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DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) O E 6 th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013
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DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

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Page 1: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM

J-F.K. AKINBAMI (Ph.D.)

O

E

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 2: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Some Background Information…Nigeria is in the West Coast of AfricaPopulation in excess of 140 million at a growth rate of 2.8%/annumPopulation distribution: 51.7% rural and 48.3% urbanPopulation density: 167.5 people per square kilometer.It is the world's 32nd-largest country in terms of landmassTotal area of 923,768 km2 (356,669 sq mi)Nigeria is a regional power, classified as an

emerging market and is listed among the "Next Eleven" economies; rapidly approaching middle income status, with its abundant supply of resources, well-developed financial, legal, communications, transport sectors and stock exchange (the Nigerian Stock Exchange), which is the second largest in Africa.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 3: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Some Background Information (Contd.)…Has one of the fastest growing economy in the world,

with International Monetary Fund projection growth rate of 9% in 2008 and 8.3% in 2009.

Installed power generating capacity is less than 6,000 MW

Average available capacity is less than 4000 MWElectrical energy production per capita is 0.16 KWh

while the electrical energy consumption per capita is 0.11 KWh. Comparatively with some other countries whether advanced, newly industrialized or developing, Nigeria’s figures are incredibly lower.

Most industries, enterprises and urban households depend on self power generation

About 40% access to electricity3

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 4: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Some Background Information (Contd.)…

An evidence of the impact of the poor quality, unreliability and limited availability of power supply on Nigeria’s economic development is its debilitating effects on the industrialization process. Nigerian manufacturers have consistently identified poor power supply as the most important constraint to their business.

About 40% of the national households (both urban and rural) are electrified with the rural communities which have about 52% of the national population having about 20% electrification.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 5: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Some Background Information (Contd.)…

As of 2007, Nigeria was ranked 37th in the world in terms of GDP (PPP).

Nigerian GDP at purchasing power parity has nearly doubled from $170.7 billion in 2005 to 292.6 billion in 2007 (Economist Intelligence Unit and the World Bank). The GDP per head has jumped from $692 per person in 2006 to $1,754 per person in 2007.

Despite energy production and consumption poverty in the country, abundant Fossil and Renewable Energy Resources exist

Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves. (The country joined OPEC in 1971).

Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings.

Nigeria also has a wide array of underexploited mineral resources which include natural gas, coal, bauxite, tantalite, gold, tin, iron ore, limestone, niobium, lead and zinc.

Intent of use of nuclear energy for electricity generation first muted in 1976

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 6: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Selected IndicatorsSelected Indicators …Indicator Present status Future targets

Electricity generation target Installed: 7,941.1MWAvailable:2,500 – 3,500MW

25,000 MW by 201535,000 MW by 2020

Electricity Access 40 % of population 60% by 201580% by 2020

Crude oil production Between 1.8 and 2.7 mbd 3.2 mbd in 2015;4.5 mbd in 2020

Crude oil reserve 36.2 billion barrels 40 billion barrels by 201550 billion barrels by 2020

Refining capacity 0.445 mbd to 0.5 mbd 0.75 mbd by 20151.5 mbd by 2020

Natural gas production 3.3 bscfd 5.0 bscfd by 20158.0 bscfd by 2020

Natural gas reserve 187 TCF 2015: 215 TCF2020: 250 TCF

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 7: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Selected Indicators (Contd.)Selected Indicators (Contd.) …

7Biomass West & Central Africa Congress, Accra, Ghana, Nov 24-25, 2011

Page 8: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Selected Indicators (Contd.)Selected Indicators (Contd.) …Total primary energy supply for Nigeria in

2008 was estimated at 3,700 PJPresently Nigeria imports petroleum

products from the USBetween 2000 and June 2009, import of fuel

from the US ranged from 73 PJ to 1350 PJPresent energy mix for the country include:

petroleum products, hydro and biomassNuclear is not part of the energy mix, and

other renewable energy sources are negligible

There is target to include nuclear and increase other energy sources into the energy mix 8

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 9: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Selected Indicators (Contd.)Selected Indicators (Contd.) … Electricity Industry Reliability & Technology

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 10: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

ELECTRICITY SECTOR CRISIS…..The electricity sector in Nigeria has been constrained by many factors among which are: generation deficit, weak transmission and distribution infrastructure, poor utility performance, over dependence on fossil resource and long period of investment neglect.Different renewable energy resources abound in the country and can contribute to solving the electricity supply equation especially by providing isolated supply for remote rural as well as peri-urban areas and small & medium enterprises.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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PARADIGM CHANGE…..

For the realization of the goals and objectives of the National Economic Empowerment and Development Strategy (NEEDS), the Vision 20-2020 and the Transformation Agenda of the Federal Government, as well as those of the Millenium Development Goals (MDGs) which include :wealth creation, employment generation and poverty reduction, there must be a paradigm shift in the provision of energy (both thermal and electricity) for our various communities.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 12: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

WHAT PARADIGM SHIFT?!!!….. Considering the increasing cost of Centralised

Electricity Generation Technologies, Transmission and Distribution Facilities, it will take a long time before many of our peri-urban centres are electrified and many rural communities may never enjoy provision of electricity, hence,

The Paradigm Shift must involve amongst other issues:

Extensive use of Decentralised Electricity Generation TechnologiesSuch technologies must be community-based and driven

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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DRAWBACKS IN THE CENTRALISED ELECTRICITY GENERATION…..In this paradigm, power flows only in one direction: from the central power station to the network (transmission and distribution) and to the consumers. Much of the energy generated today is produced by large-scale, centralised power plants using fossil fuels (coal, oil and gas), hydropower or nuclear power, with energy being transmitted and distributed over long distances to consumers. There are a number of drawbacks to such a system, such as (i)the environmental impact of greenhouse gases and other pollutants, (ii)distribution and transmission losses and (iii)the necessity for continuous upgrading and replacement of transmission and distribution facilities.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 14

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WHAT IS DISTRIBUTED GENERATION (DG)?

It is generation of electricity from small-scale systems and is used on-site or nearby. It can be used to generate electricity for homes, farms, businesses and industries.

In contrast to centralised generation, in a power system composed of distributed energy resources, much smaller amounts of energy are produced by numerous small, modular energy conversion units, which are often located close to the point of end use. These units can be stand-alone or integrated into the electricity grid.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 16: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

WHAT IS DISTRIBUTED GENERATION? (Contd.)…..

Distributed generation projects can be hooked up to the local distribution network. These local networks are connected to the national grid. This means that when there is not enough electricity being generated by the local project, users can still get electricity from the network. It also means if excess electricity is being generated, the excess can be exported into the network.

Distributed generation is also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 17: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

WHAT IS DISTRIBUTED GENERATION? (Contd.)…..

Distributed resources consist of two aspects:distributed generation, located within the distribution

system or on the customer side of the meter, and2. demand-side resources, such as load management

systems, to move electricity use from peak to off peak periods, and energy efficiency options, e.g. to reduce peak electricity demand, to increase the efficiency of buildings or drives for industrial applications or to reduce the overall electricity demand. An important aspect of the concept of distributed resources is that the demand-side resources are not only based on local generation within the electrical system on the customer’s side of the meter, but also on means that reduce customer demand. That will influence the electricity supply from the distribution network

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 17

Page 18: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

WHAT IS DISTRIBUTED GENERATION? (Contd.)…..

Generally, DG can be defined as electric power generation within distribution networks or on the customer side of the network.

In Summary, it is an Electricity Generation Technology installed by customers, energy service providers (ESP) or a utility distribution company (UDC) at or near a load for an economic advantage over the distribution grid-based option.

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 18

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 19

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Customer Efficiency

Central Generation

Today's Today's Central UtilityCentral Utility

Tomorrow's Tomorrow's Distributed Utility?Distributed Utility?

RemoteLoads

Wind

PV

Genset

Fuel Cell

Battery

Customers

Central Generation

© Distributed Utility Associates, Used with Permission 20

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DISTRIBUTION GENERATION TECHNOLOGIES…..

Electricity from distributed generation projects can be generated using different systems such as:

Wind Turbines Solar PanelsHydro Turbines Geothermal HeatBioenergyMicro Gas TurbinesOff-grid generation is also known as Stand-alone Power Systems. They are similar to distributed generation systems but are not connected to the electricity network.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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DISTRIBUTION GENERATION TECHNOLOGIES….. (Contd.)

Essentially, the DG Technologies can be classified into:

Fossil-fuel based distributed generationNon-fossil fuel based generationStorage technologiesSome technologies are old and deployed

differentlyInternal-combustion enginesGas turbinesFuel cellsBatteries 6th Annual NAEE/IAEE International

Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 22

Page 23: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

DISTRIBUTION GENERATION TECHNOLOGIES….. (Contd.)Recent technologies are tailored for DG/DER

marketsSmall wind systemsSmall fuel cells (proton exchange membrane)Photovoltaic (PV shingles, AC modules)Storage technologies (flywheels, SMES)Micro-turbines

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 23

Page 24: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Commercial Status of DG/DERIC Engines Small

TurbinesMicro-turbines

Fuel Cell

CommercialAvailability

Wellestablished

Wellestablished

Newindustry

Wellestablished

Size 50 kW-5 MW

1 MW –50 MW

25 kW –75 kW

1 kW –200 kW

InstalledCost ($/kW)

$800 –$1500

$700 –$900

$500 –$1300

$3000

O&M Costs(cents/kWh)

0.7 – 1.5 0.2 – 0.8 0.2 – 1.0 0.3 – 1.5

Fuel Type Diesel,propane,NG, oil &biogas

Propane,NG,distillate oil& biogas

Propane,NG,distillate &biogas

Hydrogen,biogas &propane

Typical DutyCycles

Baseload Baseload,intermed.peaking

PeakingIntermed.Baseload

Baseload

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Commercial Status of DG/DERPhotovoltaic Dish-

StirlingSmallWind

LargeWind

CommercialAvailability

Wellestablished

Year2000?

Wellestablished

Wellestablished

Size 0.30 kW –2 MW

30 kW andlarger

600 watts –40 kW

40 kW –1.5 MW

InstalledCost ($/kW)

$6,000 –$10,000

$10,000/kW (now)$400/kW(later)

$900 –$1,100

O&M Costs(cents/kWh)

Minimal Varies 1.0

Fuel Type Solar Solar andNG (hybridmode)

Wind Wind

TypicalDuty Cycles

Peaking Peaking orInterm.Hybrid mode

Varies Varies

Page 26: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Most Likely Users of DG in Next Few YearsICEngines

Small andmicroturbines

Storage FuelCell

PV SmallWind

Largewind

Indust. X X X X

Comm. X X X X X X

Resi-dential

X X X

UDC X X X X X

Page 27: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

What is Driving Distributed Generation Today?• Restructuring of the Electric Power

Industry• Advances in Technology• Availability and Low Price of Natural Gas• New Environmental Regulations• Increasing Power Quality Concerns• Heightened Reliability Awareness

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 27

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Distributed Generation TechnologiesGenerally, non-renewable DG falls in the range of

30kW to 15MW, varying by technologyTechnology Size RangeMicroturbines 30-200kWMiniturbines 200-1000kWSmall Turbines 1000-15,000kWReciprocating Engines 30-15,000+kWFuel Cells 30-1000kWFuel Cell Hybrids 200-1000+kW

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 28

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BENEFITS OF DG OR OFF-GRID GENERATION.....

Lower cost of electricity and higher net energy efficiency Enhanced end user energy source and design choices Improved overall system reliability Enhanced environmental quality Cost-effective peak load accommodation strategies Improved power quality and reliability for specific end

user needs, and A new platform for integrated consumer services

involving the convergence of electricity, renewables/natural gas, and telecommunications grids

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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BENEFITS OF DG (Contd.)Generates or stores electricityLocated at or near a load centerMay be grid-connected or isolatedHas a greater value than grid power:

Customer valueDistribution system benefitsBack-up or emergency powerSocial or environmental value

6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013 30

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Socio-Economic Benefits of DG/Off-Grid Generation).....

Construction of a DG or Off-grid power project impacts the society at different levels. For instance it creates impacts on (i) the technical development, (ii) the environment, (iii) the local population economy and (iv) the national economy as well. Some of the impacts may be difficult to evaluate, however the impacts can be qualified as positive impacts. The following socio-economic impacts are very significant: a) The impact on technology transfer b) The impact on community welfare c) The impact on security of supply d) The impact on employment e) The impact on host government revenue f) The impact on the country’s infrastructure

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 32: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

RENEWABLE ENERGY RESOURCES.....Resource Reserve

s Reserves (billion toe)

Fuelwood 43.3 Million tones

1.6645 (over 100 years)

Animal Wastes & Crop Residue 144Million Tonnes/Year

3.024 (Over 100 years)

Small Scale Hydro Power 734.2 MW

0.143 (over 100 years)

Solar Radiation Wind 1.0kW per m2

land area (peak)

-

Wind 2.0 – 4.0 m/s

-

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 33: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

BIOMASS RESOURCES….By virtue of her geographical location, Nigeria is blessed with abundant vegetation. The biomass potential of Nigeria consists of: human and farm animal wastes, crop residues, and waste from forestry, agricultural, municipal and industrial activities, as well as aquatic plants like water hyacinth. Water hyacinth has constituted water transportation problems as some rivers, Lagoons and water ways have been covered most times by the plant which impairs marine activities such as fishing, swimming and transportation. Also suitable for biogas production are such biomass resources as agricultural crop residues, poultry, cattle and hog wastes while wood and wood shavings, wood residues from mills, felled vegetation wastes may be gassified.The Biomass resources of Nigeria also include municipal solid wastes (MSW), which, Ikuponisi (2005) reported that the country generates about 20Kg per capita (MSW)

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 34: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

BIOMASS RESOURCES……Agricultural Resources and Residues

Agricultural Resources

Production (103 ton)

Residue (103 ton)

GJ

Industrial wood+fuel

214250 85700 80.5580

Cereals 12403 16124 207540

Rootsand tubers

41602 16641 106502

Sugarcane - - 3.097

Cotton 276 358.8 6.387

Coconut 135 175.5 2246

Coffee (Green)

3 3.9 50

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Estimated availability and cost of energetically usable crop residue in Nigeria (Source: S.O. Jekayinfa and V. Scholz(2007))

Biomass Resources…Crop Residues….

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 36: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

BIOMASS RESOURCES….. Livestock resources and residues

Resources Stock (103 head) Residue (GJ)

Cattle 15,700 32342

Sheep and Goats 37,500 15375

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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BIOMASS RESOURCES….. Wood Wastes & Sawdust……

The processing wastes from various wood sawed in southern Nigeria alone is estimated to produce 13,994.8 million ton of sawdust annually. Almost all of this sawdust is currently burnt away as waste while a very insignificant quantity is fetched often free to use as poultry litre or burn in biomass stove. It is possible to use the sawdust to produce power to run the sawmills and even pulp facilities..Potential biomass fuel sources in the country include:• wood waste from sawmills and wood products manufacturing operations;• wood from logging operations;• forest management waste (such as fire prevention thinning); and,• fast-growing hybrid poplar tree farming.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Biomass Resources….Cassava…

International Food Policy Research Institute (IFPRI) and Food and Agricultural Organization (FAO) have suggested a conservative projection for cassava production in the country. Consequently, extrapolating from estimates of current cassava production in Africa, Nigeria’s production has been projected to be 40 million tonnes in 2005 and 60 million tonnes by 2020. At an average yield of 30 tonnes per hectare, this would require about 2 million hectares of land by 2020.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

Page 39: DISTRIBUTED POWER GENERATION IN NIGERIA: PROSPECTS, CHALLENGES AND WAY FORWARD IN A FEDERAL SYSTEM J-F.K. AKINBAMI (Ph.D.) 6 th Annual NAEE/IAEE International.

Biomass Resources…Jatropha…Commercial cultivation of Jatropha is in its infancy in the country. However, a Jatropha SWOT analysis reveals the following: StrengthsNot a food sourceLife span of 30 yearsGrows well on degraded land with minimal attentionNo insect pest or animal browsingWeaknesses2 years gestation periodNo extensive knowledge of cropOpportunitiesSuitable growing conditions in NigeriaHigh quality bio-diesel cropCan make bio-diesel price competitiveThreatsNo known threats yet

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Biomass Resources….Rice Husk….

A number of rice mills exist in the eastern and northern belts of the country with a lot of rice husks as major by-products. 80% of these by-products are currently being burnt as waste since there is no means of utilising them within the industry or around it. In one of the clusters in the eastern region of the country, about 55,000 tonnes of rice husk are produced annually.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Opportunities for Biomass DG in Nigeria……2 Biomass-based DG projects are already being initiated in Nigeria.Initiator- United Nations Industrial Development Organization (UNIDO). Feedstocks for the proposed bio-power plants are sawdust and wood wastes from sawmill industry and rice husk from the rice mill industry. Quantity of sawdust and rice husk produced per cluster in the study areas:A total volume of wood waste produced is a little over 212,220 m3 (about 66,000 tons) and About 55,000 tons of rice husk per annum. At 80% gasification efficiency, the produced wood wastes have been estimated to be capable of providing fuel to power 8.0 MW generating plant with an annual electricity output of about 79,089.3 MWh. Similarly, based on the estimated 55,000 tonnes of annually generated rice husk, and at an overall plant efficiency of 20-24%, this a 5 MW rice husk fired power plant is being proposed for ricemill clusters.  

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Opportunities for Biomass DG in Nigeria (Contd)……

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Opportunities for Biomass DG in Nigeria (Contd)……The CO2 emissions that will be saved through these activities that will be avoided have been estimated to be in excess of 73,000 tons CO2/year, which make them good candidates for Clean Development Mechanism (CDM) projects. These are just clusters in only one area of the States of areas of study, with clusters of sawmills and ricemills scattered across the country, many of these projects could be established given the enabling environment. Excess electricity after the sawmills and ricemills have been duly satisfied can be wheeled to other small and medium scale enterprises (SMEs) around the mills as well as neighbouring households electricity consumers. However, to maximize the benefits of these projects, the sawmills and ricemills need to adopt energy efficient equipments. In order to attract investors into the electricity sector and particularly these projects, the electricity tariff regimes have to be market driven for the investors to make good returns on their investments. With the ongoing reforms and restructuring in the electricity sector, this will soon be achieved.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Way Forward for RE-Based DG Technologies in Nigeria (Contd)…

International Cooperation

Integrating RE into economic partnerships with countries like China and India which are increasing investments in Africa (South-South investments);

Deliberate national drive to leverage financial resources from existing and emerging global funds related to climate change such as GEF and CDM;

This hinges on improved infrastructure and greater involvement by the private sector and banking institutions

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Way Forward for RE-Based DG Technologies in Nigeria (Contd)…

Regional integration, networking and capacity buildingThe effort of ECOWAS Commission on regionally integrated energy projects should be strengthened in line with the agenda to scale up REThis can be done by promoting regionally integrated markets for RETs that are commercially viable to achieve economy of scale that will attract private sector investment (local & foreign)The Commission should also promote greater coherence and networking among member states to promote sharing of experiences and best practices in RE through the established regional institutions such as the ECOWAS Centre for Renewable Energy & Energy Efficiency, ECREE in Cape Verde that will also promote greater partnerships with similar institutions in other parts of the worldThis will in turn promote R&D, capacity building, technology transfer, etc

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Challenges to Dissemination and Penetration of DG Technologies ……Even if these new technologies prove workable in the long term, barriers exist to the growth of DG especially biomass power. These include: The high cost of delivered fuel compared with fossil fuels, Fuel-supply reliability, A lack of understanding of the environmental impacts of the technologies and fuel-supply systems. The complexity of biomass power infrastructure systems is also challenging for utilities more familiar with well established fossil fuel markets. The unique economics of biomass for power generation must be understood and strategically developed so the fuel can become competitive with cheap and abundant fossil fuels.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Challenges to Dissemination and Penetration of DG Technologies (Contd)……Energy production based on biomass may be hampered by limitations in the supply and/or quality of biomass. Consequently, co-firing can be used to attain maximum fuel flexibility and fuel-supply security. Biomass cofiring with coal may provide a cost-effective, near-term opportunity This strategy will reduce risk and investment costs. Several other factors are perhaps outside the control of the biomass industry, such as prices and markets for competing fuels.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Way Forward for DG Technologies in Nigeria …….

The benefits derived from biomass power generation, such as emissions offsets, waste reduction, and local economic growth, can enhance the technology's overall appeal to utilities. Furthermore, the nascent bioelectricity industry requires a friendly regulatory framework to support its growth.Such light-handed regulations to promote bioelectricity and other RE based power supply must have the following elements: Relaxed entry terms for new IPPs generating from renewable sources·Waivers with regards to licensing and registration requirements so as not to weigh them down with extra cost for meeting licensing requirements.

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Way Forward for DG Technologies in Nigeria (Contd) …….

·Price regulation that allow discriminatory feed-in tariff in favour of renewable energy based power.Using subsidies to bridge the gap between tariffs and cost-recovery levels, instead of leaving it to competition.Concessionary quality regulation that relaxes quality and efficiency requirement especially for off-grid generation.Allowing flexibility and service level differentiation between categories of providers and for evolving standards.

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Way Forward for DG Technologies in Nigeria (Contd)…Financial Sustainability Plan….

Financial sustainability◦A special purpose company may be set up to manage the power plant and the share holders will invest in the power plant and operate the plant commercially. The plant will buy wood wastes/rice husk for an agreed rate from the saw mill/rice mill and sell electricity to the saw mills/rice mills and nearby industries. The remaining excess electricity will be sold to the National grid.

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Way Forward for DG Technologies in Nigeria (Contd)…

Other strategies that may be essential in promoting the growth of Biomass based power are:Renewable Portfolio Standards (RPS) - a policy that obligates a retail electricity supplier to include renewable resources in its electricity generation portfolio. It sets a target share of nation’s electricity supply which must come from renewable electricity generation by a target date. In addition to the RPS, public sector educational and financial institutions may require a specific level of support to support Incentives.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Way Forward for DG Technologies in Nigeria (Contd)…A number of fiscal and financial incentives may be applied to promote bioelectricity and other renewable energy. These include:Renewable Electricity Production Tax Credit : which provides a tax incentive to qualifying biopower producers, who generate power from bioresources in a sustainable manner. Such credit is adjustable for inflation and may be given on naira per kilowatt-hour (kWh) basis and claimable over ten years after a facility is placed into service. The credit may be restricted to “closed-loop” biomass facilities, defined as operations using biomass grown solely for the commercial production of biopower in order to discourage the use of food resources for biopower. Potential open-loop feedstocks include agricultural residues and forestry wastes and poultry waste.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Way Forward for DG Technologies in Nigeria (Contd)…

Policy incentives should also look at:Tax incentives for agricultural and related industries Land tenure system be eased by appropriate legislation Fiscal incentives for pioneer biofuel industries Crop improvement to increase yield of biofuel crops Involving the local communities through out-growers scheme, in the production of the raw feed stockBioelectricity industry may benefit from the proposed Renewable Energy Fund or the Rural Electrification Fund specified in the Electric Power Sector Reform Act (EPSRA).

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Way Forward for DG Technologies in Nigeria (Contd)…

Decentralization of Energy Issues Overtime, energy matter in the country has been overcentralised to the point

of being in the exclusive list, so to say. However, with the Electric Power Sector Reform Act of 2005, the private sector and the state governments are gradually making their entry into the sector.

As the Energy Commission of Nigeria has produced a Renewable Energy Master Plan and a National Energy Master Plan for the country, it may not be out of place for the regions and states to key in to these and have regional and state energy master plans.

This is because an energy master plan is a road map that reveals the present status of energy issues in the community, where that community desires to be in the short, medium and long term with respect to energy matter and how it tends to attain these desired future energy requirements.

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Way Forward for DG Technologies in Nigeria (Contd)…

Decentralization of Energy Issues (Contd) In addition to these, it may also be proper at the

regional and state levels to begin to build human capacity on energy issues and also have institutional framework on energy issues at such levels. Such institutional framework amongst others will be charged with energy needs assessment at both regional and state levels.

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Way Forward for DG Technologies in Nigeria (Contd)…

Community Driven Energy Supply System Part of the paradigm shift will be ‘think globally, act locally’, that

is, while there is a global picture of the energy planning and management, the implementation should be community participatory. This will facilitate the public-private partnership (PPP) adoption and practice in energy production and services to our teeming populations. In this wise, a lot of advocacy programmes have to be made both to the government to raise the awareness of the opportunities and benefits that are associated with this paradigm shift as well as to the communities for social acceptability, cooperation and effective participation.

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Conclusion…

President Shehu Shagari’s message to the UN Nairobi Conference on New and Renewable Sources of Energy in 1981:“For us developing countries which are moving from energy patterns dominated by wood fuels to more commercial energy forms, we now have an opportunity to take action before stumbling into a fossil fuel trap. We ought now to investigate the possibilities in at least three directions:

We need to reinvestigate the use of crop and wood plantations as basis of renewable energy supplies. Fortunately, much of the developing countries lie in equatorial and tropical zones where such development is eminently feasible

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013

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Conclusion…Solar energy seems an appropriate form given the very size of that resource. Here, considerations of technology are of course paramount

In an energy scarce period, we cannot afford to leave unutilized the potential for hydro-electric power schemes. Opportunities that remain in this field are in developing countries”

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Thanks for your audience

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6th Annual NAEE/IAEE International Conference, Sheraton Hotel, Lagos, Nigeria, April 22-23, 2013