The Nation Newspaper

Tag: Electricity

  • ’97m Nigerians don’t access grid electricity’

    No fewer than 97 million out of 175 million Nigerians have no access to grid electricity.  The remaining 78 million people who are connected to the grid face substantial power interruptions, the Energy Savers Nigeria, a non-governmental organisation (NGO) has said.

    In a paper titled: “The Nigerian Power Sector, A Performance Appraisal under the Buhari Administration” Moses Nasamu, a  member of Board of Trustees of Energy Savers Nigeria, said about 56 per cent of the population are connected to the grid, while 44 per cent  are not.

    He said an estimated 41  per cent of Nigerian businesses generate their own power supply to augment supply from the grid, in line  with the recent World Bank report on electricity situations in Nigeria, adding that the problem was caused by poor generation and distribution system and other systemic issues in the sector.

    It said Nigeria lags behind other developing nations in terms of grid- based electricity consumption with 126 kilowatts hour(kwh) per capita, stressing that electricity consumption is expected to be five times higher than what it is today in Nigeria, if we  consider the country’s Gross Domestic Product( GDP) alongside other countries globally.

    The paper said 25 per cent of Nigeria’s 12, 522 megawatts (Mw) of electricity installed reach the end user. “Widespread inefficiency means that only 3, 879Mw of this capacity is operational, with 3,600Mw transmitted and 3,100 distributed. Most of the shortfalls, which were about 5,381Mw, is capacity that is unavailable due to obsolete equipment and poor maintenance or due to ongoing maintenance and repair activities at existing power plants. Also, about 3,262Mw of electricity is non-operational primarily due to gas, water, high frequency, and transmission line constraints.”

    According to the paper, the sector has recorded some operational improvements, mainly driven by increased availability of gas since May 29th, 2015, when the Buhari/Osinbajo led government started.

    The paper stated that in August 2015, Nigeria hits historical highs as both peak generation and total energy generated across the system stood at 4,811Mw and 4,213 megawatts hour (mwh) respectively. It said transmission losses fell by 10 per cent between June and August 2015, compared to the first four months of the year.

    “Nigerians would recall that at the commencement of Buhari/Osinbajo’s administration in May this year, the sector was plagued with challenges,  which included under-utilisation of generating plants partly due to insufficient gas availability occasioned by  frequent vandalism of gas distribution assets, inadequate transmission infrastructure, high distribution losses, liquidity problem, among others,” the group added.

    They said electricity generation and distribution has improved relatively, despite the fact that the problems still exist in the sector. “The Buhari government has helped in restoring confidence in the sector through its decision to fast-track execution of the first set of World Bank partial risk guarantees, and granting of sovereign immunity waiver which aimed at increasing the rate of growth of the first tranche of project-financed Independent Power Projects (IPPs) and the interim execution of the contracts undertaken by the management of Transmission Company of Nigeria (TCN).

    On solution, the group urged the successor distribution companies to improve on their revenues in order to enable them fund what they described as ‘Wholesale Obligations,’ cater for their operating expenditure requirements,  invest in new and modern capacity, and ensure cost- effective tariff is provided for the teeming consumers of electricity in Nigeria.  They said when these measures are well implemented, power supply would improve and industrial activities will improve also.

  • ’97m Nigerians don’t access grid electricity’

    No fewer than 97 million out of 175 million Nigerians have no access to grid electricity.  The remaining 78 million people who are connected to the grid face substantial power interruptions, the Energy Savers Nigeria, a non-governmental organisation (NGO) has said.

    In a paper titled: “The Nigerian Power Sector, A Performance Appraisal under the Buhari Administration” Moses Nasamu, a  member of Board of Trustees of Energy Savers Nigeria, said about 56 per cent of the population are connected to the grid, while 44 per cent  are not.

    He said an estimated 41  per cent of Nigerian businesses generate their own power supply to augment supply from the grid, in line  with the recent World Bank report on electricity situations in Nigeria, adding that the problem was caused by poor generation and distribution system and other systemic issues in the sector.

    It said Nigeria lags behind other developing nations in terms of grid- based electricity consumption with 126 kilowatts hour(kwh) per capita, stressing that electricity consumption is expected to be five times higher than what it is today in Nigeria, if we  consider the country’s Gross Domestic Product( GDP) alongside other countries globally.

    The paper said 25 per cent of Nigeria’s 12, 522 megawatts (Mw) of electricity installed reach the end user. “Widespread inefficiency means that only 3, 879Mw of this capacity is operational, with 3,600Mw transmitted and 3,100 distributed. Most of the shortfalls, which were about 5,381Mw, is capacity that is unavailable due to obsolete equipment and poor maintenance or due to ongoing maintenance and repair activities at existing power plants. Also, about 3,262Mw of electricity is non-operational primarily due to gas, water, high frequency, and transmission line constraints.”

    According to the paper, the sector has recorded some operational improvements, mainly driven by increased availability of gas since May 29th, 2015, when the Buhari/Osinbajo led government started.

    The paper stated that in August 2015, Nigeria hits historical highs as both peak generation and total energy generated across the system stood at 4,811Mw and 4,213 megawatts hour (mwh) respectively. It said transmission losses fell by 10 per cent between June and August 2015, compared to the first four months of the year.

    “Nigerians would recall that at the commencement of Buhari/Osinbajo’s administration in May this year, the sector was plagued with challenges,  which included under-utilisation of generating plants partly due to insufficient gas availability occasioned by  frequent vandalism of gas distribution assets, inadequate transmission infrastructure, high distribution losses, liquidity problem, among others,” the group added.

    They said electricity generation and distribution has improved relatively, despite the fact that the problems still exist in the sector. “The Buhari government has helped in restoring confidence in the sector through its decision to fast-track execution of the first set of World Bank partial risk guarantees, and granting of sovereign immunity waiver which aimed at increasing the rate of growth of the first tranche of project-financed Independent Power Projects (IPPs) and the interim execution of the contracts undertaken by the management of Transmission Company of Nigeria (TCN).

    On solution, the group urged the successor distribution companies to improve on their revenues in order to enable them fund what they described as ‘Wholesale Obligations,’ cater for their operating expenditure requirements,  invest in new and modern capacity, and ensure cost- effective tariff is provided for the teeming consumers of electricity in Nigeria.  They said when these measures are well implemented, power supply would improve and industrial activities will improve also.

  • ‘Why it will be contemptuous to increase electricity tariff’

    ‘Why it will be contemptuous to increase electricity tariff’

    Mr Toluwani Adebiyi is a Lagos-based activist-lawyer. He tells JOSEPH JIBUEZE why he is leading a campaign against increment in electricity tariff. 

     

    why did you warn the Nigerian Electricity Regulatory Commission (NERC) and distribution companies (DISCOs) against increasing electricity tariff?

    Going by the new threat as reported on page 11 of The Nation of September 29  that electricity tariff will be increased in October, Dr. Sam Amadi, the NERC chairman, and Chief Executive Officers of the 11 distribution companies may be on their way to jail. There is a subsisting court order not to increase tariff until the case is decided. The suit is to come up on November 24, 2015. It has become self-evident that these set of Nigerians have no respect for the rule of law and constituted authorities.

    Why are you disappointed with NERC?

    NERC’s disrespectful attitude to the court and the Senate is nothing but executive recklessness and an inordinate evil ambition. The Senate had accused the power sector players of engaging in unfair trading practices and warned them against such. If Amadi thinks by making this threat, he can retain his position as NERC Chairman in this present dispensation, it is a complete illusion that can never be attained. Consumers are tired of him and they will continue to agitate for his removal.

    Why did you file contempt charge against Amadi?

    On August 7, 2015, the NERC Chairman petitioned the Chief Judge of the Federal High Court, accusing judges of frustrating reforms in the power sector, casting aspersions and accusing judges of lack of knowledge and abuse of their judicial power. He accused judges of granting inconsiderate and reckless injunctions, directing courts to always exercise restraint and defer to his commission in the exercise of their judicial power ( an attempt to subjugate, undermine and intervene with the Court’s lawful responsibility). He contemptuously sought through the letter, to bring the court under control or subjection through his request for the establishment of a possible ‘Judicial Policy of Restraint’ during the pendency of, and in connection with, or on a matter before the Court. The letter was capable of obstructing or tending to obstruct or interfere with the administration of justice in a matter pending before the court, an act that was not only insulting and derogatory to the court, but was an obstruction of justice. It was contemptuous to the integrity of the court and punishable by committal to prison.

    What do you make of complaints against DISCOs?

    The Distribution Companies on the other hand have been devising dubious means to exploit the already exploited Nigerians, like refusing to read their meters and bringing outrageous estimated bill for consumers with functioning meters. For instance, a shoe maker in Iyana Ipaja, when his meter is read gets about N2,000 bill, but when they ignore the meter and come with estimated bill, he gets around N20,000.

    Do you think the power sector is improving?

    The evident failure of the power sector, particularly in May/June this year when the order, was made was described by President Muhammadu Buhari during his inauguration as a national shame. It affects everyone and it readily speak for itself.

    However, in all fairness to the sector, there have been some fractional improvement, which the president described in his Independence Day speech as encouraging, but it still falls short of the 18 hours daily supply demanded for. Besides, most communities are still in total darkness.

    Can you name some these communities?

    On September 30, residents in Edo State were seen protesting poor electricity supply. Onike in Yaba area of Lagos has since September 8 been in total darkness. Magboro area on the Lagos/Ibadan Expressway has been in darkness for the past three years. Isale-Ijebu in Ajah community has its transformer abandoned for the past three years without being connected.

    We learnt they bought the transformer with their contributions, yet was not connected due to their inability or reluctance to make another contribution for the connection. This is in spite of the monthly N750 fixed charge which is supposed to be meant for such purposes and for the servicing and maintenance of poles and cables. The DISCOs collect this fix charge but fail to use it for what it is meant for. Still, they keep on collecting the charge. This is nothing but fraud and for that reason, this crude and fraudulent fixed charge must be abolished.

    Why are you against increasing tariff?

    Eko and Ikeja DISCOs had attempted to co-opt Nigerians through the Manufacturing Association of Nigeria (MAN) and other groups into accepting tariff increment, which has failed. On one of such occasions, Mr. Ambrose Uche, Chairman Ikeja branch of MAN adequately warned Ikeja Disco, reminding them of the subsisting order of court. Co-opting people to accept increase when there is a subsisting order not to increase is disrespectful and dishonouris the court in its entirety.

    When do you think the increment should be made?

    Increment cannot come now. The little improvement is only encouraging but not yet sufficient. Adequate electricity supply must be balanced with new tariff. Both must be commensurate with each other. Power supply must be sufficiently convincing. There is no justification for an increment now. Increasing tariff now will be morally inequitable and statutorily unjustifiable.

    It is something that affects everyone including even my learned colleagues and the counsel representing the power sector in court. They are merely working for their fees and not mindful of the interest of the already exploited poor consumers and public interest at large. Left to me, I will never accept such a brief that is against the poor masses or public interest. It is glaring that the sector has cheated so many Nigerians through very excessively estimated bills even for those who have meters. So much has been invested in the power sector since 1999 with little to show for it.

    What became of the contempt charge you filed?

    At a stage, Form 48 for court’s Contempt was filed, but was later reluctantly withdrawn after a reasonable appeal by the court in the interest of the nation, as the polity had been heated up lately about orders of arrest. Despite that unusual mercy and pardon, these people can still not learn their lessons and respect an existing order of the court. It is quite unfortunate. But the law will always have its way. Enough is enough! Our system must be sanitised; the honour of the court must be sustained. Our court must be treated with honour; its integrity must not be trampled upon.

    What will happen if tariff is increased now?

    Nigerians are not stupid. We have been exploited for long despite government’s huge investment in power sector with no improvement. We cannot be further exploited by those feeding fat on consumers’ money. If NERC chairman and the DISCOs’ CEOs will not purge themselves of attitude detrimental to the honour of the court, then they shall not escape the consequences of dishonouring the court; they are on their way to prison.

    If they still insist on increasing tariff this month as threatened, in spite of the subsisting court’s order, and want to be treated and seen as scapegoats, they are free to make their choice and end up in jail. It is a free world.

     

     

     

  • Fed Govt’s MDAs owe distribution companies N32b

    The Federal Government’s ministries, departments and agencies (MDAs) and the military owe the 11 electricity distribution companies (Discos) across the country N32 billion, it was learnt.

    The Executive Director, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan told The Nation that the Discos have challenges in collection and the worst customers are Federal Government’s MDAs.

    He said: “N32 billion is still outstanding as Federal Government’s MDAs debt. It has not been paid till now. That N32 billion means a lot to us. If we have that money, we can buy meters and share to our customers.

    “Before I started shouting in the mass media, we had serious issue with MDAs. The military especially felt it is their right not to pay for the power they consume forgetting that the current power sector is under the private sector. In the budget, they actually have allowances for utility bills’ payment.  These military formations especially in Ikeja and Eko Electricity Distribution Companies, and even across the country are metered; therefore, it is not that they are on estimated billing or over-billed, and don’t have reasons not to pay.

    “We had a meeting with the Federal Government presided over by Vice President Prof Yemi Osinbajo, and he listened to all sides (all the stakeholders) including the Nigerian Electricity Regulatory Commission (NERC), Market Operators (MO), Nigerian Bulk Electricity Trading (NBET), generating, and distribution companies.

    “We all tabled our problems and the government has started looking at those issues; he promised us that the MDAs will pay the debts. I can assure that this government seems to be very serious, determined and sincere to provide electricity.”

    Oduntan said the commercial losses are very high citing a Disco that bought electricity worth of N3.2 billion and after preparing the billing, it got N2.6 billion leaving it with a deficit of N600 million. Out of the N2.6 billion bills it prepared, it would not be able to collect all of them due to non-payment as some customers aren’t willing to pay. This happens because some big men, welders and battery chargers, among others, bypass their meters. Out of the N2.6 million bills you prepare, you would not be able to collect all of them due to non-payment as some customers aren’t will to pay, he added.

    The Chief Executive Officer, Eko Electricity Distribution Company (EKEDC), Dr. Oladele Amoda, also stated that his company will remove payment of fixed charges by customers in the network. Amoda told The Nation at EKEDC stakeholders’ meeting/consultation in Lagos that once the customers approve the company’s proposed new tariff and NERC endorses it; the management will remove the fixed charges paid by the customers.

    The management of EKEDC has had several of such meetings where the customers agreed it should scale up the tariff but there must be commensurate power supply. The last meeting was to let the customers see and deliberate on the proposed tariff.

  • CPC to prosecute Benin, Enugu DISCOs for exploitative electricity billing

    CPC to prosecute Benin, Enugu DISCOs for exploitative electricity billing

    The consumer Protection Council (CPC) said it is set to commence prosecution procedure against Benin and Enugu Distribution Companies for violating its enabling Act in the on-going investigation of the activities of the country’s distribution companies (DISCOs).

    The CPC, in a statemnt, said it had to take this decision due to the non-appearance of the two power firms before  Council’s Panel, instituted to investigate numerous complaints of electricity consumers on estimated billings and non-provision of metres.

    “Benin Distribution Company was expected to appear before the Panel on Wednesday by 10 am, while Enugu’s time was 2pm the same day, in line with a schedule of appearance agreed upon with the representatives of the DISCOs at their meeting with the Council on Monday, September 7.

    “The distribution company, like its other counterparts, was also expected to have forwarded some documents that would aid the Council in its hearing by Friday, September 11 even though the date was shifted to Monday, September 14 for all the DISCOs, pursuant to a plea from the Association of Nigerian Electricity Distributors (ANED) for more time for the submission of the documents.

  • Electricity rip-off: Buhari must act

    SIR: My experience in recent time with electricity supply could be assumed to be the same experience for millions of Nigerians. I bought a prepaid meter in 2008 and quite early in 2011 the meter stopped working. Consequently, I was made to pay fixed sum till a new billing system was introduced.

    In the first instance, the only alternative that Power Holding Company of Nigeria (PHCN) now Eko Electricity Distribution Company (EKEDC) could provide is for me to buy a new prepaid meter, which was annoying enough. For a family of three, it is surprising that my monthly bill jumped from an initial N5,000 to almost N30,000 in a two-room apartment. I have however kept to my monthly payment of N5,000 not minding their threats and what have you.

    Many things are wrong with this system. Firstly, there is no known template or yardstick for determining the actual electricity consumption, since there is no meter to be read or monitored. Somebody somewhere arbitrarily determines the electricity consumption and cost. Just like that. What manner of an unfair system could this be? This is what most Nigerians are passing through virtually every month.

    Secondly, the issue of N750 fixed charge. The purpose of the charge has not been explained till today. No tangible or tenable explanation has been offered for this amount which is collected monthly. Of what essence this fixed charge if when a customer’s prepaid meter is faulty, the only available option is a new one? Will the government whose mantra is fighting against corruption remain quiet in the face of this rip-off?

    Finally, if a customer is ready to buy a prepaid meter, the process itself is cumbersome.  Such a customer will be required to clear all his bills including crazy ones and the estimated bill arrived with no template of electricity usage. After this, the customer is expected to pay through bank draft the sum of N38,700 for the meter. Then the customer will be told that the meter will be ready in six months. In the meantime, within the six months (some were not given meter even in 12 months), the very same estimated bill (that the customer was asked to clear before beginning the process of buying a prepaid meter), will still be sent to the customer on monthly basis, and as expected the customer would have to pay. To me, this is wicked.

    President Buhari should look into the issue. The president cannot and must not claim ignorance of this practice by electricity providers. The Nigerian Electricity Regulatory Agency (NERC), though empowered to deal with such issues has been ineffective. President Buhari needs to ask questions about the provision of prepaid meters, at least made-in-Nigeria prepaid meters (which are not available to customers) that was presented to him during the briefing from the Ministry of Power.

    The government owes citizens the responsibility to defend them against unfair practices. Citizens must not be made to pay for what they did not use.

    • Adedeji Nurudeen Badejo,

    Surulere, Lagos.

     

     

  • Nigerians ‘ll pay more for electricity, says NERC

    Nigerians ‘ll pay more for electricity, says NERC

    There was a mild drama yesterday at the Nigeria Electricity Regulatory Commission (NERC) when  it said   electricity tariff will be reduced but customers will now have to pay more.

    Rising from a consultation meeting with stakeholders in the Nigeria Electricity Supply Industry (NESI), comprising generation companies (Gencos), distribution companies (Discos) and Consumers’ Forum in Abuja , the commission’s chairman, Dr. Sam Amadi, said the average tariff has dipped from N26 to N23per kilowatt.

    He said: “The good news is that the average tariff has come down from N26 to N23. That is the good news. For us, if it goes up, we say it goes up. If it goes down, we say it goes down.”

    Amadi said although the Commission would bring down the tariff, what the customers will now pay will be higher.

    Amadi explained that R2 Abuja customers who presently pay N14 but may pay N19 if  the new tariff is approved.

    The new tariff, he said,  will take effect retroactively from July this year.

    Amadi however recalled that the tariff, which should have taken effect from July was frozen in June because a new government had just assumed office. He added that owing to the stability in the market, it is now convenient to unlock the tariff.

    According to him, the Discos will present their different proposed  tariffs to the commission which will in turn be presented to the Presidency for approval.

    Commenting on how the new tariff would look like, Amadi said: “By January last year R2 customers were supposed to pay N19 in Abuja. They are paying N14. Today with the analysis, instead of N18, it should be N19.

    “There is a reduction but it doesn’t mean that at the end of the day, they will still be paying that N18.”

    The four factors that the commission considered in tariff review are gas prices, exchange rate, inflationary rate and generation capacity.

    In her presentation, NERC’s Principal Manager, Market Competition and Rates, Aisha Mahmud, noted that the commission obtained the data for the computation of the Bi-Annual Minor Review from the website of the Central Bank of Nigeria (CBN).

    According to her, inflation rate from the apex bank as at  April 30 this year was 8.3 per cent. She added that the Multi-Year Tariff Order 2 had an assumption of 13 per cent 13 per cent inflation rate but after last year’s minor review, the inflation rate was reviewed down to 7.8 percent.

    On exchange rate, the CBN website, she said, showed an exchange rate of N197 to $1 as at April 30, adding however that the proposal took an exchange rate premium of 197+1 per cent.

    The commission in the proposal observed that gas price has increased to $2.50 from $1.50 at transportation cost of $.80.

    Mahmud said there is now an average peak daily generation capacity of 3,832megawatts (Mw) while average energy sent out is 3,404Mw.

    In all, the commission said  following the increase in energy generation, there is now more revenue generation for the Discos, which has now reduced the cost of power.

  • Residents protest ‘crazy electricity bills’

    Residents protest ‘crazy electricity bills’

    Some Lagos residents have protested what they called the epileptic power supply in their area and “loath-some” billings by the Eko Electricity Distribution Company (EKEDC).

    The residents of Igbehin-Adun in Ilasamaja, Mushin, alleged that they are being billed for what they did not consume by the Iyana-Isolo and Idi-Araba districts of Eko Electricity Distribution Company (EKEDC).

    A banner at the entrance of the community reads: The real change we want in Ilasamaja from Eko Distribution Company. Their demands as inscribed on the banner  include; No more crazy bills; No more extortion in estimated billing; No more service charges; No more billing not in commensurate with energy consumption; Prepaid metres should be free among others.

    Their representatives made their grievances known at the EKEDC head office on the Marina in Lagos last Thursday.

    They were denied access to the EKEDC General Manager, who was said to be in a meeting.

    An official of EKEDC, however, assured them that their complaints would be looked into.

    A former councillor in Mushin Local Government, Lateef Olayinka Aro told The Nation that the residents’ efforts to lodge a complaints at the Iyana-Isolo and Idi-Araba districts of EKEDC failed.

    He said: “The situation of power supply in this area has been precarious. We want to see the authority in charge but to some extent, we have been finding it difficult. We went to Isolo district but we got flimsy excuses. The Idi-Araba district told us to lodge our complaints at the head office in Marina. For a year now, our bills have been high.  We are being billed as an industrial area while our area is actually a residential area. The bills are high compared to the level of income of the people in this area. We want the government to understand our plight and look into the matter as quick as possible.”

    Aro said their investigations showed that they have been disconnected from the former feeder where they enjoyed “little power supply”, adding: “we have been given that of Itire while ours was given to Itire.”

    The residents said they met with an official of the Idi-Araba district who pleaded with them to exercise patience.

    According to Aro, the official said: “All these are happening as a result of the privatisation of the power sector, but we are assuring you that there will be positive changes”.

    A resident, Taiwo Hamzat, representing Akanro and Ogunbowale axis, decried the outrageous bills, saying they are nowhere equal to the level of power supplied.

    Hamzat said: “We are making our grievances known to EKEDC; we do not deserve outrageous bills, estimated billings, illegal disconnection and frequent power outage. Imagine, an individual being given between N20,000 and N60,000 bill monthly yet the power supply is not constant.

    Another resident, Folorunsho Olorunosebi said they could deal with EKEDC officials, “but we decided to express our complaints at the head office to avoid violence.”

    Mrs Folashade Ajani said her faulty metre which was taken away by EKEDC officials has not been returned, “but I have been receiving bills for power not supplied”.

    An EKEDC official in Idi-Araba appealed for calm, promising to hold a meeting with some selected members of the community.

  • Power supply now 4,029.83MW

    Power supply now 4,029.83MW

    Energy Sent out by the Transmission Company of Nigeria (TCN) last Sunday hit 4,029.83MW, The Nation learnt Monday.

    According to the Federal Ministry of Power in its Power Statistics of Sunday 30th August, power supply leaped by 32.02MW from the last statistics of August 25.

    Of the total energy generated in period under review, the company recorded 87.9MW spinning reserve or stranded energy which the it could not wheel  to the electricity distribution companies.

    The ministry made this disclosure on its website Monday, adding that the peak power generation that was 4,810.7MW on August 25 dipped to 4,516.5MW on Sunday.

    It also noted that Energy Generation rose to 4,117.73MW from the last record of 4,080.86MW.
    Highest peak power generation in the Nigeria Electricity Supply Industry (NESI) was the 4,810.7 MW of August 25.

    There has been significant increase in the electricity supply to customers, which most consumers have described as the usual ploy of electricity distribution companies when they are preparing to dispatch their monthly bills.

    The Nigerian Electricity Regulatory Commission (NERC) had recently decided that the Discos’ fixed charge should now be proportional to energy charge, although The Nation could not confirm whether the adjustment was effected in the August bill or whether it would commence in September.

  • Increasing electricity generation

    Nigeria, a major oil producer, understandably generates most of its electricity (80%) from hydrocarbon powered turbines but it remains difficult to understand why in the face of the failure of the fuel powered systems to provide the needed electricity, other available energy sources have remained significantly unharnessed.

    For Nigeria, a nation of over 170 million citizens located in the heart of the tropics, occupying a vast land area of 923,768 km² of high solar insolation, the inability to generate electricity from renewable sources to augment the current level of less than 5,000MW has sadly remained a major blight in the development of all sectors of its economy.

    Today, most developed nations give prime consideration to electricity generation from the renewables as mutual complement to generations from the conventional systems. Each of the following countries enjoys adequate power supplies from the conventional generation methods that may include the combination of Gas turbines; Hydro falls; Coal turbines; Nuclear power plants etc., in addition still embarks on energy generation from renewable sources especially solar where ideally available. The total electricity generation from solar by these countries that are among the 14 largest solar energy generation countries, some situated in lower solar insolation areas than Nigeria,  is quite revealing.

    Germany: Enjoys much less sun resources than Nigeria but has been the world’s top solar electricity generator for several years ahead of China, Japan, Italy, and USA. As at February 2015 and still increasing, German overall installed sun electricity generation capacity was 38,458 megawatts (MW).

    China: Total installed solar electricity capacity at the end of 2013 was over 12,000 megawatts and by September 2014 attained over 18,300 megawatts.

    Japan:  Between April 1 and October 31, 2013 (less than 8 months) about 4,000 MW (4 GW) of new solar photovoltaic was installed in Japan. As at end of 2014, Japan had attained a level of over 15,000 MW from distributed solar scheme. Japan is the first country in the world to surpass the 1 GW of cumulative PV capacity. It should be noted that Japan’s sun resources are much less than Nigeria’s.

    United Kingdom: Solar power use in United Kingdom though relatively unexplored until recently, has increased very rapidly. As at the end of June 2013, of the 2,400 megawatts capacity installed, 1,700 megawatts were small-scale residential and commercial installations that benefited from feed-in tariffs. In 2014, Solar PV accounted for 12% of renewable electricity capacity in the UK. The total UK installed solar capacity generated from homes, buildings and solar farms is now about 4.7 Gigawatts. UK with its relatively poor sun endowment today generates more electricity from sunlight than Nigeria currently generates from all of its conventional power generation systems put together.

    The key to the successes of harnessing immense electricity from sunlight by the afore-enumerated countries, most of which do not enjoy as much sunlight as Nigeria, derives from the implementation of well-articulated citizens driven DISTRIBUTED GENERATION (DG) schemes. Distributed Generation is a scheme that employs small sized units owned by private citizens or bodies to generate electricity for their use with excess generated over needs discharged/sold to the grid at accepted conditions. DG systems employ numerous small plants that can provide power onsite with little reliance on the distribution and transmission grid. All those roof-top PV installation noticeable in most houses in developed countries are silent power generating DG components. DG technologies yield power in capacities that range from a fraction of a kilowatt [kW] to about 100 megawatts [MW]. DG from renewable energy sources provides lower-cost electricity and higher power reliability and security with fewer environmental consequences.

    A detailed assessment of the following indices necessary for the successful implementation of solar distributed generation scheme should clearly portray the potential viability of the Solar DG scheme in Nigeria.

    NEED/DEMAND: The huge need of electricity in Nigeria as it currently stands is significantly enormous. Experts have variously estimated Nigeria ideal electricity generation in line with needs to be between 25,000 and 40,000 MW. Total current electricity supply stands at much below 5,000MW. There is no question about the very high need of electricity to satisfy the huge demand in Nigeria. IDEAL INSOLATION: Insolation is a measurement of sunlight intensity over a given area for a defined period of time. Sun intensity is not only high in most areas of Nigeria; sunlight is present all year round in all areas. Nigeria is disposed to naturally endowed benefits of ideal insolation by location, and should therefore harness the gifted options of free electricity generation from the sun through the solar distributed generation scheme. POLICIES: A clear policy must be in place that removes all ambiguities and strengthens the legal framework of all aspects of the DG scheme including creating legal backups for all –Incentive, Finances and all other drivers of the scheme. Such policies must among other vital covers grant conditions for, Easy and assured grid Connection; Purchase and payments for power generated and exported into grid; Set a minimum share of power to be produced from renewable sources; Set a reasonable goal for solar electricity procurement in the various service territories.

    WILLING/QUALIFIED PARTICIPANTS: Almost every Nigerian family, including the poorest, has at least one electricity generating set. This proven enthusiasm succinctly represents the fact that there would be overwhelming number of willing participants to choose from. Albeit, meeting the standard conditions of owning a property that has good roof size and orientation in selected areas for the projects. Even at a minimum average generation of 5kw per generator, the 36 states plus the FCT can each generate an average of up to 500MW within one year-{Japan with less sun resources achieved about 4,000 MW between  April 1 and October 31 2013 (less than 8 months).   INCENTIVES: In all places the DG scheme has succeeded, the major driver for enthusiastic citizen participation derived from the very attractive incentive the scheme offers to individual generators. Such incentives include:  Net-Metering (NEM) which consists of Credit earnings and Debit payments on difference between metered generations exported into the grid and metered consumption taken from grid. Feed-In-Tariff (FIT) which involves -Payment for all generated electricity even if directly consumed; -Rebate on standard electricity bill for using energy produced and Additional benefits for electricity exported into the grid. Tax Breaks particularly for corporate entities for the electricity generation beyond a fixed minimum level. If the incentives are properly drawn up and implemented, Nigerians would fall over each other to get into the scheme.

    FINANCE: Electricity generation from any source is very financially intensive. Even with the recent drop in PV prices, solar electricity generation ranks higher than the conventional generation methods in cost. Distributed Generation as defined are owned by the generators and as obtains the world over, each participant bears the costs of the system. To depend solely on each participant to procure the systems may never yield the prompt significant generation desired. Thus, a viable Government guaranteed repayable financing for each qualified participant can be worked out. It has been shown that complete recoup of all investment on the generating system is achievable within 10 years. This is considered as viable for a complete DG generating system (not including batteries) which has a minimum functional life of 20 years with no mechanical parts and requiring no costly servicing.

    Solar renewable energy source unarguably remains not only a viable tool towards achieving energy security in Nigeria, but can through the Distributed Generation scheme offer Nigerians as much satisfaction from electricity provision as the GSM technology has provided in telephony.  Solar Distributed Generation discounts the enormous need and investment in transmission infrastructures and remains a viable solution to Nigeria’s inadequate electricity supply.

    • Uanikhehi is President and Fellow, Solar Thermal Electricity Promoters Association of Nigeria (STELPAN)

    Email— locitrax@yahoo.com