RENEWABLE ENERGY POLICIES AND BARRIERS IN DEVELOPING NATION USING NIGERIA AS A CASE STUDY
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Nigeria, potentially, has abundant sunshine throughout the year, making it full thirstforsolarenergygeneration.Eventhough,thecountry’ssolarenergyprojectshavenotrealizeda fair result over the years, due to many barriers associated with initiatives implementation.Therefore, the entire power sector remains incapacitated to generate, transmit and distribute aclean, affordable and sustainable energy to assist economic growth.The research integratedfive African counterpart’s solar energy initiatives, barriers, policies and strategies adopted as alesson learned to Nigeria.
TABLE OF CONTENTS
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE
- Introduction
- Background of the project
- Problem statement
- Aim and objective of the project
- Scope and limitation of the project
- Significance of the study
- Research questions
- Definition of terms
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Review of renewable energy
2.3 The regulatory framework for renewable projects in Nigeria
2.3 RenewableenergyinSub-SaharanAfrica
2.4 BarrierstoPolicyAdoptioninSub-SaharanAfrica
2.5 Barriers to Renewable energy policy in Nigerian
CHAPTER THREE
METHODOLOGY
3.1 Introduction
3.2 Scopeofpolicydocument
3.3 Initialscopingmeeting
3.4 ReviewingthelegislativemandatedofeachMDA
3.5 Clarifyingtheroleoftheleadagency
- ResearchexistingRE,EEandpower-relatedpolicies,programsand strategies
- DialogbetweenkeyMDAsandkeyindustrystakeholders
- Establishingacommonplatformforallstakeholders
- Developapreliminarypolicydocumenttohelpfocuskeystakeholder
- Empanelaninteragencyreviewcommittee
- Conveneaone-daystakeholdereventtogarnerformalbuy-in
- Presentationoffinal documentto thepresident and federalexecutivecouncil.
CHAPTER FOUR
4.0 RESULT
4.1 MajorcomponentsofNigeria’srenewableenergypolicy
4.2 Harnessing renewable energy sources: policy, objectives andstrategies
4.3 Renewableenergyutilizationandsupply
4.4 Renewableenergyfinancing
- Energyefficiency:policies,objectivesandstrategies
4.6 Uniqueinsightsfromthepolicydevelopmentprocess
4.7 Governmentpreparednessandpolicydevelopment
4.8 Stakeholderengagementprocess
4.9 Policyfinalization
4.10 AdditionalandspecificbarriersthatMay applytootherSSAcountries
CHAPTER FIVE
- Conclusionsandrecommendations
References
Chapter one
1.0 Introduction
1.1 Background of the study
Nigeriaisblessedwith the abundanceofsolarradiationthroughouttheyear.However,accordingtoEmodi (2015) onlytheexactutilisablesolarresourcebase,formerlyavailableinthestateisunknowndespitethehugefinancialcommitmenttowards ensuring sustainableelectricity in thecountry.They furtheraddedthatNigerialackstheproperequipmentandinfrastructuretoconductsolarradiationmeasurement.Atthemoment,Nigeriaoperatesaboutthirty(30)measuringstationswhicharemanagedbytheNigerian
Solar energy contributes a tiny fraction of power generation in Nigeria, although, the country receivesmaximum sunlight exposure, potential for solar PV. Nigeria is in the solar belt, which heightens itssolar potential but sadly, the opportunities for harnessing the renewable energies remained narrow andunpractical comparetotheconventionalelectricity (Sambo et al, 2012).
Traditionally,solarenergyinthecountry haspredominantly beenusedforvariousactivitiesbyemploying the open to the sun method, mostly in the rural communities.Solar electricity generation,on the other hand, emerged approximately two decades ago and it has seen a steady growth (Osinowo et al, 2015). Theprimary drivers for the solar power uptake in the country are attributed to research centres and energyinstitutions, initiatives apart from the huge electricity production deficits. Besides the learning andresearch institutions, government and international agencies' activities have led to the development ofthe largest solar-PV plants across the country (Ohunakin et al, 2014). The major aims for the various solar electricitygeneration initiatives include the enhancement of water supply and the maintenance of clinics andhealthcarefacilitiesin the ruralareas (Oseni et al, 2012).
According Sambo et al (2012), an average sunshine of up to 9 hours per day, equivalent to 5.5kWhm-2days-1degreesofsolarradiationareseenalmostthroughouttheyear.Theavailability of massive radiations combined with the developments in the photovoltaic technologiesmakes it clear that huge amounts of electricity can be generated and utilised to combat the country’selectricity crises that has become an obstacle to economic development (Amankwah et al, 2015).Amankwah et al (2015) argued that the solarPV prices have been in steady decline in the recent years, dropping to approximately 50% compared towhen it was first introduced years ago. This phenomenon was attributed to ramping up of solar PVproductionsinChina andthetechnologicalbreakthroughsexperiencedin thefield(Osinowo et al, 2015).
Given the large amounts of incident radiation, installing solar panels on at least one percent of thecountry’s geography can easily generate enough electricity to outdo the amount currently produced inthe country (Ozoegwu et al, 2017). Annually, the state receives up to 115, 000 times its total energy production throughsolar energy. This fact highlights the immense amount of energy which the country can benefit fromthe solar energy, bearing in mind that currently, solar energy contributes less than one percent of thetotal powergeneration (Ozoegwu et al, 2017)
Solar energy is the most stable and reliable source of energy that can be harnessed for the benefit ofdomestic and commercial purposes (Ozoegwu et al, 2017). They further argued that, in line with the objectives of cuttingdown global warming through limiting the use of carbon fossils, solar energy has emerged to be astrategic component for achieving the sustainable development goals. Not only it is environmentallyfriendly, but it is also free and available in Nigeria. Electricity is not only produced cheaply, but alsoenvironmentallyfriendly(Ozoegwu et al, 2017).
1.2 Problem Statement
Nigeria has 12,500 megawatts of installed generation capacity, being largely dependent on natural gas, at 87.5 per cent of the on-grid energy supply mix(Ozoegwu et al, 2017). This position is rather unsurprising given the nation’s vast gas resources and the relative cost-efficiency of gas-fired power generation. Due to perennial challenges with grid infrastructure and other well-documented constraints to reliable power supply, a large proportion of the economy is reliant on off-grid, captive energy generation, which is for the most part, powered by petrol and diesel.
As the harmful effects of pollution and greenhouse gas emissions become clearer and the need for sustainable development takes on a more central role in the global energy conversation, there seem to be a consensus among key players across the world that it is imperative to shift focus towards renewable energy (and other clean energy sources) to drive economic growth, not least in developing countries such as Nigeria, where the need for investment is greatest.
This global paradigm shift, along with various policy initiatives by governments to incentivize renewable energy development and financing has led to an unprecedented growth in renewable energy (especially solar and wind) projects in many countries. Even for a country like Nigeria, where renewable energy has always featured in the energy mix (hydropower accounts for about 12.5 per cent of its on-grid energy), the current trend provides an opportunity to promote and attract sustainable investment in its energy sector.
1.3 Aim and Objectives Of The Study
Aim
The main aim of this work is to highlight the legal and regulatory framework for renewable energy in Nigeria, key government policies to stimulate the development of renewable energy, and notable developments in the market, whilst highlighting some challenges and opportunities.
Objectives
- ExamineNigeria’senergyprofile
- Analyzebarrierstosustainable energy developmentinNigeria.
- Recommendsomepolicyactionsto expeditethedevelopmentofsustainableenergysystemsinordertoguarantyasecuredenergyfuturefor Nigeria.
- To highlight renewable energy policies and barriers in Nigeria.
1.4 Scope and Limitation of the Study
The scope of this work covers the impact of policies on the solar energy generation in Nigeria. It also analyzesthebarrierstosustainableenergydevelopmentinNigeria,aswellastheroleofpublicpoliciesinsustainableenergydevelopmentusingacombination of empirical and exploratory research methods. It focuses on the role ofstakeholders in influencingnewpolicyformulationandpolicychange,aswellastheroleofpolicyinterventioninachievingprogressinsustainability.
It highlights the possible contribution of policies and their role inensuring a secured sustainable energy future for Nigeria in connection with threemajor energy sustainability dimensions: energy security (in terms of the ability ofsupplies to meet current and future demand, reliability of energy infrastructures, aswellaseffectivemanagementofenergysupply);energyequity(intermsofaccessible and affordable energy supply across the population); and environmentalsustainability (in terms of developing energy supply from low carbon sources, as wellasachievingsupply anddemandside efficiencies).
1.5 Significance of the Study
This study will serve as means of studying the cause of scarcity of energy resources and rising energy prices due primarily to aworld of increasing demand, energy security which occurs both forprivate and public sector alike. At the same time, it shows how energy policies have been shiftingand policy changes have become hard to predict because of radical changes in energysupply. The study will also serve as an eye opener that will make the reader to understand how renewable energy has affected the growth ofNigeria’s Gross Domestic Product (GDP) due to challengesinelectricity andoil production.
1.6 Research questions
i. What are the challenges of renewable energy in Nigeria?
ii. What are the 3 main challenges faced by renewable energy?
iii. What are the barriers to the development of renewable energy in Nigeria?
iv. What are the barriers to renewable energy?
v. What are renewable energy policies?
vi. What policies should be implemented to encourage the use of renewable energy resources?
1.7 Definition of terms
Renewable energy:Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, rain, tides, waves, and geothermal heat.
Policies:Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization.
Barriers: obstacle that prevents the access of renewable energy
CHAPTER FIVE
5.1 Conclusions and recommendations
The adoption of a renewable energy (RE) policy must build on a comparative advantage based on the existence of abundant feedstock in pursuing energy sector transformation that is beneficial in the long-run. For SSA countries, efforts to promote renewable energy (RE) may offer a strong pathway to sustainable development. Similarly, opportunities to promote EE may lower energy costs and yield environmental and development benefits. Given the abundance for wind, solar and other RE resources in many SSA countries, opportunities apparently exist to leap-frog to an environment of sustainable energy, especially in rural areas where energy services are limited. Unfortunately, however, the adoption of renewable energy and energy efficiency policies in SSA has been limited, despite the potential for such policies to spur the development of renewable energy. For countries that are yet to adopt such policies, it is important to understanding some of challenges that may surface in the process of policy adoption. Given its recent adoption of a renewable energy policy, Nigeria offers some insights on the politics of renewable energy policy adoption, as well as potential hidden barriers, beneficial processes, and strategies.
As reported by previous studies, the policy adoption process in a developing country can be complicated by limited availability of information on renewable energy and energy efficiency, limited experience with renewable energy and energy efficiency, limited institutional commitment, limited cooperation, the lack of adequate senior level push and the fact that renewable energy and energy efficiency do not always receive high priority. However, other challenges exist which may not be within the purview of policy makers and advocates for a more sustainable energy future because they are embedded in the process of developing policy and are not readily discernible before embarking on the process. Lessons from this study from the documentation of an actual process of adoption may be helpful to other SSA countries seeking to move the policy development process forward. By providing insights from Nigeria, this paper contributes to knowledge about the strategies that may be helpful in policy development.
It is important for the policy development process to go smoothly and be conflict-free. Major disagreements among the key players may result in a failed process and therefore long-term delays before the start of another process. Hidden agendas and interests can indeed impede the policy adoption process even when early thinking may suggest that the afore-mentioned latent obstacles are non-existent. In this paper, drawing on the process of adopting a new renewable energy policy in Nigeria, a SSA country facing major challenges in energy supply, a number of additional challenges hitherto unidentified in the literature are presented. These are mostly related to questions of leadership, vision, communication, collaboration, trust, conflicting mandates, agency biases toward regulation rather than incentives, lack of appreciation of the important roles to be played by the private sector and NGOs, excessive focus of government official on their needs and not the needs of the public, lack of understanding of the costs and benefits of renewable energy (particularly for rural areas), jockeying for political position, and inadequate funding.
To address these typically unforeseen challenges, it is recommended that a political and institutional scan be conducted prior to the onset of a renewable energy policy development process. Early buy-in at the highest level of government is likely to be useful in holding government officials and agencies accountable and in motivating them to cooperate and participate meaningfully. Early clarification of the vision for renewable energy is also very important. If elements of the vision are powerful enough and are perceived as meeting the interests of a wide array of stakeholders, then, some of the unforeseen institutional clashes can be prevented or at least mitigated.
Strong directives to bring the private sector and the NGO community on board early could prove beneficial. The lead agency may also need to have its leadership role endorsed at the highest level and across agencies. Key players may need education and reorientation and foreign experts and development partners could well perform this role. Furthermore, rule changes may be required to clean up conflicting mandates, thereby paving the way for renewable energy policy adoption.
For a renewable energy policy to have fiscal credibility, the funding sources for incentives to encourage research, technology investments, utility sector cooperation and effective monitoring and evaluation need to be well defined. It is important to recognize that habit and the entrenchment of existing markets themselves represent obstacles to new market realities, even when such realities are viable and socially feasible. This underscores the important roles of lawmakers and heads of lead agencies that drive the budgetary process.
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