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ENERGY EFFICIENCY REVIEW AND POLICY RECOMMENDATIONS
Benjamin Ogbalor & Kunle Odeyemi EverlinkSourcing Ltd
10 Zambezi Crescent, Maitama - Abuja
BY
PRESENTATION OUTLINE
1. Introduction and Background
2. Energy Challenges in Nigeria
3. Defining Energy Efficiency
4. Energy Conservation and Energy Efficiency
5. Barriers to Promoting Energy Efficiency in Nigeria
6. Recommendations for Energy Efficiency Practice and Management in Nigeria
7. Nigeria Draft Energy Efficiency Policy (Excerpts)
INTRODUCTION/BACKGROUND
Global energy needs are likely to continue to grow steadily for at least the next two-and-a half decades. If governments stick with current policies – the underlying premise of the World Energy Outlook’s Reference Scenario – the world’s energy needs would be more than 50% higher in 2030 than today, an average annual growth rate of 1.6%.
• The developing countries including Nigeria have more than 80% of the world’s population but their energy consumption amounts to only 40% of the world total energy consumption. This signal the need for creative methods of improving and optimizing energy potential
What is Energy Efficiency (EE)
• Energy Efficiency is the goal to reduce the amount of energy required to provide products and services.
• Energy efficiency is "using less energy to provide the same service“
ENERGY CHALLENGES IN NIGERIA
• Unstable and Inadequate Power Supply
The total installed capacity is 6,000 MW.
Hydroelectric dams contribute 40%
Thermal stations contribute 60%.
The total energy currently generated in Nigeria is far below 5,000 MW.
The Electric power transmission and distribution losses (% of output) in Nigeria was 5.87 in 2009, according to a World Bank report, published in 2010. Electric power transmission and distribution losses include losses in transmission between sources of supply and points of distribution and in the distribution to consumers, including pilferage.
Electric power transmission and distribution losses (% of output) in Nigeria
In 2012, Nigeria attained the target of generating 6,000 MW while the current grid network could only carry 4,000 to 4,500 MW and in the course of evacuating the entire MW generated, the entire system collapsed. This is an indication that if Nigeria generates up to 10,000 MW, evacuation will be a problem since the current grid network will not be able support the generated power to the end-users. It is therefore important that Nigeria invests in building its capacity to distribute with grid collapse – a feat EE can assist with
Energy Demand in Economic Sectors in Nigeria
Source: www.iisd.org
ENERGY CONSUMPTION – By Sector
Energy Production (kt of oil equivalent) in Nigeria The Energy Production (kt of oil equivalent) in Nigeria was 228721.61 in 2009, according to a World Bank report, published in 2010. Energy production refers to forms of primary energy--petroleum (crude oil, natural gas liquids, and oil from nonconventional sources), natural gas, solid fuels (coal, lignite, and other derived fuels) and combustible renewables and waste--and primary electricity, all converted into oil equivalents.
• Infrastructural Challenges
Nigeria lacks necessary energy support infrastructures, for example the wide variation noticed in power supply in figure1.1 above also resulted from difference between generation capacity and facility to transmit.
• Underutilization of Energy Resources
Vast deposits of energy resources especially renewable resources that could have been harnessed for their contribution to the total energy mix are grossly under-utilized.
Energy Efficiency in Context
When you replace an appliance, such as a light bulb, refrigerator or clothes washer, or office equipment, such as a computer or printer, with a more energy-efficient model, the new equipment provides the same service, but uses less energy. This saves you money on your energy bill, and reduces the amount of greenhouse gases going into the atmosphere.
ENERGY CONSERVATION AND EFFICIENCY
• While government is investing huge resources to build more power stations to meet up with energy demand, more energy could be saved and made available.
• Experts have asserted that the country could save up to 67% of the energy spent for lighting if we replace all the incandescent bulbs in Nigeria estimated at 150 million with energy saving bulbs.
• Huge potentials to save energy are also available for other appliances such as refrigerators, air conditioners, electric motors and heating equipment.
BARRIERS TO PROMOTING EE IN NIGERIA
• Policy Barrier
• Legal and Regulatory Barrier
• Information Barrier
• Technical Barrier
• Research and Development Barrier
• Cost Barrier
• Income Barrier
• Institutional Barrier
• Market Barrier
• Governance Barrier
• Funding Barrier
• Behavioural Barrier
• Technological Barrier
• Enforcement Barriers
Governance Framework The Bureau for Energy Efficiency
3
IMPLEMENTING AGENCIY (BUREAU FOR
ENERGY EFFICIENCY)
EE ENFORCEMENT AGENCIES(SON, CUSTOMS) EE DEVELOPMENT PARTNERS
Figure 3.1 EE Institutional Framework for Nigeria
ENERGY SERVICE COMPANIES (ESCOs) APPLIANCES END USERS/ ENERGY
CONSUMERSPARTNERS
•MANUFACTURERS•IMPORTERS•DISTRIBUTION COMPANIES (DISCOs)•ENERGY AUDITORS•ENERGY MANAGERS•STANDARD TESTING AND VERIFICATION LABORATORIES
•RESIDENTIAL•COMMERCIAL BUILDINGS•PUBLIC /GOVERNMENT BUILDINGS•INDUSTRY
•INTERATIONAL DONOR AGENCIES (UNDP,GEF,ESMAP, CLAPS)•NGOs•CIVIL SOCIETIES•RESEARCH ORGANIZATIONS•EDUCATIONAL INSTITUTIONS•TRADE ASSOCIATIONS•MEDIA
Before Bureau is Set Up
3
REGULATORY AGENCY (NERC)
IMPLEMENTING AGENCY (Fed Min of Power or ECN)
EE ENFORCEMENT AGENCIES (SON, CUSTOMS)
EE DEVELOPMENT PARTNERS
Proposed EE Institutional Framework for Nigeria
ENERGY SERVICE COMPANIES (ESCOs) APPLIANCES END USERS/ ENERGY
CONSUMERS PARTNERS
•MANUFACTURERS •IMPORTERS •DISTRIBUTION COMPANIES (DISCOs) •ENERGY AUDITORS •ENERGY MANAGERS •STANDARD TESTING AND VERIFICATION LABORATORIES
•RESIDENTIAL •COMMERCIAL BUILDINGS •PUBLIC /GOVERNMENT BUILDINGS •INDUSTRY
•INTERATIONAL DONOR AGENCIES (UNDP,GEF,ESMAP, CLAPS) •NGOs •CIVIL SOCIETIES •RESEARCH ORGANIZATIONS •EDUCATIONAL INSTITUTIONS •TRADE ASSOCIATIONS •MEDIA
Nigeria Bureau for Energy Efficiency Organogram
Governing Council
Director General
Directorate
of MEPsDirectorate of Enforcement
Directorate of Planning and
Statistics
Directorate of Mobilization/
Awareness
Directorate of Finance and
Administration
Technical Advisory Committee
The Bureau will be a statutory government agency with a mandate to perform regulatory, coordinating and monitoring functions in the implementation of Energy Efficiency Policy.
• The bureau shall provide appropriate guides to various stakeholders that would be involved in energy efficiency practice e.g. SON (SONCAP), ECN, UNDP etc.
• The bureau shall publish catalogue showing appliances that are under Standard and labelling (S&L) programme .
• (Except under special circumstances ) The Bureau SHALL ALWAYS aligned Nigerian EE S&L and MEPS with the ECOWAS EE framework.
• The bureau shall develop national energy efficiency practice and ethics manuals.
• The bureau shall develop appliances testing procedure manuals.
• The bureau shall develop any materials or tools that can provide useful information to the stakeholders.
• The bureau shall update her catalogues, manuals and other relevant publications at least 1 nos time every two years.
Justification
• The financial benefits/saving that accrue from Energy Efficiency makes it worthy of attention and investment.
• Cross Cutting nature of Energy Efficiency ,Effective Coordination,Optimisation ,Sustainability and Results (One Coordinating Agency with Autonomy).
• Commercialization potential of Bureau
• Countries with demographics similar to Nigeria have agencies charged solely with Energy Efficiency
COUNTRY IMPLEMENTING
AGENCY
ENABLING MECHANISM INSTITUTIONAL MODEL
Brazil PROCEL Presidential decree (1985) Public agency
focused on EE
China Energy
Research
Institute
Energy Conservation
Information
Center
Government order (1980)
Government order (1998)
Public energy
Agency
Public agency
focused on EE
Japan Energy Conservation
Center
Japan Natural
Resources and
Energy Agency
Energy Conservation Law
(1979)
Agency reorganization
(1980)
Public agency
focused on EE
Public energy
agency
South Africa
Energy Efficiency
Agency
Government order (2006)
Agency focused strictly
on EE
Thailand Dept. of Alternative
Energy Development
and Efficiency
Energy conservation and
promotion act (1992)
Public agency
focused on EE
United
Kingdom
Energy Saving Trust
National legislation (1993) NGO focused strictly
on EE
IMPLEMENTATION FRAMEWORK
• A monitoring, inspections and compliance regime
• Education, Awareness creation and Capacity Building
• IN LINE WITH ECOWAS
• Setting Minimum Energy Performance Standards (MEPS) for a range of end user equipment and appliances;
• Mandatory labelling for all energy appliances
• Guidelines for EE best practices (in-country)
THE ENERGY EFFICIENCY POLICY
Policy Goal
• To reduce Nigeria’s energy-related CO2 emissions by mitigating the demand for energy in Nigeria’s residential and public sectors .Amongst other measures including the introduction of Standards and Labels (S&Ls) and Minimum Energy Performance Standards (MEPS for new equipment and appliances.
STRATEGIC OBJECTIVES
• To ensure energy is efficiently utilized in order to save cost for the citizens and make available sufficient energy for the consuming public.
• Strategic Market transformation from sales of non-energy efficient products to massive sales of energy saving domestic and industrial electrical appliances in Nigeria.
• To cut carbon dioxide emission and GHG in order to combat climate change challenges
• To encourage efficient energy utilization and discourage wasteful use of energy among Nigerians.
• To promote energy efficient technologies for buildings, homes and industry.
• To create employment opportunities for the citizens through interconnected activities that will be involved in the implementation of the Energy Efficiency policy. (outcome)
• To enforce mandatory labelling of home and office electrical appliances(INCLUDING APPLIANCES AND SYSTEMS IN OTHER SECTORS);
• To promote mandatory energy audit for homes and commercial or public buildings
• Institutionalisation of Energy Efficiency management in the Country
TARGETS
• Produce Guidelines on all the key components of EE by 2015;
• Enact all relevant legislation required for policy implementation by 2015;
• Nigeria to attain 60% consumption of Energy efficient lighting, Fridge, Freezers and Air conditioners by 2016 and 100% by 2020.
• Attain replacement of 40% (by 2016) and 100 % (by 2020) of old non- energy efficient appliances in Nigeria with energy efficient appliances.
• Review and improve on the recommended EE practices by 2016.
• Sustain best EE practices beyond 2025.
Other Areas Covered in Policy
• Institutional Framework for the Policy
• Policy on the Key Areas of Energy Efficiency Practices
• Policy Implementation Strategies
• Roles and Responsibilities of Stakeholders
• Funding Mechanism
• Proposed Nigerian Minimum Energy Performance Standards for some end-user appliances