1. 1 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, 4 th and 5 th April 2012.

2. 22 CONTENTS 1.Introduction 2.Energy Resources in Nigeria 3.Energy Supply and Demand 4.Low Carbon Opportunities 5.Challenges 6.Conclusion

4. 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.

5. 5 1. Introduction … Cont’d JAPAN USA UK CHINA NIGERIA(3 rd from left) MALAYSIA/ S. AFRICA RUSSIA CANADA Graphical representation of the relationship between Energy and the Economy (2005) – IEA(2007)

6. 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.

7. 7 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 (C0 2 ), over periods of about 30 years.

8. 88 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.

9. 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.

10. 10 2. Energy Resources. S/NResourcesReservesProduction (2008) Domestic Utilization (2008) 1Crude Oil36.2billion barrels1.98mb/day0.45mb/day 2Natural Gas 187 TSCF2.28TSCF▪59.1% - Fuel, Industries, re- injection and gas lift. ▪26.8% - gas flare 3Coal2.7 billion tonnes0Negligible 4Tar Sands31 billion barrels of oil equivalent 00.224 million tones Source: CBN (2009) a) Fossil Energy Resources

11. 11 2. Energy Resources…….contd. b) Renewables and Nuclear S/noResourceReserveUtilization Level 1Large hydro power11,250MW1,972MW 2Small Hydro power3,500MW64.2MW 3Solar Energy4.0KW/M 2 /day 6.5KW/M 2 /day -15MW solar PV stand-alone -No solar thermal electricity 4Wind2-4m/s at 10m height-2x2.5KW electricity generator -10MW wind farm contracted in 2009. 5 Biomass Fuel wood11 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 6Nuclear not yet quantified 30kW Source: REMP (2005) * FM EMV

12. S/NITEM200320042005200620072008 1.Electricity generation (billion kWh) 22.0323.924.22 (503)* (10,695)** 23.823.321.27 2.Energy Consumption per Capital (Kgoe/Capita) 151.3125.5132.6 (680)* (1,780)** 87.181.480.8 3.Electricity Consumption/capita (kWh/Capita) 174.6176.4181.4 (563)* (2596)** 167.6161.2142.9 Source: CBN (2006, 2008) *Africa Average-IEA (2007) **World Average-IEA (2007) 3.Energy Supply and Demand a) Energy Supply

13. 13 3. Energy Supply & Demand.... Cont ’ d. b) Projected Electricity Demand for Nigeria (MW) (Based on MAED from IAEA) Scenario200520102015202020252030 Reference Growth (7%) 5,74615,73028,36050,82077,450119,200 Optimistic Growth (13%) 5,74619,50043,00080,000144,420260,650 Source: Energy Commission of Nigeria (2009)

14. 3. Energy Supply & Demand.... Cont ’ d 14 c) Projected Petroleum Products Demand (Million Litres) YearPMSDPKAGOFuel OilLPG 7%13%7%13%7%13%7%13%7%13% 200512,280 2,600 2,690 580 27.829.6 201015,07018,2303,2903,7806,0407,3101,4692,66475.9150.6 201521,22035,8805,0406,4508,52014,4302,8395,641227.8529.7 202029,83061,0907,3709,95011,99024,6104,60411,909614.91,263.0 202541,910107,55011,15015,43016,88043,3807,21626,1471,374.22,483.5 203058,830196,96017,21 0 28,82023,72079,51016,02958,8732,442.84,281.8 Source: Energy Commission of Nigeria (2009)

15. 15 4. LOW CARBON OPPORTUNITIES...Cont’d Summary of Renewable Energy Targets Electricity Projection in MW @13% GDP Growth Rate. S/NRESOURCENowSHORTMEDIUMLONG 1Hydro (large)19384,0009,00011,250 2Hydro (small)60.181007603,500 3Solar PV8.03004,00030,005 4Solar Thermal-3002,00510,000 5Biomass-530100 6Wind-234050 All Renewables2008.184,62815,83554,905 All Energy Resources 8,66821,23885,668270,068 % of Renewables23%22%18%20% % RE Less LHP0.8%3%8%16%

16. 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

17. Prof. E.J. Bala17 Penstock bifurcation into the 150 kW power house at Waya Dam, Bauchi State 4. LOW CARBON OPPORTUNITIES....Cont’d

18. 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.

19. 4. LOW CARBON OPPORTUNITIES...Cont’d Solar PV System

20. 4. LOW CARBON OPPORTUNITIES...Cont’d. Solar Water Heater developed by NCERD Pilot Water Heater at UDUTH by SERC, Sokoto Solar Water Heater

21. 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.

22. 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

23. 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 Dome Type Biogas Pilot Plant at Danjawa Village, Wamakko LG, Sokoto State Biogas Digester Pilot Plant at NCERD, UNN, Nsukka

24. 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.

25. 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. 25

26. 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)

27. 4. LOW CARBON OPPORTUNITIES...Cont’d SERC 15% Efficient Wood Stove

28. 4. LOW CARBON OPPORTUNITIES...Cont’d Developmental Association for Renewable Energies (DARE) 80 % Efficient Wood Stove 28

29. YEARWINDSTREETLIGHTMINI-GRIDWATER BOREHOLESTOTAL QTYMWQTYMWQTYMWQTYMW 201140.0025,1000.81610.04720.086 0.912 2010--25,6114.09850.0682960..379 4.545 200980.0818,5412.318--980.98 3.378 200830.031,2000.096--50.006 0.132 200730.0075--10.005-- 0.0125 2006----40.0220.0005 0.0205 2005----10.00510.00112 0.00612 Grand Total9.04212 ENERGY COMMISSION OF NIGERIA’S PILOT PROJECTS ON RENEWABLE ENERGY (2005 – 2011) 4. LOW CARBON OPPORTUNITIES...Cont’d

30. 30 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

31. 31 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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