Nigeria s Country Presentation: Boosting Rural Power Access through Innovative Renewable Energy Policies

Transcription

1 FEDERAL MINISTRY OF POWER, WORKS AND HOUSING Nigeria s Country Presentation: Boosting Rural Power Access through Innovative Renewable Energy Policies Presented at The 11 th German African Energy Forum By Hon. Mustapha Baba Shehuri Honourable Minister of State Federal Ministry of Power, Works & Housing, Abuja. Nigeria Engr. A. Adebisi, FNSE Director, Renewable & Rural Power Access 25 April, 2017

2 OUTLINE PART I RENEWABLE ENERGY POLICY INITIATIVES PART II SUSTAINABLE ENERGY 4 ALL (SE4ALL) INITIATIVES PART III RENEWABLE ENERGY PROJECT DEVELOPMENTS 2

3 PART I RENEWABLE ENERGY POLICY INITIATIVES 3

4 RE & EE Policy Development Initiative FMP identified need for a renewable energy policy for Nigeria that will harmonize the myriad of existing initiatives, documents, plans, etc. Appropriate Ministry and other staff deployed to preliminarily explore alternative approach and strategies Ministry engaged a team of consultants to articulate a new integrated policy based on global best practices and background material compiled by staff GIZ engaged consultants to review the work. Policy approved May

5 Policy Scope Comprehensive renewable energy and energy efficiency policy was developed to drive regulation, government action, activities of the private sector and future industry development. Policy addresses: the case for renewable energy, its role in economic development and energy independence, appropriateness of alternative renewables, and incentives for power generators, including renewable portfolio standards. Policy built on: rigorous understanding of the current and future electricity market structure in Nigeria, a comprehensive understanding of effective policy from global case studies, capital requirements, and regional impacts across Nigeria. 5

6 RE & EE Policy Objectives To ensure the prudent exploitation of the nation's energy resources. To enhance energy security and self-reliance. To reduce the cost of production of energy-dependent goods and services. To reduce adverse impacts of renewable energy utilization on the environment. To eliminate avoidable investments in energy supply infrastructure. 6

7 PART II SUSTAINABLE ENERGY FOR ALL (SE4ALL) INITIATIVES 7

8 A Snap shot of SE4ALL Initiative Kick-off Meeting- Abidjan March 2014 Steering Committee/ICREEE Meeting- 6th May 2014 Inception Meeting with Ministers of Power and PS- 15th May 2014 Thematic Working Groups Set Up- 2nd July 2014 Thematic Working Groups Meetings: July - August 2014 High Level Kick-Off of the AP and AA during 1st NACOP -14th August 2014 Stakeholder Meeting/Validation Workshop- 12th September 2014 Development of Baseline Report - September to October 2014 Submission of Draft Baseline Report, NREAP, and NEEAP to ECREEE- Nov Backstopping Expert Review and Feedback- Jan 2015 Development of SE4ALL Action Agenda- February -May 2015 Stakeholder Consultation Meeting- 15th June 2015 ICREEE MET AND ADOPTED THE NREAP, NEEAP & SE4ALL AA 13 TH AUGUST 2015 High Level Adoption/Validation during 2nd NACOP 14 th July 2016 in Kaduna, Nigeria 8

9 Nigeria SE4All Priority Actions Priority Action for Energy Access: Create Enabling Environment to Support Developers of Mini-grid Systems; Work with DisCos to ensure reduction of ATC&C losses & improve revenue; Facilitates Concessionary financing of system expansion Transmission; Access to modern fuel for Cooking and discourage the use of firewood Priority Action for Renewable Energy: Commence Procurement of RE capacity: U-sB, CB, FiT, Off-grid etc; Provision of economic and financial incentives to Project Developers; Identification of International financing sources and Guarantees Priority Action for Energy Efficiency: Reduce Transmission & Distribution losses; Improve Energy Efficient Cities (Industry, Building, Transport & Cooking); New Regulations, Standards, Labels and Financing Schemes 9

10 Nigeria s SE4All Targets Energy Access Targets: To increase electricity access to 75% & 90% by 2020 & 2030 respectively; Access to modern energy for cooking of 53% & 78% in 2020 & 2030; Use of Butane Gas (LPG) or (CNG) of 15% & 25% by 2020 & 2030; Firewood consumption to reduce by 50% in 2020 Renewable Energy Targets: Renewable Energy mix of 38% and 31% by 2020 and 2030 respectively: 28% hydro (SM&L hydro), 6% solar, 1% biomass and 3% wind by % hydro (SM&L hydro), 7% solar, 1% biomass and 4% wind by 2030 Energy Efficiency Targets: Overall, EE will increase by at least 20% by 2020 and 50% by 2030; 40% Efficient lighting by 2020 and almost 100% by 2030; 10

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12 Electricity Access Situation Total Electricity Supply in ,000 MW (less 5000MW unused by Industry) Nigerian Energy Mix in ,075 MW 20% 40% 60% 80% Public Supply Self Generation Hydro GAS 12

13 Electricity Access Projection Electricity Access 75% 90% %

14 Electricity Access Targets TOTAL ELECTRICITY SUPPLY IN 2020: 21.5GW TOTAL ELECTRICITY SUPPLY IN 2030: 43GW 49% 48% ON-GRID (FF+RE) - 10 GW OFF-GRID GW 18% 12% ON-GRID (FF+RE) - 30 GW OFF-GRID - 8 GW 3% SELF GENERATION (CAPTIVE) GW 70% SELF GENERATION (CAPTIVE) - 5 GW 14

15 Electricity Supply Projection TOTAL ELECTRICITY SUPPLY IN 2016: 18 GW TOTAL ELECTRICITY SUPPLY IN 2019: 20 GW 74% 26% 0% TOTAL ON-GRID (FF+RE) GW TOTAL OFF-GRID GW SELF GENERATION (CAPTIVE) GW 54% 44% ON-GRID (FF+RE) - 9 GW OFF-GRID GW SELF GENERATION (CAPTIVE) - 11 GW 2% 15

16 PROJECTED ELECTRICITY SUPPLY GROWTH IN MW UP TO TOTAL OFF-GRID - MWH/H TOTAL ON-GRID (FF+RE) - MW SELF GENERATION (CAPTIVE) - MW TOTAL MW 16

17 National Energy Mix NIGERIA'S ENERGY MIX IN 2016: 5 GW ON-GRID NIGERIA'S ENERGY MIX IN 2019: 9GW ON-GRID 1% 1% 0% 0%0% 0% Gas Coal 3% 1% 0% 0% 3% 6% Gas Coal 0% 0% 23% 75% Nuclear LHP SMHP Solar PV Solar Thermal Wind 24% 60% Nuclear LHP SMHP Solar PV Solar Thermal Wind Biomass Biomass 0% Geothermal Geothermal 3% 17

18 National Energy Mix 3% 25% 0% NIGERIA'S ENERGY MIX IN 2020: 10GW ON-GRID 0% 1% 6% 5% 3% 0% 57% Gas Coal Nuclear LHP SMHP Solar PV Solar Thermal Wind Biomass Geothermal NIGERIA'S ENERGY MIX IN 2030 : 30GW ON-GRID 2% 1% 0% Gas 4% Coal 5% Nuclear 4% LHP SMHP 16% Solar PV 55% Solar Thermal Wind 0% Biomass 13% Geothermal 18

19 30GW BY 2030 WITH 30% RENEWABLE ENERGY PROJECTED CAPACITY GROWTH FOR ON-GRID POWER UP TO Total Fossil Fuels RE plus LHP 19

20 PROJECTED GROWTH FOR RENEWABLE ENERGY MW EOY Sub Total RE less LHP 20

21 Policy Incentives Tax incentives to manufacturers of RE & EE equipment and accessories of up to (5) years Tax holidays on dividend income from RE & EE domestic investments Provision of soft loans with low interest Free custom duties (2) years on RE & EE equipment importation and materials used for projects Federal Government and States assisting in allocation or grant of lands Provision of defined incentives for home owners to install RE & EE appliances and lightings Grant to communities-based RE & EE projects and processes Sustain the 2012 fiscal policy of zero duty for power equipment and devices 21

22 PART III RENEWABLE ENERGY PROJECT DEVELOPMENTS 22

23 On-grid Solar Projects 23

24 FRONT-RUNNER SOLAR POWER PURCHASE AGEEMENTS (PPAs) S/N PROJECT NAME CAPACITY (MW) LOCATION 1 Pan Africa Solar 75 Katsina State 2 Nigerian Solar Capital Partners 100 Bauchi State 3 Afrinergia Power Limited 50 Nasarawa State 4 Motir Dusable Limited 100 Enugu State 5 Nova Solar 5 Farm Limited 100 Katsina State 6 Kvk Power (Nig.) Pvt. Limited 100 Sokoto State 7 Middle Band Solar One Limited 100 Kogi State 8 LR Aaron Power Limited 100 FCT, Abuja 9 Nova Scotia Power Dev. Limited 80 Jigawa State 10 CT Cosmos 70 Plateau State 11 en Africa 50 Kaduna State 12 Oriental Renewable Solutions 50 Jigawa State 13 Quaint Abiba Power Limited 50 Kaduna State 14 Anjeed Innova Group 100 Kaduna State Total 1,125 MW 24

25 1MW On-Grid Solar Project at Lower UsumaDam 25

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27 Off-Grid Solar Projects 27

28 Durumi Shape/ Waru 28

29 Sustainable Off-Grid Gnami Project 29

30 Power Purchase Procedure 1 2 Open an account Purchase Credit Insert IC Card 3 Open an account Pay for the credit Get an IC card card Charge credit of IC Insert IC card into the smart meter 30

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34 The Smart Village Concept: Renewable Energy Mini Utility (REMU) 34

35 Goal of Upgraded Micro-Utility System Reliable stand-alone power systems Secure power & system controls Primary power from solar array Main energy stored in battery bank Backup power from diesel genset Physical & electronic payments Managed by local Owner/Operator Creates long-term business model Supported by Nigerian installer 35

36 Renewable Energy Mini-Utility (REMU) EASY BUYING SECURE STANDARDS-BASED FAIR RELIABLE 24/7/365 POWER & MORE EXPANDABLE REPLICABLE PROFITABLE GRID-READY 36

37 ONGOING REMU DEMONSTRATION PROJECT AT PAKAU VILLAGE, KADUNA STATE FEDERAL MINISTRY OF POWER, WORKS AND HOUSING, ABUJA. NIGERIA 37

38 OTHER INITIATIVES USING RENEWABLE ENERGY I. CRITICAL INFRASTRUCTURE PROTECTION USING SOLAR ENERGY II. ELECTRIFYING EDUCATION 38

39 E SEUN DA A LU... NAGODE... THANK YOU.. 39