Dr Akinwale Aboyade

Energy Specialist: University of Johannesburg

Prof Oluwaseyi Ajayi

Associate Professor: Covenant University

Azuka Ogundeji

Managing Director: Dynovate Nigeria Limited

Ayodeji O’Deji

CEO: Protergia Nigeria Limited

Mollagee Mansoor

Director: Process,University of Johannesburg

Assessing Nigeria’s Preparedness for

Large-Scale Deployment of

Embedded Renewable Energy

Generation

Context

Outline• Background

• What is embedded generation (EG)?

• Why EG?

• Technology options for EG

• Global EG Status

• Components of a successful EG regime

• RE based EG in Nigeria

• Conclusions

Background: Power Grid

Source: en.wikipedia.org

Transmission grid

Distribution grid

Utility scale generators

Consumer(Industry)

Consumers(Homes)

Source: en.wikipedia.org

Background: Power Grid

What is EG?• Definition: Power

generation embedded within a distribution network

• EG also called:

Distributed generation

Decentralised generation

• EG is not a new phenomenon. It preceded centralised systems

Transmission grid

Distribution grid

Utility scale generators

Consumer(Industry)

Consumers(Homes)

Why EG?• Reduced need for large-scale generators

• EGs not necessarily more expensive (scale economy, less permits required)

• EGs are quicker to deploy• Reduced need for transmission

infrastructure/losses• Increased system reliability/resilience• Supply and demand matching• Reduced need for peaking plants• Creates more jobs (SME development)

Options for EG• Conventional technologies

• Primary fossils (Gas/Oil/Coal)

• Diesel

• Hydro

• New Alternatives

• Solar

• Wind

• Biomass

• CHP

• Tri-generationSource: cleanenergytransmission.org

More about RE…• RE is better suited to EG for

some key reasons:

• scalability

• location flexibility

• environmentally sustainable

• RE technologies are now established and reliable

• RE is increasingly price competitive

Source: www.fermeng.ie

More about RE..

Issues in RE-EG

• Intermittence

• PV and wind cannot be used as base load (but bioenergy and hydro can)

• Upfront cost

• Especially with storage

EG Status: Global

2000 2012 20200

55

110

165

220

EG Capacity (GW)

2000 2012 20200

50

100

150

200

250

Investment (Bil-lion USD)

2000 2012 20200

12.5

25

37.5

50

Share of Capac-ity (%)

Components of successful EG regime

EG success

InfrastructureTechsupport

Market/pricingStandards/

codes

Incentives

Net metering

Smart grids

Case for RE-EG in Nigeria

• Reduced need/urgency for large-scale generators

• Reduced need for transmission infrastructure/losses

• Increasing cost of alternatives

• Encourage adoption of smart grids

• Increased local economic development (SME involvement)

EG Status: Nigeria• EG not a success by any

means

• It is however now receiving attention under the new power sector reforms

• Aggreko

• Few examples of RE developers

• Protergia

EG regulations in Nigeria

• Regulations for Embedded Generation 2012

• Regulations for Captive generations 2012

• New regulations for procurement of generation capacity 2014 (exemptions for <10MW)

• Distribution Code v01

RE Development in Nigeria

Targets (MW)

Now Short Term2013-2015

Medium Term 2016-2020

Long Term 2021-2030

Hydro (large) 1938 4000 9000 11,250

Hydro (small)

6015 100 760 3,500

Solar PV 15 300 4000 30, 005

Solar Thermal 300 2,136 18,127

Biomass 5 30 100

Wind 10 23 40 50

All 2010 4,625 88,698 315,158

RE Potential

• Solar potential: good to great

• Wind: Poor to very good

• Biomass

• Energy crops: great

• Waste: great

• Hydro: great

Main challenges

• Lack of policy support/certainty

• Lack of awareness

• Lack of accurate data on resource potential

A vision for the future

• Smart grids

• Integrated energy systems

It is possible!

Way forward• Stakeholder consultation

• Resource assessment

• Grid capacity assessment

• Market interventions to reduce transactional costs

• Standards and regulations

• Coherent Industry lobby

• Raising awareness

• Skills transfer

Thank you!

Questions?