The development of RE technologies in Nigeria has been slow. New measures are aimed to boost growth in the RE sector (legislative framework, licensing arrangements for private-sector operators, Feed-in Tariffs and clarifying market rules for RE services and products). Rural electrification programs are to take RE sources into full account. Liberalization has led to private sector participation in the generation sector, and a number of operational IPPs in the country today. Establishment of off-grid generation/distribution plants is encouraged. Means include:
- moratorium on import duties for renewable energy technologies
- design of further tax credits, capital incentives and preferential loan opportunities for renewable energy projects
- Feed-in Tariffs for solar energy, wind power and small-hydro (under development)
Renewable Energy Master Plan (REMP)
The country’s Renewable Energy Master Plan was launched in 2006 and identifies considerable potential for generating solar, small and large hydro, biomass, biogas and wind energy across the country.Gradual movement from a fossil economy to one driven by an increasing share of renewable energy. Targets for renewable energy technologies by 2025:
- Small-hydro: (600 MW in 2015) 2,000 MW
- Solar PV: 500 MW
- Biomass-based power plants: (50 MW in 2015) 400 MW
- Wind: 40 MW
- Electrification: (2005 level 42%, 60% in2015) 75%
National Integrated Power Project (NIPP)
Nigeria plans to increase generation from fossil fuel sources to more than 20,000 MW by 2020. The Nigerian government has set several targets to increase power generation over the past decade, but none of these targets have been met. The NIPP was initially established in 2004 by the Nigerian government as a plan to construct multiple natural gas-fired power plants using natural gas that was flared. Although progress has been slower than initially expected, some of the power plants are expected to come online in the short term. According to the August 2013 Roadmap, NIPP projects currently contribute more than 1,000 MW to the national grid capacity, and it is expected to reach 4,771 MW in 2015 when all planned units are expected to be completed and commissioned. A major source of capacity expansions is expected to come from Independent Power Projects (IPPs). IPPs currently contribute around 1,674 MW to the national grid capacity, and capacity from IPPs is expected to grow to about 14,000 MW by 2020, according to the August 2013 Roadmap. IPPs include power plants operated by IOCs.Nigeria plans to increase hydroelectricity generation capacity to 5,690 MW by 2020, quadrupling the capacity from the 2012 level. The country plans to increase hydroelectricity generation by upgrading current hydroelectricity plants and constructing new plants: Gurara II (360 MW), Zungeru (700 MW) and Mambilla (3,050 MW). In late 2013, the Nigerian government announced a $1.3 billion deal with China to build the 700-MW Zungeru hydropower project. The Export-Import Bank of China will cover 75% of the cost, while the Nigerian government will finance the remaining cost.
Energising Access to Sustainable Energy (EASE)
The programme aims to improve the enabling framework conditions for renewable energy and energy efficiency in Nigeria and, in particular, with a focus on the use of renewable energies by Small and medium enterprises (SMEs) and households.The EASE programme will also address the massive deforestation and cutting of trees for fuel wood, which is the main energy source for the majority of the population, by planting more trees. Furthermore, Nigeria is the second largest gas flaring country, emitting some 40 million tons of CO2 each day. Through the promotion of reduced gas flaring, the EASE programme will contribute to resource conservation and help fight climate change by reducing greenhouse gas emissions.
Some other activities to be carried out through the programme will include: design of energy assessment and strategies to increase access to energy, providing essential training on aspects such as norms, standards, and tariffs, or the development of business plans to demonstrate commercial viability of small-scale gas resources. The new programme will be run in partnership with the World Bank (which will contribute with over €4.6 million) and the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) (with a contribution of €9 million).