity technology to further bring down costs.

The enormous financial benefits now derived from the depletable fossil resources need to be partly invested in the development of RE electricity infrastructure in partnership with the private sector.

Establishment of regulatory framework for the RE electricity industry.

Development and sustenance of the RE resource database.

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9. Conclusions

Nigeria has renewable energy resources in excess of 1.5 times that of fossil energy resources in the country, in energy terms

The low level of electricity access in Nigeria, and particularly in the rural areas, can be increased through the use of these renewable energy resources for sustainable development.

Hydro, solar, wind and biomass have significant potentials to make the difference.

Renewable electricity is projected to contribute 14%, 23% and 36% in meeting the nations total electricity demand in the short, medium and long terms.

There is the need to institutionalize both the NEP and the NEMP (incorporating the REMP) through an Act of the National Assembly.

There is the need the establishment of a RE Fund to cater for incentives to local manufacturers, suppliers and users of RE electricity.

There is the need for fiscal incentives to local suppliers and manufacturers of RE electricity system components.

42Prof. A. S. SamboDRE/SEC/RE/ADD/DG 2006/DEC

RE ELECTRICITY IN NIGERIA - WAY FORWARD2.pdf

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