Infrastucture Energy Infrastructure Low Carbon Energy DDPaper 26072011 Eke

8/6/2019 Infrastucture Energy Infrastructure Low Carbon Energy DDPaper 26072011 Eke

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Low Carbon Energy: Sustainable Answer toNigeria Energy Security Goals

Dr Paul Emeka EkePeprime Limited, Edinburgh United Kingdom

(Paper presented at the 2011 Diaspora Day Celebration/Science & Technology Annual Conference Abuja, July 25-27, 2011 )

AbstractsNigeria energy security goals are faced with the challenges of largeinfrastructure development in this era of low carbon economy whichrequires development of a portfolio of low carbon energy technologiesfor the electricity and transport markets. Low carbon energy comesfrom sources that produce lower greenhouse gases than do traditionalmeans of energy generation. These energy generation techniques emitsignificantly less carbon dioxide than a traditional fossil fuel powerplant. Integrating low carbon energy resources into our energy system

presents challenges. However, these barriers will need to be addressedif we are to accelerate the development of right energy mix.If a low-carbon energy economy is possible, the big question is how weget there from here considering our current energy predicament. Theroad ahead will be long and expensive, but it has become essentialthat Nigeria should get the redesigning of new energy system andinfrastructure right. A successful transition will nonetheless require apowerful combination of government policy changes, steadytechnological progress, and the rechanneling of private investment.

The paper presents technologies and infrastructures that are costeffective and will help us meet the desired energy security goals. Thepaper will attempt to bring Diaspora success story home to integrateinto transformation agenda by presenting case studies around theworld and proof of adaptability to Nigerian context.

IntroductionIn some cases, the surprise element is only a matter of timing: anenergy transition, for example is inevitable; the only questions arewhen and how abruptly or smoothly such a transition occurs. Anenergy transition from one type of fuel (fossil fuels) to another(alternative) is an event that historically has only happened once acentury at most with momentous consequences. -US NationalIntelligence Council 2008.

Nigeria like the World Bank Group should envision a transition fromtraditional to modern energy (low-carbon energy) use for poorhouseholds that go hand in hand with efficient and environmentallysustainable supply and use of energy, greater choice of energy servicesfor consumers, and macroeconomic and fiscal stability.It is certain that we live in carbon-constrained world which requiresimmediate transition to handle the dynamics affecting availability anddemand for hydrocarbons as we put sustainability of our environment

in the center stage via the international climate change mitigation


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agenda. This agenda calls for all hands to be on deck to tackle majorcomponents such as renewable energy transition, carbon legislation,and the new risks emanating from technological change and climateinstability. Historically, energy security has been understood asdefence against supply disruption and price instability. Within thismindset, protecting the status quo is paramount. Yet dynamic trends,

including the sharp rise in demand from newly industrialisingeconomies, carbon-dioxide (CO2) induced global warming and thegrowth of alternative energy technologies, mean that protectingtraditional energy practices will make us far less secure, and lesscompetitive, in the future (Froggatt and Lahn 2010). This is inaddition to the threat that climate change poses to energyinfrastructure. These are not issues for the energy sector alone butchallenge to entire humanity. Reducing the impacts of the use ofenergy has been described as one of the key technical, political andmoral challenges facing the world today.Fossil-fuel combustion produces CO2, which is a major greenhouse

gas. Society now consumes approximately 13 TW (1 TW = 1012, W =3.2 EJ/year) of energy worldwide, and approximately 80% of thatcomes from burning fossil fuels (Goldemberg and Johansson 2004,Eke et al. 2011). Kaya (1995) suggests that there is a direct linkbetween net CO2 emissions (indicated by carbon C) and humanpopulation (P), economic development (indicated by the gross domesticproduct (GDP), energy production (E), and carbon-based fuels used forenergy production (F). This was modified by Hoffert et al. (1998) toinclude CO2 sinks (SCO2); hence, Cis expressed

. . . . . . . . . . . . . . . . . . . . . . . . . . . (1) This relationship shows that the forces that drive the increase inanthropogenic CO2 emissions are population increase, per capita GDP(also known as affluence level), the energy intensity of the economy(E/GDP), and the carbon intensity of the energy system (F/E). Theterm E/GDP reflects the sectorial makeup of the economy (i.e., howmuch energy-intensive industry is present), climate effects (i.e., howmuch heating and/or cooling is needed), and the energy efficiency ofthe economy (Bachu 2008). As worldwide demand for Energy rises inthe face of the current global climatic change, economic crisis andever increasing environmental constraints, a critical evolution ofpracticable adaptation schemes for promoting sustainable energy mixand exploitation of fundamental resources is crucial. In an era where

global energy demand as a result of increased population growth,industrialization and urbanization is currently placing severe pressureon available sources of energy, the result has been dramatic increasein energy prices and climate change. Despite this huge energyconsumption, technological and economic advances, some two billionpeople are still without electric light. Fossil fuels will inevitablycontinue to be a major energy source for decades to come, as globalpopulation and energy demand is growing rapidly, particularly indeveloping economies such as Nigeria, China and India, with no


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absolute reduction in established emitters such as the USA or the EU(Figure 1). The trend in this figure suggests that liquid fuel, coal andnatural gas will continue to dominate energy use but natural gasremains best low carbon energy source option.

Figure 1. World marketed energy use by fuel type (EIA-IEO10)

These huge fossil-fuel consumptions directly translate to massive CO2emmissions and Carbon capture and storage (CCS) pose an importantelement in transition to low carbon economy (Eke et al. 2011). CO2emissions are directly linked to climate change which creates manyrisks and uncertainties for society and industry. Moreover, scientificevidence indicates ever more forcefully that human use of energy isupsetting planetary systems, with consequences that could becatastrophic. The way we manage energy worldwide is creating serious

problems for climate and energy security. Anticipated disruptionaround energy, water and other critical natural resources pose newpolitical, economic and human security challenges. We know that to

keep global warming to 2C above historical levels require a step-change in the way energy is produced, transported and used (Froggattand Lahn 2010). Managing energy worldwide is creating seriousproblems for climate and energy security. The need is urgent torethink the fundamentals and reassess the arrangements andprocesses for managing energy, in all its diverse manifestations. Thetechnical potential for improvement in many contexts is substantial.But realizing this potential will entail significant changes in

institutions, business and finances. Such changes will only happen

swiftly and effectively enough if those involved see them asadvantageous.Until now, energy generation and supply (distribution) concerns tendto dominate national energy policies, but this should change (alreadychanging?) if Nigeria government sincerely intend to ensuresustainable energy security which calls for complete policy shifttowards low carbon energy via CO2 reductions technologies. Lowcarbon energy is the answer to Nigerias energy security goals as this


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is also vital for economic recovery and competitiveness. The energychallenge facing Nigeria is significant but not insurmountable.Ensuring security of energy supply to a liberalised market in modernworld full of energy champions requires careful design of bothregulation and policy strategy. The government must find its role increating conducive environment for any company ready to invest,

build and operate power generating plants or deliver supplies toNigeria to compete on level terms with the national champions ofother countries. Nigeria already has significant energy infrastructureshortage. The advantage of lacking an existing system at least has aclean sheet advantage in the transition to a low carbon economy.

This suggests that Nigeria can leapfrog developed nations in terms oflow carbon energy systems, much in the same way as Nigeria andsome African countries are jumping from zero telephony to moderninformation and communications technology. As the US and Europespend billions to reconfigure their transmission and distribution grids,making them smarter and adding more decentralised, decarbonised

power generation to the mix dismantling the systems in place andaccompanying vested interests presents a serious challenge (Lahn2010).

Sustainable and low-carbon energy technologies antidote toNigeria energy securityNigeria transition from traditional to modern energy (low-carbonenergy) should focus on two key components - efficient andenvironmentally sustainable supply. Sustainable energy are renewableas their rate of use does not affect their availability in future, thusthey are inexhaustible. The renewable energy resources are generallydistributed all over Nigeria, even though wide spatial and temporal

variations occur. Thus all regions of the country have reasonableaccess to one or more forms of renewable energy supply. They areclean and pollution-free, and therefore are sustainable natural form ofenergy. They can be cheaply and continuously harvested and thereforesustainable source of energy.Low-carbon energy technologies refer to technologies that emit lesscarbon dioxide (CO2) than the energy technologies that rely ontraditional fossil fuels (oil, coal, and gas). They are based on renewableresources (like wind, sun and biomass) or enable the sustainable useof fossil fuels (like carbon capture and storage). Examples of lowcarbon energy technologies are the ones created through wind power,solar energy (including photovoltacs and concentrated solar power),bioenergy, new electricity grids, carbon capture and storage (CCS),nuclear fission and fusion energy, fuel cells and hydrogen, energyefficiency in buildings or transport.In the long term, the solutions to Nigeria energy security goals are wellunderstood: developing next generation infrastructure (Low carbonenergy technologies), reducing our dependence on fossil fuels througha combination of right energy mix & efficiency, smart grids and low-carbon power sources (renewable). It is essential that Nigeria should


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get the redesigning of the energy system and infrastructure right byidentifying renewable energy potentials in the different regions ofNigeria as well as adopt low carbon energy technologies in the coreplan. The paper focuses on two pillars of energy security, one toestablish, promote and maintain right energy resource mix, and asecond to deploy low carbon energy solutions to combat climate

change. These involves strategic energy sector planning which could provideframework for investment in lower-carbon and lower-cost electricity inrural and urban concentration. The planning should involve public-private partnerships in infrastructure development which willtranslate to affordable, reliable and sustainable energy. Such planningwill result to a broader engagement with a range of stakeholders in thesector which is focused on strengthening the enabling environment,information exchange and consensus-building toward a low carbongrowth path (e.g. via hydroelectric power) and increasing access toelectricity.

Nigerias strategic priorities should reflect both its appropriateness totackling energy security but also the need to incorporate a low-carbon, high growth economy. The tension between energy security, decarbonisation andaffordability place a clear limit on how far energy security can berolled into the climate change debate, and underlines the importanceof addressing it directly. The level of focus on energy security shouldtherefore be dependent on the low carbon energy bearing in mind thatlow carbon is the answer, not just to climate change but also toenergy security.One might be tempted to suggest that energy security would be amore focused policy area than climate change (low carbon energy), but

considering that Nigeria is almost building the entire energyinfrastructure from the scratch it is incredibly important that bothshould go together as part of the plan.

Why does Nigeria need to move to a "low-carbon economy"?There are several reasons why Nigeria should move to a "low-carbon"economy:

Nigeria is experiencing energy infrastructure shortage andshould take this lack as clean sheet advantage in theinfrastructure development and transition to a low carboneconomy.

To fight against climate change: fossil fuels are the chief culpritsin the production of greenhouse gases. According to theInternational Energy Agency (IEA) and the IntergovernmentalPanel on Climate Change IPCC special report, limiting thetemperature increase to 2C will require that CO2 emissions bereduced globally by at least 50% by 2050. The IEA estimatesthat this reduction in the energy sector will have to be achievedwith increased energy efficiency, renewable energy, nuclear


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power and Carbon Capture Storage (IEAGHG. 1994, IPCC2005).

To ensure our energy security: today, our primary energy supplyis dependent on fossil fuels. Moreover, supplies from fossil fuelsare becoming scarcer, more expensive and less secure. On thecontrary, the majority low-carbon energy sources, like hydro,

biomass, wind, solar or energy efficiency are locally producedand far less dependent from abroad.

To create growth and jobs: the development of low-carbontechnologies can put Nigeria at the forefront of the fast-growingeconomic sector of clean and efficient technologies. They willcreate many new jobs.

What are Nigerias current energy resources and challenges?Nigeria is blessed with abundant energy resources (Table 1). Nigeria interms of energy utilisation rating could be described to be in viciouscircles of energy poverty and crisis. Nigerias energy poverty comes in

many forms. Majority of Nigerias population still have no access toelectricity; many more are blighted by power cuts, voltage fluctuationsand liquid fuel shortages (especially kerosene). Very low electricitygeneration and distribution which signifies energy poverty of firstorder throws urban and rural communities to indescribable hardship.Poor rural communities in particular suffer from a reliance onbiomass and kerosene, often with deleterious effects on peopleshealth on children and women in particular and the environment.In Nigeria like other low-income countries, a vicious circle emerges inwhich subsidised energy prices and often non-payment of bills cripple investment in infrastructure. This leads to inefficient servicesor delays in connection which acts as a disincentive to

entrepreneurship and increased productivity, and keeps poorercommunities vulnerable to any hike in energy prices (Lahn 2010).Nigeria as one of the developing economies face the complex energychallenges of how to continue to provide adequate supplies of energyto fuel economic growth while giving millions of people access toenergy needed to improve quality of life without adding to the growingcocktail body of green house gas emissions and the critical issue ofclimate change. Major emission of greenhouse gases in Nigeria arisesfrom activities of fossil fuel energy production including flaring andutilization, but oil spillage and deforestation are also threats to theenvironment. Deforestation particularly leads to desertification,reduction of environmental oxygen, flooding and erosion. Erosion onthe other hand posses a great danger to both lives and properties.Consequently communities in Nigeria are facing increasing threat as aresult of climate change, desertification, sea level rise, more intenseflooding, changes in rainfall patterns, diminishing water availability,and new health related hazards. These challenges impact negativelyaffecting the livelihood of the most vulnerable people, adding to theexisting problems associated with climate variability and developmentneeds. These challenges demand urgent attention, especially in the


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power sector which implies that the task ahead is to accelerateprogress especially towards renewable energy mix, increase energyefficiency and low carbon energy sources. The summary of issues andstate of energy in Nigeria is presented (Table 2).

Table 1. Energy Resources in Nigeria

Resource Value Units Rank Period Source

Wind Potential 0

Area(km)Class 3-7Wind at50m

158 1990 NREL

Solar Potential 2,783,723,951 MWh/year 35 2008 NREL

Coal Reserves 209.44MillionShortTons

49 2008 EIA

Natural Gas Reserves 5,246,000,000,000CubicMeters (cum)

8 2010CIAWorldFactbook

Oil Reserves 37,500,000,000Barrels(bbl)

10 2010CIAWorldFactbook

Table 2. Nigeria Energy Issues at a Glance

Title: Nigeria Energy Point of Reference: 2010Sources:

Total installed electricity capacity (2006): 6,000MW

Hydro: 33%

Thermal: 67%

Total primary energy supply (2007): 106,683 ktoe

Biomass: 80.1%

Natural gas: 9.9%

Oil and petroleum products: 9.3%

Hydro-electric: ~0.7%

Actual output represents about half of the installed capacity.

Government plans to boost power production through new gas

plants and Independent Power Producers (IPPs).

Reliance:Despite significant coal deposits in the country, consumption is

insignificant. Nigeria's refining capacity is currently insufficient


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to meet domestic demand, requiring the country to import

petroleum products. The Nigeria national electricity utility is

already considering the importation of 5,000MW of electricity

through Calabar from the INGA hydropower project beginning

2015 via the western corridor. However, negotiations are

required, as Nigeria's need is considerably greater than that

provided by this project.

ExtendedNetwork: Electricity access:

Urban: 40%

Rural: 10%

Primary transmission of electricity is facilitated by 330 kV and

122 kV lines, with 33 kV and 11 kV distribution feeders

supplying major population centres.CapacityConcerns: With the exception of urban supplies that are catered for by

commercial dealers, fuelwood is freely collected by rural

dwellers. There is a significant disparity between the rate of

wood consumption and the rate of reforestation.

There is an 80% demand/supply gap in Nigeria, and most

businesses self-generate their power. Additionally, the

transmission network is overloaded, with a poor voltage profile

in most parts of the network. There are frequent system

collapses and exceedingly high transmission losses, often in the

region of 30-35%.

RenewableEnergy: Solar

Average solar insolation stands at roughly 5.25 kWh/ m2/day.

Solar photovoltaic technologies are used for small-scale power

supply in some rural electrification programs for some States of

the federation. If solar energy appliances with just 5% efficiency

are used to cover only 1% of the country's surface area then

over 269 MWh of electrical energy can be obtained from solar

energy. This amount of electrical energy is equivalent to 4.66

million barrels of oil per day.

Wind

Wind speeds in Nigeria range from a low 1.4 to 3.0m/s in the

Southern areas, to 4.0 to 5.1m/s in the extreme North. Wind


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speeds in Nigeria are generally weak in the South, except for

the coastal regions and offshore locations. A pilot project in

Katsina state was commenced by the government in 2007, and

a 30 MW plant constructed by the Manufacturer's Association

of Nigeria is under construction.

Biomass

The Nigerian government intends to develop a sugar-cane

plantation fitted with a bioethanol production unit, producing

70-80 million litres annually. It also plans to establish a 5,000-

10,000 hectare cassava plantation fitted with a bioethanol

production unit capable of producing 50-60 million litres each

year. The projects are to be implemented in the Jigawa State.

The Energy Commission of Nigeria (ECN), the National Centre

for Energy Research and Development (NCERD), the Nsukka

and the Sokoto Energy Research Centre (SERC) are among the

local institutions that have constructed bio-digesters in Nigeria.

Geothermal

Whilst preliminary studies performed in the 1980s confirmed

Nigeria's geothermal potential, and recommended further

study, no study has been undertaken to determine the true

extent of the country's geothermal power resource.

Hydropower

The hydropower potential of Nigeria is very high, and it

currently accounts for about 29% of the total electrical power

supply. The overall hydropower resources potentially

exploitable in Nigeria are in excess of 11,000MW.

EnergyEfficiency: Households consume 95% of the country's fuel-wood supply.

Primary energy consumption per capita is 0.72 toe (2007), with

the residential sector contributing most to final energy demand.

This is primarily due to the use of fuel-wood for heating, light

and cooking in many areas of the country. Extension of grid

electricity, or the installation of renewable distributed

generation systems, would assuage this. Issues identified

within Nigeria include the dominant use of incandescent light

bulbs and inefficient, often second-hand heating and cooling


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equipment.

Ownership:Electricity

The Electric Power Sector Reform Act 2005, adopted a

wholesale competition model as opposed to the single- buyer

model or retail competition. In this arrangement, distribution

companies buy power directly from generators, and the

transmission company is a pure electricity transport and

dispatch company. Adoption of this model has paved way for

the breaking down of NEPA, the former National Electric Power

Authority, into 18 companies, including 6 generators, 11

distributors and one transmission company. In addition, the

Act made provision for the reform to occur in phases. First, a

100% state-owned Power Holding Company of Nigeria

(PHCN, www.phcnonline.com) is created and vested with the

assets and liabilities of NEPA. This company co-exists with

Independent Power Producers (IPPs), of which NEPA had signed

power purchase agreements.

Liquid fuels

The Nigerian National Petroleum Corporation

(NNPC, www.nnpcgroup.com) manages the state-owned oil

industry. The NNPC holds a 49% share in the Nigeria Liquefied

Natural Gas (NLNG) Company. The largest joint venture is

operated by Shell Petroleum Development Company (SPDC).

Additional foreign companies operating in joint ventures with

the NNPC include ExxonMobil, Chevron, ConocoPhillips, Total,

Agip and Addax Petroleum.

CompetitionThe electricity sector has been liberalised, leading to private

sector participation in the generation sector, and a number of

operational IPPs in the country today. The reform has so far led

to the incorporation and unbundling of the national state-

owned utility, now known as the Power Holding Company of

Nigeria (PHCN). The unbundling has led to the

establishment of 18 successor companies from NEPA. Each of

the 18 companies has its own management, that is self

accounting and not dependent on government funding. The


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Bureau for Public Enterprise (BPE) is now preparing each of

these companies for privatisation

The Nigerian National Petroleum Corporation (NNPC), which in

1988 was divided into 12 subsidiaries, manages the state-

owned oil industry, and is responsible, through its subsidiaries,

for all operations in the sector.

EnergyFramework: National Energy Policy

The National Energy Policy was approved by the government in

2003 with the overall theme of optimal utilization of the

nations energy resources; both conventional and renewable, for

sustainable development, and with the active participation of

the private sector. The policy articulated, amongst other things,

that:

Extensive crude oil and natural gas exploration and

development shall be pursued with the view to increasing their

reserves base to the highest level possible,

The nation shall continue to engage extensively in the

development of electric power with the view to making reliable

electricity available to 75% of the population by 2020; as well

as to broaden the energy options for generating electricity.

Renewable Energy Master Plan for Nigeria (REMP) 2006

With support from the UNDP, it articulates:

Nigerias vision for achieving sustainable development,

A road map for renewable energy to help achieve this

vision;

The Plan also envisions:

Gradually moving from a fossil economy to one driven

by an increasing share of RE,

Exploiting RE in quantities and at prices that will

promote the achievement of equitable and sustainable growth,

An energy transition from crude oil to a less carbon

intensive economy increasingly powered by gas and RE.

EnergyDebates: The lack of a stable energy supply (in this case electric power)

is the primary challenge to the country in its race to become

one of the world's top 20 economies by 2020. At the same time,


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it is also evident that methods to find a permanent solution to

this problem have remained a top priority of government, at

least in the past nine years.

EnergyStudies: A feasibility study on Solar-PV in the country has been carried

out in 2004 and it was found out that solar PVs is the most

efficient and economical way to electrify villages in this region.

The Community Research and Development Centre has

produced a guide entitled Energy Efficiency Survey in Nigeria:

A Guide for Developing Policy and Legislation.

www.credcentre.org/Publications/EE%20Survey%20Nigeria.pdf

RoleGovernment: Energy Commission of Nigeria (ECN)

The ECN (www.energy.gov.ng) was established by Act No. 62 of

1979, as amended by Act No. 32 of 1988 and Act No. 19 of

1989, with the statutory mandate for the strategic planning

and co-ordination of national energy policies and all its

ramifications. By the Mandate, the ECN is empowered to carry

out overall energy sector planning and policy implementation,

promote the diversification of energy resources, including the

introduction of new and alternative energy resources, for

example solar, wind, biomass and nuclear energy.

Ministry of Energy

In 2007, the new Federal Ministry of Energy came into

existence as a result of the merger of the power sector, the

Petroleum Ministry and other relevant parastatals. The newly

created Ministry of Energy streamlines the activities of the

sector, and eliminates the problem of unnecessary overlap and

varying standards in the handling of matters relating to the

sector. It also has a role to ensure that the activities of all

energy related agencies are co-ordinated.

GovernmentAgencies: There are five Energy Research Centres under the Commission

with specific technical/research roles. These are:

The National Centre for Energy Research and

Development (NCERD), at the University of Nigeria, Nsukka

(responsible for research in solar and renewable energy),

The Sokoto Energy Research Centre (SERC), at Usmanu


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Danfodiyo University, Sokoto (also responsible for research in

solar and renewable energy),

The National Centre for Energy Efficiency and

Conservation (NCEEC) at the University of Lagos (responsible

for research in energy efficiency and conservation),

The National Centre for Hydropower Research and

Development (NCHRD) at the University of Ilorin (responsible

for research in hydropower),and

The National Centre for Petroleum Research and

Development (NCPRD) at the Abubakar Tafawa Balewa

University, Bauchi (responsible for research in petroleum, oil

and gas).

Energy

Procedure: National Energy Development Project

Funded by the World Bank and active from 2005 to 2010, this

project supported the governments energy sector reform effort

and facilitated the sectors smooth transition to the new market

and institutional structure.

Electricity and Gas Improvement Project

Funded by the World Bank from 2009 to 2014, the

development objectives of the Electricity and Gas Improvement

Project for Nigeria are to:

1. Improve the availability and reliability of gas supply to

increase power generation in existing public sector power

plants; and

2. Improve the power network's capacity and efficiency to

transmit and distribute quality electricity to the consumers.

EnergyRegulator: The Nigerian Electricity Regulatory

Commission(NERC, www.nercng.org) is responsible for

regulating the electricity sector. The legislative framework,

though delayed, is being finalised.

The oil industry is regulated by the Department of Petroleum

Resources(DPR, www.dprnigeria.com), a department within

the Ministry of Petroleum Resources.

DegreeIndependence: The Electric Power Sector Reform Act 2005 provides for the

tenured appointment of seven Commissioners for the NERC,


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with one of them designated as Chairman/Chief Executive

Officer, and another as Vice Chairman. The Commissioners are

nominated by the President and confirmed by the Senate.

Funding for the commission comes from operational revenue,

for example from the granting of licenses, and such monies as

allocated by the government for the Commission's operation, or

provided upon request of the Commission.

The Director-General of the Energy Commission of Nigeria is

the Secretary to the Commission. The Commission has the

power to regulate its own proceedings.

RegulatoryFramework: The NERC is currently working on appropriate feed-in tariffs

and other regulatory incentives for prospective investors, to

promote renewable energy generation in the country. Besides

this, the commission is also establishing a legal and regulatory

framework for embedded electricity generation, as well as

Independent Electricity Distribution Networks to encourage the

establishment of off-grid generation/distribution plants in the

country, to improve the population's access to electricity.

RegulatoryRoles: The Energy Commission of Nigeria is charged with energy

policy formulation and coordination.

The NERC is responsible for ensuring safe, reliable electricity

access for as much of the populace as possible, as well as

encouraging private-sector participation in the electricity

sector, the monitoring of sector actors and standards of

fairness promotion, and the protection of consumer rights.

The DPR ensures compliance with industry regulations;

processes applications for licenses, leases and permits,

establishes and enforces environmental regulations.

Energy Role

Regulation:

The Rural Electrification Agency of Nigeria was inaugurated in

March 2006 to rapidly expand rural and peri-urban access to

electricity in the country in a cost-effective manner, employing

both grid and off-grid options. It emphasizes the application of

subsidies, primarily on access expansion rather than

consumption, since the intention is to encourage greater

participation of the private sector providers.


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RegulatoryBarriers: N/A

Source: REEEP Policy Database, EIA, NREL, CIA World Factbook

Nigeria Energy Security Goals - The Diaspora Perspective &Insight

No country can develop without energy. We need energy for domestic,agricultural, industrial, commercial and official activities. Access toenergy is the dividing line between the poor countries and the richcountries. This explains why the developed countries of the world haveand consume far more energy than the developing andunderdeveloped countries. If Nigeria must tackle the problem ofpoverty, the country will need to provide energy for her citizens.

The problem lies in the fact that in the midst of abundant availabilityof resources (Table 1), such as solar, biomass, oil, gas and coal, etc,Nigeria still wallows in abject electricity scarcity. We suggestimmediate reform in the public policy and reposition the energy

strategy capable of stimulating public investment partnering with theprivate sector as the only credible route to meet our low carbon energysecurity goals which will automatically restart our economy. Wesuggest that Nigeria should strictly realign their energy sector reform

and transition programme to conform to the World Bank GroupEnergy and Mining Sector Boards objectives of reducing poverty andincreasing sustainable economic growth in developing and transitioneconomies. The Board believes that achieving these objectives requiressustainable and affordable energy services for all, including the poor,and that these services can best be provided by creating efficientmarkets in energymarkets that are open to investors and

enterprises both large and small, private and public, centralized anddecentralized. And the Board believes that expansion of access toenergy services for the poor needs to be based on markets thatfunction on sound commercial principles and on the preservation ofthe environment (The World Bank Groups Energy Program 2001).Our analysis of energy in line with this vision, we hence propose someinitiatives from various countries of the world to bring home Diasporaperspective in some of the projects we believe should help in theenergy & environmental sector transformation agenda.Name of initiative being proposed:

From Nigeria energy resource reserve (Figure 1), it is obvious that

fossil fuel especially natural gas reserve is abundant will continue to

dominate energy mix with significant contribution from other

renewable sources. Nigeria gas resources like global natural gas

resources are vast and can help improve energy security. However,

nuclear power plant is not an option to our energy security goals as


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other established nuclear plant users are putting up policies to lower

growth or stop nuclear plant use. If Nigeria wants to decarbonise

electricity (low carbon energy) we need to do it [fit CCS to existing and

new gas plants]. Nigeria should insist on new CCS policy as major

part of energy transition agenda so that new gas plants should be

subject to the same rules that force new coal plants to fit carbon

capture and storage (CCS) technology in other countries. Nigeria

should join the Golden Age of Gas which incorporates a combination

of new factors that could support a more positive future outlook for

gas. To realise Nigerias vision for energy, some of the recommended

low and sustainable energy technologies were were:

Renewable Energy, Power and Waste Management Waste to

Energy; this technology involves conversion of municipal solid wastesor other wastes to energy. This initiative cuts across Power, RenewableEnergy and Waste Management.

Gas to Liquid (GTL) - Low carbon energy and carbon abatementtechnology of interest. GTL will convert flared or stranded gas to liquid

petroleum products, both proposed technologies provides option of CDMand automatically makes Nigeria one of the countries implementingclimate-friendly technologies and CO2 emissions reduction options(climate change goals).


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Constructed Wetlands and Ecological Engineering: This technologysimply involves the design of ecosystems for the mutual benefit ofhumans and nature. Engineered wetlands greatly advance thetreatment capacity of wetland treatment systems and enable a simple,low cost alternative to challenging wastewater or pollution problems

such as oil spill in water or land and refinery effluent.

Type of initiative: Low Carbon Energy, Renewable Energy, Power andWaste Management TechnologiesCountry and location in which similar intervention has beenimplemented: China (Beijing Gaoantun), UK (Scotgen DumfriesScotland, Baldovie Dundee, Kent Enviropower Ltd, Anglia waters,Mayfield Refurbishment and Upgrade, Heathrow Airport (London),etc),Iceland (Husavik), Alberta Canada, USA (various: Amoco Refinery(Casper Wyoming), ARCO Refinery (Wellsville, New York), BuffaloAirport (Buffalo, New York), etc

Evidence to support that the same can be adapted to the Nigeriancontext: Municipal solid waste is abundant every where in Nigeria, hencemaking waste to energy technology adaptable to Nigerian context.

Flared gas is cheap or almost free in Nigeria making gas to liquidvery suitable to our context. Constructed Wetlands and Ecological Engineering serves as a long-term solution to our numerous oil spills, refinery and industrialeffluents. We need to apply this technology today in all newly builtrefineries/ old ones, and industries as part of a new "green economy"to continue an effective remediation of our natural resource andsupport the Niger Delta region.Cost effectiveness/ Expected Outcome:


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These technologies are cost effective considering that the feed stocks(municipal solid wastes/biomass) and flared gas are cheap or almostfree in Nigeria. The proposed technologies are cheaper than anyexisting energy (power) generating technologies in our countryincluding gas power plant. Moreover, these technologies will help usmeet the desired energy security goals.

Constructed Wetland treatment system is a simple, low costalternative to challenging wastewater problems and remediation. Thepetroleum that we use to fuel our society started out millions of yearsago as plants, and like plants, it is biodegradable. Many types ofmicrobes are adapted to use that petroleum as a food source, and theyexist naturally in wetlands and marine environments. The humanchallenge is to intelligently work with those ecosystems to acceleratethat healing process from a few decades to a few years. We (I &partners) spent years to develop this idea (technology) and it hasalready been proven by the oil industry in treatment systemsoperating around the world. Using the power of the environment to

clean things up as quickly as possible is within our (Nigeria) grasp. This technology is easily integrated into any (power plant, refinery,private household/estate, various industries, etc ) facility design, e.g.Constructed wetland was integrated into Minnesota Municipal PowerAgency recently constructed 260-MW combined-cycle powergenerating facility near Faribault, Minnesota.We wish to bring the success story home and formerly invite theFederal Ministry of Environment/Petroleum/Energy, Industries,regulatory bodies, policy makers and private investors to partner withus.

We suggest that Nigeria should adopt the World Bank Group energy

business lines as stated below:Helping the Poor Directly Facilitating access to modern fuels and electricity Reducing the cost and improving the quality of energy supplied tolow-income households Ensuring that energy subsidies are targeted to and reach the poor Promoting energy-efficient and less polluting end-use technologiesfor traditional fuels Creating energy service enterprises run by the poor Supporting energy needed for social services (health, education,communication)Improving Macroeconomic and Fiscal Balances Rationalizing energy taxes Replacing public investments with private ones Managing risks associated with contingent public liabilities Closing loss-making coal mines and oil refineries and financingrestructuring costs that fall ongovernment budgets Enhancing effective payment by all energy users to eliminateoperating subsidies to state-owned enterprises


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Improving procurement and marketing of imported and exportedenergy products

Promoting Good Governance and Private Sector Development Creating objective, transparent, and non-discriminatory regulatorymechanisms Introducing and expanding competition and cross-border trade

Divesting assets to strategic investors and regulating markets inways that are socially responsible andcorruption free Catalyzing private investment by liberalizing entry to energy markets Strengthening the voice of consumers and communities Strengthening local financial institutions to provide long-termfinancing for rural energy businessProtecting the Environment Promoting clean transport fuels and switching from coal to gas Facilitating environmentally sustainable extraction, production,processing, transport, and distribution

of oil, gas, and coal Strengthening environmental management capacity in energy supply Removing market and regulatory barriers to renewable energy andenergy efficiency investments forpower and biomass (such as improved cooking stoves for the poor) Reducing gas flaring and facilitating carbon trading and jointinvestments to reduce greenhouse gas

However, timely and successful development of these resourcesdepends on a complex set of factors, including government policychoices, technological capability and market conditions.However, timely and successful development of these resources

depends on a complex set of factors, including government policychoices, technological capability and market conditions.

The paper recommends that the government should actively liaisewith Nigerians energy experts in Diaspora, donor, private sector, civilsociety and other partners operating in infrastructure sectors as wellas other important multi-sector government stakeholders, particularlythose involved in infrastructure financing.

We have to manage development of energy infrastructure with thetransition of dependence on carbon-based fossil fuels towards low-carbon energy sources. Despite anticipated challenges, the end goal isattractive as a diverse low-carbon energy supply implies greatersecurity and boost in economy. It is also in our interests to join forcesand act now to mitigate against catastrophic climate change.

Conclusion

Nigeria power large power lack is an advantage in terms of designingthe right & sustainable energy mix


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Carbon capture and storage MUST play significant role in our bid toattain energy security.

All hands should be on deck especially private investors as there arelimits to what the government can spend on electricity

Nigeria should stop all plans on Nuclear energy source and focus onlow carbon (gas power plant with CCS and renewable energy) source

ReferencesAntony Froggatt and Glada Lahn, Sustainable Energy Security:Strategic Risks and Opportunities for Business. Chatham House-Lloyd's 360 Risk Insight White Paper, June 2010.

Glada lahn, Chatham House: Shining Examples (Low CarbonSolutions to Energy Poverty), World Petroleum, First Magazine, Apr

2010.

Andrew Brinkley and Robert McIlveen, Running on Empty Coming toTerms with UK Gas Dependence. Policy exchange, January 2010.

Goldemberg, J. and Johansson, T.B. ed. 2004. World EnergyAssessment: Overview 2004 Update. New York: United NationsDevelopment Programme.http://www.undp.org/energy/docs/WEAOU_full.pdf.

Eke, P. E., Naylor, M., Haszeldine, S., and Curtis, A. 2011. CO2/BrineSurface Dissolution and Injection: CO2 Storage Enhancement. SPE

Projects, Facilities & Construction 6 (1): 41-53.

Kaya, Y. 1995. The role of CO2 removal and disposal. EnergyConversion and Management36 (69): 375380.

Hoffert, M.I., Caldeira, K., Jain, A.K., Haites, E.F., Harvey, L.D.D.,Potter, S.D., Schlesinger, M.E., Schneider, S.H., Watts, R.G., Wigley,

T.M.L., and Wuebbles, D.J. 1998. Energy implications of futurestabilization of atmospheric CO2 content. Nature 395 (29 October1998): 881884.

Walt Patterson, Managing Energy: Rethinking the Fundamentals -Managing Energy Technology. Working Paper, Chatham House,October 2010.

IEAGHG. 1994. Carbon dioxide disposal from power stations. Technical Study, ISBN 1 898373 15 9, IEA Greenhouse Gas R&DProgramme, Cheltenham, UK.


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IPCC Working Group III. 2005. IPCC Special Report on Carbon DioxideCapture and Storage, ed. B. Metz, O. Davidson, H.C. de Coninck, M.Loos, and L.A. Mayer. Cambridge, UK: Cambridge University Press.http://www.ipcc.ch/pdf/special-reports/srccs/srccs_wholereport.pdf.

The World Bank Groups Energy Program. Poverty Reduction,

Sustainability and Selectivity. Washington, DC USA 2001.

Speaker Profile

Dr Paul Eke, BEng(Hons), MSc, PhD, Engr, CEnv, CEng Chairman NIDOE UK North

Dr Eke is an Entrepreneur, Consultant, Chartered Engineer (CEng)with the UK Engineering Council, Registered Engineer (Engr) withCouncil for the Regulation of Engineering in Nigeria (COREN) andChartered Environmentalist (CEnv) with the UK Society for theEnvironment. He holds BEng (Hons) in Chemical Engineering fromEnugu State University of Science and Technology, MSc in Oil andGas Engineering from Robert Gordon University Aberdeen and PhD in

Civil and Environmental Engineering from the University ofEdinburgh. Dr Eke is an international consultant with diverseexperience/interests and has delivered services in various sectorssuch as Energy, Environment, Engineering, Oil & Gas, CarbonAbetment, Business & Technology development, Research and ProjectManagement. Dr Eke has published several papers and madenumerous presentations at national and international seminars &conferences. He is the founder and currently an Executive Director of

Peprime Limited, an international company engaging in diversesectors with major interests in Energy, Engineering andEnvironmental services. Dr Eke is passionate about Nigeria dream

and believes that hope for a better Nigeria lies in our (NigerianProfessionals in the Diaspora and home) resolve to be an instrument

of change we need to enhance the advancement of Nigerians, andhumanity in general. He is an activist with total commitment andconstantly mobilises people for development. He is Chairman, NIDOEUK North and NIDOE Diaspora Bill Committee Chairman.

Infrastucture Energy Infrastructure Low Carbon Energy DDPaper 26072011 Eke

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