LAW AND POLICY ON RENEWABLE ENERGY SOURCES IN NIGERIA: A

CRITICAL APPRAISALBY

S. U. YAMUSA II AND A. H. ANSARI

INTRODUCTION• Nigeria is a member of OPEC with about 33-45 billion

bbls reserve of crude oil and 4502.4 billion M2 (159 Trillion scf) reserve of natural gas

• The country had commercial discovery of oil in 1956 and first exportation in 1958(about 5,100 bpd)

• The First petroleum law was enacted in 1914 know as Oil Mineral Ordinance of 1914

• Gas flaring started since in 1950s, therefore, over 50 years of air pollution recorded in the Niger Delta

• The country is bless with a number of renewable energy sources (wind, small-hydro, Biomass and solar) sustainable but yet to be exploited

CONCEPTUAL FRAMEWORK

• The country needs diversification of the energy sources for sustainability and efficiency

• It will support human, economic, social, and environmental development for a long period of time

• Sustainability of energy is not limited to constant supply but also to the production and supply of energy to strike a balance between human well being and ecology

• The Brundtland Report identified energy sustainability to include sufficiency, sustainable grow, supply to meet with human need for all times to come

KEY DRIVERS FOR RENEWABLE ENEGY DEVELOPMENT IN NIGERIA

• The demand-supply gap especially as population increases• A large untapped potential available in the country• Concern for environment to avoid degradation • The need to strengthen energy security in the country• Pressure on high-emission industry sector from the oil

companies • It is a viable solution for rural electrification• Insecurity/insurgency in the North, oil bunkering in the

south and the kidnap of expert-trade and very important personalities in the country due to lack of jobs

ENERGY CONSUMPTION TREND IN NIGERIA

• The consumption of energy in Nigeria is not in any way different from the energy needs of other sovereign states.

• Stable power supply in the country needs about 20,000 to 30,000 MW of electricity

• Power production in the country is below 4,000 MW• Presently 17 companies are working to upgrade the

existing structure• Attractive tariff may help matter in power generation

in the country• Government should provide subsidy to attract

investors

POLICY DELINEATION IN NIGERIA

• There is several energy policy in the country as coordinated by energy commission, but these policies need review to incorporate renewable energy

• The need for government to improve its political will for most of these policies to be implemented

LEGAL AND INSTITUTIONAL FRAMEWORK

• There is no strong law governing energy generation through renewable sources

• There is need for specific agency for renewable energy development in the country

• The energy commission is supposedly to promote as such but the commission is still following up the enactment of renewable energy law in the National Assembly

• There is the need to protect the environment through energy diversification and renewable is the answer

ENERGY COMMISSION OF NIGERIA

• Established in 1979 by Act No. 62 as amended by Act No. 32 of 1988 and Act No. 19 of 1989

• It is the apex government body charged with the responsibility of carrying out the country’s energy sector

• Its includes planning, policy implementation and the diversification of energy sources

OBJECTIVES OF THE COMMISSION

• To increase the energy sector that will add to the development of National income and economy

• Provide adequate and sustainable optimal supply of energy

• To provide sufficient consumption pattern for indigenous energy technology and acquisition of foreign technology

• To increase private investments and development of the energy sector

FUNCTION, RESPONSIBILITIES, CHALLENGES AND

RECOMMENDATION• Planning, coordinating, providing effective direction on policy formation and

implementation• Its over see the energy centers in the country• CHALLENGES• Funding • Policies needs review since 2007• Data not updated• No legal framework for renewable • It is difficult to implement policies• RECOMMENDATION• Legal framework to be put in place• Funding to be provided by both the government and private sectors• Political will from the leadership to be provided• incentive to be provided• Research funding to be increased

NIGERIAN ELECTRICITY REGULATORY COMMISSION

• It is an independent regulator as an agency established on 31st October 2005 by the electricity power sector reform (EPSR) Act 2005

• RESPONSILITIES• Monitoring and regulating the electricity in the country• Issuance of license to market participant in generation,

transmission, system operation, distribution and trading of electricity

• CHANLLENGES• Bureaucratic and institutional processes • How it can best standardize market• Participates across the rudiments of the regulatory scenery of

economic constraint and rates

MULTI YEAR TARIFF AND ORDER 2012

• This price system was adopted in October 2012 in preparation for the privatization of the electricity sector and it was outline to take-care of the following

• Consumer/investors rights and obligations• Rational for price increase if the need arises • Consultations carried out by the commission• Measures to mitigate effect of tariff increase• Benefit of MYTO to consumers• Retail tariff structure

MAJOR CHALLEGES TO THE DEVELOMENT OF SOURCES OF

RNEWABLE ENERGY IN NIGERIA• The country is facing the problem of economic,

social and human development• Poverty rate in 1980 was 28.1%, moved to 70% in

2004 with an annual increase of about 2% yearly. Presently about 130 million out of the 160 million Nigerians are poor in the country despite the country’s natural resources

• UNDP report shows that nine in every 10 Nigerians live on less than two dollar per day

CONCLUSION

• The country’s energy needs should be provided through diversification of the energy sources rightly available in the country

• The companies presently involve in the ongoing privatization of the power sector should be encourage by the government by providing enabling environment by adjusting the difficult regulations

THANK YOU