ESCAP/MOFA/IC-SHP INTERNATIONAL SEMINAR
ON
SMALL HYDROPOWER (SHP) SITE EVALUATION
AND
DEVELOPMENT POLICIES, AT INTERNATIONAL CENTER ON SMALL HYDROPOWER, HANGZHOU, CHINA.
COUNTRY PRESENTATION ON THE NIGERIAN EXPERIENCE IN SMALL HYDROPOWER DEVELOPMENT: TOPIC “NATIONAL ELECTRIC POWER POLICY OF NIGERIA, AND THE ROLE OF (SHP) SMALL HYDROPOWER DEVELOPMENT FOR RURAL ELECTRIFICATION AND INDUSTRIALISATION
BY
ENGR. ABUBAKAR HALILU MUA’ZU
SHP-PROJECT CO-ORDINATOR, UPPER BENUE RIVER BASIN DEVELOPMENT AUTHORITY,
YOLA, NIGERIA
DECEMBER, 2004
1.0 INTORDUCTION
The provision of adequate and reliable electricity is very critical to the economic, industrial, technological, and social development of any nation. Energy consumption has become one of the indices for measuring standard of living of a country.
Electricity generation in Nigeria began in 1896, the Nigerian Electricity Supply Company (NESCO) commenced operations as an electricity utility company in Nigeria in 1929 with the construction of a small hydropower station at Kurra falls near Jos, in Plateau state.
The Electric Corporation of Nigeria (ECN) was established in 1951, while the first 132KV line was constructed in 1962, linking Ijora Power Station to Ibadan City Power Station.
The Niger Dams Authority (NDA) was established in 1962 with a mandate to develop the hydropower potentials of Nigeria. However, (ECN) and (NDA) were merged in 1972 to form the National Electric Power Authority (NEPA).
2.0 PRESENT STATUS OF ELECTRICITY SUPPLY INFRASTRUCTURE IN NIGERIA
The National grid presently consists of nine generating stations with a total installed generating capacity of 5,906MW. Three of the power stations are large scale hydropower plants, and the remaining six of them are thermal stations:-
i. Kainji Dam
Kainji Dam Hydropower Station built along Niger River is the fisrt hydropower plant in the country with eight (8) turbines and was commissioned as:-
a. 4 x 80MW 1968
b. 2 x 10MW 1976
c. 2 x 120MW 1978
Total installed capacity 580MW
ii. Jebba Hydropower Station
Jebba Hydropower Station also constructed along the Niger River downstream of Kainji dam has six (6) turbines and Was commissioned in 1986 as :- 6 x 95MW = 570MW
iii. Shiroro Hydropower Station
Shiroro Hydropower Station constructed along Kaduna river on the Shiroro gorge with four (4) turbines and was commissioned as :-
a. 1 x 150MW 1989
b. 3 x 150MW 1990
Total installed capacity 600MW.
iv. Afam Thermal Power Station
Afam Thermal Power Station also uses natural gas and is located in Ughelli, Delta state, which started operations as :-
a. 2 x 10.5MW 1966
b. 2 x 17.5MW 1965
c. 4 x 23.9MW 1976
d. 4 x 27MW 1978
e. 6 x 75MW 1982
Total installed capacity is 655.6MW.
v. Delta Thermal Power Station
Delta Thermal Power Station also uses natural gas and is located in Ughelli, Delta state, which started operations as:-
a. 2 x 36MW 1966
b. 6 x 20MW 1975
c. 6 x 20MW 1978
d. 1 x 100MW 1989
e. 5 x 100MW 1990
Total installed capacity is 915MW.
vi. Egbin Thermal Power Station
Egbin Thermal Power Station is located at the outskirts of Lagos, and is the largest thermal power station in the country. The station was commissioned as :-
a. 2 x 220MW 1985
b. 2 x 220MW 1986
c. 2 x 220MW 1987
Total installed capacity is 1320MW
vii. Sapele Thermal Power Station
Sapele Thermal Power Station is located in Ogorode, Delta state. This station uses both steam and gas turbines, and was commissioned as :-
a. 6 x 120MW 1978
b. 4 x 75MW 1981
Total installed capacity is 1020MW
viii. Ijora Thermal Power Station
Ijora Thermal Power Station is also located in Lagos and it uses AGO fuel and has three (3) units commissioned in 1978 as :-
a. 3 x 20MW = 60MW installed capacity.
ix. Oji Thermal Power Station
Oji Thermal Power Station is located on Oji river, in Enugu state, which is presently non-operational is the only coal-powered station in the country. The station has four units and was commissioned in 1956 as :-
a. 2 x 5MW
b. 2 x 10MW
Total installed capacity is 30MW.
TRANSMISSION
The transmission grid is as :-
a. 5000Km of 330KV lines
b. 6000Km of 132KV lines
c. 23 of 132/33KV sub-stations
The voltage control policy:-
a. 330KV + 5% & -15%;
b. 132KV + 10%
The frequency control policy: 50Hz + 0.4% & -0.4%
DISTRIBUTION
Distribution network is as:-
23,753Km of 33KV lines
19,226Km of 11KV lines
679Km of 33/11KV sub-stations
20,543Km of 33/0.415KV lines or 11/0.415KV sub-stations.
There are also 1790 distribution transformers and 680 injection sub-stations. Although, the installed capacity of the existing power stations is 5906MW, the maximum load ever recorded was 2470MW. Presently most of the generating units have broken down as they have not been maintained as and when due. As at August 2000, the peak generation was 1500MW. This is grossly below the demand, which is about 4,500MW. The transmission lines are radial and are over loaded.
There is about 2400MW of self-generation in the form of small diesel and petrol-generating sets scattered all over the country. The Federal and States Government have vigorous policies of connecting local government headquarters and other towns and villages to the national grid.
The estimated percentage of Nigerians having access to electricity from the National Electric Power Authority (NEPA) is only 36% out of over 120million Nigerians. The forecast load for the year 2001 is 4833MW and that of 2005 to 2010 is 9780MW and 20,000MW respectively. These power demand forecast will require generating capacities of 12,700MW and 25,000MW by the respective years. Refer to table 2 frg 2 for installed capacity generation of pre-combine hydro and performal power stations from 1929 – 1990 and projected load demand of the country by the year 2010.
The 740MW identified SHP potential sites have the advantages of attracting foreign grants in the form of carbon trading provided by the KYOTO PROTOCOL agreement as a result ratification of the agreement by Russia recently.
The total energy output per annum of the Nigerian potential SHP projects operating at 75% efficiency will be about 4,861,800 KWh/year and this will displace about 3,354,800 tonnes of C02 per annum.
This CO2 emission reduction can attract buyer’s from the Annex1 parties to finance the execution of the SHP scheme in Nigeria, once the country’s legislature ratified the agreement.
It should be noticed that, the presently identified SHP sites are not the only potential sites available in the country, refer to Map of Nigeria showing the 9 hydrological zones under the River Basins Development Authorities. A chart and table of installed power generation of Nigeria from (1929-1990) and the projected power demand is attached. .
3.0 NEED FOR REFORM
The electricity sector is highly capital intensive and it is obvious that government with its several responsibilities in other sectors of the economy, cannot fund its development as outlined above, therefore, the need to reform the energy sector should be given the highest priority so as to:-
i. Attract and encourage private sector participation.
ii. Attract foreign investment to fund the sector.
iii. Ensure a favourable environment to all investors in the power sector.
The national Power Policy Statement therefore, is to ensure that Nigeria has an Electricity Supply Industry (ESI) that can meet the needs of its citizens in the 21st century. This will require fundamental reforms at all levels of the power industry. In this regard the government should:-
i. Provide overall direction for the development of the electricity supply industry.
ii. Ensure the general consistency of power policy with all other national policies, and specifically with other aspects of energy policy.
iii. Enact promptly the necessary laws, regulating measures required to support the electricity policy.
It is expected that an independent regulatory agency which will be responsible for the issuance of licenses to companies operating in the Electricity Supply Industry must be established immediately.
4.0 POLICY OBJECTIVES
The main objective of the Electric Power Policy Statement is to ensure that Nigeria has an (electricity supply industry) ESI, that can meet the needs of its citizens in the 21st century. The priority is to create efficient market structures, within clear regulatory framework, that encourage more competitive markets for electricity generation and sales, which at the same time are able to attract private investors and ensure sound economic viability of the system. This will ensure that the ESI meets current and future electricity demand in the most efficient and economically viable manner. The policy objectives are divided into short-to-medium term (3 – 5 years) and the long-term beyond 5years.
4.1 Short-To-Medium Term Objectives (3 – 5 years)
These objectives are supposed to:-
i. Ensure a system of generation, transmission, distribution and marketing that is efficient, safe, affordable and cost-effective
ii. Ensure that the power sector attracts private investment both within and outside Nigeria.
iii. Develop a transparent and effective regulatory framework for the electricity industry.
iv. To develop and enhance indigenous capacity in electric power sector technology.
v. Participate effectively in international power sector activities, and obligations in order to derive maximum benefits from bilateral co-operation in these areas; typical example is UNIDO IC-SHP initiatives on rural electrification and industrialization.
vi. Ensure that government directs it interest in the state owned entities and entrenches the key principles of restructuring and privatization in the electric power sector.
vii. Promote competition to meet growing demand through the full liberalization of the electricity market.
viii. Review and update electricity laws in conformity with the need to introduce private sector operation and competition into the sector.
4.2 Long-Term Objectives
These objectives are to;
i. Provide a new regulatory environment that is sufficiently flexible to take into account new technological developments and the international trends in the power sectors.
ii. Ensure that electricity supply is made more reliable, economically efficient and equitable, so as to effectively support the socio-economic development of the country.
iii. Provide universal access to electricity, although not necessarily through central national grid; (i.e. SHP development for rural electrification).
iv. Encourage domestic production of electrical equipment locally, and development of related software and services.
v. Establish and meet aggressive targets for the rural electrification programme, especially SHP projects that are based on renewable energy sources, with minimum adverse environmental impacts.
vi. Create the enabling environment, including the provision of incentives to local and foreign investors to achieve the desired objectives earlier stated.
vii. Ensure leadership role of Nigeria in the development of electric energy pool of the West African sub-region.
viii. Minimize government guarantees for privately funded investment.
ix. Ensure that subsidies are efficiently targeted.
5.0 SMALL HYDROPOWER DEVELOPMENT FOR RURAL
ELECTRIFICATION OF NIGERIA
The economic growth and increase use of electrical energy demand worldwide especially the developing countries. In order to meet these demands, various options such as the nuclear power, use of coal, diesel and natural gas etc. were considered to have serious negative environmental impacts contrary to the KYOTO Protocol Agreement. The negative environmental impacts have reduced the economic attractiveness of such non-renewable and large scale power generation technologies.
These developments could be of particular significance to developing countries where small scale renewable electricity generation may be cost effective, self sustainable and can deliver electricity to remote villages with difficult terrains and also far away from central transmission grid system.
The greatest advantages of SHP (Small hydropower) plants are they are reliable, flexible in operation and one of the cheapest methods of generating electricity. It is free from many issues, and controversies that continue to ‘hound’ fossil fueled power plants and large scale hydropower plants, which includes deforestation, reservoir siltation, rehabilitation and relocation of communities, etc. other benefits of small hydropower are its user friendliness, low cost, shorter gestation period, and decentralized power generation projects, that are community based.
In addition SHP contributes to numerous economic benefits are well, which served to enhance improved living standards of rural dwellers in remote areas, with limited or no electricity at all. In most cases the provision of electricity the rural communities can easily switch from firewood for domestic energy consumption, thus reducing the effect of deforestation and desertification and also cut down on GHG (green house gas emission) in compliance with the “KYOTO PROTOCOL”. On the macro level, rural communities have been able to attract new industries, mostly related to agriculture by using power derived from SHP projects.
In Nigeria, hydropower accounts for only 32% of the total installed commercial electrical power generation as mentioned earlier. A recent survey has identified about 278 non-utilized potential SHP projects with a total capacity of 740MW all over the country. The development of these potential SHP sites can ensure reliable and cost effective supply of electricity to majority of people in the rural areas of Nigeria.
The development of reliable renewable energy is a prerequisite for sustainable development and fight against poverty. These will reduce the social problems created by rural –urban migration, sufficient income generating opportunities necessary for minimum comfortable life such as access to electricity, portable water, health and education should be provided to the rural dwellers. The provision of clean renewable energy can contribute to household’s productivity and income generating potentials i.e. development of rural industries.
In this regard, UNIDO and the Energy Commission of Nigeria (ECN) initiated a Small Hydropower Development Programme to bring about qualitative changes in the lives of rural communities by providing access to renewable energy, which has the potential to improve the productive capacity and income generating potential of rural dwellers.
In November 2002, UNIDO and Energy Commission of Nigeria (ECN) in association with Federal Ministry of Power & Steel, industry, water resources environment, Science & Technology and Agriculture & Rural Development, organized a National Stake Holder’s Forum on renewable energy for rural industrialization. The purpose of the forum was to formulate strategies for providing access to clean and reliable energy services to rural people leading to rural industrialization, creating employment and accelerating rural development.
Stakeholders of that forum came out with recommendations to promote renewable energy resources especially those resources that are locally available such as small hydropower and biomass for providing access to clean energy to rural population.
In order to achieve this objective, a memorandum of understanding (MOU) was signed between the Energy Commission of Nigeria (ECN) and UNIDO International centre for small hydropower Hangzhou, China, for further co-operation in tapping estimated potential of 740MW of small/mini & micro hydropower through technical co-operation capacity building and establishment of pilot demonstration projects.
Subsequently, UNIDO and the Energy Commission undertook reconnaissance missions to thirteen (13) possible potentials sites in five (5) River Basin Authorities, representing various geographical & geo-political regions in the country. The outcome of this survey identified two pilot demonstration projects under Upper Benue River Basin Development Authority, (Waya Dam), and Anambra Imo River Basin Development Authority, and also two refurbishment projects under Sokoto Rima Basin (Bakoliri Dam) and Ogun-Oshun River Basin Authorities under Phase I programme.