NESP Energy Efficiency Programme: Relevance to GHG in Nigeria

Transcription

1 Nigerian Energy Support Programme (NESP) Lagos, November 2, 2015 Workshop Organisers: The Consulate General of the Federal Republic of Germany, Lagos and, The Delegation of German Industry and Commerce in Nigeria / CIM NESP Energy Efficiency Programme: Relevance to GHG in Nigeria Charles Diarra, Ph.D. Head of Unit: Energy Efficiency Implemented by

2 Content of the Presentation A: The Nigerian Power Sector B: NESP Energy Efficiency (EE) Unit C: Relevance of the NESP EE Activities to GHG Emissons in Nigeria D: Conclusion 2

3 A: The Nigerian Energy Support Programme (NESP) Background Nigerian Power Sector The Power Scenario 4,500 MW operational installed capacity for 175 Mio people (South Africa: 44,000 MW for 50 Mio people) Power outages of approx. 10 hours per day Technical and non-technical losses: 55% 40-60% of households (more than 90 Mio people) without electricity access About 8,000 MW of privately installed Diesel generators Electricity supply one of the top-three barriers to doing business in Nigeria (World Bank Ease of Doing Business Report) 3

4 Background Sector Reform & Opportunities Nigerian Government privatised the power sector in 2013 in order to improve the electricity supply situation Renewable energy, energy efficiency and (RE-based) rural electrification can significantly contribute to improve the reliability of the power system Massive growth of the power sector expected with huge opportunities for private sector investments 4

5 Background NESP NESP is a technical cooperation programme supporting partner institutions mainly via the provision of expertise (short and long term experts) NESP is implemented by the German Agency for International Cooperation (GIZ) and funded by the European Union and Aim: To improve the conditions for investments in renewable energy, energy efficiency and rural electrification. Nigerian partner institutions: FMP, FMLHUD, NBET, NERC, NAPTIN, SON, 5 States (Sokoto, Niger, Plateau, Ogun, Cross River) Duration: 03/ /2018 5

6 B. Activities of the NESP EE Programme in Nigeria Our activities cover the following sectors: a) EE in Buildings: EE Building Guide and Code, Efficient Building Design, integration of RE into building b) EE in industries: Introduction of EnMSIN, EEN, pilot projects Training of Energy Managers c) EE Standards and Labels for: S&L for air conditioners, Appraisal for Testing facilities, creation of awareness d) Overarching: support to the formulation of NEEAP, NREEEP, Harmonisation of efforts with ECREEE 6

7 C. Relevance of NESP EE Programme to GHG Reduction in Nigeria Driving Factors of Energy Efficiency - Reduced need for investment in infrastructure (economy level) - Savings on fuel expenses (individual entity level) - Mitigation of environmental effects, climate change (global level) EE Power Generation in Nigeria (NESP Energy Sector Study, June 2015) According to data provided by the World Energy Council: - Electricity generation efficiency in Nigeria is an average of 38.3%, above the mean values of similar economies (e.g. India: 28.6%, Indonesia: 34.6%, South Africa: 35.7%). - Technical losses in power transmission and distribution are as high as: 17 20%. EE Genset Based Generation - In 2008 a study from the University of Chicago estimated the life-cycle costs of a diesel genset in Nigeria at US$ 13,160 per kva installed capacity (12 years lifetime, 8% discount rate) (NESP Energy Sector Study, June 2015) - Potential from Energy Efficient Generators is therefore immense) 7

8 EE GHG Emissions Reduction: Energy Consumption Energy Consumption (NESP, Baseline Assessment of Air Conditioners in Nigeria, September 2015) o Residential sector accounts for most of the final energy consumption in the country with a share of about 78%, o Industrial sector with 8.7%, o Transport sector having a share of 7.5%, o Remaining is shared by the commercial, public services, agriculture, forestry, and fishing 8

9 EE and GHG Reduction: Energy used per unit of GDP TABLE 7-2: ENERGY INTENSITY A PEER GROUP COMPARISON Source: NESP Energy Sector Study, June 2015 Energy intensity (kg of oil equivalent) per US$ 1,000 GDP (constant 2011 PPP) GDP per unit of energy use (constant 2011 PPP US$ per kg of oil equivalent) Energy use (kg of oil equivalent) per capita Pump price for diesel fuel (US$ per litre) Consumption by households (in billions of kwh) Base year Nigeria Indonesia Banglades South Brazil h Africa ,741 1,371 avg Compared to other countries, Nigeria shows relatively high energy use per unit of GDP expressed in US$ 1, This can hardly be influenced by a low price of grid electricity, given that electricity supply from the grid is erratic, and that the alternative source is a diesel generator, - As per the table Diesel is comparatively expensive in the country - The low absolute consumption figure is indicative of the lack of generating capacity. 9

10 EE and GHG Emissions Reduction: Standards and Labels Energy Consumption in Building depend on the building design, orientation, the building envelop, which are all targeted by the NESP EE Programme Energy is consumed through household appliances, hence EE Building code is a major tools to: - to regulate the design and construction of buildings - Reduce energy demand Standards and Labels - currently no standards and labels for most household appliances - No Minimum Energy Performance Standards (MEPS) - About 50% of household appliances to the ECOWAS countries come through Nigerian 10

11 Example case study: EE Lighting Lights - Compact fluorescent light: GHG emission Base case tco2 2.6 Proposed case tco2 0.6 Gross annual GHG emission reduction tco2 2.0 GHG credits transaction fee % Net annual GHG emission reduction tco2 2.0 is equivalent to 2.0 tco2 GHG reduction income GHG reduction credit rate $/tco Cumulative Cash flow

12 Example case study: Compressed air EE Compressed Air GHG emission Base case tco Proposed case tco Gross annual GHG emission reduction tco GHG credits transaction fee % Net annual GHG emission reduction tco is equivalent to 89.2 tco EE Compressed Air: Cumulative cash flow

13 D: CONCLUSIONS o Energy efficiency plays a critical role in addressing energy security, environmental, and economic challenges o Despite the fact that the key focus in the energy sector in Nigeria today is on improving power supply generation, there is need to formulate and implement energy efficiency programs in the various sectors of the economy to reduce energy intensity, and hence emissions of GHG o Reduced energy costs would also give policymakers greater latitude for reducing electricity subsidies and to cut carbon dioxide emissions and mitigating climate change 13

14 Thank you your Attention Charles Diarra, Ph.D. Head of Energy Efficiency Unit Nigerian Energy Support Programme (NESP)