Stakeholders have called on the Federal Government to intensify efforts, toward ensuring that 30 percent of its electricity is generated from renewables by 2030.
This came as they stressed the need for robust policy framework as well as smart financing measures for renewable energy in the country.
In his presentation during a breakfast meeting organised by the Nigerian Economic Summit Group, NESG, in Lagos, Research Coordinator, Energy and Climate Policy, Oeko Institute, Dr Felix Matthes, stated that the key issue for adopting renewables in Nigeria, was identifying the business model that is suitable and adaptable. He said for Nigeria a “Non-technical” infrastructure will be required to ensure a sustainable renewable energy generation.
He also harped on the need for a robust framework for renewable energy in Nigeria that has an effective roll-out plan that can drive the entire value chain.
Matthes explained that, in achieving the set agenda, Nigeria must develop a smart financing structure that attracts investments in renewables.
His words: “With a viable public-private partnership, renewable energy will create new businesses and jobs in the country, provide a competitive electricity model and also achieve decentralized electricity in the country.
“In Germany, my country renewables contribute 35 percent to the power generation. Renewables are the energy mix of wind, solar and hydro.
“In getting the value chain on the ground and creating business models and making most out of it for the local economy, will requires dealing with structural changes and appropriate regulatory/market arrangements
“Also, changing structures of players and market participants, much more diverse investors and operators with new/other (economic) appraisals, other financing approaches, sources or risk assessments
“Likewise, changing structures of grids will also require new spatial patterns, new role of self-generation, transmission, distribution, mini and micro grids.’’
Also, in his opening remarks, the Chief Executive Officer, NESG, Mr. Laoye Jaiyeola said the roundtable was focused on establishing the renewable business platform in Nigeria.
“Renewables are one of the strongest options for delivering power in Nigeria, and informed stakeholders that the roundtable will encourage and adopt made-in-Nigeria, innovative solutions for renewable energy.”
Meanwhile, the Vice President, Professor Yemi Osinbajo, had said, the Economic Recovery and Growth Plan, ERGP, emphasizes investment in critical infrastructure such as power, stressing that, the plan is aimed at achieving 10 Gigawatt, GW, of operational capacity by 2020 and also to improve the energy mix.
According to him, “Today, Nigeria has 12.5 GW of installed capacity, but less than one-third is operational (an average of 3.9 GW in 2015 and 3.2 GW in November 2016). Overall, only about 15 per cent of installed capacity is eventually distributed to end users, resulting in a huge shortage of electricity supply across the country.
“We recognize that Nigeria cannot be a globally competitive economy with this current situation in the energy sector. As part of our efforts to address this, the Federal Government adopted an Electricity Vision 30:30:30 to generate 30GW of electricity by 2030 with 30% Renewable Energy.
“We are convinced that going green is a sure path to energy efficiency and sufficiency greater energy access and sustainability. We cannot continue to solely rely on our gas and coal large hydro reserves to generate our electricity need. It is believed that with the current 2.2 trillion Standard Cubic Feet, scf, production, the 187 trillion scf proven reserve will last about 85 years.
“At an unbelievably low per capita electricity supply consumption of Nigerians, the electricity supply projection will be more than 6 times the current level by 2030.
“Also, industrial consumption of gas will more than double and NLNG exports will also rise such that total gas production will be about 6 trillion scf which is projected to dry up in 31 years’ time, thus the reserve is projected to dry up in about 30 years’ time.”
He added that the estimated coal resources of the country are about 1,487 billion tonnes while the interred reserves are about 2.75 billion tonnes.