RENEWABLE ENERGY ELECTRICITY IN NIGERIA:

THE WAY FORWARD*

BY

PROFESSOR A.S. SAMBO, OON, NPOM, FNSE

Director General/CEO
Energy Commission of Nigeria
Abuja

*Paper presented at the Renewable Electricity Policy Conference held at Shehu Musa

Yaradua Centre, Abuja, 11-12 December 2006

1

CONTENTS
1. Introduction
2. The Policy Framework on Renewable Energy in
Nigeria
3. Institutional Framework for Renewable Energy in
Nigeria
4 Renewable Electricity Technologies in Nigeria:.
5. Renewable Electricity Production in Nigeria
6. Targets for Renewable Electricity in Nigeria
7. Challenges Towards Renewable Electricity in
Nigeria
8. The Way Forward
9. Conclusions
Prof. A. S. Sambo

1. Introduction

Electricity is highest grade of energy.

Electricity is thus essential for economic
growth, national development and improved
standard of living.
All forms of energy may be transformed to
electricity.

Prof. A. S. Sambo

430
410

GDP(Nbillion)

390

y = 2.3739x + 242.85

370
350
330

GDP(Nx109)
Linear (GDP(Nx109))

310
290
270
250
0

10

20
30
40
50
Energy Consumption(TCEx106)

60

70

Fig. 1 Effect of Total Energy Consumption on GDP in Nigeria, 1999 - 2004

Prof. A. S. Sambo

450
y = 10.094x + 170.24

GDP (Billion Naira)

400

350
GDP(Nx109)
Linear (GDP(Nx109))
300

250

200
0

10

15

20

25

30

Electricity Generation(GWhx103)

Fig. 2: Electricity Generation against GDP in Nigeria, 1999 - 2004

Prof. A. S. Sambo

Introduction . Contd

Nigeria is blessed with abundant natural energy

carrier resources.
Fossil are hydrocarbon substances include crude oil,
natural gas, bitumen (from tar sands) and coal are
depletable.
Renewable energy resources being are available on
periodic or cycle basis are inexhaustible and include
solar, wind, hydro and biodegradable biomass.

Prof. A. S. Sambo

Table 1: Types of Energy Resources, the Reserves,

Production and Domestic Utilization Levels.
Reserves
Resource Type

S/No

Production
Energy Units (Btoe*)
4.76
2.5 mi lli on
barrels/day
4.32 6 Bi lli on SCF/day

Crude Oi l

(Natural Units
35 bi lli on barrels

Natural Gas

187 T ri lli on SCF

Coal and li gni te

2.175 bi lli on tonnes

T ar Sands

31 bi lli on barrels of equi valent

4.22

Hydropower large

15,000 M W

1.11
years)

Small Hydropower

3,500 M W

Solar Radi ati on

3.5 - 7.0 KWh/m2/day (485.1

mi lli on M Wh/day usi ng 0.1%
Ni geri a land area)

Wi nd

(2-4) m/s at 10m hei ght

Fuelwood

A ni mal waste

11 mi lli on
hectares of forest
and woodland
211 mi lli on
assorted ani mals

1.92 22.1 tonnes/day

(over

38 1,938 M W
(167.4 mi lli on
M WH/day
0.25 (over 38
30 M W (2.6
years)
mi lli on M Wh/day
15.0 (38 years and Excess of 240
0.1% Ni geri a land
KWp of solar PV
area)
or 0.01 mi lli on
M Wh/day
8.14 (4m/s@ 70m
hei ght 20m
wi ndmi ll, 0.1% land
area of Ni geri a over
38 years)
-

Excess of 1.2
tonnes/day

0.120 mi lli on
tonnes/day

Bi omass
Energy Drops
and A gri c
Resi due
10

Nuclear Element

*Billion Tonnes of oil equivalent

Prof. A. S. Sambo

72 hectares of
A gri c. Land

Not yet quali fi ed

Domestic
Utilization
(Natural units)
450,000
barrels/day
3.4
bi lli on
SCF/day
22.1 tonnes/day
167.4
M i lli on
M Wh/day
2.6 mi lli on
M Wh/day
Excess of
0.01mi lli on
M Wph/day of
solar PV
-

0.120 mi lli on
tonnes/day

0.781 mi lli on
Not avai lable
tonnes of
waste/day
0.256 mi lli on
Not avai lable
tonnes of assorted
crops/day
-

Introduction . Contd

Despite the abundance of energy resources in Nigeria, the

country is in short supply of electrical power.
Only about 40% only of the nations over 130 million has
access to grid electricity.
At the rural level, where about 70% of the population live,
the availability of electricity drops to 15%.
The objective of this presentation is to highlight how the
nations renewable energy resources could be utilized to
increase electricity access for sustainable national
development.

Prof. A. S. Sambo

2.

The Policy Framework on Renewable

Energy in Nigeria
Federal Government approved the National Energy
Policy (NEP) in 2003.
The NEP articulates the sustainable exploitation and
utilization of all viable energy resources.
The policy is hinged on private sector development of
the energy sector.

Prof. A. S. Sambo

2.

The Policy Framework on Renewable Contd

Hydropower: The NEP provides that:

The nation shall fully harness the hydropower
potential for electricity generation
- The nation shall pay particular attention to the
development of the mini and micro hydropower
schemes
- The exploitation of the hydropower resources shall
be done in an environmentally sustainable manner
- Private sector and indigenous participation in
hydropower development shall be actively promoted.

Prof. A. S. Sambo

10

2.

The Policy Framework on Renewable Contd

Fuelwood: The NEP provides that:

- The nation shall promote the use of alternative
energy sources to fuelwood
- The nation shall promote improved efficiency in the
use of fuelwood
- The use of wood as a fuel shall be de-emphasized in
the nations energy mix
- The nation shall intensify efforts to increase the
percentage of land mass covered by forests in the
country.
Solar Energy: The policy provides that:
- The nation shall aggressively pursue the integration
of solar energy into the nations energy mix.
- The nation shall keep abreast of worldwide
development in solar energy technology.

Prof. A. S. Sambo

11

2.

The Policy Framework on Renewable Contd

Biomass: The NEP provides that:

- The nation shall effectively harness non-fuelwood biomass
energy resources and integrate them with other energy resources
- The nation shall promote the use of efficient biomass
conversion technology

Wind: The Policy provides that:

- The nation shall commercially develop its wind energy resource
and integrate this with other energy resources into a balanced
energy mix
- The nation shall take necessary measures to ensure that this form
of energy is harnessed at sustainable costs to both suppliers
and consumers in the rural areas.

Hydrogen: The policy provides that:

- The nation shall integrate hydrogen as an energy source in the
energy mix of the country

Other Renewables: The policy provides that:

- The nation shall maintain an interest in other emerging sources
Prof. A. S. Sambo of renewable energy such as geothermal and ocean related energy.

12

3.

Institutional Framework for Renewable

Energy in Nigeria

The overall strategic planning and coordination of the nations policies

in the field of energy in all its ramifications rests on the Energy
Commission of Nigeria. Sub-sectoral policies within the overall
concepts of the National Energy Policy lie in the mandates of the
following organizations:
- Electricity:
Ministry of Power and Steel and the Nigerian
Electricity Regulatory Commission (NERC)
- Oil and Gas:
Ministry of Petroleum Resources and
Department of Petroleum Resources (DPR)
- Coal and Tar sands: Ministry of Solid Minerals
- Nuclear:
National Atomic Energy Commission (NAEC)
and the Nigerian Nuclear Regulatory Agency
(NNRA)
- R&D in Energy: Ministry of Science and Technology, Tertiary
Institutions and Research Centres.
- Energy and
Environment:
Ministry of Environment

Prof. A. S. Sambo

13

3.

Institutional Framework . Contd

For renewable energy policies, the relevant organizations are Ministry

of Power and Steel and the NERC for renewable electricity; Science
and Technology as well as the tertiary institutions for R&D in
renewables; while the Energy Commission provides the overall
policy planning and coordination.
The NNPC recently created a Renewable Energy Division which is
introducing ethanol biofuel to the Nigerian market.
National Committee on Energy Masterplan (NCEM) was constituted to
prepare the roadmap for the implementation NEP.
The National Energy Masterplan (NEM), to be prepared by the NCEM
will have a renewable energy component.
So far, private sector participation in renewable energy implementation
is by importing and marketing components
The regulation of renewable energy industry is still undefined, except
for renewable energy electricity of capacities of 1MW and above.

Prof. A. S. Sambo

14

4.

Renewable Electricity Technologies

Bioelectricity:
This is electricity generated from biodegradable biomass e.g.
residues and wastes from agriculture, forestry and related
industries, municipal and industrial wastes as well as energy crops
and plantations.
The conventional technologies of power production, through the
Rankine/Otto/Diesel cycles, are often employed. The energy
supplied at the boiler is sourced from the biodegradable
energy carrier, through
either:
- Direct combustion and co-firing
- Pyrolysis
- Gasification, or
- Anaerobic digestion.
Ordinary bioelectricity plants have efficiencies of about 20%,
while the combined heat and power plants (CHP) may have
higher efficiencies.
Bioelectricity is often accompanied with environmental problems
of greenhouse gas emissions, of varying magnitudes.

Prof. A. S. Sambo

15

4.

Renewable Electricity Technologies . Contd

Solar Electricity
-

Prof. A. S. Sambo

Electricity from solar energy may be obtained through (i) Solar

thermal process and (ii) Solar Photovoltaic (PV)
Electricity from solar thermal processes is similar to that in
bioelectricity using the Rankine cycle.
Solar photovoltaics refers to the direct and silent conversion of solar
energy into electricity, usually DC form, using a solar cell.
Solar cells may be made from (i) Polycrystalline silicon (ii) single
silicon (iii) amorphous silicon or (iv) thin film silicon
A solar cell can have an output of about 0.5V, 3.5 amp dc and
efficiency of up to 16%.
A solar module or panel consist of many solar cells, suitably
arranged, to give an output of greater than 12V and 3.5-7 amps
at 1kW/m solar intensity.

16

4.

Prof. A. S. Sambo

Renewable Electricity Technologies . Contd

Modules can last up to 25 years.

A solar array consists of many modules connected
together.
Thus a solar PV generator is made up of:
- Solar cells
- Solar modules
- Solar arrays

17

4.

Renewable Electricity Technologies . Contd

- The complete components of

a solar PV systems include:
- Solar PV generator
Deep cycle, heavy duty
lead-acid or Gel-cell lead
acid, batteries,
Controllers
for
the
regulation of charging
and
discharging of
the
batteries
Inverters
for
the
conversion of dc to ac
Other balance-of-system
components
are:
mounting
hardware,
switches, cables, circuit
breakers, connectors and
lighting arrestor.
Prof. A. S. Sambo

Fig. 3: PV Characteristics: Effect of Solar

Intensity
18

4.

Renewable Electricity Technologies . Contd

Wind Electricity
-

Prof. A. S. Sambo

Wind energy exists as a form of kinetic energy.

Electricity from wind energy is produced using an
aerogenerator, which is an electro-mechanical
system.
Aerogenerators could be mounted on towers up to
100m.
The tower may be self-supporting or guyed.

19

4.

Renewable Electricity Technologies . Contd

Fig. 4: Main Components of a Wind Electricity Generator

Prof. A. S. Sambo

20

4.

Renewable Electricity Technologies . Contd

The mechanical power output of a wind machine may be
expressed as:
Pout
=
Cp ( SAV)
Where Cp is Beltz limit ( 0.59)

A is Rotor swept Area

S is density of air
V is wind speed
-

Prof. A. S. Sambo

Maximum theoretical efficiency of wind machine is about

59%
(Beltz limit).
Typical practical aerogenerator
efficiencies lie between 10% and 30%.
Aerogenerators may produce ac or dc current, depending
upon the types of generators.

21

4.

Renewable Electricity Technologies . Contd

- Wind electricity is often

generated onshore for single
unit capacities of up to 5MW.
- Wind electricity can also be
generated from both the shallow
and deep offshore waters for
single unit capacities greater
than 5MW, because of higher
wind.
- Wind turbines have life spans of
20 25 years.
Fig. 5: A Typical Power Output Curve of a
Wind Powered Turbine (Ge Power System
1.5 SL)

Prof. A. S. Sambo

22

4.

Renewable Electricity Technologies . Contd

Hydroelectricity
- Hydroelectricity comes from the conversion of potential
energy water into electricity by water turbines and electric
generator system.
- Large hydro systems have the disadvantage of displacement
of people, land and ecosystem submersion, dam induced
earth movements, and GHG emission.
Large hydro systems are those rated greater than 30MW
while small hydro systems are less than or equal to 30MW.
- Small hydro is further classified into:

Prof. A. S. Sambo

Pico:
Micro:
Mini:
Small:

< 5kW
5kW-100kW
100kW-1MW
1MW-30MW
23

4.

Renewable Electricity Technologies . Contd

Hydrogen
Fuel
Cell
Electricity
- In fuel cell, the chemical energy
of the fuel is converted directly
to electrical energy.
- The most advanced fuel cell is
the hydrogen oxygen fuel cell.
The system consists of porous
electrodes,
an
electrolyte,
hydrogen as the fuel and
oxygen as the oxidant. The
output from the system is
electricity and water.

Prof. A. S. Sambo

Fig. 6: Schematic representation of a hydrogen

oxygen fuel cell

24

4.

Renewable Electricity Technologies . Contd

The reactions are as follows:

H2 + 2OH = 2H2O + 2e
2e+ O2 + H2O = 2OH
H2 + O2 =H2O

- Fuel
cell
can
have
efficiency of up to 83%.

Prof. A. S. Sambo

Fig. 7: Steady-flow process of a fuel

cell

25

4.

Renewable Electricity Technologies . Contd

Cost Comparison of Renewable Electricity Technologies

Table 2: Cost Estimates of RE Electricity Systems

Technology

Large Hydro
Small Hydro
Solar PV
Solar Thermal
Electricity
(Concentrating)

Investment
Cost [$/kW]

1,000
2,000
1,000
5,000
4,500
7,000
3,000
6,000

Low-Side
Generation
Costs
[Cents/kW
h]
36

High-Side
Generatio
n Costs
[Cents/k
Wh
5 10

Life-Span
[Yrs]

20 - 30

2-3

9-15

20-30

18-20

25 80

20 - 30

10 - 15

20 -25

15 - 25

Bioelectricity

500 4,000

2-3

10 - 15

15 - 25

Wind Electricity

850 1,700

3-5

10 - 12

20 - 25

Prof. A. S. Sambo

Source: IEA (2003)

26

5.

Renewable Electricity Production

in Nigeria:

Out of the five renewable electricity technologies

highlighted in section 4, only the following are being
employed in Nigeria:
Hydroelectricity,
Solar Photovoltaics,
Wind electricity.

Prof. A. S. Sambo

27

5.

Renewable Electricity Production Contd

Hydroelectricity
This Table shows that
hydroelectricity contributed
about 38.5% of the total grid
electricity production in
Nigeria between 1999 and
2004. This contribution is
mainly from the three large
hydropower stations in Kainji
(760MW), Jebba (578MW)
and Shiroro (600MW) owned
by Government, as well as
the small hydropower station
owned by NESCO in Jos of
30MW capacity.

Year

Grid Electricity Produced (TWh)

Thermal

Hydro

Total

1999

8.673

7.619

16.292

2000

8.443

6.784

15.227

2001

8.610

6.194

14.804

2002

13.208

6.390

19.599

2003

13.258

7.753

21.011

2004

16.122

8.087

24.209

Source: NBS (2005)

Prof. A. S. Sambo

28

5.

Renewable Electricity Production Contd

Solar Electricity
As at 1999 about 239 kWp of Solar PV modules
ere installed nationwide. It is useful to note that:
This is equivalent to about 1.88 TWh/annum of r
electrical energy using 6 hours of sunshine daily.
It comes to about 25% of the hydroelectric energy
produced that year.
The installations consisted of 52% for water
pumping, 24% for lighting, 15% for lighting in
offices and 9% for powering health clinics.
The current estimate of the total solar PV
installations are in excess of 350 kWp.

Prof. A. S. Sambo

29

5.
Renewable Electricity Production
Contd

(a) 5.5 kWp Solar PV Plant at Laje in Ondo State, (b) Solar street lighting in
Yanagoa, Bayelsa State
Prof. A. S. Sambo

30

5.

Renewable Electricity Production Contd

(c) : 2.85 kWp Solar PV Plant at Itu-Mbauzo, Abia State

Prof. A. S. Sambo

31

5.

Renewable Electricity Production Contd

Wind Electricity

- Wind electricity has not been

significantly harnessed in the
country despite the great
potentials.
- The only functional wind
electricity system in the
country
is
the
5kW
aerogenerator, which supplies
electricity to Sayya Gidan Gada
Village in Sokoto State..
Fig. 9: 5kW aero generator in Sayya Gidan Gada,
Sokoto State

Prof. A. S. Sambo

32

5.

Renewable Electricity Production Contd

Fig. 10: Wind Turbine Development in U.S.A.

Prof. A. S. Sambo

33

6.
Targets for Renewable Electricity in
Nigeria

A Study conducted by the Presidential Committee on a 25-year

power development plan, constituted in 2005, came up with a
projected electricity demand profile for the nation of about 15,000
MW; 30,000 MW; and 190,000 MW in the short, medium and long
terms on the basis of a 10% economic growth rate scenario.
With these projections, a study by the Energy Commission of Nigeria
indicated that renewable electricity is expected to contribute about
14%; 23%; and 36% of the total electricity demand in the short,
medium and long terms, respectively as dictated by the National
Energy Policy.
The end of the short; medium; and long-terms are 2008; 2015; and
2030, respectively.

Prof. A. S. Sambo

34

Table 4: Targets for Renewable Electricity Generation (MW) in

Nigeria

S/N. RESOURCE

SHORT MEDIUM

LONG

Hydro (large)

1930

5930

48,000

Hydro (small)

100

734

19,000

Solar PV

120

500

Solar Thermal

Biomass

100

800

Wind

20

40

All Renewables
All Energy Resources

2,036

6,905

68,345

15,000

30,000

190,000

% of Renewables

14%

23%

36%

Prof. A. S. Sambo

35

7.

Challenges Towards Renewable

Electricity in Nigeria

Capacity Limitation:
- The technical expertise to develop, deploy and manage
renewable
energy is inadequate, and worst still, not
relied upon in the country as expertise is often sourced
from outside the country.
- The infrastructure for the manufacture of renewable
electricity system components is not available in the
country. Supply of systems and components is, thus,
dependent on imports.
Financial and Fiscal Incentives:
- Financial and fiscal incentives are not available to fasttrack the development of the supply and demand sides of
the RE electricity market.

Prof. A. S. Sambo

36

7.
Challenges Towards Renewable
Contd

Lack of Awareness:
- There is the general lack of awareness of the benefits of RE electricity.
Inadequate Resource Assessment:
- Reliable resource database to assist investment decisions for RE
electricity industry is absent.
Inadequate Institutional Framework:
- With the mandate of the NERC limited to electricity plant capacities
of 1MW and above, there is no agency to licence smaller capacities that
are often associated with RE electricity.
Intermittency of Resource Availability
- All renewable resources for electricity generation are available
intermittently and cyclic. The challenge of energy storage and system
management during periods of lack of resource add to the complexity
of the systems.

Prof. A. S. Sambo

37

7.
Challenges Towards Renewable
Contd
Zero Resource Cost:

Apart from bioelectricity, resource for RE electricity is free. Even

though this is an advantage for reducing the operating cost of RE
electricity systems, the challenge is to make RE electricity systems
overwhelmingly competitive.

High Initial Investment Cost:

RE electricity systems have high initial cost. This has limited the
penetration of the system into the electricity market.

Deregulated and Liberalized Energy Industry:

With the deregulation and liberalization of the energy sector in

Nigeria, a conducive atmosphere is created for appropriate tariffs
on electricity services in the country. This opportunity would
enable RE electricity to be competitive in the market, in the
medium to long term.

Adequate Policy Framework on RE:

Prof. A. S. Sambo

Having approved the National Energy Policy a major challenge is

to get the National Energy Masterp;an to also be approved and
implemented.
38

8.

The Way Forward

Immediate completion and approval of the National

Energy Masterplan
Institutionalization of the National Energy Policy and the
National Energy Masterplan through an Act of the
National Assembly for sustainability.
Establishment of a Renewable Energy Fund to serve as the
instrument for the provision of financial incentives to local
manufacturers, suppliers and users of RE electricity,
especially with reference to the rural areas.
Provision of adequate fiscal incentives to local suppliers
and manufacturers of RE electricity system components.
Sustenance of the energy sector reforms by successive
governments.

Prof. A. S. Sambo

39

8.

The Way Forward . Contd

Intensification of promotional and advocacy activities on RE

electricity by the Energy Commission of Nigeria and all
stakeholders.
Intensification of R and D into RE electricity technology to
further bring down costs.
The enormous financial benefits now derived from the
depletable fossil resources need to be partly invested in the
development of RE electricity infrastructure in partnership
with the private sector.
Establishment of regulatory framework for the RE electricity
industry.
Development and sustenance of the RE resource database.

Prof. A. S. Sambo

40

9.

Conclusions

Nigeria has renewable energy resources in excess of 1.5 times that of

fossil energy resources in the country, in energy terms
The low level of electricity access in Nigeria, and particularly in the
rural areas, can be increased through the use of these renewable energy
resources for sustainable development.
Hydro, solar, wind and biomass have significant potentials to make the
difference.
Renewable electricity is projected to contribute 14%, 23% and 36% in
meeting the nations total electricity demand in the short, medium and
long terms.
There is the need to institutionalize both the NEP and the NEMP
(incorporating the REMP) through an Act of the National Assembly.
There is the need the establishment of a RE Fund to cater for
incentives to local manufacturers, suppliers and users of RE electricity.
There is the need for fiscal incentives to local suppliers and
manufacturers of RE electricity system components.

Prof. A. S. Sambo

41

42

Prof. A. S. Sambo
DRE/SEC/RE/ADD/DG 2006/DEC