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Scaling up Electricity Access and Renewable Energy Market Development ii Energising Rural Transformation in Nigeria Scaling Up Electricity Access and Renewable Energy Market Development Edited by Ewah Otu Eleri ICEED PRESS In association with Federal Ministry of Power and Steel iii Copyright© 2002 by ICEED No. 6 Sapele Street, Garki II, Abuja Published by ICEED PRESS All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of ICEED, Abuja, Nigeria. Layout and graphics design: ICEED PRESS Desktop Publishing and Production Management: ICEED PRESS Printed and bound in Nigeria by Mbeyi & Associates iv Foreword, Hon. Murtala Aliyu 1 Preface 3 Summary of Chapters, Jamal Gore and Joanna Gregory 5 Introduction, Ewah Otu Eleri 16 Part I Keynote Speeches Welcome Remarks, Hon. Mohammed Danjuma Goje 21 Keynote Address, Hon. Olusegun Agagu 23 Goodwill Message, Ambassador Howard Jeter 26 Part II International Experience in Rural Electrification CHAPTER 1: Gearing Up for a Big Impact Rural Electrification Program Arun Sanghvi 30 CHAPTER 2: Enabling RE Scale-up – The Role of the State in Chile Alejandro Jadrasic 36 CHAPTER 3: Increasing the Pace and Lowering the Costs of Rural Electrification Connections Rob Stephen 53 CHAPTER 4: Policy Platform for Scaling up Access – Lessons from International Experience, Wolfgang Mostert 63 CHAPTER 5: A Demand-driven Framework for Linking Energy and Key End-use Sectors Jamal Gore 77 Part III Policy and Institutional Framework – Key Issues and Challenges CHAPTER 6: The Potential Role of NEPA in Grid Rural Electrification in a Restructured Distribution Sector, Liyel Imoke 85 CHAPTER 7: Review of Federal Government Rural Electrification Programme H. Nggada 93 CHAPTER 8: Rural Electrification Programme Review and Future Challenges – Yobe State Perspective, Ahmed K. Amshi 105 v Part IV Accelerating Renewable Energy Market Development CHAPTER 9: Renewable Energy Development in Nigeria – Status & Prospects O.C. Iloeje 113 CHAPTER 10: Solar PV Market Development in Nigeria, Barriers and Prospects Tunji Ajani 133 CHAPTER 11: Climate Change & Renewable Energy Development in Nigeria Y. Tanko 144 CHAPTER 12: Concept Note for a Proposed Programme on Solar Energy for Rural Development, Ewah Otu Eleri 152 CHAPTER 13: Renewable Energy Development for Women and Sustainable Livelihood J.O. Maduka 160 Part V Conclusion CHAPTER 14: Towards a New National Programme on Rural Electrification Ewah Otu Eleri 176 Appendix List of Participants 185 1 Foreword Murtala M. Aliyu Honourable Minister of State for Power and Steel This book is a product of a workshop organized by the Federal Ministry of Power and Steel in collaboration with several national and international agencies. The overall objective is to come up with ideas and approaches to scale up access to electricity services in the country. Promoting universal access to electricity services is a key component of the Federal Government’s commitment to reduce poverty. Today many Nigerians live literally in dark, without electricity for lighting, essential health services and the development of economic opportunities, especially in agriculture and micro enterprises. It is my conviction that no meaningful development can take place without access to modern energy services. Likewise, without electricity, extending common democratic norms and values through radio and television will be a very difficult task. Presently, the Federal Government is committed to extending electricity to the over the 70 percent of our population in rural areas. Through the National Rural Electrification Programme, Government seeks to extend the national grid to all Local Government Headquarters in the country. In the process, several small towns and villages along the grid will be electrified. Today, of the 774 Local Government Headquarters in the country, 580 are already connected to the National Grid, while work is going on in 96 others. It is expected that the remaining 98 Local Government Headquarters will be connected to the grid in the shortest possible time. Despite the significant strides recorded by this administration in rural electrification, achieving universal access will no doubt be costly and perhaps slow. The government has already committed an unprecedented amount of resources on the rural electrification programme. To sustain this achievement, other sources of finance need to be explored. This calls for vital reforms. 2 An Electric Power Sector Reform Bill is presently before the National Assembly. The bill seeks to increase national power outputs through the participation of the private sector as well as the unbundling of the National Electric Power Authority. Among other things, a liberalized power sector supply industry will attract much needed capital from the private sector, introduce a national independent regulator and stimulate overall growth in generation, transmission and distribution of power in the country. Electricity sector policy reforms will create an enabling environment for new initiatives on rural electrification. Efforts are needed to develop appropriate strategies in meeting time-bound targets of universal electricity access either through the national grid or using renewable energy sources. Besides achieving universal access, the government seeks to retool the rural electrification programme towards greater economic efficiency, particularly by developing a partnership with the private sector, the various tiers of government and affected communities. Extending and deepening partnership with international agencies are important components of this strategy of reform for several reasons. Reforms in the rural electrification programme will benefit from best practices in several parts of the world. Many agencies like the World Bank, the African Development Bank and the United States Department for Energy are tested partners of Nigeria in promoting sustainable development in the country. Working with these partners will not only enhance quality, but will assist Nigeria in building a financial base and capacity to renew the initiative on rural electrification. This publication is a unique collection of perspectives and insights that will certainly assist the government in reshaping the programme on rural electrification. I recommend this book to policy makers, professionals, the private sector – and in fact all stakeholders in the electricity supply industry. It is a welcome reading for an industry in search of ideas and renewal. September 2002 3 Preface This book presents an edited collection of papers presented at a national workshop on “Energizing Rural Transformation in Nigeria: Scaling Up Electricity Access and Renewable Energy Market Development”, March 19 – 20, 2001 in Abuja. The workshop sought to stimulate dialogue on the formulation of an overall national vision and programme for expanding access to electricity services to the vast majority of Nigerians residing in rural areas. The book fills an important knowledge gap on best practices on rural electrification around the world; the status of Nigeria’s rural electrification programme; and presents an overview of several emerging issues including private sector participation, the role of renewable energy and gender in formulating a new national programme. The workshop and this volume have been made possible through a unique partnership of Nigerian and international agencies, including the Federal Ministry of Power and Steel, Energy Commission of Nigeria, United States Department of Energy and the World Bank. The support of the Honourable Minister of Power and Steel, Dr Olusegun Agagu and the Honourable Minister of State, Mallam Aliyu Murtala have been pivotal in realizing the various outputs of the workshop, including this book. Engrs. H. Nggada, F.N.A. Olapade and Alex Amakom and the entire staff of the Electrical Inspectorate Services Department of the Federal Ministry of Power and Steel have at times gone beyond their call of duty to ensure the smooth completion of this project. A special thanks goes to Arun Sanghvi, Mac Cosgrove-Davis and Wendy Hughes of the World Bank as well as John Brodman of the United States Department of Energy mission in Nigeria for their financial and logistical assistance. Jamal Gore and Joanna Gregory of Winrock International provided planning and logistics support and have prepared a summary of the proceedings of the workshop. Their contribution has been incorporated into the present volume. Support for Winrock International came through a grant from Solar Electric Light Fund and the United States Department of Energy. The support of 4 these agencies is gratefully acknowledged. Obinna Ibiam, Dipe Adedeji and Uche Igwe have provided logistics, IT and proof reading assistance, respectively. May I use this opportunity to thank the various presenters and participants from federal, state and local government agencies, international organisations, representatives of the private sector, non-governmental organizations, academic institutions and local communities whose enthusiasm and insight raised the standards of the outputs and prospects for a large-scale programme on rural electrification in Nigeria. Progress on scaling up access to electricity services will depend on the sustenance of this partnership - where all key stakeholders participate in developing a new road map for the country in this important field. Finally, the views expressed in the various chapters are the responsibilities
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