AFTER the initial false start, the Federal Government has moved to promote renewable energy (RE) mainly in the form of small hydropower and biomass based mini-grids as viable options for augmenting the rural electrification programme.
The project promoted by United Nations Industrial Organisation (UNIDO) and Green Environment facility (GEF) through partnership with the Federal Ministry of Energy, Energy Commission of Nigeria, and Federal Ministry of Environment, plans to convert plants, animal wastes and residues to power generation.
There is currently an excess electricity demand of over 10,000MW being met by diesel engines with its concomitant negative effect on industrial competitiveness and climate change. This is a worrisome situation in view of the vast supply of renewable energy materials for power generation in the country.
As an agrarian economy, Nigeria has ample opportunity to bridge the electricity demand-supply gap by utilizing its abundant biomass resources. However, the agricultural and wood wastes generated in the country are either dumped or burnt. This results in significant environmental hazards and health problems arising from methane and other harmful emissions.
The Guardian learnt that the proposed project is expected to reduce a considerable amount of Carbon Dioxide (CO2) emissions, which otherwise would have resulted from the use of diesel generators, as is currently the case in Nigeria (this is the baseline). In addition, this project has huge replication potential of up to about 15,734 MW using agro residues generated in the agro processing industries and SHP systems .
Under the programme, GEF will contribute $2, 667, 273 while co-financing required is put at $7,360,000, totaling $10, and 027,273. The GEF resources will be utilized to support the development of mini-grids in terms of background studies, feasibility studies, engineering designs, and partial support in the procurement of equipment, thereby demonstrating the viability of RE based mini-grid systems.
“If this potential is realized, there will be a considerable reduction in the energy related CO2 emissions in Nigeria, while the energy supply situation in the country will be improved drastically. A more detailed analysis of the environmental benefits derived from this intervention will be made and documented during the PPG phase.”
According to UNIDO officials, the demonstration of viable and sustainable RE based mini-grid projects will enable the Government to further establish the appropriate policy and regulatory framework and contribute to the development of a conducive market environment for increased private sector investment programmes.
Given the country’s resource endowment, the project will focus on promoting two SHP mini-grid demonstration projects with a capacity of 0.5 MW each and a biomass mini-grid project of 2 MW capacity), which have huge potential for scaling up in the country.
A rough estimate of the combined potential for SHP and biomass residues for power generation in Nigeria is about 15,734 MW. Considering the fact that the supply-demand gap existing in Nigeria is about 12,000 MW, replication potential of proposed project is significant to meet this gap.
The project is designed to provide support in creating an enabling policy and market environment for the attainment of the targets set for renewable energy, including the policy, regulatory and institutional framework and financing issues for setting up mini-grids; capacity-building; as well as public awareness.
The various activities reflect a commitment to realize the target of the Master Plan for all the renewable energy sub-sectors. The activities will address database, market as well as capacity issues in realizing the target of the Renewable Energy Master Plan (REMP), for instance, for scaling up installed electricity capacity based on biomass and SHP powered mini-grids to about 600 MW and 2,000 MW in year 2015 and 2025 respectively.
The project will complement the efforts of UNDP’s supported Renewable Energy Master Plan, and World Bank projects such as off-grid lighting using cassava waste, the Nigeria National Energy Development Project to improve the efficiency of transmission and distribution lines, Aba 120 MW gas co-generation power plant.
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