SEEA-WA Nigeria: Stock Taking Report e:\_a\e21\seea-wa\docs\country_studies\nigeria\nigeria_stock_taking_v0.doc March 2012 Table of Contents Introduction 1 1. Global Situation of the Energy System ........................................................................................ 1 1.1. Structure of the Economy ................................................................................................. 1 1.2. Final Energy Consumption................................................................................................ 3 1.3. Final energy consumption by fuel/products (2009) .................................................................. 3 1.4. Final energy consumption by sector for 2009......................................................................... 3 1.5. Primary energy production by sources - imports and exports for 2009.......................................... 4 1.6. Most energy-intensive sectors ........................................................................................... 5 2. ELECTRICITY SECTOR ......................................................................................................... 5 2.1. Main Actors in Electricity Supply and Distribution.................................................................... 5 2.2. Relevant Power Plants .................................................................................................... 6 2.3. Electrification Rate.......................................................................................................... 7 2.4. Main Electricity Suppliers ................................................................................................. 7 2.5. Reliability of Electricity Supply .................................................................................. 7 2.6. Energy Pricing - Structure of Electricity Tariffs for Final Customers .......................... 8 2.7. Renewable Energy ................................................................................................... 9 3. HOUSEHOLD ENERGY USE .......................................................................................... 9 3.1. Cooking .................................................................................................................... 9 4. Energy Policy................................................................................................................. 10 4.1. Legal and Regulatory Framework ...........................................................................10 4.2. Relevant Energy Efficiency and Renewable Energy Laws and Regulations ............10 4.3. Summary of Renewable Energy Targets .................................................................11 4.4. Relevant Stakeholders in the RE&EE Sector ..........................................................12 4.5. Relevant International Organizations Financing RE&EE Projects/Programmes ......12 4.6. What are the main areas in which regional coordination (among ECOWAS countries) on Energy Efficiency/Renewable Energy would be useful? ...............................................12 5. Energy Access............................................................................................................... 12 5.1. Institutions responsible for energy access (in rural and/or peri-urban areas) ...........12 5.2. Main actions taken to increase access to energy (in rural and/or peri-urban areas)? 13 5.3. Programs geared towards increasing access to electricity ......................................13 6. Actions in the Field of Energy Efficiency and Renewable Energy................................... 13 7. Recommendations ......................................................................................................... 14 Institutions involved in Energy ...................................................................................................15 8. ENERGY ACCESS ........................................................................................................ 16 9. RECOMMENDATIONS ................................................................................................. 16 d:\106750494.doc Introduction This report provides an overview of the current status of energy efficiency and renewable energy in Nigeria. The report is mainly based on a stock taking mission undertaken by the SEEA-WA team in early February 2012. The information collected through interviews with national authorities and relevant actors was complemented by desk research. The remainder of this stock taking report is organized as follows: Firstly, general characteristics of the economic structure and the energy consumption patterns are described. Secondly, the main elements of Nigeria’s energy policy are presented. Thereafter, focus is given to key areas in which activities are currently being conducted and/or intervention is required, namely energy use in the households sector, the electricity sector, use of renewable energy, energy access and training and qualification of staff in the energy sector. Finally, some recommendations for further action are outlined. 1. Global Situation of the Energy System 1.1. Structure of the Economy Nigeria, with a population of about 150 million, is Africa’s most populous country and the continent’s third largest economy. At the time of political independence in October 1960, agriculture was the dominant sector of the economy, contributing about 70% of the Gross Domestic Product (GDP), employing about the same percentage of the working population, and accounting for about 90% of foreign earnings and Federal Government revenue. The early period of post-independence up until mid-1970s saw a rapid growth of industrial capacity and output, as the contribution of the manufacturing sector to GDP rose from 4.8% to 8.2%. With the advent of oil, this pattern changed significantly, owing largely to its strategic importance to the world economy through its supply-price nexus.1 According to the 2009 estimates, while the agricultural sector provides employment to more than 70% of the working population it contributes only 33.4% of the total national production. The country has not been able to satisfy internal demand and has to import a considerable amount of food products.2 Currently, Nigeria’s economy is primarily driven by oil and gas. In terms of human development index, Nigeria performs significantly low. Nigeria’s vision is to become one of the 20 largest economies by the year 2020. However, in spite of the massive revenue from oil (estimated at over 600 billion USD since 1970), the standard of living is still very low, poverty is widespread and income distribution is highly skewed. Over 70 % of the population lives on less than 1 USD a day and 91 % live on less than 2 USD a day according to a 1990–2001 poverty study. Income distribution is highly skewed with the poorest 10 % of the population controlling just 1.6 % of the wealth, while the richest 10 % control 40.8 % of total wealth.5 The Gini index stands at 50.6 %. Nigeria with a Human Development Index of 0.461 was classified among the countries with low human development by the United Nations. The International Monetary Fund (IMF) ranked Nigeria at 165 out of 179 countries in terms of per capita income in 2006. The major causes for poverty in Nigeria are bad governance, neglect of the agricultural sector, inadequate social and economic infrastructure and unstable policy environment. Adedipe, B. (2004). The Impact of Oil on Nigeria’s Policy formulation Also see Central Bank of Nigeria: The Changing Structure of the Nigerian Economy 2 http://www.economywatch.com/world_economy/nigeria/structure-of-economy.html 1 d:\106750494.doc In terms of size, the private sector in the Nigerian economy is substantial. There are two components – the organized private sector and the informal sector. The organized private sector is comprised of public limited liability companies, private limited liability companies and partnerships, whereas the informal sector is consists of peasant farmers, petty traders and artisans. The organized private sector, although small in size, is the source of technological advancement in the economy. However, it is constrained by the undue intervention of the government in economic activity, unstable and uncertain macroeconomic environment fostered by policy distortions, inadequate infrastructure, weak institutions and poor executive capacity, as well as weak financial markets. The large informal segment, on the other hand, employs an estimated 70-80 per cent of the labour force and represents a major source of capital formation, particularly in the rural areas. It provides a cheap source of low level technical manpower to the organized The table below provides the state of the Nigerian economy per sector contributions: Table 3 below illustrates the structure of Nigeria’s economy (GDP) as at 2009 d:\106750494.doc Amount Total GDP 2009 (@current market prices) Primary sector (Agriculture) Secondary Sector (Industry) Tertiary Sector (Services) 170.31 billion US$ 37.2% 32.27% 12.57% Total Public Expenses within the Energy Sector Biomass Oil Products Power sector RES EE Source: (2012) Energy Commission of Nigeria 1.2. Final Energy Consumption The final energy consumption covers all energy supplied to the final consumer for all energy uses.3 This includes the consumption of electricity and fuels (such as oil, gas, coal, wood fuel etc.) in the household, industry, services, agriculture and transport sectors. The “informal sector” - food stalls/restaurants/street food vendors, beer brewers, food processing, etc - often uses energy intensive process heat. This takes the form of: PMS in small engine electricity generators; fuel wood for heating and cooking; electricity from grid; and calcium carbide for generating acetylene for gas welding. Electricity consumption however declined from 157,338.95 GWh in 2008 to 128,099.85 GWh in 2009. Year 2007 2008 2009 Final energy consumption 109,874.55 157,338.95 128,099.85 Unit (GWh, toe or other GWh GWh GWh Source: (2012) Energy Commission of Nigeria 1.3. Final energy consumption by fuel/products (2009) Coal Natural gas (Electricity) Electricity (Hydro) Firewood Charcoal Liquefied Petroleum Gas (LPG) Gasoline Diesel Kerosene Fuel oil Distillate diesel oil (DDO) Dung Other (Solar PV) Final energy consumption 13,373.06 5,226.94 0.156 239.60 89,415.14 10,418.05 7,744.64 1,682.26 About 10MW Source: (2012) Energy Commission of Nigeria 1.4. 3 Final energy consumption by sector for 2009 (2011)International Energy Agency d:\106750494.doc Unit (GWh, toe or other GWh GWh GWh GWh GWh GWh GWh GWh MW Industry Final energy consumption 3872.89 Transport Residential sector 27226.2 85673.18 Commercial services 7787.07 Public services Agriculture Forestry Fishing Non-energy Non Specified and Unit (GWh, toe or other) 3337.32 69.09 Main fuels used in the respective sector AGO, Electricity, natural gas PMS, AGO, ATK Fuel wood, HHK, LPG, electricity Electricity, AGO, LPG, fuel wood Electricity, AGO AGO, electricity, HHK 134.12 Natural gas, HHK, LPG GWh Source: (2012) Energy Commission of Nigeria 1.5. Primary energy production by sources - imports and exports for 2009 Total primary energy production measures the amount of primary energy produced by a particular country or region. Primary energy includes losses from transportation, friction, heat loss and other inefficiencies. Nigeria is a major player in the global oil and gas industry. The country is the 12th largest producer of petroleum in the world, the 8th largest exporter, the number one exporter of crude oil in Africa, and has the 10th largest oil proven reserves, estimated at over 35 billion crude oil reserves, with daily production of over 2.5million barrels per day. It also has proven gas reserves of up to 187trillion cubic feet (tcf). Nigeria is however also a major importer of petroleum products. This is largely due to a lack of adequate refining capacity to process its own crude oil, the mismanagement of government-owned refineries and lack of incentives to stimulate growth in local private refining capacity. Between January and October 2011, over 35 million litres of petroleum products, representing about 85 per cent of domestic demand was imported daily into the country at a cost of close over N3 trillion or naira or about $18billion. It is the only country among the Organisation of Petroleum Exporting Countries (OPEC) that relies on importation for the supply of petroleum products for domestic needs. d:\106750494.doc Conventional Energy Sources Crude Oil Diesel Primary Energy Production Imports Exports 780.347 0.558 -0.425 769.195 - LPFO 0.609 -- 0.440 Gasoline 0.364 5.989 - 1,837.278 0.319 -1.171 342.1 --- 0.1263 -- 0.109 -20.838 TWh --- -70MW 7.4 30.18 561.7 --- --- 91.4 -- -- About 1.0 --18.5 ----- ----- Gas (Natural gas) Kerosene/JetA1 LPG Coal Electricity Renewable Energy Sources Large Hydro Small Hydro Wood fuel (including charcoal Agriculture byproducts(wastes) Biofuels (biodiesel) Landfill Gas Sewage Gas Municipal Waste Wind 10 MW Unit (GWh, toe or Other) Million Barrels million Tonnes million Tonnes million Tonnes BSCF million Tonnes Million Tonnes TWh MW GJ Million Tonnes Million Litres Million Tonnes MW Source: (2012) Energy Commission of Nigeria 1.6. Most energy-intensive sectors Sectors Industry Transport Residential Tertiary: Specificities of the mentioned sectors Cement the most energy intensive Public & freight transportation the most energy intensive Cooking is the most energy intensive, mostly using fuel wood Public services Commercial services Agriculture, Forestry and Fishing Air-conditioning & lighting the most energy intensive Air-conditioning & lighting Crop production is the most energy intensive Source: (2012) Energy Commission of Nigeria 2. ELECTRICITY SECTOR 2.1. Main Actors in Electricity Supply and Distribution Grid electricity power supply is a monopoly of state owned Power Holding Company of Nigeria (PHCN). There are ongoing efforts by Federal Government to unbundle and privatise the power utility. The Power Holding Company of Nigeria (PHCN) will be split into 6 generation companies, a transmission company and 11 distribution companies. All but the transmission company will be transferred to the private sector. Currently, it is expected that privatisation will be carried out in May 2012. d:\106750494.doc Peak power distributed to the 450 000 clients amounts to 450-500 MW. It is estimated that total demand is about 800 MW: thus over 1/3 of demand is currently unmet, due to bulk power supply shortage. The Abuja system, operated by the Abuja Electricity Distribution Company (AEDC), is a heavy growth load centre; with growth in demand of about 6-7% annually. It is estimated that air conditioners are the most important energy using device. Efforts to improve the commercial performance of the company have focused on the installation of pre-paid meters. Currently approximately 160 000 have been installed. The distribution network consists of both underground and above ground lines. Parts of the distribution network are outdated and/or overloaded, particularly in the areas outside the Abuja city centre. Some transformers are operating beyond capacity, leading to high losses and failures. Distribution losses (commercial + technical) are estimated at 18-23%. Political considerations often place undue pressure on the distribution companies to rapidly expand the network, in order to provide access to electricity in rural areas. There is tension between the objective of expanding access and stabilising the existing network. Often, the quality and reliability of service has suffered as a result. About 200-300 transformers must be replaced annually, of which 3-4 large power distribution transformers. Current electricity tariffs are too low for the company to carry out a rational preventive maintenance programme. Thus, equipment is operated until failure. The hiring freeze in the public sector has had a major impact on AEDC, whose workforce is aging: average age is 45 years currently. When hiring begins anew, training of new employees will be a major issue, made difficult by the retirement of experienced older workers.4 It is envisaged that the restructuring of the electricity supply industry will among other things lead to a competitive wholesale power markets, increased self-generation by end-users, accelerated privatization and commercialization, elimination of the present monopoly leading to the emergence of IPPs, unbundling of generation, transmission and distribution and a competitive retail power market. 2.2. Relevant Power Plants Type of Power Plant (fuel) Isolated diesel generators Thermal Natural Gas Thermal Oil Thermal Coal Large Hydropower Plants (>30MW) Small Hydropower Plant (<30MW) Wind Photovoltaic Power Capacity in MW About 2,000MW Number of Plants Widespread State owned, private, mixed Mixed Grid connected or decentralized plant Decentralized 6,763.85MW 13 State and Private Grid-connected 1928.4MW 3 State Grid-connected 30.180MW 3 Private and State Decentralized About 10MW 10MW 1 Dispersed State Mixed Grid-Connected Decentralized Source: (2012) Energy Commission of Nigeria 4 The AEDC has agreed to host a regional meeting of power distribution companies, perhaps under the ECREEE, WAPP or UPDEA umbrella. Given the current situation, it would be preferable to organise this meeting in the near term, ie 6 months. d:\106750494.doc 2.3. Electrification Rate Social electricity tariffs or subsidies/loans for the initial connection cost for households are currently not available. Total Population (5 persons per household) National Level Urban areas Rural areas 28million households (40% Urban & 60% Rural) 11 million households 17 million households Served Population (either grid connected or with individual decentralized home systems 55.2% of households Please give short explication of the current situation Southern zones with higher access than the Northern zones 86.6% households 38.9% households Source: (2012) Energy Commission of Nigeria 2.4. Main Electricity Suppliers S/No Supplier 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17. Kanji Hydropower Jeba Hydropower Shiroro Hydropower Egbin Power Plant Ajaokuta A.E.S Sapele Okpai Afam (I-V) Afam (I-V) Delta Geregu Omoku Omotosho Ibom Olorunsogo NESCO, Jos State owned or private State (Federal) State (Federal) State (Federal) State (Federal) State (Federal) Private State (Federal) Private Private Private State (Federal) State (Federal) State (Federal) State (Federal) State (Federal) State (Federal) Private Type(s) of Fuel Hydro Hydro Hydro Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Hydro Total Installed capacity (MW) 760.00 578.40 600.00 1320 110.00 302.0 1020.0 480.0 497.25 497.25 882.00 414.00 100.00 335.00 37.00 335.00 30 8702.25 Available Capacity (MW) 445.45 457.99 404.56 980.89 0 236.44 199.07 446.25 322.82 322.82 255.33 300.00 96.05 298.15 2.90 315.00 37 4825.17 Source: (2012) Energy Commission of Nigeria 2.5. Reliability of Electricity Supply Electricity supply is not reliable. The transmission network in the country consists of about 5000 km of 330 kV lines, and 6000 km of 132 kV lines with 48 and 4101 outages on 330kV and 132kV transmission lines, respectively. The 330 kV lines feed 23 substations of 330/132 kV rating with a combined capacity of 6,000 MVA or 4,600 MVA at a utilization factor of 80%. The main problems associated with Nigeria's transmission network include inadequate dispatch and control infrastructure, radial and fragile grid network, frequent system collapse, and exceedingly high transmission losses. The distribution grid in the country consists of 23,753 km of 33 kV lines and 19,226 km of 11 kV lines. These lines feed 679 substations of 33/11 kV rating and 20,543 substations of 33/0.415 and 11/0.415 kV ratings. In addition, there are 1,790 distribution transformers and 680 injection transformers. The system suffers from chronic underinvestment, poor maintenance, un-recorded connections and under- billing arising from a preponderance of un-metered connections. The utility's financial performance, as well as its ability to serve customers satisfactorily has been consistently poor. d:\106750494.doc The Electricity supply challenges can be summed into inadequate generation capacity, weak transmission capacity, high transmission and distribution line losses. The main generation facilities are concentrated around the southern edge for proximity to fuel sources while the national control center was also placed near the major load centres. The result is low voltage supply at northern extremities.5 2.6. Energy Pricing - Structure of Electricity Tariffs for Final Customers N1 = €200 5 Nigerian electricity regulatory commission , Regulatory Framework for Promoting Renewable Energy Based Power in Nigeria, 2005 d:\106750494.doc 2.7. Renewable Energy The Renewable Energy Master Plan (REMP), drafted in 2005, articulates a national vision, targets and a roadmap for addressing key development challenges facing Nigeria through the accelerated development and exploitation of renewable energy. It aims to put in place a comprehensive framework for developing renewable energy policies, legal instruments, technologies, manpower, infrastructure and market to ensure that the visions and targets are realized.6 Nigeria is endowed with abundant renewable energy resources, the significant ones being solar energy, biomass, wind, small and large hydropower with potential for hydrogen fuel, geothermal and ocean energies. The estimated capacity of the main renewable energy resources is given in table1 below. Table xxx: Nigeria’s Renewable Resource Estimate RENEWABLE ENERGY SOURCE CAPACITY Large Hydropower Small Hydropower 735MW Fuel wood 13,071,464 Hectares Animal Waste 61million tonnes/yr Crop Residue 83 million tonnes/yr Solar Radiation 3.5 – 7.0 kWh/m2-day Wind 2 – 4 m/s (annual average) at 10m height Source: Energy Commission of Nigeria At present, renewable energy source used in Ghana consists of firewood, hydropower and solar energy. Firewood is widely used mainly in rural households for cooking. The growing population and demand, combined with shortages in LPG put pressure on forests and lead in some cases to deforestation. At present there are over 5000 off-grid photovoltaic (PV) systems installed nationwide (total capacity 1MW. (Energy Foundation) 3. HOUSEHOLD ENERGY USE 3.1. Cooking The Residential sector is the most energy intensive sector. This is primarily because the households consume 95% of the country's woodfuel supply. As woodfuel is primarily used for cooking purposes, cooking therefore is the main energy consuming activity in the household sector. 6 Energy Commission of Nigeria: Renewable Energy Master Plan (2005) d:\106750494.doc 4. Energy Policy 4.1. Legal and Regulatory Framework There is a draft National Energy Policy, approved by the President in 2005, but not yet adopted as law. S/No Name of legal ACT Petroleum Act Type(Law, Regulations, Policy etc) Law Year of Release 1969 1 2 3 4 5 Land use Act Electricity Policy National Energy Policy Electric Power Reform Act Law Policy Policy Law 1978 2001 2003 2005 6 Bio-fuel Policy Policy 2007 7 Nigerian Extractive Industries Transparency Act Law 2007 4.2. Main Characteristics Vests ownership and control of petroleum in Nigerian state All land vessel to state Private Sector driven sector Private Sector driven energy sector Liberalizes the electricity Sector, unbundles PHCN and created Electricity Regulator Approved use of E10 and B20 and provided some incentives Promotes due process, transparency and accountability in management of petroleum and mining revenues Relevant Energy Efficiency and Renewable Energy Laws and Regulations A Renewable Energy Plan was drafted in 2005, but it is yet to be adopted as law. The proposed plan takes into consideration the roles of energy efficiency and renewable energy sources in achieving energy security, and are reflected in the budget allocation of the state budget. Presently, there are no subsidies - contributions to investments, tax exemptions, feed-in tariffs (FiTs) for electricity generated through RES - in place for EE and RES. The national electricity regulator (NERC) is however currently developing an appropriate FiTs scheme and other regulatory incentives for prospective investors with a view to promoting renewable energy generation in the country. The following incentives are being considered: • • Incentives related to On grid RE Power supply – Government to conduct initial wind and solar resources study such that investors only implement generation projects, where the resource has been established; – Providing one-off financial subsidy for development of small hydro and hybrid off-grid systems by communities and the private sector; – Investors are allowed to charge a cost reflective tariff that enables fair return on investment for such projects; Incentives related to Manufacturing of RE equipment – Tax incentives to manufacturers of renewable energy equipment and their accessories to promote widespread use, including: • Three years tax holidays for manufacturers from date of commencement of manufacturing • Tax holidays on dividend incomes from investments made on domestic energy sources for 7 years; • Exempting public electricity suppliers from income tax subject to expanding the network at a cost equivalent to foregone income tax in the preceding year on an annual basis; – Income tax exemption on interest incomes to domestic creditors extending loans with a repayment period of at least 5 years to companies engaged in power generation, transmission and distribution during the duration of the loans. d:\106750494.doc • Allocation of resources for research into/promotion of mature alternative/renewable energy technologies; – A 100% depreciation allowance in the first year of operation – Exemption from excise duty and sales tax and concessionary customs duty on the first import of materials used in renewable energy projects. – (a) Soft Loans • A percentage of the annual loans by special low interest power sector development finance under the Bank of Industry should be reserved for Renewable Energy Supply and Utilization Projects – (b)Tax Holidays – For new companies active in RE, a tax holiday should be provided for the first five years of operation • Fiscal and Financial Incentives: • Exemption from Custom Duties for Companies that import plants and equipment for R/E Generation. • Exemption from Corporate Tax. • Grant income Tax and VAT holidays for three years. • Provide Low interest Loans to investors from infrastructure Fund. • Establish Credit Scheme to Customers to acquire Home Solar Equipment. Name of the legal Act National Energy Policy 4.3. Type (law, regulation etc) Policy Year of release 2003 Main characteristics Policy; Objective, strategies Summary of Renewable Energy Targets (i) Electricity Projection in MW (13% GDP Growth Rate) S/N RESOURCE Hydro (large) Hydro (small) Solar PV Solar Thermal Biomass Wind All Renewables All Energy Resources % of Renewables 1 2 3 4 5 6 Short Medium Long - SHORT 4,000 100 300 300 5 23 4,628 21,238 22% MEDIUM 9,000 760 4,000 2,005 30 40 15,835 85,668 18% 2010 2020 2030 ii) Non-Electricity (Thermal) ACTIVITY/ITEM Short TIMELINE/QUANTITY Medium 202,128 Total Thermal energy 193,709 248,809 production (GWh) Renewable Energy Share 85 80* 79* (%) Other non-renewable 15 20 21 Share (%) *The decline over the years is due to the planned decrease in the consumption of fuel wood. d:\106750494.doc LONG 11,250 3,500 30,005 10,000 100 50 54,905 270,068 20% Long To achieve these targets, Nigeria will embark on the following activities: 1. Gather information on the development of emerging renewable energy technologies. 2. Encourage research and development (R&D) for the exploitation of these emerging energy resources. 3. Prioritize the level of need, level of technological development and viability of emerging renewable energy resources. 4.4. Relevant Stakeholders in the RE&EE Sector Organization/ institution Energy Commission of Nigeria Address Contact E-mail Plot 701C, Central Area, Abuja Director General, Prof. Sambo dg@energy. .gov.ng assambo@yaho o.com` Federal Ministry of Environment Federal Secretariat Abuja Federal Secretariat Hon. Minister __ __ Hon. Minister __ Federal secretariat Abuja Hon. Minister __ Federal Ministry of Power Federal Ministry of Transport 4.5. Roles Activity RE & EE Policy Pilot Project/ Policy making mitigation __ Climate Change/Environm ental Issues RE Electricity __ Transportation Scaling-up RE/EE Electrification Project RE/EE in Transportation (biofules) Relevant International Organizations Financing RE&EE Projects/Programmes Organization/ institution/ donor UNDP Address Contact Person E-mail Abuja Mr. Muyiwa muyiwa.o dele@und p.ng World Bank UNESCO UNIDO Abuja Abuja Abuja Dr. Otu Mr. Reuben 4.6. Telephone number 08033111631 Telephone number 08023361263 Target group/ sector 08070846377 08033930400 Energy & Environment General public Energy/Environment What are the main areas in which regional coordination (among ECOWAS countries) on Energy Efficiency/Renewable Energy would be useful? Answer: Training & Capacity Building 5. Energy Access 5.1. Institutions responsible for energy access (in rural and/or peri-urban areas) A number of institutions are involved in energy access for rural and/or peri-urban areas: the Federal Ministry of Power, Energy Commission of Nigeria. The Rural Electrification Agency of Nigeria was established 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. d:\106750494.doc 5.2. Main actions taken to increase access to energy (in rural and/or peri-urban areas)? The Rural Electrification Project Programme (2.) Electricity Sector Power reform Act 2005 5.3. Programs geared towards increasing access to electricity Program/Activity 1. 2. 3. Target Group Rural Electrification ESPR Act 2005 National Integrated Power Programme Rural or Area? Urban Rural/Urban Grid connected or decentralized off grid systems? Both Both Both Both Grid-connected Short description of the program/ activity Grid extension and solar projects Liberalization of power sector To fast track power supply Nigeria is In the process of establishing a national mult-sectoral group on energy access and has also included energy efficiency in energy access programs for low-income communities. 6. Actions in the Field of Energy Efficiency and Renewable Energy Are there household energy efficiency products already available in rural markets in your country? Answer: Yes, CFLs, EE Fridges and A/C. What is the percentage of households that rely on traditional biomass for cooking and /or heating? Answer: Over 70% Are there programs for rural markets facilities access to modern cooking fuels and clean cooking facilities? Ans: Just developing thru BOI/UNDP projects Are there programs to increase the efficiency of biomass for cooking? Yes Answer: Yes, Improved Fuel wood Programmes What is the percentage of households that rely on kerosene for lighting, (car) batteries for changing e.g. cell phones and radio/TV, diesel or human energy for grinding? 60% Answer: 60% Do any of these programs take gender mainstreaming approach or target women especially? Answer: Not really Title of the Action d:\106750494.doc Ans: Nature of the action (policy, technology, Short description of the action Sectors concerned Duration (start and end date) Financing institutions (national, donor project, Pilot Projects behavioral change, etc.) Tech. international) Awareness Workshop Trainings GEF-EE Xxx Policy, Technology and behavioral Both Annually Replacement of incandescent lamps with CFLs. Solar refrigeration Solar mini-grids Solar street lights Solar water pumping system Federal/States Workshop/Seminars Workshop/Seminars Do you have standards and labels or certification systems for appliances, buildings and other equipment (i.e. light bulbs, refrigerators, air conditioning systems, construction materials, solar panels, efficient cook stoves, water heater, solar water heater…….). Answer: No Do you have special activities in regard to Energy efficiency in buildings (i.e tropical architecture, materials, heating, ventilation, air conditioning systems etc)? Yes Answer: Yes, lighting in buildings What were/are the most successful actions and initiatives which had a positive impact on the development of energy efficiency and RES (e.g. energy law, institutional set-up subsidy schemes, etc?) Institutional set-up and international organization-assisted project. Answer: Energy Policy 7. Recommendations Please prioritise the following activities according to their most relevant need for action in order to improve EE and the use of RES in your country. Ans: Improvement of the legal and regulatory frame work for RES and EE Institutional set-up/ change Training and human capacity development Awareness raising and information Creation of financial mechanisms Definition of standards, labeling and certification of equipment and skills Reduction of market distortion barriers (F.E reduction of d:\106750494.doc Please indicate 1-8 while 1 should represent the most relevant need for action 1 8 1 1 1 2 1 subsidies on fossil fuels) Development of a regional market/ Industry for EE/RES 6 Is there any institution in your country that has or could take over the leadership for the development of RES and EE programmes? Yes Ans: Yes – Energy Commission of Nigeria What are the main fields where further qualification is required to position the organization accordingly (recommendations)? Ans: Energy Management and Economics Please prioritize the sectors according to their potential for EE-improvements. Ans: Please indicate 1-6 while 1 should represent the most relevant Sector Residential Sector 1 Industrial Sector 3 Commercial Sector 1 Agricultural Sector 5 Transport Sector 3 Service Sector 2 Sources of Information: 1. 2. 3. 4. Central Bank of Nigeria (CBN), Annual Reports (2009, 2010) Annual Technical Report, National Control Centre, Oshogbo (2007 – 2009) NNPC Annual Statistical Bulletin (2009) National Bureau of Statistics(NBS)(2006), “Core Welfare Indicator Questionnaire Survey, Nigeria” Institutions involved in Energy Organisation Ministry of Power Energy Commission Energy Commission research centres (5 centres) National Electricity Regulatory Authority (NERC) Rural Electrification Agency Ministry of Science and Technology Infrastructure Commission Inter-ministerial Committee on Renewable Energy and Energy Efficiency University of Lagos, EE Research Centre No organisation is specifically responsible for EE. d:\106750494.doc Responsibility 8. ENERGY ACCESS 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. 9. RECOMMENDATIONS Awareness raising for consumers Making consumers aware of the importance of their contribution to energy efficiency is a key action (AEDC). d:\106750494.doc