LOW CARBON OPPORTUNITIES IN THE
NIGERIAN ENERGY SECTOR
By
Prof. A. S. Sambo
Director General/CEO
Energy Commission of Nigeria,
Abuja. Nigeria.
email: dg@energy.gov.ng, assambo@yahoo.com
*A Presentation made at the Low Carbon Energy for Development Network (LCEDN) conference,
Loughborough, United Kingdom, 4th and 5th April 2012.
1
CONTENTS
1.
Introduction
2.
3.
4.
5.
6.
Energy Resources in Nigeria
Energy Supply and Demand
Low Carbon Opportunities
Challenges
Conclusion
2
Jebba
1.
Introduction: Country Profile
• Nigeria is one of the 54 African
countries situated in Sub-Saharan
Africa. Nigeria lies in the tropics
within latitudes 4.32N and 14N
and longitudes 2.72E and 14.64E,
with land area of about 924,000 sq
km, which is about 3.1% of African
land area.
• The population in 2006 was 140
million, which was about 15% of the
continent’s population.
• Nigeria is a federal republic, made
up of 36 States and the Federal
Capital Territory (FCT), which
serves as the seat of the Federal
Government.
• Government is operated through
the presidential system, similar to
that in North America.
1. Introduction … Cont’d
90
GDP per capita (million $ / capita)
80
JAPAN
70
USA
60
CANADA
UK
50
Series1
40
CHINA
30
MALAYSIA/
S. AFRICA
NIGERIA(3rd
from left)
20
RUSSIA
10
0
0
1
2
3
4
5
6
7
8
9
Energy supply per capita (toe/capita)
Graphical representation of the relationship between Energy and
the Economy (2005) – IEA(2007)
5
1. Introduction … Cont’d
• Energy supply into the Nigerian economy is
abysmally low for its population and aspiration to
be amongst the 20 large economies in the world
by 2020.
• Huge amount of useful energy in the form of
electricity, beyond the current value of about
20TWh/year from an available capacity of about
4000MW, must be injected to get this national
aspiration on tract.
• However, this must be done in a responsible
and sustainable manner.
1. Introduction … Cont’d
• One of the risk factors to sustainable
development is the adverse effects of
climate change reported to be induced by
the upset of natural balance of green
house gases (GHG) in the atmosphere,
particularly carbon dioxide (C02), over
periods of about 30 years.
7
1. Introduction ….. Cont’d
• However, the excess carbon
dioxide in the atmosphere
responsible for climate change is
also reported to be largely
contributed by the consumption of
fossil fuels mainly in
transportation, power generation
and process heat activities.
8
1. Introduction … Cont’d
• This presentation briefly looks at
the low carbon opportunities in
the Nigerian energy sector, in its
quest to meet the energy demand
needed to grow prosperity in the
nation.
2. Energy Resources
a) Fossil Energy Resources
.
S/N
Resources
Reserves
Production
(2008)
Domestic
Utilization
(2008)
1
Crude Oil
36.2billion barrels
1.98mb/day
0.45mb/day
2
Natural
Gas
187 TSCF
2.28TSCF
▪59.1% - Fuel,
Industries, reinjection and
gas lift.
▪26.8% - gas
flare
3
Coal
2.7 billion tonnes
0
Negligible
4
Tar Sands
31 billion barrels
of oil equivalent
0
0.224 million
tones
Source: CBN (2009)
10
2. Energy Resources…….contd
b) Renewables and Nuclear
S/no
Resource
Reserve
Utilization Level
1
Large hydro power
11,250MW
1,972MW
Small Hydro power
3,500MW
64.2MW
Solar Energy
4.0KW/M2/day
-15MW solar PV stand-alone
-No solar thermal electricity
.2
3
6.5KW/M2/day
4
Wind
5
Biomass
6
Nuclear
2-4m/s at 10m height
-2x2.5KW electricity
generator
-10MW wind farm
contracted in 2009.
Fuel wood
11 million hectares of forest and
woodlands
43.4 million tonnes of fuel
wood/yr
Municipal
waste
- 18.3 million tonnes in 2005*
-
Animal waste
- 243 million assorted animals in 2001
-
Energy
Crops and
agric waste
- 28.2 million hectares of Arable land
8.5% cultivated
not yet quantified
Source: REMP (2005)
* FM EMV
30kW
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3.
Energy Supply and Demand
a) Energy Supply
S/N
ITEM
2003
2004
2005
2006
2007
2008
1.
Electricity generation
(billion kWh)
22.03
23.9
24.22
(503)*
(10,695)**
23.8
23.3
21.27
2.
Energy Consumption per
Capital
(Kgoe/Capita)
151.3
125.5
132.6
(680)*
(1,780)**
87.1
81.4
80.8
3.
Electricity
Consumption/capita
(kWh/Capita)
174.6
176.4
181.4
(563)*
(2596)**
167.6
161.2
142.9
Source: CBN (2006, 2008)
*Africa Average-IEA (2007)
**World Average-IEA (2007)
3. Energy Supply & Demand .... Cont’d
b) Projected Electricity Demand for Nigeria (MW)
(Based on MAED from IAEA)
.
Scenario
2005
2010
2015
2020
2025
2030
Reference
Growth (7%)
5,746 15,730
28,360 50,820
77,450
119,200
Optimistic
Growth (13%)
5,746 19,500
43,000 80,000
144,420
260,650
Source:
Energy Commission of Nigeria (2009)
13
3. Energy Supply & Demand .... Cont’d
c) Projected Petroleum Products Demand (Million Litres)
Year
PMS
7%
DPK
13%
7%
AGO
13%
7%
Fuel Oil
13%
7%
LPG
13%
7%
13%
2005
12,280
12,280
2,600
2,600
2,690
2,690
580
580
27.8
29.6
2010
15,070
18,230
3,290
3,780
6,040
7,310
1,469
2,664
75.9
150.6
2015
21,220
35,880
5,040
6,450
8,520
14,430
2,839
5,641
227.8
529.7
2020
29,830
61,090
7,370
9,950
11,990
24,610
4,604
11,909
614.9
1,263.0
2025
41,910
107,550
11,150
15,430
16,880
43,380
7,216
26,147
1,374.2
2,483.5
2030
58,830
196,960
17,21
0
28,820
23,720
79,510
16,029
58,873
2,442.8
4,281.8
Source:
Energy Commission of Nigeria (2009)
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4. LOW CARBON OPPORTUNITIES...Cont’d
Summary of Renewable Energy Targets
Electricity Projection in MW @13% GDP Growth Rate.
S/N
RESOURCE
Now
SHORT
MEDIUM
LONG
1
Hydro (large)
1938
4,000
9,000
11,250
2
Hydro (small)
60.18
100
760
3,500
3
Solar PV
8.0
300
4,000
30,005
4
Solar Thermal
-
300
2,005
10,000
5
Biomass
-
5
30
100
6
Wind
-
23
40
50
All Renewables
2008.18
4,628
15,835
54,905
All Energy
Resources
8,668
21,238
85,668
270,068
% of Renewables
23%
22%
18%
20%
% RE Less LHP
0.8%
3%
8%
16%
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4. LOW CARBON OPPORTUNITIES
a) Hydropower
Nigeria with a hydropower potential of
about 15,000MW has about 2000MW
only exploited. A large unexploited
potential therefore exists that needs to
be developed fully. This is an option that
needs to be pursued with all urgency
and vigour
4. LOW CARBON OPPORTUNITIES. ...Cont’d
Penstock bifurcation into the 150 kW power house at
Prof. E.J. Bala
17
Waya Dam, Bauchi State
4. LOW CARBON OPPORTUNITIES ...Cont’d
b) Solar Energy:
Solar energy has the greatest potential to
contribute enormous amount of low
carbon energy in Nigeria through solar PV
and solar thermal process. About 15MW
of solar PV systems, are dispersedly
installed in the country, for street lights,
water pumping for drinking and sanitation,
lighting and communication etc.
4. LOW CARBON OPPORTUNITIES
Solar PV System
...Cont’d
4. LOW CARBON OPPORTUNITIES...Cont’d
Solar Water Heater
.
Pilot Water Heater at UDUTH by SERC,
Sokoto
Solar Water Heater developed by
NCERD
4. LOW CARBON OPPORTUNITIES...Cont’d
c) Wind Energy
Nigeria’s wind reforms 2-4m/s at 10m
height is considered low for wind farm
electricity generation using conventional
wind generations. However, there may be
localized areas with greater wind speeds,
where reasonable electricity could be
generated there from.
4. LOW CARBON OPPORTUNITIES...Cont’d
5kW aero generator in Sayya Gidan
Gada, Sokoto State
One of the 37 No 275kW Wind to Electricity
Machines for the 10 MW Katsina Wind Farm
4. LOW CARBON OPPORTUNITIES...Cont’d
d) Biomass/biogas/biofuel
- Power generation from rice husk
- Biogas generation for heating & power generation
- Municipal waste-to-power
- Biofuels (ethanol &biodiesel) from Sugarcane, Jatropha &
Lignocellulolistic feedstocks – use of E10 & B20 approved
- Fuelwood lots development
Biogas Digester Pilot
Plant at NCERD, UNN,
Nsukka
Dome Type Biogas Pilot
Plant at Danjawa Village,
Wamakko LG, Sokoto State
4. LOW CARBON OPPORTUNITIES...Cont’d
e) Nuclear Energy:
A 1000MWe PWR nuclear power plant is
being planned to come on stream by 2020. A
Nigerian atomic Energy commission and
Nigerian Nuclear Regulatory Authority are in
place for the programme.
4. Low Carbon Opportunities…Contd
• f) Natural gas: Natural gas, a fossil
hydrocarbon gas, is mainly composed of
methane gas – a gas with the least carbon
atom per molecule. Over 70% of the grid
connected power generation capacity in
Nigeria are natural gas driven. There is
room for more gas utilization in power
generation and process heat generation
using efficient power cycles.
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4. LOW CARBON OPPORTUNITIES...Cont’d
g) Energy Demand Management Option: Energy Efficiency &
Conservation
▪ Use of energy audit to identify and rectify areas of energy
wastage
▪ Labeling of appliances according to efficiency levels
▪ Use of efficient energy appliances like CFLs, LEDs, improved
woodstove, efficient refrigerators and air-conditioners, electric
motors etc.
▪ Use of combine cycle power plants to improve overall power
efficiency (integrated solar combine cycle (ISCC) & (IGCC)
4. LOW CARBON OPPORTUNITIES...Cont’d
SERC 15% Efficient Wood Stove
4. LOW CARBON OPPORTUNITIES...Cont’d
Developmental Association for Renewable Energies (DARE) 80 % Efficient
Wood Stove
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4. LOW CARBON OPPORTUNITIES...Cont’d
ENERGY COMMISSION OF NIGERIA’S PILOT PROJECTS ON RENEWABLE ENERGY (2005 – 2011)
YEAR
WIND
STREETLIGHT
MINI-GRID
WATER BOREHOLES
TOTAL
QTY
MW
QTY
MW
QTY
MW
QTY
MW
MW
2011
4
0.002
5,100
0.816
1
0.04
72
0.086
0.912
2010
-
-
25,611
4.098
5
0.068
296
0..379
4.545
2009
8
0.08
18,541
2.318
-
-
98
0.98
3.378
2008
3
0.03
1,200
0.096
-
-
5
0.006
0.132
2007
3
0.0075
-
-
1
0.005
-
-
0.0125
2006
-
-
-
-
4
0.02
2
0.0005
0.0205
2005
-
-
-
-
1
0.005
1
0.00112
0.00612
Grand Total
9.04212
5. CHALLENGES
• Relating higher initial investment
• Inadequate legal instrument for low carbon
energy development
• Inadequate human and manufacturing capacity
for low carbon energy systems’ development
• Inadequate Incentives for the low carbon energy
sub-sector (FIT, fiscal & financial)
• Inconsistency in Government policies
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6. CONCLUSION
• Nigeria requires huge amount of energy to get its
economy in the path of prosperity. The energy supply
must, however, be done in a manner that allows for
sustainable development.
• Low carbon energy systems from solar, wind, hydro,
biomass, nuclear and natural gas as well as the use of
efficient power cycles and energy systems would allow
for sustainable development in the long term.
• However, appropriate legal instruments are required.
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