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1.0 Overview

― I’m convinced the development of renewable energies is a win-win strategy for both

industrial and developing countries. Renewables bring together climate protection, poverty

reduction, technology development and the securing of jobs”

-Jurgen Trittin, German Federal Environment Minister

Renewable Energy (RE)1 has been talked about for more than thirty years while fossil fuels

have increased in use and declined in supply. While significant gains have been made we are

currently challenged to make the switch to renewable energy in time to avoid significant

environmental and climatic changes. At the recent World Summit on Sustainable

Development (WSSD), held in Johannesburg in 2002, energy was one of the most

contentious issues. Setting targets for new renewable energy (defined as modern biomass,

solar, wind, small-scale hydro, geothermal and marine) as well as reducing perverse and

harmful energy subsidies was hotly debated. In the end no target was agreed upon.

However, at the final plenary session more than thirty countries announced their

commitment to promoting renewable energy sources and setting their own goals. As part of

this, Germany agreed to host ―Renewables 2004‖- a conference in Bonn that will focus on a

way forward to substantially increase the proportion of new renewable energy in both

industrialized and developing countries (Energetic Solutions, 2004)

The International Energy Agency (IEA) estimates that nearly 50% of global electricity supplies

will need to come from renewable energy sources in order to halve carbon dioxide emissions by

2050 and minimize significant, irreversible climate change impacts. The principal driver of

today's rapid renewable energy growth is policy. Growth of renewable is strongest where and

http://en.wikipedia.org/wiki/International_Energy_Agency

http://en.wikipedia.org/wiki/Carbon_dioxide

http://en.wikipedia.org/wiki/Climate_change

http://en.wikipedia.org/wiki/Climate_change

http://en.wikipedia.org/wiki/Carbon_dioxide

http://en.wikipedia.org/wiki/International_Energy_Agency



when the policy-makers have established favourable policy frameworks. In many countries, a

rich and diverse policy landscape exists at national and local levels.[1][2]

As of 2011, 119 countries have some form of national renewable energy policy target or

renewable support policy.[3] National targets now exist in at least 98 countries. These targets

represent "commitments to shares of electricity production (typically 10 – 30%), total primary or

final energy, heat supply, installed capacities of specific technologies, and shares of biofuels in

road transport fuels".

City and local government policies for renewable energy use are a diverse and growing segment

of the renewable energy policy landscape. Several hundred cities and other forms of local

government around the world have adopted relevant goals, promotion policies, urban planning,

and demonstrations.[4]

1.1 Renewable energy policy

Renewable energy policy is the principal driver of the growth in renewable energy use. As of

2011, 119 countries have some form of national renewable energy policy target or renewable

support policy. National targets now exist in at least 98 countries. There is also a wide range of

policies at state/provincial and local levels.[3]

Developing countries, which represent more than half of all countries with policy targets and half

of countries with renewable energy support policies, are playing an increasingly important role in

renewable energy commercialization. One of the forces for the development of renewable energy

policies is job creation and the creation of new industries. Jobs from renewables number in the

hundreds of thousands in several countries.[3]

As policies spread to more countries, the geography of renewable energy use is also changing.

For example, commercial wind power existed in just a few countries in the 1990s but now exists

in at least 83 countries. Solar Photovoltaic capacity was added in more than 100 countries during

2010.[3]

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The Government is committed to increasing the proportion of energy we use from renewable

sources. The UK has been blessed with a wealth of energy resources but the depletion of our

domestic fossil fuels reserves, combined with projected growth in global energy demand, puts

our security of energy supply at risk. [3]

Exploiting our renewable resources will make a strong contribution to our energy needs and

allow us to be less reliant on others. [3]

Our drive to increase the proportion of energy we obtain from renewable sources will not only

increase the security of energy supplies in the UK; it will also provide opportunities for

investment in new industries and new technologies [3].

The Government will help business develop in this area to put the UK at the forefront of new

renewable technologies and skills. [3]

The Government believes climate change is one of the gravest threats we face and that urgent

action at home and abroad is required. The development of renewable energy sources, alongside

nuclear power and the development of carbon capture and storage will also enable the UK to

play its full part in international efforts to reduce the production of harmful greenhouse gases. [3]

2.0 Literature review

2.2 Bio-energy

Bio-energy is renewable energy made from material of recent biological origin derived from

plant or animal. There are a wide variety of biomass sources and these includes: virgin wood,

wood residues from sawmills and other wood processing industries; agricultural energy crops,

agricultural residues; sewage sludge, animal manure and food waste, organic biodegradable

proportion of municipal solid waste, commercial and industrial waste.

2.3 Geothermal

Geothermal energy refers to the different types of thermal energy stored within the earth . The

basic idea is simple: cold water is pumped down one borehole, heats up as it moves through hot


























rocks, and returns to the surface as steam to run a turbine. The main challenge for a plant of this

kind is establishing a flow of water at depth. This can be aided by fracturing rocks with high

pressure water (known as frac’ing). This technology is often termed "enhanced geothermal

systems" (EGS). Deep geothermal energy generation is low carbon in nature.

2.4. Combined Heat and Power

Combined Heat and Power (CHP) is a highly efficient process that captures and utilises the heat

that is a by-product of the electricity generation process.

By generating heat and power simultaneously, CHP can reduce carbon emissions by up to 30%

compared to the separate means of conventional generation i.e. via a boiler and power station.

As well as reducing emissions, CHP lowers energy and fuel costs and improves security of

supply. It is suitable for a wide range of application sizes from a replacement for a boiler in

homes to meeting the energy requirements of a large industrial complex. CHP is also viable for a

whole range of fuels, including gas, oil, biomass, waste and nuclear.

CHP requires that the useful heat is able to be utilized locally. The heat is either onsite in the

majority of instances, exported direct to an adjacent heat customer or supplied to a number of

users via a district heating network. The electricity generated is also used onsite, or exported to

the grid. Industries that are suited to CHP are those with a high demand for heat, including oil

refineries, chemical plants, the paper industry, breweries, horticultural sites, etc. Buildings that

have proved particularly suited to CHP include hospitals, universities, hotels, leisure centres

and residential homes.

2.5 District heating

District heating is the supply of heat to a number of buildings or homes from a central heat

source through a network of pipes carrying hot water or steam.

District heating pipes are not specific to the technology used to generate the heat and so can

connect to a range of sources of heat supply including CHP, biomass, energy from waste, ground

source heat pumps, geothermal heat or large power stations.



This means that because district heating pipes have a longer life than generating plant, networks

can be put in place now based on whichever heat supply technology is most appropriate or

economic and upgraded over time, for example to more renewable sources of District heating

currently provides roughly 1-2% of the UK’s heat demand. Analysis shows that in the right

conditions, district heating could supply up to 14% of the UK heat demand, and be a cost-

effective and viable alternative to individual renewable technologies, at the same time as

reducing bills for consumers.

District heating is best suited to urban areas with high heat demand, and a mix of different

building types. The ability to generate heat at low costs means district heating can contribute to

the goal of reducing fuel poverty.

2.6 Wind

Onshore and offshore wind generation can make a significant contribution to the renewable

energy targets and aspirations given the substantial wind resource and the relatively advanced

nature of wind generation technology. The UK already has more offshore wind capacity than any

other country in the world. [6].

2.7 Renewable Heat Incentive (RHI) Scheme

What is the Renewable Heat Incentive?

On 10 March 2011, the Government announced the details of the Renewable Heat Incentive

policy to revolutionize the way heat is generated and used. This is the first financial support

scheme for renewable heat of its kind in the world. [6]

At a time when we can see many problems with relying on a rapidly changing world and

continuous reliance on oil and gas, we are proposing to put in place a key foundation stone of our

energy future where both carbon reduction and energy security are assured. [6]

The Renewable Heat Incentive (RHI) policy document sets out the detailed arrangements for this

scheme, which will provide long-term financial support to renewable heat installations to

encourage the uptake of renewable heat. We are aiming for the regulations underpinning this











scheme to be approved by Parliament in summer 2011. The scheme will be introduced shortly

thereafter. [6]

2.8 Wave and tidal energy

Wave and tidal stream energy is electricity generated from the movement of wave and

tidal flows.

Wave power is much more predictable than wind power – and it increases during the

winter, when electricity demand is at its highest.

As with wave power, tidal and current stream energies are predictable and consistent. It is

estimated that the UK has around 50 percent of Europe’s tidal energy r esource, and a

study in 2004 estimated our technical resource at around 16 TWh/year (4 percent of

supply). [6]

Hydroelectric power is the energy derived from flowing water.

3.0 Renewable Energy Policy and its Implications

Renewable energy policy is the principal driver of the growth in renewable energy use.

Some of these policies include:

Renewable Energy Roadmap (UK) The Roadmap sets out a comprehensive programme

of targeted, practical actions to tackle the barriers to renewables deployment, enablingthe level of renewable energy consumed to grow in line with ambitions for 2020 and

beyond. This will mean over a four-fold increase in our level of renewable energy

consumption by the end of the decade.

The 2009 Renewable Energy Directive (UK) sets a target for the to achieve 15% of its

energy consumption from renewable sources by 2020. This compares to 3% in 2009.

While analysis demonstrates it is possible to achieve the target and industry say they

have the capacity to deploy at the rate required, the scale of the increase over the next 10

years represents a huge challenge and will require strong contributions from all three

sectors of electricity, heat and transport.

The Renewable Energy Programme (NIGERIA) is targeted at stimulating the sector that

is viable enough to attract capital to develop renewable energy technologies in Nigeria.

Also the programme is envisaged by Nigeria as a mitigation tool in response to the




http://www.decc.gov.uk/en/content/cms/meeting_energy/wave_tidal/wave_tech/wave_tech.aspx

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http://www.decc.gov.uk/en/content/cms/meeting_energy/hydro/hydro.aspx



http://www.decc.gov.uk/en/content/cms/meeting_energy/hydro/hydro.aspx


http://www.decc.gov.uk/en/content/cms/meeting_energy/wave_tidal/tidal_power_te/tidal_power_te.aspx

http://www.decc.gov.uk/en/content/cms/meeting_energy/wave_tidal/wave_tech/wave_tech.aspx




UNFCCC Accord, which includes commitment to emission reduction targets and

mitigation action by developing countries by 2020; short term funding for immediate

action and long term financing and mechanisms to support technology transfer.

3.1 Energy/ Renewable Energy Policies/Programmes

3.1.1 Institutional arrangements in the Renewable Energy Sub-Sector

The primary governmental agency for the development and promotion of Renewable energy

technologies in the country is the Energy Commission of Nigeria, which is under the

Presidency. Its mandate includes strategic energy planning; policy co-ordination and

performance monitoring for the entire energy sector, laying down guidelines on the

utilization of energy types for specific purposes; developing recommendations on the

exploitation of new sources of energy. Renewable Energy is therefore a component of its

mandate (Iloeje, 2002).

3.1.2 National Policy Position on RE Development

The key elements in the national policy position on the development and application of

renewable energy and its technologies are as follows (Iloeje, 2002):

• To develop, promote and hardness the Renewable Energy (RE) resources of the

country and incorporate all viable ones the national energy mix

• To promote decentralized energy supply, especially in rural areas, based on RE

resources

• To de-emphasize and discourage the use of wood as fuel



• To promote efficient methods in the use biomass energy resources

• To keep abreast of international developments in RE technologies and applications

3.1.3 Relevant Statutes and Documents

The current Electric Power Sector Reform Bill derives from the National Electrical Power

Policy. The Central thrust of the policy is a three-stage legal and regulatory reform of the

power sector as follows:

a. Transitional Stage – Private power generation through Independent Power Producers (IPPs)

and Emergency Power Producers (EPPs); corporate restructuring and unbundling of NEPA

through sale or license of all thermal plants to private operators and the subsequent

privatization through the transfer of management, ownership and control of distribution

companies; establishment of transition market rules based on bilateral contracts between

generators and distributors; establishment of a Special Purpose Entity (SPE) to take over

NEPA’s legacy debt, pension fund, unpaid taxes and PPA liabilities; establishment of a

multi-year tariff order containing comprehensive tariff charging principles and formular;

establishment of the Nigerian Electricity Regulatory Commission.

Medium Term (3 to 5 years after the unbundling and privatization is completed) –

Competition among generating companies; energy trading between generation and

distribution companies; sale of energy by companies generating power in excess of their

needs to distribution companies.



b. Long-run Competition Structure (Beyond 5 years) – power generation, transmission and

distribution companies will be operation optimally; economic pricing of electricity to cover

the full costs of supply; opportunity for large industrial consumers to choose their suppliers.

3.1.4 Status of Renewable Energy in Nigeria

The main objectives of the current reforms in the Nigerian power sub-sector are as follows

(Edjekumhene, 2003):

1. Promote competition to facilitate more rapid provision of service throughout the

country;

2. Create a new legal and regulatory environment for the sector that establishes a level

playing field, encourage private investment and expertise, and meet social goals;

3. Unbundle the National Electric Power Authority (NEPA); and,

4. Privatise the successors to NEPA and encourage them to undertake an ambitious

investment programme.

The Energy Commission of Nigeria Act, which established the Energy Commission of

Nigeria (ECN) was enacted in 1979. The ECN was charged with responsibility for co-

ordinating and general surveillance over the systematic development of the various energy

resources of Nigeria.

A National Stakeholders Forum on Rural Industrialisation and Development through RETs

was held in December 2002. The forum was organised by the UNIDO and the Energy



Commission of Nigeria (ECN).

At the end of the forum an 18-point recommendation, on how Nigeria can access clean,

affordable and efficient energy services were made (See section 8 of this report)

3.1 The Economic Benefits of Investing in Clean Energy

The United States and the entire world in the 21st century face an enormous challenge —

successfully managing the transformation from a predominantly carbon-intensive economy to

becoming a predominantly clean energy-based economy. The reality of global climate change

due to rising carbon emissions makes it imperative for all the countries in the world to

dramatically cut its consumption of traditional fossil fuels, the primary source of carbon dioxide(CO2) delivered into our atmosphere by human activity. Rising levels of CO2 in the atmosphere

is in turn the primary cause of global warming. [7]

This economic transformation will engage a huge range of people and activities. But there are

only three interrelated objectives that will define the entire enterprise:

Dramatically increasing energy efficiency.

Dramatically lowering the cost of supplying energy from such renewable sources of energy as solar, wind and biomass.

Mandating limits and then establishing a price on pollution from the burning of oil, coal,

and natural gas.

It is crucial for economic policymakers and the people to understand the likely effects of these

three overarching objectives as much as possible. Specifically, we need to gauge our success in

curbing CO2 emissions alongside the broader effects on the total world’s economy, particularly

on employment opportunities, economic growth and people’s incomes. [7]

This section examines these broader economic considerations — jobs, incomes, and economic

growth- there will be expansion in job opportunities as long as the economy maintains a

commitment to clean-energy investments and if clean-energy investments expand still faster,

overall job creation will increase correspondingly. In addition, clean-energy investments











generate roughly three times more jobs than an equivalent amount of money spent on carbon-

based fuels. [7]

3.2 Benefits of Renewable Energy Use

Renewable energy can supply a significant proportion of the World’s energy needs, creating

many public benefits for the all, including environmental improvement, increased fuel diversity

and national security, and regional economic development benefits.

3.1 Environmental Benefits

Using fossil fuels — coal, oil and natural gas — to make electricity dirties the nation's air,

consumes and pollutes water, hurts plants and animal life, creates toxic wastes, and causes global

warming. Using nuclear fuels poses serious safety risks. Renewable energy resources can

provide many immediate environmental benefits by avoiding these impacts and risks and can

help conserve fossil resources for future generations. Of course, renewable energy also has

environmental impacts. For example, biomass plants produce some emissions, and fuel can be

harvested at unsustainable rates. Wind farms change the landscape, and some have harmed birds.

Hydro projects, if their impacts are not mitigated, can greatly affect wildlife and ecosystems.

However, these impacts are generally much smaller and more localized than those of fossil and

nuclear fuels. Care must nevertheless be taken to mitigate them.

3.3 Economic Benefits of Reducing Environmental Impacts.

The many environmental impacts described above result in real costs to society and to

individuals. When such costs are not included in energy prices, they are referred to as

"externalities." During the 1990s, efforts have been made to calculate the dollar costs of such

externalities and, in some cases, to include them in energy planning decisions.[14] In 1998, the

Minnesota Supreme Court upheld a state laws requiring that utility planning considers

externalities. [15]

The largest external costs from pollution are probably human health costs, in the form of health

treatment costs, higher health insurance rates, missed work, and lost life. According to an

exhaustive survey of health impacts by the Pace University School of Legal Studies and studies




http://www.ucsusa.org/clean_energy/technology_and_impacts/impacts/public-benefits-of-renewable.html#14







by the American Lung Association, the annual US health costs from all air pollutants may be as

high as hundreds of billions of dollars.[16] However, unless policies are adopted so that utility

rates account for these societal and environmental costs, customers may ignore them when

deregulation enables customers to choose their generating sources. Such policies might include

pollution taxes or placing total limits on each emission for the geographic area affected by the

emission.

Even without considering externalities, both industry and individuals stand to gain from

increased reliance on renewable energy. Because renewables produce little or no pollution, they

can reduce regional pollution and thereby reduce the costs for neighboring industry to comply

with environmental regulations.

Environmental regulations usually focus on one pollutant at a time, as scientific knowledge

about the impacts of the pollutant develops. Then, when government imposes a new regulation,

industry may add a series of new pollution controls. Compared with any single pollution-control

requirement, replacing the fossil fuel generator with a renewable energy technology may look

expensive. But if all potential future controls are considered together, renewable technology can

look far more attractive. As of 1998, a host of new environmental regulations were pending:

The level of ozone (smog) allowed in ambient air is being reduced from 0.18 to 0.08 partsper million.

Nitrogen oxides have long been regulated under the Clean Air Act. In determining how to

allot reductions among industries, state governments are likely to target utilities for major

reductions.

Sulfur dioxide limits will be tightened in the year 2000 when Phase II of the Clean Air

Act goes into effect. This will affect every coal-burning power plant in the country.

Fine particles are being regulated for the first time, with final rules expected by 2005.

Mercury and other toxic metals has been the subject of substantial research by the

Environmental Protection Agency. The EPA has announced it will require coal-fired

plants to disclose discharges, and it will use the data to decide on regulations by late

2000.[17]







Carbon dioxide emissions would need to be reduced to implement the Kyoto agreement

on global warming.[18]

Conversion now to renewable technologies would forestall the need for future retrofits to achieve

compliance with these regulations.

3.4NuclearRisks

Although nuclear power plants avoid many of the air emissions associated with fossil fuel plants,

they create unique environmental risks. A combination of human and mechanical error could

result in an accident killing several thousand people, injuring several hundred thousand others,

contaminating large areas of land, and costing billions of dollars.[20] While the odds of such an

accident are low, the Chernobyl accident in 1986 showed that they can occur.

Major nuclear accidents can only result from many failures occurring at about the same time. But

in order to maintain safety margins, inspectors and tests must identify equipment problems, and

plants must have accurate procedures to minimize worker errors. A 1998 report by the Union of

Concerned Scientists found a breakdown in quality assurance during a one-year study of a 10-

plant focus group.[21] Most of the planned increases in US natural gas capacity could be needed













to replace these nuclear plants, which means that little new capacity would be available to

displace coal generation. Even if the nuclear plants were to operate until the end of their license

periods, abundant low-emission replacement options would be needed. The availability of

significant renewable generation could help to mitigate these nuclear-replacement problems,

lowering the costs of regulatory compliance for industry as well as utilities and avoiding the risks

inherent in nuclear power generation.

3.5 Diversity and Energy Security Benefits.

Renewables offer benefits not only because they can reduce pollution, but because they add an

economically stable source of energy to the mix of US generation technologies. Depending on

only a few energy resources makes the country vulnerable to volatile prices and interruptions to

the fuel supply. As the figure shows, the United States relies heavily on coal, with nuclear powerand natural gas supplying most of the rest.

Natural gas is generally considered the fuel of choice for new power generation, because it is

cleaner than coal and sometimes less expensive. But overreliance on natural gas could also create

problems. Fossil fuels are susceptible to supply shortages and price spikes.[29]





Since most renewables do not depend on fuel markets, they are not subject to price fluctuations

resulting from increased demand, decreased supply, or manipulation of the market. And since

fuel supplies are local, renewable resources are not subject to control or supply interruptions

from outside the region or country.

An additional benefit of increased competition from renewables-and thus reduced demand for

fossil fuels-could be lower prices for electricity generated from fossil fuels. Several analyses

reviewed show that competition from increasing renewables could reduce natural gas prices. A

comprehensive modeling project of the New England Governors' Conference found that an

aggressive renewables scenario, in which renewables made up half of all new generation, would

depress natural gas prices enough to lead to a slight overall reduction in regional electricity

prices compared with what prices would be if new generation came primarily from fossilfuels.[31]

.

















3.6Economic Development Benefits

Renewable energy technologies can not only keep dollars in this country, but also create

significant regional benefits through economic development. Many states are dependent on

energy imports. Iowa and Massachusetts, for example, each import about 97 percent of the

energy they use.[33] Renewable technologies create jobs using local resources in a new, "green,"

high-tech industry with enormous export potential. They also expand work indirectly in local

support industries, like banks and construction firms. As the table shows, during the 1990s, the

US renewable electricity industry employed nearly 117,000 people.[34]

Renewables can mean increased revenues for local landowners. A Union of Concerned Scientists(UCS) analysis found that farmers could increase their return on land by 30 to 100 percent from

leasing part of it for wind turbines while continuing to farm.[35] Another study found that adding

10,000 MW of wind capacity nationally would generate $17 million per year in land-use

easement payments to the owners of the land on which the windfarms are situated, and $89

million per year from maintenance and operations.[36]

Renewables can contribute heavily to local taxes. Wind farms in California pay $10 million to

$13 million in property taxes. And manufacturing capital-intensive renewables technologies can

also be done domestically. According to the American Wind Energy Association, at least 44

states are involved in manufacturing wind energy system components.[37]

A UCS analysis for Wisconsin found that, over a 30-year period, an 800-megawatt mix of new

renewables would create about 22,000 more job-years than new natural gas and coal plants













would.[38] A New York State Energy Office study concluded that wind energy would create 27

percent more jobs than coal and 66 percent more than a natural gas plant per kilowatt hour

generated.[39] A study of energy efficiency and renewable energy as an economic development

strategy in Colorado by Economic Research Associates found an energy bill savings of $1.2

billion for Colorado ratepayers by 2010 with a net gain of 8,400 jobs.[40]

The California Energy Commission estimates that the 600 MW of new renewables that will be

built using $162 million in public benefits funding in the state restructuring law will induce

$700 million in private capital investment

10,000 construction jobs, with over $400 million in wages

900 ongoing operations and maintenance jobs with $30

million in long-term salaries

gross state product impacts of $1.5 billion during construction and $130 million in annual

ongoing operations.[41]

In addition to creating jobs, renewables can improve the economic competitiveness of a region

by enabling it to avoid additional costly environmental controls on other industries, as well as by

stabilizing long-term energy prices.

Renewables can also contribute to economic development by providing opportunities to build

export industries. In developing countries that do not have electricity grids, pipelines, or other

energy infrastructure, renewable energy technologies can be the most cost-effective options for

electrifying rural villages. The American Wind Energy Association has estimated that global

markets for wind turbines alone will amount to as much as $400 billion between 1998 and

2020.[42]

Other industrial countries are leaping ahead of the United States in renewable energy production,

however, because they value the environmental benefits more highly and because they recognize

the opportunity to supply export markets. In fact, Japan and various European nations are

encouraging the development of renewables by providing greater subsidies than does the United

States.[43]















3.7Other Nontraditional Benefits

Because some renewable technologies are small and modular, they can be sited in or near

buildings where energy is used. These distributed generation technologies offer some benefits

that utilities have usually not considered.

Perhaps most importantly, distributed generation technologies can avoid costly expenditures on

transmission and distribution. For example, a utility putting distributed generation in a new

neighborhood might be able to use smaller transformers or reduce the size or number of power

lines going to the neighborhood. Distributed generation reduces the wear and tear on existing

distribution equipment, thereby delaying the need to replace or upgrade the equipment. And

distributed generation reduces power losses through the transmission system, so that less

electricity needs to be produced in the first place.[44]

A UCS study found that in certain neighborhoods in the Boston area, the value of avoiding

transmission and distribution expenditures would more than pay for the extra cost of using such

distributed renewables as photovoltaics, solar water heaters, and fuel cells.[45] Many other

studies during the 1990s have also pointed to added value from distributed generation.[46]

Distributed generation can also provide "premium power" to customers, improving power quality

and system reliability.[47] Companies with critical electricity needs, like hospitals, airports, and

computer-dependent firms, pay a premium to ensure reliable power, since the cost of outages can

be huge. Generation on site, with small renewable generators, is one way to meet those needs.

Because renewables are typically small, modular, and require short lead times for installation,

they can benefit electricity companies' planning. Companies using modular technologies can add

capacity in small increments as needed, rather than planning large power plants many years in

advance, only to find that they may not be needed when they finally go online

Finally, the concept of value is changing the perception of renewables, as is consumer choice.

Many surveys have shown that customers value the environmental benefits of renewables more

than conventional polluting energy sources and prefer electricity companies that supply at least























part of their power from renewable energy technologies.[48] Renewables provide options that

service-oriented companies can use to improve customer satisfaction. They can improve a

company's public image and can create profitable new business opportunities for electricity

generation or distribution companies that are customer-oriented.

4.0 Nigeria: FG Explores Business, Employment Potentials in Renewable Energy

A recent report by the United Nations (UN) indicated that 2010 was the warmest ever in the

known history of the earth. The report also held that the trend is a proof of the existence of global

warming. With spate of floods in Australia, Brazil, parts of Nigeria and other areas of the globe,

it has become imperative that carbon emission which is believed to be the chief cause of climate

change be checked.

Globally, the world is becoming increasingly environmentally clean and friendly, as countries

are shifting to and promoting the use of cleaner energy sources that are renewable. Renewable

energy projects in many developing countries have demonstrated that renewable energy can

directly contribute to poverty alleviation by providing the energy needed for creating businesses

and employment and can also make indirect contributions to alleviating poverty.

Energy use is said to be responsible for over 70 per cent of carbon emission. To achieve

reduction in carbon emission therefore, governments and international organizations includingthe UN are working hard to encourage the development of cleaner energy sources. These sources

are generally referred to as alternate or renewable energy.

Federal Government, as part of Nigeria's obligation to the United Nations Framework on Climate

Change (UNFCCC) and as part of African strategy on voluntary emission reduction, initiated the

Renewable Energy Programme.

The Renewable Energy Programme is targeted at stimulating the sector that is viable enough toattract capital to develop renewable energy technologies in Nigeria. Also the programme is

envisaged by Nigeria as a mitigation tool in response to the UNFCCC Accord, which includes

commitment to emission reduction targets and mitigation action by developing countries by

2020; short term funding for immediate action and long term financing and mechanisms to

support technology transfer.


http://allafrica.com/nigeria/

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It is expected to address the nation's challenges of moving towards clean, reliable, secure and

competitive energy supply, develop and implement strategies that would achieve a clean reliable

energy supply and establish mechanism to develop the sector based on international best

practices to showcase viability for private sector participation, ensure alternative sources of

energy that are clean, reliable, stable and sustainable and develop policy objectives of

sovereignty, national security and self-sufficiency.

"What makes bio-fuel attractive as substitute even to oil-producing countries like Nigeria lies in

the fact that it helps to conserve scarce and depletable fossil oil by reducing dependence on it.

This is because it is renewable, has practically no emission of GHGs and other pollutants,

improves rural income and employment, reduces foreign exchange outflow and is generally

looked upon as the starting point for the creation of a clean economy."

Analysis of metrological data collected from selected weather stations in the country has shown

that wind power prospects in Nigeria is high and "it was clearly seen that costal and hilly areas

are excellent sites for wind power development. Therefore, using WECs for electric power

generation and supply in Nigeria-especially around Sokoto axis with mean wind speed of about

3.78m/s, will be cost effective." In addition, excellent sites such are Jos, Enugu and Sokoto are

being considered to have wind power plants for the generation of electricity which should be

integrated with the existing national grid.

5.0 CAPACITY DEVELOPMENT IN NIGERIA

5.1 Institutions

The ECN has two renewable energy centers under it, namely, National Centre for Energy

R&D (NCERD) at Nsukka and the Sokoto Energy Research Centre (SERC) whose

mandates are to carryout R&D, manpower Development dissemination and promotion of

renewable and alternative energy technologies. There are other agencies that have significant

renewable energy components in their programmes, as shown below (Iloeje, 2002):



Federal Department of Meteorological Services (FDMS)

National Electrical Power Authority (NEPA)

Nigerian Building and Road Research Institute (NBRRI)

Project Development Institute (PRODA)

Universities and Polytechnics (UAP)

Federal Institute of Industrial Research, Oshodi (FIIRO)

National Centre for Energy Research and Development (NCERD)

Centre for Energy Research and Training, ABU, Zaria (CERT)

Centre for Energy Research and Development, OAU, Ile-Ife (CERD)

5.2 Some Renewable Energy Technology Developments

As a consequence of R&D work in renewable energy technologies at the energy research

Centres, some other research institutes, Universities and Polytechnics, a number of Rnewable

Energy conversion devices have been developed. Some of these include (Iloeje, 2002): Solar

Crop Dryers, Solar Manure Dryer, Solar Cookers, Solar Water Heater, Solar Chick Brooders,

Biodigesters, Improved Wood and Other Solid Fuel Stoves, Solar-Photo Voltaic Equipment and

Systems, Wind Power.

6.0 CONCLUSIONS

6.1 Barriers to Renewable Energy and Priorities for action

The key barriers to Renewable Energy in Nigeria have been identified by Akinbami (2001).

Also, the priorities for dissemination of RE were articulated during the UNIDO Abuja forum of

2002 (www.unido.org; the Forum site (www.gfse.at)). These are as follows:

Key Barriers

1. Technological Incapability – With the exception of solar thermal and biogas technologies,

no other RET has been developed in Nigeria. Most of the technologies have to be

imported, thereby further escalating the already high investment cost;



2. High cost of Energy Infrastructure – Small scale hydro power, central and residential solar

PV technologies, etc have not penetrated the Nigeria’s energy supply systems because of

their relatively high investment costs. This barrier has also been found to be the major

obstacle to widespread adoption of family- sized biogas digesters in the country.

3. Financial Constraints – there is limited public funds available for the deployment of

RETs. In the absence of any serious private sector involvement in the development and

the dissemination of the technologies, this posed a serious barrier to the RETs;

4. Low Level of Public Awareness – public awareness of renewable energy sources and

technologies in Nigeria and their benefits, both economically and environmentally are

generally low. Consequently, the public is not well-equipped to influence the government

to begin to take more decisive initiatives in enhancing the development, application,

dissemination and diffusion of renewable energy resources and technologies in the

national energy market; and,

5. General absence of comprehensive national energy policy – Nigeria has never formulated

a comprehensive energy policy; only sub-sectoral policies have formulated. Since such a

policy is pivotal to using energy efficient and RETs, this has to large extent contributed

to the lack of attention for the RETs.

6.2 Priorities for action

1. The Forum recommends that an energy policy which emphasis the development of



renewable energy resources and technologies should immediately be put in place (note:

Nigeria now has a published energy policy. The policy did emphasized the development

RE).

2. Since the lack of access to affordable, clean and convenient energy is inextricably linked to

poverty, it is recommended that a resource survey and assessment be carried out to

determine the total renewable energy potential in the country as well as identify local

conditions and local priorities in various ecological zones.

3. The development of renewable energy services is linked to many other sectors such as

agriculture, small scale industrial enterprises and poverty alleviation, it is recommended

that, renewable energy related projects have a greater likelihood of success if

implemented in tandem with activities in these sectors to ensure sufficient demand for

the energy services providers.

4. Recognizing that current flow of information on renewable energy technologies is

inadequate, it is recommended that demonstration projects on various energy forms be

established widely so that the performance and efficiency with which services are

delivered can be sensitised.

5. In order to ensure an orderly development of renewable energy technologies and to assure

quality of products, it is also recommended that a testing and standards laboratory for

RETs similar to the one in South Africa be established in Nigeria.



6. As renewable energy technologies are increasingly used to address energy shortages and to

expand the range of services in both rural and urban areas, it is recommended that

Nigeria take advantage of global partnerships such as the REEEP initiative of UK, to

help the country for creative integration of renewable energy systems.

7. As RET applications in the developing countries are attracting increased interest and

financial support from the donor community, it is recommended that the Government

of Nigeria develop agreements, guarantees and financial instruments that specifically

target RETs and stimulate market to attract investments. In this regard, development of

market supporting framework will remain the primary conditions for the country’s ability

to attract foreign capital.

8. In view of the vital importance of RETs to kick start rural industrialization and the need

for harnessing and channelling multilateral and bilateral funds to that purpose, it is

recommended that a renewable energy funding/financing agency like India’s IREDA

(Indian Renewable Energy Agency) be established.

9. The Forum also felt that activities such as entrepreneurship and managerial skills

development training programmes and technical courses in RETs with a view of

developing Energy Service Companies (ESCOs) providing services to rural areas be

introduced.

10. The Forum identified definite need for capacity building both at institutional and



personnel level for acquiring technical, organizational, and managerial skills required for

increased development of renewable energy. The existing Research and Development

centres and technology development institutions should be adequately strengthened to

support the shift towards increased renewable energy utilization. Human resource

development, critical knowledge and know-how transfer should be in focus for projects

development, project management, monitoring and evaluation. Preparation of standards

and codes of practices, maintenance manuals, life cycle costing and cost- benefit analyses

tools to be undertaken on urgent priority.

11. The experience from successful renewable energy promotion projects especially from

other developing countries have highlighted the need for participatory approach during

project formulation and implementation exercises and public awareness creation

programmes aiming at end users, financiers, decision makers, local governments, traders

and regulators.

12. The Forum urged the concerned agencies to help commercialise proven indigenous

renewable energy technologies and promote local production of RE equipments, devices

and components through investment promotion strategies and fiscal incentives.

13. The role of renewable energy in rural industrialization and development by providing

access to clean and affordable energy for village industries especially agro-processing

industries and introduction of photovoltaic based information-communication



technologies (ICTs) for improving the quality of life of the rural poor was emphasized

by the forum and called upon UNIDO to take enabling steps towards this direction.

14. Forum requested the Federal Government of Nigeria and the State Governments to

consider introducing renewable energy and energy conservation as subject of study in

various levels of education beginning with primary school level.

15. National level programmes for immediate introduction of proven technologies such as

small hydropower, biomass, solar thermal and photovoltaic may be devised and

implemented. In this regard, the Forum urged UNIDO to provide necessary technical

assistance and support.

16. Forum recommended the compulsory introduction of solar water heater in hotels,

hospitals, hostels and public buildings.

17. Concerned agencies were requested to initiate master plans for the development of

renewable energy applications in their respective jurisdiction taking lessons from

successful models implemented elsewhere.

18. The Forum recommended holding a National Round Table – comprising of private,

public sector, and civil society representatives as a follow-up to WSSD. This group

should also form two sub-committees one on renew

References



1. ^ a b c d REN21 (2011). "Renewables 2011: Global Status Report". p. 11-13.

http://www.ren21.net/Portals/97/documents/GSR/GSR2011_Master18.pdf.

2. ^ IEA urges governments to adopt effective policies based on key design principles to

accelerate the exploitation of the large potential for renewable energy

3. ^ Renewable Energy Policies

4. ^ REN21 (2011). "Renewables 2011: Global Status Report". p. 15.

http://www.ren21.net/Portals/97/documents/GSR/GSR2011_Master18.pdf.

5. ^ REN21 (2009). Renewables Global Status Report: 2009 Update p. 20.

6. http://www.decc.gov.uk/en/content/cms/meeting_energy/bio_energy/bio_energy.a

spx

7. Refence:http://www.americanprogress.org/issues/2009/06/clean_energy.html

8 National Resources Defense Council, Breath Taking: Premature Mortality due to

Particulate Air Pollution in 239 American Cities (May 1996), p. 1, www.nrdc.org.

9 For an overview of air pollution health problems, see Curtis A. Moore, Dying Needlessly:

Sickness and Death Due to Energy-Related Air Pollution, Renewable Energy Policy

Project Issue Brief, College Park, Md.: University of Maryland, February 1997,

www.repp.org. See also Irving M. Mintzer, Alan S. Miller, Adam Serchuk, The

Environmental Imperative: A Driving Force in the Development and Deployment of

Renewable Energy Technologies, REPP Issue Brief No. 1, April 1996.

10 See also US EPA, Office of Air and Radiation, EPA's Updated Clean Air Standards: A

Common Sense Primer , September 1997, www.epa.gov.

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