Investment Prospectus : General assessment and perspectives Nigeria

Transcription

1 Investment Prospectus : General assessment and perspectives Nigeria Project funded by the European Union EuropeAid/Development Cooperation Instrument DCI-ENV/2013/ ECOWAS SUSTAINABLE ENERGY WEEK Towards a Viable and Robust Energy Market in the ECOWAS Region October 2016

2 Analysis of renewable energy and energy efficiency policies National Strategy (NREAP, NEEAP, SE4ALL AA) Current National electrification rate (in %) PV power plants connected to the grid (in MW) Hydro sites connected to the grid (in MW) 1,245 2,805 5,900 Biomass power plants connected to the grid (in MW) ,100 Rural Electrification (in %) 28% 60% 85% Universal access to clean cooking equipment (% of households)

3 Regulatory framework in place NREEEP (National Renewable Energy & Energy Efficiency Policy) 2015 RESIP (Rural Electrification Strategy & Implementation Plan) 2016 Draft Mini-Grid Regulation 2016 by NERC Independent Electricity Distribution Network (IEDN) (captive and embedded generation) Feed in Tariff for Renewable Energy Sourced Electricity in Nigeria 2015 Grid Codes Metering Code Multi Year Tariff Order (MYTO) 2015 Market Rules Nigerian Electricity Supply and Installation Standards Regulations 2015

4 Pipelines of the IP Pipeline 1 Pipeline 2 Pipeline 3 Pipeline 4 Pipeline 5 Production, transport and distribution (on-grid) Not connected to the grid (Mini- Grids and standalone systems) Bioenergy and sustainable cooking Energy Efficiency Enabling environment

5 Projects connected to the grid Pipeline 1 Production, transport and distribution (on-grid) Identified needs To increase electricity access from the current 40% to 75% and 90% by 2020 and 2030 respectively To achieve an overall 30% renewable energy contribution to the electricity mix To enhance the capacity of the national grid to enable it wheel additional generation Identified type of projects LHP (1,200 MW (Year 2016) to 4,700 MW (Year 2030) SHP (45 MW (Year 2016) to 1,200 MW (Year 2030) Wind (10 MW (Year 2016) to 800 MW (Year 2030) Biomass (0 MW (Year 2016) to 1,100 MW(Year 2030) Transmission (11,000 MW by Year 2020) TBC

6 Projects not connected to the grid Pipeline 2 Not connected to the grid (Mini- Grids and standalone systems) Identified needs Achieving 2.53% and 17.96% contribution from Mini-Grid systems by 2020 and 2030 respectively Identified type of projects Mini-grids powered purely by renewables Mini-grids powered by hybrid systems PV & pico-hydro rural systems

7 Projects of bioenergy and sustainable cooking Pipeline 3 Bioenergy and sustainable cooking Identified needs To replace traditional firewood with LPG usage by 50% in 2020 and 80% by 2030 Increase the number of people using LPG and other clean cooking methods Identified type of projects Federal Ministry of Environment s clean cooking initiative 2016

8 Projects of energy efficiency Pipeline 4 Energy Efficiency Identified needs For the country to attain 40% use of efficient lighting by 2020 and 100% in 2030 Energy efficiency practices in high energy consuming sectors should increase by 20% in 2020 and 50% in 2030 Identified type of projects The adoption of energy efficient technologies and equipment in high energy consuming sectors Energy Audits to be carried out in all sectors Introducing standards and labels for domestic and industrial appliances Adoption of Minimum Energy Performance Standards (MEPS) for on-grid and off-grid lighting devices

9 Projects to improve enabling environment for energy investments Pipeline 5 Enabling environment Identified needs Greater clarity and transparency around government incentives and waivers pertaining to the power sector with particular emphasis on RE Improve ability of financial institutions to handle energy investment deals Stabilise the electricity market to make it increasingly self-sufficient and less dependent on government s support/intervention Identified type of projects Technical assistance/capacity building to relevant public agencies and private operators Establishment of portal for dissemination of information to foreign and local investors Training e.g. IFC/DFID to provide banks with solar/off-grid related training

10 Dynamics of the energy sector to unlock private investment in the country Huge investment opportunities exist in Nigeria s electricity sector as local and international investors are encouraged to invest in the following areas: Expansion of existing facilities in generation, transmission and distribution Manufacturing of wires, cables, Transformers and other auxiliary equipment Building new integrated power plants (IPPs) greenfield Expansion of existing transmission lines Production and distribution of metering devices Provision of operations and maintenance services Available incentives include: 0% duty on power generation equipment 20% capital allowance for 5 years Tax holiday for manufacturing activities (up to 3 years tax holiday renewable for additional 2 years)

11 For your attention, we say: E seun ooo.. Da alu ooo Nagode ooo Merci beaucoup.. Thank you 10/24/2016 Contact: Engr. A.Adebisi, FNSE Director, Renewable and Rural Power Access Dept, Federal Ministry of Power, Works and Housing, Abuja. Nigeria. Tel: (+234) yomibisi@yahoo.com