optimizing the exploitation of natural energy resources in nigeria for accelerated socio-economic...
TRANSCRIPT
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
1/57
OPTIMIZING THE EXPLOITATION OF NATURALENERGY RESOURCES IN NIGERIA FOR ACCELERATEDSOCIO-ECONOMIC DEVELOPMENT: STRATEGIES AND
OPPORTUNITIES FOR INVESTMENT*
ByByByBy
1
Prof. A.S. Sambo,Prof. A.S. Sambo,Prof. A.S. Sambo,Prof. A.S. Sambo, OON, NPOM, FAS, FNSE, FAEngOON, NPOM, FAS, FNSE, FAEngOON, NPOM, FAS, FNSE, FAEngOON, NPOM, FAS, FNSE, FAEngDirectorDirectorDirectorDirector----General, Energy Commission of Nigeria,General, Energy Commission of Nigeria,General, Energy Commission of Nigeria,General, Energy Commission of Nigeria,
Plot 701C, Central Area, PMB 358, Garki, Abuja, NigeriaPlot 701C, Central Area, PMB 358, Garki, Abuja, NigeriaPlot 701C, Central Area, PMB 358, Garki, Abuja, NigeriaPlot 701C, Central Area, PMB 358, Garki, Abuja, NigeriaEmail:Email:Email:Email:[email protected]@[email protected]@yahoo.com [email protected]@[email protected]@energy.gov.ng
*Paper Presented at 2010 Science and Technology Summit,
Shehu Musa YarAdua Centre, Abuja,9th-10th August, 2010
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
2/57
CONTENTS
1. Introduction
2. Energy and the Economy
3. Strategies for the Optimum exploitation of EnergyResources in Ni eria
2
4. Investment Opportunities
5. Challenges and the Way Forward
6. Conclusion
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
3/57
1. INTRODUCTION
It is a well acknowledged fact that energy is essentialfor socio-economic development of all nations.
3
.
Nigeria is endowed with fossil, nuclear and renewable
energy sources.
All fossil fuel resources are depletable.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
4/57
1. INTRODUCTION Contd
Renewable energy is replenisheable through naturalprocesses within a relatively short time.
The National Energy Policy (NEP), approved in 2003 by
the FEC, articulates the optimum exploitation of allenergy resources in the country in a sustainablemanner and with the active participation of the privatesector.
4
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
5/57
1. INTRODUCTION Contd
Petroleum and electricity are the widely usedcommercial energy end products in Nigeria.
For example, petroleum products accounted for 67.4%of the total primary energy consumed in 2008.
ue -woo , a ra ona ue w e y an ex ens ve yused by the rural and peri- urban dwellers, is hardlyconsidered commercial, largely due to its non-exportstatus.
Although all forms of energy can be transformed intoelectricity, however, there is a huge disparity inelectricity demand and supply in Nigeria.
5
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
6/57
Though the demand and supply imbalance for fuelpetroleum products is presently low, the supply
strategy is unsustainable because most of the supply isimported due to inadequate local refining capacity inthe country.
1. INTRODUCTION Contd
Also fuelwood consumption is unsustainable becausesupply is diminishing as a result of desertification.
Large hydropower, has so far contributed about2,000MW only to the total grid-connected electricitygeneration capacity in the country.
Currently solar, wind, small hydro and biomass are yetto contribute significantly to electricity supply.
6
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
7/57
However, solar, wind and fuelwood have been traditionallyemployed in:
open-to-sun drying,
grinding of grains and
1. INTRODUCTION Contd
Biomass, and in particular fuelwood, accounts for over 90% ofthe domestic energy needs of over 70% of the nationspopulation, who dwell in rural areas and peri-urban centres.
While mining of uranium ore has not been started in Nigeria, itsmining in the neighbouring Niger Republic has been going onfor about two decades.
7
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
8/57
Use of coal since its discovery in Nigeria hasdrastically declined.
The gaps in the nations energy supply matrix arisedue to the non-implementation of the strategies forthe ex loitation of our ener resources as
1. INTRODUCTION Contd
8
articulated in the National Energy Policy and itsMasterplan.
The question is: what is the way forward? Before
answering this question we need to look atenergy/economy interactions and to understand thestrategies for energy exploitation and investment
opportunities in the energy sector.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
9/57
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
10/57
2. ENERGY AND ECONOMYContd
b) Renewables and Nuclear
S/N Resource Reserve Utilization Level
1 Large hydro power 11,250MW 1,972MW
2 Small Hydro power 3,500MW 64.2MW3 Solar Energy 3.5kW/m2222/day
7.0kW/m2222/day
-10MW solar PV stand-alone
-No solar thermalelectricity
10
4 Wind 2-4m/s at 10m height -2x2.5KW electricitygenerator
-10MW wind farmcontracted in 2009.
5
Biomass
Fuel wood 11 million hectares of forest andwoodlands
43.4 million tones of fuelwood/yr
Municipal waste - 18.3 million tones in 2005 -
Animal waste - 243 million assorted animals in 2001 -
Energy Crops andagric waste
- 28.2 million hectares of Arable land 8.5% cultivated
6 Nuclear not yet quantified 30kW
Source: REMP (2005)* FM ENV
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
11/57
. c) Energy Production
S/NS/NS/NS/N TypeTypeTypeType 2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008
1.1.1.1. Coal (million tones)Coal (million tones)Coal (million tones)Coal (million tones) 0000 0000 0000 0000 0000 0000
2.2.2.2. Oil (million barrels/ day)Oil (million barrels/ day)Oil (million barrels/ day)Oil (million barrels/ day) 2.32.32.32.3 2.52.52.52.5 2.52.52.52.5 2.22.22.22.2 2.22.22.22.2 1.981.981.981.98
2. ENERGY AND ECONOMYContd
11
3.3.3.3. Natural gas (billion mNatural gas (billion mNatural gas (billion mNatural gas (billion m3333))))
(% flared)(% flared)(% flared)(% flared)
52.7552.7552.7552.75
(44.1%)(44.1%)(44.1%)(44.1%)
59.7659.7659.7659.76
(40.4%)(40.4%)(40.4%)(40.4%)
58.3558.3558.3558.35
(39.4%)(39.4%)(39.4%)(39.4%)
61.8061.8061.8061.80
(36.1%)(36.1%)(36.1%)(36.1%)
70.170.170.170.1
(31.1%)(31.1%)(31.1%)(31.1%)
63.8463.8463.8463.84
(26.8%)(26.8%)(26.8%)(26.8%)
4.4.4.4. Electricity GenerationElectricity GenerationElectricity GenerationElectricity Generation
(billion kWh)(billion kWh)(billion kWh)(billion kWh)
22.0322.0322.0322.03 23.923.923.923.9 24.2224.2224.2224.22 23.823.823.823.8 23.323.323.323.3 21.2721.2721.2721.27
Sources: (i) Central Bank of Nigeria (CBN) 2006, 2008)(ii) www.opec.org/library(iii) National Bureau of Statistics (NBS) (2007, 2009)
*Though Nigeria has a resource of 2.7 billion tonnes of coal, production declined from a peakof 0.91 million tonnes in 1959 to no production in 2001, because of petroleum, which wasdiscovered in commercial quantities in 1956
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
12/57
. d) Energy Consumption
S/NS/NS/NS/N TypeTypeTypeType 2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008
1.1.1.1. Coal (%)Coal (%)Coal (%)Coal (%) 0.030.030.030.03 0.030.030.030.03 0.030.030.030.03 0.050.050.050.05 0.050.050.050.05 0.050.050.050.05
2.2.2.2. Hydro (%)Hydro (%)Hydro (%)Hydro (%) 14.214.214.214.2 17.3917.3917.3917.39 12.012.012.012.0 17.0317.0317.0317.03 23.9023.9023.9023.90 19.019.019.019.0
2. ENERGY AND ECONOMYContd
12
3.3.3.3. Natural gas (%)Natural gas (%)Natural gas (%)Natural gas (%) 1.91.91.91.9 4.544.544.544.54 5.505.505.505.50 7.527.527.527.52 8.738.738.738.73 15.215.215.215.2
4.4.4.4. Petroleum Products (%)Petroleum Products (%)Petroleum Products (%)Petroleum Products (%) 83.8783.8783.8783.87 78.0478.0478.0478.04 82.5082.5082.5082.50 75.4475.4475.4475.44 67.5367.5367.5367.53 65.765.765.765.7
5.5.5.5. Total (Mtoe)Total (Mtoe)Total (Mtoe)Total (Mtoe) 19.1119.1119.1119.11 16.2716.2716.2716.27 17.717.717.717.7 12.2012.2012.2012.20 11.3911.3911.3911.39 12.0412.0412.0412.04
Source: Central Bank of Nigeria (CBN) (2006, 2008)
Petroleum product is widely consumed energy type and the largest amount of thatConsumed is imported, despite the countrys status as the largest oil producer in Africa
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
13/57
. e) Energy, Economy and Social Indicators
S/N Indicator 2003 2004 2005 2006 2007 2008
1 Real GDP Growth (%) 9.6 6.6 6.5 6.0 6.2 6.4
2 a) Major Contributors to GDP*
Agriculture (%)
.Crude Petroleum (%)
b) Major Contributor to
41.010
26.53
40.98
25.72
41.19
25.26
41.72
21.85
42.20
19.35
42.07
17.54
2. ENERGY AND ECONOMYContd
13
Crude Petroleum (%) 75.0 77.0 72.4 76.7 67.7 71.8
3 Energy Intensity (kgoe/$) (EnergyConsumption/GDP)
0.244 0.186 0.157 0.086 0.063 0.069
4 GDP/Capita (US$) 620.9 673.2 847.4 1,036,2 1,256.6 1,176.1
5 Energy Consumption/Capita(kgoe/capita)
151.3 125.5 132.6 87.1 81.4 80.8
6 Electricity consumption/capita(kWh/capita)
174.6 176.4 181.4 167.6 161.2 142.9
7 Electricity Access (%) 55.2% from40% in 1993
Sources: CBN (2006,2008),NBS (2009); *GDP is at 1990 Constant Prices
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
14/57
e) Energy economy and social indicators Contd
Social Indicators
S/N Indicator 2003 2004 2005 2006 2007 2008
8. Population growthrate (%)
2.8 2.8 2.8 3.2 3.2 3.2
2. ENERGY AND ECONOMYContd
14
9. Adult literacy rate (%) 57.0 62.0 57.0 64.2 64.2 66.9
10. Incidence ofpoverty(%)
- 54.4 54.4 54.0 54.0 54.0
11. Life expectancy (yrs) 54.0 54.0 54.0 54.0 54.0 54
13 Unemploymentrate(%)
- 13.4 11.9 14.6 10.9 12.8
Sources: CBN (2006,2008), NBS(2009)
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
15/57
Energy Sector Organizations
PRESIDENCY NEC
Federal MinistryOffice of Special
AdvisersFed. Ministry
of EnvironmentFed. Ministry of
Fed. of MinistryMines &
Fed. Ministryof Power
PCP
2. ENERGY AND ECONOMYContd
15
.. ,
sand, Uranium)
Energy Com.of Nigeria NNRA NAEC
KEY:
PHCN- Power Holding Company of NigeriaREA - Rural Electricity Agency (REA),NERC- Nigerian Electricity Regulatory CommissionECN - Energy Commission of NigeriaNDPHC - Niger Delta Power Holding CompanyNEC - National Energy CouncilNNRA Nigerian Nuclear Regulatory AuthorityDPR- Department of Petroleum ResourcesNAEC- Nigeria Atomic Energy CommissionPPPRA Petroleum Product Pricing Regulatory AgencyPCP Presidential Committee on Power
PHCN NDPHC NERCDPR PPPRA
6 Energy ResearchCentres 5 Nuclear Research
Centres
NNPC &Subsidiaries
15
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
16/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION
OF NATURAL RESOURCES IN NIGERIAInvesting in and
intensifying crude oilexploitation and
productionMaximizing and
expanding the refiningcapacity in the countryto cater fully for local
Taking appropriatemeasures to ensure that
Ni erians are ut into
16
consumpt on an exportof petroleum products
Expanding and promotingresearch and development
activities in the country
Providing appropriate fiscalincentives to attract investmentsand ensure reasonable returns.Ensuring adequate geographical
coverage of oil refining andproducts distribution network
key decision-makingpositions in the oilindustry
CRUDEOIL
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
17/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION
OF NATURAL RESOURCES IN NIGERIA ..Contd
Encouraging localengineering design and
fabrication of
equipment and sparesin Nigeria
Ensuring the availabilityof adequate strategic
Ensuring the use oflocally available
Encouraging localengineering design and
fabrication of
equipment and sparesin Nigeria
Ensuring the availabilityEnsuring the use of
locally available
17
reserves of storagecapacity for refined
products for at least 90days of forward
consumption
Improving the living standards ofpeople in oil producing communities
through the provision of socio-economic infrastructure.
Reviewing existing laws
and regulations to createthe enabling environment
for increased privatesector participation in theoil industry, especially the
downstream
mater a s, suc as
bentonite and barytes,for oil exploration
OILCONTD
reserves of storagecapacity for refinedproducts for at least 90days of consumption
Improving the living standards ofpeople in oil producing communities
through the provision of socio-economic infrastructure.
Reviewing existing laws
and regulations to createthe enabling environment
for increased privatesector participation in theoil industry, especially the
downstream
mater a s, suc as
bentonite and barytes,for oil exploration
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
18/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..ContdEncouraging the oil-
producing companiesto gather and utilizeassociated gas inorder to eliminate
flaring Imposingappropriate and
effectivepenalties to
Providingincentives toencourage
18
discourage gasflaring
Encouraging the
establishment of thenecessaryinfrastructure for theeffective gathering,transmission anddistribution of gas
nationwide
Establishing suitableinfrastructure for theexport of natural gas
domesticconsumers to usegas or convert to
gas
NATURALGAS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
19/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Contd
Providing incentives toencourage the introductionand use of LPG appliancesin areas not accessible tonatural gas to encourage
the consumer preferencefor gas Expanding and
promoting gasrelated R & D
Providing necessaryincentives to
indigenous and
19
country
Formulating suitable urbanand regional planning
regulations needed for theeffective distribution of
natural gas and itsutilization by domestic and
industrial consumers
Ensuring that the price ofnatural gas is cost
effective, while giving dueattention to the effect on
local consumption
entrepreneurs tofacilitate their
participation in thegas industry
NATURALGAS CONTD
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
20/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Undertakingexploration and
exploitation activities
for tar sands depositsin the country Establishing an
appropriateregulatory institutionfor the tar sands sub-Establishing infrastructural
20
Putting in place necessaryregulations and guide lines
for the exploitation of tarsands
Intensifying R & D in theproduction of lubricants and otherheavy oil products from tar sands
ac t es or t e acqu s t on o
the technology for harnessingtar sands TAR
SANDS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
21/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Establishing heavy oilupgrading facilitiesnear the tar sands
deposits.
ProvidingDe-emphasizing theimportation of heavy
21
TARSANDSCONTD
incentives tofacilitate investmentin exploration andexploitation of tarsands resources
Providing an appropriatefinancing facility to support
indigenous investments in tarsands development.
crude oil as a way of
encouraging theutilization of heavy
oils from our tarsands.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
22/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Intensifying the drive for coalexploration and production
activities.
Providing
Providingadequate
22
COAL
a equate
incentives for thelarge scale
production ofcoal stoves at
affordable prices.
Providing adequate incentives toindigenous and foreignentrepreneurs for the
establishment of coal-basedindustries
indigenous andforeignentrepreneurs to
attractinvestments in
coal exploration
and production.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
23/57
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
24/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Intensifying manpowerdevelopment in theutilization of nuclearenergy for peaceful
purposes. Creating incentivesfor career
Providing adequateresources to theNigerian Nuclear
24
nuclear scienceand technology.
Providing adequate resources tothe Nigeria Atomic Energy
Commission (NAEC) to promotethe use of nuclear energy for
peaceful purposes includingnuclear power
Intensifying research anddevelopment efforts in nuclear
science and technology.
egu atory ut or ty
(NNRA) for theenforcement of nuclearsecurity and safety laws
and regulations.
NUCLEAR
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
25/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
.Fostering co-operationwith the International
Atomic Energy Agency
Undertakingregular publicenlightenmentcampaigns onapplications of
nuclear
25
Establishing a nuclearradiation surveillance
programme for theprotection of the
environment
Identifying accuratelythe availability and theextent of nuclear andother related mineral
resources.
,
nuclear safetyand radiationprotection
NUCLEARCONTD
S G S O O O O O
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
26/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
.Intensifying researchand development in
solar energytechnology
Providing adequateincentives to
suppliers of solarenergy products
and services
26
Promoting trainingand manpowerdevelopment
Providing adequateincentives to local
manufacturers for theproduction of solar
energy systems
SOLAR
3 STRATEGIES FOR OPTIMUM EXPLOITATION OF
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
27/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
.
Providing adequate
resources to the ECNto domesticate solarand other renewableenergy technologies
in Ni eria
Setting up and
maintaining acomprehensive
information systemon available solarener resources
27
Setting up extensionprogrammes tointroduce solar
technology in to theenergy mix
Providing fiscalincentives for the
installation of solarenergy systems
and technologies
SOLAR Contd..
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
28/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Ensuring increasedindigenous participationin the planning, design
and construction ofhydropower stations.
Establishing andmaintaining
28
HYDROPOWER
engineeringinfrastructure forthe production of
hydropower plants,equipment and
accessories
Encouraging the private sector, bothindigenous and foreign, in theestablishment and operation of
hydropower plants
agreements tomonitor and regulatethe use of water ininternational riversflowing through the
country.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
29/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Encouraging the privatesector, both indigenous and
foreign, for the localproduction of hydropowerplants and accessories
Promotingand
Ensuring thatrural
29
HYDROPOWERCONTD
supporting R& D activitiesfor the local
adaptation ofhydropower
planttechnologies
Initiating and updating dataon the hydro potential of ourrivers and identifying all the
possible locations for dams
electricityboards
incorporatesmall-scalehydropower
plants in theirdevelopment
plans
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
30/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Encouragingresearch and
development in wind
energy utilization. Developing skilledmanpower for provision of
basic engineeringinfrastructure for the local
Intensifying work inwind data acquisition
30
pro uc on o componen s
and spare parts of windpower systems
Developing extensionprogrammes to
facilitate the generaluse of wind energy
technologyProviding appropriateincentives to producers,
developers andconsumers of wind
power systems.
Training skilled localcraftsmen to ensure
the operation andmaintenance of windenergy systems.
wind maps.
WIND
3 STRATEGIES FOR OPTIMUM EXPLOITATION OF
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
31/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Encouraging R & D in hydrogenenergy related technologies
31
Providingincentives to
popularize the
use ofhydrogen asan energy
source.
Developmentof domesticcapacity in
hydrogenproduction and
applicationtechnologies.
HYDROGEN
3 STRATEGIES FOR OPTIMUM EXPLOITATION OF
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
32/57
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Gathering information on thedevelopment of these emerging
technologies.
32
Encouraging R & Din the technologiesof the exploitationof these emergingenergy resources.
Prioritizing the levelof need, level of
technologicaldevelopment and
viability of
emergingrenewable energy
resources
OTHERRENEWABLES
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
33/57
i) Electricity:-
Rehabilitating existing power plants in order to derive
optimum power from the installed capacity.
Completing on-going projects designed to enable the PowerHolding Company of Nigeria (PHCN) satisfy the national
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
eman .
Reinforcing the transmission and distribution networksnecessary to allow consumers to enjoy steady and reliablesupply of electricity
Establishing basic engineering infrastructure for the localmanufacture of electrical equipment, devices and materials.
Encouraging R & D in the generation, transmission anddistribution of electricity.
33
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
34/57
Reducing high import duties paid on generation,transmission and distribution materials.
Strengthening the National Electricity Supply TrainingInstitute and zonal training centres where the core of themiddle level manpower and artisans, various cadres of
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
professional technical officers, operators, linesmen andcable joiners are to be trained and groomed in the art ofoperation and maintenance of equipment for the generation,transmission and distribution of electricity.
Ensuring the participation and involvement of indigenousengineers and applied research groups in the execution ofon-going and future projects right from feasibility studies,with the objective of establishing local capacity in the longterm.
34
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
35/57
Developing and implementing a programme for theparticipation of the private sector in the various sectors of
the electricity industry.
Developing other potential sites for hydropower, gas andcoal-fired power plants for electricity generation.
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
Intensifying efforts to generate electricity using nuclear,solar, wind and other renewable resources in order toconserve our fossil fuels and expand our energy security.
Taking effective measures to ensure the security of
electrical installations.
Providing appropriate incentives to entrepreneurs to ensureadequate returns on investment.
35
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
36/57
Providing appropriate financing facilities to supportindigenous investments in the electricity industry.
Encoura in off- rid eneration and suppl of power in
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
remote or isolated areas. Establishing a Rural Electrification Fund to facilitate
electrification in the rural areas.
Establishing a reduced tariff regime for very low income andespecially handicapped electricity consumers and amechanism for funding the subsidy.
36
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
37/57
j) Energy Efficiency and Conservation
Ensuring strict adherence to the regulations of thepetroleum industry, and relevant agencies on energyresource exploitation and the environment.
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
promotion of energy conservation and the use of energyefficient methods.
Developing building codes so that buildings are designed totake advantage of climatic conditions in order to reduce
energy consumption.
Ensuring the importation of the more energy- efficientequipment and machinery.
37
3 STRATEGIES FOR OPTIMUM EXPLOITATION OF
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
38/57
Reducing energy consumption by improving and expandingmass transportation and communication systems all overthe country.
Promoting R & D activities in energy conservation andefficiency including the development and manufacture of
-
3. STRATEGIES FOR OPTIMUM EXPLOITATION OFNATURAL RESOURCES IN NIGERIA ..Contd
.
Encouraging the production and use of improved and more-efficient cooking stoves.
Taking appropriate measures to reduce energy storage,
transmission and distribution losses.
Promoting public awareness about the benefits of improvedenergy efficiency.
38
4 INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
39/57
4. INVESTMENT AND BUSINESS
OPPORTUNITIES The following investment and business opportunities would
ensue from the strategies earlier outlined:
a) Crude oil:-
Crude oil exploration and production
39
ew re n ng capac y
Establishment of outfits for engineering design andfabrication for the oil sub-sector
4 INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
40/57
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
Natural gas:-
Natural gas gathering, processing, transmission and
distribution infrastructure within the country.
Natural gas export infrastructure development.
40
atura gas exp orat on an pro uct on act v t es.
Establishment of new gas fired power plants.
Establishment of new petrochemical plants.
4 INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
41/57
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
Eleme Refinery Port-harcourt Off-shore gas Production
41
4 INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
42/57
Tar Sands:-
Exploration and exploitation of tar sands.
Refining of heavy crude.
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
42
Coal exploration and exploitation.
Production of smokeless coal briquettes.
Production of coal stoves.
Establishment of coal mines.
Establishment of coal power plants especially with clean coaltechnologies.
4 INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
43/57
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
Coal power plant in Mauritius,
2x35MW, coal & bagasse
Coal power plant in Morocco,2x330MW, 2x348MW
(1994-2001 ) 43
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
44/57
Nuclear:-
Exploration and Mining of uranium ore deposits
Establishment of nuclear power plants.
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
44Koeberg Nuclear Power Plant, South Africa(2x920MW)
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
45/57
Hydropower:-
Manufacturing of hydro turbines and accessories
Establishment of new hydro power plants.
.
4. INVESTMENT AND BUSINESSOPPORTUNITIES Contd
Penstock bifurcation into the
150 kW power house at WayaDam, Bauchi State
30 kW Ezioha Mgbowo
SHP Station,Enugu State
45
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
46/57
g) Fuelwood
Establishing of plantations of fast growing tree species for fuelwood supply
Production of efficient fuelwood stoves
S US SSOPPORTUNITIES Contd
Improved Fuelwood Stoves46
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
47/57
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
48/57
.
OPPORTUNITIES Contd
Solar Water Heater developed by NCERDSolar Water Heater developed by NCERDSolar Water Heater developed by NCERDSolar Water Heater developed by NCERD
Solar Water Heater at UDUTH by SERC, SokotoSolar Water Heater at UDUTH by SERC, SokotoSolar Water Heater at UDUTH by SERC, SokotoSolar Water Heater at UDUTH by SERC, Sokoto
48
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
49/57
OPPORTUNITIES Contd
49
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
50/57
OPPORTUNITIES Contd
Solar thermal Plant in Spain (Heliostat) 50 MW Solar thermal Plant in Spain (Parabolic)
Rankine Cycle Array of Parabolic Solar Collectors 50
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
51/57
Biomass:-
Production of electricity from biomass (biogas, agric waste, municipalwaste of biological origin).
Biofuel production.
Biofuel feedstock production.
Production and marketing of biomass briquettes and stoves.
OPPORTUNITIES Contd
Dome Type Biogas Pilot Plant at Danjawa
Villa e, Wamakko LG, Sokoto State
Biogas Digester Pilot Plant at NCERD,
UNN, Nsukka
Biogas Digesterat Tai Solarin Sec. Sch.
Ikene, Ogun State
51
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
52/57
Sludge
OPPORTUNITIES Contd
Biogas digester Power House
Generating Plant
A 750 kW Plant for Biogas Electricity
Generation in Germany 52
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
53/57
Wind:-
Establishment of wind electricity generation plants (wind farms)
Setting up of services businesses in wind technology
OPPORTUNITIES Contd
305 MW Wind Farm at Zanfrana, along the
Red Sea, Egypt
5kW aero generator in Sayya Gidan Gada, Sokoto State
150MW Osorio Wind Farm, Brazil
53
4. INVESTMENT AND BUSINESS
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
54/57
Energy efficiency and conservation
Manufacturing of CFLs, LEDs and energy efficient electric motors,refrigerators and airconditioners.
Sale of CFLs, LEDs and efficient electric motors, refrigerators andairconditioners.
EE Lamp
OPPORTUNITIES Contd
54
5 CHALLENGES AND WAY FORWARD
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
55/57
5. CHALLENGES AND WAY FORWARD
a) Challenges:
Unstable Polity
Inconsistency in energy policies implementation
Inadequate authority for the coordination of the energy sector
55
b) Way Forward:
Strive toward stable polity
Strengthening of Energy Commission of Nigeria as thecoordinating organ of Government on energy policies andplans.
Enactment of an integrated energy law as an instrument ofcoordination of the energy sector.
6. CONCLUSION
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
56/57
Nigeria is endowed with many energy resources, whichcan be utilized to enhance the socio-economicdevelopment of the nation.
The strategies that should be employed to optimallyexploit these energy resources for nationaldevelopment are well articulated in the overall National
56
Energy Policy adopted by Government in 2003.
These strategies would create opportunities forinvestments and businesses in the energy sector andthe entire national economy.
To implement the strategies fully, the polity must bestable and appropriate legal backing given to the NEP
and the NEM by enacting an integrated energy law.
-
8/8/2019 Optimizing the Exploitation of Natural Energy Resources in Nigeria for Accelerated Socio-Economic Development: Strategies and Opportunities for Investment
57/57
THANK YOU
57