3. Current Status of Solar EnergyProjects in Nigeria..Cont`d

THE NIGERIAN MARKET UPDATE FOR SOLAR
AND OFF-GRID RENEWABLES*
By
Prof. Abubakar Sani Sambo,
OON, NPOM
Chairman, Nigerian National Committee of the World Energy Council
e-mail: [email protected] or [email protected]
*Presentation Delivered at
the ‘Solar & Off-Grid Renewables , West
Africa’, Accra, Ghana, 21st-22nd April, 2015
1
Outline
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Introduction
Liberalisation of Electricity Market in Nigeria
Current Status of Solar Energy Projects in
Nigeria
Barriers to the Large-Scale Penetration of
Renewable Energy Technologies in Nigeria
The Way Forward
Conclusion
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1. Introduction
3
1. INTRODUCTION ….Cont’d

Reasonable standard of living and commendable level of economic
growth both require adequate, reliable and affordable energy
supplies for the households, services, transport and industrial
sectors of all national economies.
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Renewable energy (RE)
sources, like solar, wind, hydro,
geothermal, biomass etc, are inexhaustible as they are always
available on a cyclic or periodic basis and they do not emit
greenhouse gases.
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RE utilisation being free from global warming and the sources
being inexhaustible are the preferred pathways for sustainable
energy development.
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The conference on Solar & Off-Grid Renewables, West Africa is
most welcome as it will enable strengthening of partnerships
between and amongst experts, developers, policy makers and
financing institutions.
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1. INTRODUCTION
….Cont’d
Country Profile
•
Demography: as at 2014
• Land mass: 923, 768 sq Km
• Population: 177 million
• Pop. Growth rate: 2.5% p. a.
• 60% Pop: rural
•
Economy as at 2013
• Oil revenue based
• GDP: US $510 Billion
• Per capita GDP: US $ 3,000
• GDP growth rate is 6.2%
• Electricity access – 55.2%
•
Top Govt. Policies at the moment:
• Privatization of the power sector
• Deregulation of the downstream oil
sector,
• Expansion of oil refining and power
generating capacities.
• Oil subsidy removal (partial)
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1. Introduction…..Cont’d
Solar
Solar energy is the most
promising of the RE sources
in view of its apparent
limitless potentials
 Daily
solar
radiation
intensity ranges from 3.5 7kWm2/day from the South
to the North with sunshine
duration hours ranging
from 4-7.5 hrs also from
South to the North.
Source: Solar
GIS
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2. Liberalisation of the Electricity Market in Nigeria
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In 2000 Government set up the Electric Power Sector
Implementation Committee (EPIC)
Draft National Electric Power Policy (NEPP) adopted in 2002
National Energy Policy (NEP) Approved in 2003
The NEPP provided for the
– Drafting a new electricity law to liberalize the sector
– Establishment of an independent Regulatory Agency
– Establishment of the Power Consumer Assistance Fund
– Establishment of a Rural Electrification Agency
– Establishment of a Rural Electrification Fund

March 2005 the Electric Power Sector Reform Act 2005 was enacted creating
the Nigerian Electricity Regulatory Commission (NERC)
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2. Liberalisation of the Electricity Market …Cont’d
General
Objectives
•Meet current and prospective demand for electricity
•Modernize and expand service
•Support National economic and social development
ShortMedium
Term
Objectives
•Attract private investment
•Develop transparent regulatory framework
•Divest government interest in the sector
•Promote competition
•Develop and enhance indigenous capacity in electric power
sector technology
Long Term
Objectives
•Universal access
•Domestic production of electrical equipment
•Meet targets for rural electrification
•Ensure minimum adverse environmental impact
•Ensure subsidies are properly targeted to the poor
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2. Liberalisation of the Electricity Market
…Cont’d

New Institutions emanating from the reform of
the electricity industry include:
 NERC – Regulatory Body
 NBET – Special Purpose Entity
 REA- Rural Electrification Agency
 REF – Rural Electrification Fund
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To rapidly expand access to rural dwellers in a cost
effective manner using On/Off grid supplies
Subsidies shall be targeted to investment rather than
consumption
 PCAF – Power Consumer Assistance Fund

Protect low income and poor consumers through lifeline
tariff
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3. Current Status of Solar Energy Projects in
Nigeria
As a result of the efforts of the Federal Government’s support of the
Energy Research Centres under the ECN as well as the Constituency
Projects of the members of the National Assembly in addition to the
projects of the MDG office and the Federal Ministries of Housing, Works
and Federal Capital Territory, hundreds of renewable energy projects
have been implemented all over the Federation. Indeed some State
Governments have some of these projects.
 Most of the projects are:
-Solar powered boreholes
-Solar vaccine refrigerators
-Solar water heaters
-Solar Driers
-Biogas digesters and stoves
-Improved wood-burning and charcoal stoves
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3. Current Status of Solar Energy Projects in Nigeria..Cont’d
Solar PV for Telecommunication
20km Kaduna-Abuja Road, Nigeria.
Solar PV at Ilaje, Ondo State of Nigeria
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3. Current Status of Solar EnergyProjects in Nigeria….Cont’d
Solar PV Water Pumping at SERC, UDUS
Solar PV Water Pumping at
Students Hostels, UDU, Sokoto
Solar Water
Pumping at
Kilgori, Yabo LG,
Sokoto State0
Solar PV water pumping at Birjingo
Village, Goronyo LG, Sokoto State
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
Solar PV System
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
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Title: Community Based Pilot
Water Heater
Location: UDUTH
Capacity: 1000 litres
Cost: N420,000:00
Year: 1998
Objective: Water heating
Sponsor: ECN
Beneficiary: Gynae Lying-in
Ward UDUTH
Solar Water Heater developed by NCERD
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Title: Riser & Spiral Water Heater
Location: SERC Demonstration Area,
Capacity: 20 litres
Cost:; N7,000:00
Year: 2003
Objective: Research, Development. &
Demonstration
Sponsor: SERC
Beneficiary: Staff & Students
A 1000-litre Solar Water Heating System at the
Maternity Ward of Usmanu Danfodiyo University
Teaching Hospital, Sokoto constructed by SERC.
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
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Title: Single and double box type
solar cookers
Location: SERC, UDUS
Capacity: average of 3-5 persons
Cost: : N5,000:00
Year; 2006
Objective: Research, Development &
Demonstration
Sponsor: SERC
Beneficiary: Staff, Students
&Investors
Title: Parabolic solar Cooker
Location: SERC Demonstration
Area
Capacity: Average of 2-3 Persons
Cost: N47,000:00
Year: 2006
Objective: Research, Development
& Demonstration
Sponsor: SERC
Beneficiary: Students, Staff &
Investors
Parabolic Solar Cooker - I
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
2-Tonne Solar Rice Dryer at Adarice Co. Enugu state,
built by NCERD
A 2-Tonne Dryer at NAPRI, Zaria, constructed by SERC
Large Scale Solar Dryer
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3. Current Trends in the use…………………Cont’d
Dome Type Biogas Pilot Plant at Danjawa Village,
Wamakko LG, Sokoto State
FIXED DOME BIOGAS DIGESTER
AT NCERD
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. 3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
150 kW Capacity Waya Dam Hydro- Power
Station under Construction
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30 kW Ezioha Mgbowo SHP
Station
Small hydropower (SHP) development commenced by a private company, the Nigerian Electricity Supply
company (NESCO) in 1929 with an initial installation of 1,000 kVA (800 kW) hydroelectric power plant in
Kurra Falls, Jos. Plateau State. Installed capacity has now reached 30 MW
SHP plants of 2 x 35 kW are being installed in Waya Dam, Bauchi State and 30 kW in Enugu State, through
collaboration between UNIDO and the Nigeria Government
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
One of the 37 No 275kW Wind to Electricity Machines for the 10
MW Katsina Wind Farm
5kW aero generator in Sayya Gidan Gada, Sokoto State
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
NASENI SOLAR PANEL PRODUCTION PLANT
• The 7.5 MW Plant of NASENI is stocked
with semi-knocked-down (SKD) materials
capable of producing over 600 units of
solar panels of 175 watts capacity and
dimension of (1610 x 160 x 940). In
addition there are finished products of
various ratings (190, 180, 70, and watts).
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3. Current Status of Solar Energy Projects in Nigeria..Cont’d
NASENI Solar Panel Manufacturing
Project is in three (3) phases:
(I)Production of Solar panels from
3. Solar cells.
imported
(II)Production of solar cells and panels from
imported silicon wafers.
(III)Production of solar cells using locally
sourced raw materials, e.g. silicon.
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
PRODUCTION PROCESS OF NASENI SOLAR PANEL PRODUCTION PLANT
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
NASENI SOLAR PANEL PRODUCTION PLANT
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3. Current Status of Solar EnergyProjects in Nigeria..Cont’d
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SOKOTO ENERGY RESEARCH CENTRE PLANT
The photovoltaic module is an assembly of electrically
interconnected solar cells enclosed in a weatherproof
package to protect it from the effects of the environment.
The PV module manufacturing line acquired by SERC is 4MW;
The plant was procured as part of STEP-B project to upgrade
SERC to Centre of Excellence on Renewable Energy;
The encapsulation process of the plant employ JVG based
technology for “DESERT” modules production that ensures
operation at much high temperatures without degradation as
compared to the commonly used encapsulates.
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3. Current Status of Solar EnergyProjects
in Nigeria..Cont’d
SERC PLANT
Major Components of the Plant
1. JVG Manual stringer
2. String repair
3. Manual lay up
4. JVG Basic bussing station
5. Passive inspection/string tester
6. JVG Laminator Semi auto
7. JVG Trimming Semi auto
8. Frame and key coner assembly.
9. Sealant pump
10. Inspection turning
11. Junction box station
12. Flasher
13. HV Test station
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3. Current Status of Solar EnergyProjects in
Nigeria..Cont’d
SERC PLANT
Training Session Conducted at the Plant by the JvG Instructor
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3. Current Status of Solar EnergyProjects in
Nigeria..Cont’d
SERC PLANT
PV Module Produced During the Training
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3. Current Status of Solar Energy Projects in Nigeria..Cont’d
In Summary in Nigeria today, renewable energy (especially, solar) is being
used in:
 Water pumping;
 Village Electrification;
 Rural clinic and schools power supply;
 Vaccine refrigeration;
 Traffic Lighting and lighting of road signs;
 Energizing security and surveillance equipment;
 Powering of telecommunication equipment, television and radio
booster stations;
 Storage battery and GSM handset re-charging;
 Cathodic protection of Oil pipelines;
 Village TV viewing centres;
 Warning lights, navigation buoys; Landing lights and aircraft
navigation systems; Electric fences, safety devices and emergency
lightings.
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3. Current Status of Solar Energy Projects in Nigeria..Cont’d

In Nigeria the promotion and advocacy for adopting RE is being
undertaken by the Energy Commission of Nigeria and its 5
Research Centres
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The National Centre for Energy Research & Development, Nsukka
The National Centre for Energy & Environment, Benin
The National Centre for Energy Efficiency & Conservation, Lagos
The National Centre for Hydropower Research & Development
The Sokoto Energy Reserach Centre, Sokoto
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The Commission and the Research Centres as well as the Federal Ministry of
Power and the parastatals under it have more than 500 hundred engineers,
scientists and technicians with specialization in all aspects of renewable energy
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In Nigeria today there are 138 universities ( 40 owned by the Federal Govt, 39
owned by State Governments and 59 are privately owned). A conservative
estimate of the number of RE engineers, scientists and technicians in the 138
Nigerian universities is put at 1,250. Conventional energy expertise in the
Nigerian syatem can be put at about 3,500.
–
Nigeria can indeed be described as the African hub of energy expertise.
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4. Barriers to the Large-Scale Penetration of RE
Technologies in Nigeria
Despite the apparent large number of renewable
energy projects presented in section 3, the level of
utilisation is yet to make meaningful contribution
to the nation’s socio-economic growth which
requires thousands of Megawatts. The major
barriers include:
- Human and Infrastructural Capacity Limitations
- Lack of Financial and Fiscal Incentives
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4. Barriers to the Large-Scale Penetration of RE
Technologies in Nigeria……Cont’d
- Lack of Adequate Awareness of the Significance of RE Technologies
for socio-economic growth
- Inadequate RE Data for Planning, Designing and Taking Investment
decisions
- Intermittency of RE Resources and the need for Twinning of RE
Projects
- High Initial Investment Costs
- Inadequate Policy and Administrative Frameworks
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5. The Way Forward

The large-scale deployment of RE technologies to supply
thousands of MW of RE electricity in a sustainable manner will
require:
- Strengthening of Human and Infrastructural capacities
and including them in the National Energy Manpower Plan
and the Industrial Development plan, respectively
- Adoption of practical financial and fiscal incentives
- Adoption of pragmatic demonstration and diffusion activities to
further create awareness of new RE technologies
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5. The Way Forward…………Cont’d
- Adoption of practical financial and fiscal incentives like:
a)

Establishment of Renewable Energy Fund (REF):
to be sourced from taxes on conventional Energy to be
managed by Bank of Industries and Energy Commission
of Nigeria.
Financial Incentives:
 Soft loans: Interest rates should not be more than 6%
drawn from subsidies of up to 30% of initial cost of RE
facility may be granted to communities, enterprises and
individuals that embark on RE projects. The subsidies
should be in kind and subject to due process by the
administering agencies.
b)
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5. The Way Forward……….Cont’d
c)
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Fiscal Incentives
Waiver of Purchase Taxes: VAT on purchases of RE technologies
should be nil.
Lower Profit Taxes: Corporate taxes of RE business to attract lower
rates.
Tax Holidays: First five year tax holidays for new RE business
Import Duties:
– materials, components and equipment imported for
manufacture of RE devices and systems should attract free duty
– PV systems: Modules, deep cycle batteries, inverters, charge
controllers, solar water pumps, solar refrigerators, CFLs, LEDs to
attract zero duty.
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5. The Way Forward…………Cont’d
c)
Fiscal Incentives Cont’d…
– Wind turbine components to attract zero duty
– Efficient Electrical Appliances to attract zero duty
– Hydropower components for the construction of hydropower
plants to attract zero duty
– Solar thermal components and photovoltaic panels and the balance
components to attract zero duty
– Items to be certified by ECN before waiver granted
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5. The Way Forward……….Cont’d
- Development of a Comprehensive RE
Database as part of the National Energy Databank
- Twinning of RE projects
- Solar Water Heaters to adopted as standards in all new housing estates through the
Housing Policy to serve as electricity demand management strategy.
- Feed-in-Tariff: Appropriate Feed-in-Tariff need be worked out by the stakeholders for
grid-connected renewable electricity.
- Strengthening Policy and Administrative Frameworks by passing both the National Energy
Policy and the National Renewable Energy Masterplan into law as well as the
assignment of coordination of the nation’s RE activities to the ECN by appropriate
amendment of its enabling Act.
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6. CONCLUSION
 The Renewable Energy resources of Nigeria can be effectively
harnessed to be the vital input for sustainable socio-economic
growth of the nation as the resources are inexhaustible and they do
not contribute to global warming.
 For this to be possible national energy policies should incentivize
the private sector private sector with significant fiscal measures.
 An Energy Development Fund is necessary to be used for
incentivizing the production and use of RE and also to support the
FEED-IN-TARIFF.
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