Stakeholders in Nigeria’s energy sector have validated a draft report of consultants designed to remove barriers/risks affecting the broadening of renewable energy investment in the country. The overall objective of the project is to assist the Federal Government in achieving a transformation in the electricity mix such that at least 20GW of Nigeria’s electricity is generated from solar PV by 2030. Bennett Oghifo reports
The United Nations Development Programme (UNDP), in collaboration with the Energy Commission of Nigeria (ECN), the Federal Ministry of Environment, Federal Ministry of Power, Works & Housing and other stakeholders is implementing a 5-Year demonstration project titled: “De-Risking Renewable Energy NAMA (Nationally Appropriate Mitigation Action) for the Nigerian Power Sector”. The project has three key components: Design and development of a power sector renewable energy NAMA supported by De-risking Renewable Energy Investment (DREI) analysis; DevelopingPolicy and Institutional Framework for private investment in on-grid renewable power generation; and Demonstration of 1st Commercial on-grid renewable energy project.
The project is expected to contribute to the country’s attainment of its Nationally Determined Contributions (NDCs) mitigation targets in the energy sector, with expected direct emission reductions of 205,700 tons of CO2e during the project’s lifetime and additional indirect emission reductions of between 6.79 and 9.72 million tCO2e.
Also, the project seeks to develop Measurement, Reportable and Verifiable (MRV)framework, with appropriate indicators, to measure, report and verify the emission reductions that will be generated by the investment in low-carbon activities under the NAMA/NDCs.
The 2-day workshop for the Validation of the Draft Report on the “Development of Three Comprehensive Sectoral NAMA Technology Action Plans (TAPs) for Solar PV, Wind and Biomass” and “Development of MRV Mechanism/Grid Emission Factor for the Nigerian Power Sector”. It was therefore organised to give stakeholders an opportunity to review/update and validate the reports.
At the end of the workshop, which held in Ikeja, Lagos last week, the Project National Coordinator/Manager Engr. Isaac Ierve said, “The validation workshop was very successful and it is a step forward towards removing barriers/risks affecting scaling up of renewable energy investment in the country. I implore all energy actors in Nigeria to take advantage of these studies so that development could be made in the sector.”
The project has identified that Nigeria’s electricity grid faces many challenges, including insufficient grid-connected capacity to meet demand; inadequate infrastructure to make the country’s abundant gas available for power generation; and an inefficient transmission and distribution system with limited coverage. Consequently, 50% of the electrical energy consumed in the country is currently produced off-grid by diesel and gasoline generators of all shapes and sizes and there is also high unmet demand amongst the rural population. These energy gaps can be reduced with the country’s good renewable energy resource potential such as solar, wind, biomass and hydropower energy.
Thus, the project seeks to develop three comprehensive sectoral NAMA technology action plans (TAPs) for solar PV, wind and biomass. The study is expected to overcome indirect barriers to technology uptake or diffusion, produce a clearly articulated plan with specific, convincing request for financial and technical resources to help promote the uptake and/or diffusion of solar PV, Wind and Biomass climate technologies in Nigeria and propose a road map or action plan for their implementation.
The project is also expected to develop a framework that will establish “accurate measurement and accounting of actual GHG (greenhouse gas) emission reduction from mitigation actions in the energy generation and end-use sectors. Currently, many on-going energy projects do not consider the critical role of an MRV methodology in assessing the contribution of NAMA implementation to the overall national voluntary GHG emission reduction targets.
To address these issues, international consultants (ICs) were engaged to: Develop three comprehensive sectoral NAMA technology action plans (TAPs) for solar PV, wind and biomass; and develop an MRV mechanism for the Nigerian power sector.
The Consultants were in Nigeria for their first missions, during which, many Ministries, Departments and Agencies (MDAs) and other stakeholders were consulted to gather baseline information needed for the successful conduct of the studies. The Consultants are to visit Nigeria for the second mission to present their draft reports to enable stakeholders make final inputs.
The main objectives of the workshop were to: discuss and validate the draft report from the International Consultant on Development of three Comprehensive Sectoral NAMA Technology Action Plans (TAPs) for Solar PV, Wind and Biomass.
They also discussed, updated and validated the draft report from the International Consultant on Development of Monitoring Reporting and Verification (MRV) Mechanism for the Nigerian Power Sector.
Other actions the stakeholders engaged in at the two-day meeting were to discuss, update and validate the draft Grid Emission Factor Calculations for the Nigerian Power Sector.
The expected outcomes of the workshop were: Validated Report on development of three comprehensive sectoral NAMA technology action plans (TAPs) for solar PV, wind and biomass; Validated Report on the Development of an MRV mechanism for the Nigerian power sector; and Validated Report on the Development of a Grid Emission factor for the Nigerian power sector.
The technical session was held for two days 24 -25 April 2019. Day one was “validation of draft report on development of MRV mechanism, grid emission factor for the Nigerian power sector and brief training on calculation of Grid emission factor” while day two was “validation of draft report on development of three comprehensive NAMA technology action plans for solar PV, wind and biomass.”
The Workshop was attended by 34 participants drawn from the relevant Federal Agencies and Non-Governmental Organisations. The Federal Agencies included Federal Ministry of Environment (FMEnv.), Federal Ministry of Finance, Ministry of National Planning and Budget (MNP&B), Energy Commission of Nigeria (ECN), Transmission Company of Nigeria (TCN), National Orientation Agency (NOA) and members of the Press, etc.
The Director General of Energy Commission of Nigeria (ECN) Prof. Eli Jidere Bala, represented by Director of Linkages and Consultancy Unit, Engr. Okon N. Ekpenyong welcomed the representative of Delloitte Tohmatsu Advisory consulting firm Mr.Raymond Caguioa and all participants at present. He gave a brief on progress of the project so far. In his brief, Engr. Okon N. Ekpenyong stated that the issue of energy and the environment was a concern for all. He said harmony between these two is of great importance with management being the driving force. He further stated that over 70% of our Greenhouse Gas Emissions is from the energy sector therefore there is need for measurement to know the quantity of emissions. Ekpenyong said a lot of efforts have been made in the past to quantify emissions in Nigeria but the GEF-UNDP Derisking Renewable Energy (RE) project is seeking to have the ability to measure the emissions from Nigeria power sector (NPS) through a hands-on practical guide from Delloitte Tohmatsu Advisory LLC, Japan. He was happy with the crop of stakeholder present at the meeting and express optimism that the deliberation would be a successful one. He wished all fruitful validation session.
In his goodwill message the representative of Federal Ministry of Environment, Global Environment Facility (GEF), Desk officer, Mr. Kisomu David Olutope stated the need for all making judicious use of energy the environment so that our climate will not change fast. He expressed his happiness that the MRV framework for the power sector is coming to reality. He wished that the objective of the meeting is achieved. He formerly declared the workshop open.
The representative from Transmission Company of Nigeria (TCN) Engr. Peter Aribaba was impressed with the Energy Commission of Nigeria (ECN) for the progress made so far in championing the derisking renewable project. He was pleased to be part of the validation team and wished all participants a fruitful deliberation.
The representative from Nigerian Electricity Regulatory Commission (NERC) Engr. Chinedum Ukabiala in his goodwill message thanked all for attending the validation workshop. He urged the participants to put in their best in order to come out with the best validation possible in order to encourage those supporting us with the funds.
Mrs. Mariam Lawal representing Federal Ministry of Finance (FMF) thanked all participants. She was impressed with the outcome of the report so far. It was good for her to be part of the validation team. She stated that relying on one source of energy is not the way forward for the hungry energy sector in Nigeria therefore there was every need to key into government decision on scaling up energy through renewables. She hoped that the results of the validation would be beneficial to the country and the next step.
Presentation of Draft Report on Development of MRV Framework for the Nigerian Power Sector
The presentation was done by Mr. Raymond Caguioa a representative of Deloitte Tohmatsu Advisory LLC, Japan. He first of all appreciated all participants for the warm welcome accorded him.
The presentation of the draft report covered: An overview of the experience of Nigeria with monitoring reporting and verification (MRV) and the proposed design of national MRV system for the power sector in the country, respective institutional arrangements and the implementation plan; Analysis of the identified gaps on the road to MRV system establishment and the required support for overcoming them.
He stated in his presentation that there is an absence of an overall national MRV system in Nigeria and for the energy sector and also of consideration to MRV of sustainable development (SD) co-benefits or financial support. He continued that the Nigerian national MRV system is designed in a holistic manner and in line with existing UNFCCC Guidelines, covering not only GHG emissions, but also SD co-benefits of the implemented mitigation actions and MRV for the financial flows.
MRV implementation plan
The Consultant stated the proposed steps of the MRV implementation. Firstly Nationally Appropriate Mitigation Actions (NAMA) is to be operationalized under the MRV system is the de-risking renewable energy NAMA for the Nigerian power sector this will enable the creation of a more efficient model of policy making on the path to low carbon development.
There should be initiation of consultations from Federal Ministry of Environment, Department of Climate Change (DCC) with other relevant government entities to obtain their endorsement for the proposed system and also inclusion of the finalised institutional arrangements in a special legal document on MRV, such as Act or Decree, describing the purpose of the MRV system, the responsibilities of the different entities participating in it (such as the FMPWH, ECN and NERC for the power sector), tentative timelines are to be provided for operationalization of the MRV system; Detailed MRV standards and rules for the NAMAs should be developed and endorsed by Nigerian Government; and Operationalisation; Domestic registry of mitigation activities should be created covering the description of each activity and the parameters to be monitored Also establishment of the measurement and data collection responsibilities, and reporting and verification processes; Establishment of feedback mechanism; andCollection of data on the effect of the various mitigation actions, including data on GHG emission reductions, effect on sustainable development and financial flows; Analysis of collected data in order to understand the impacts of the various mitigations activities and provide feedback to the national climate change and development policy of Nigeria.
Gap analysis and required support
Lack of MRV experts on the ground: External support, through training by international experts, development of training courses, and preparation of printed materials and publications targets at experts and wider audience is required
Nigeria have existing climate change policy framework such as those defined in its NDC. The NDC refers to the Nigeria Climate Change Policy Response and Strategy which aims to strengthen national institutions and mechanisms (policy, legislative and economic) to establish a suitable and functional framework for climate change governance.
This serves as basis for the establishment of the MRV system, wherein the DCC can take initiative and provide the necessary guidelines for its implementation.
No allocation of funds from the current government budget for the establishment and operationalization of the MRV in Nigeria. At initial stages, existing structures, institutions and processes will be applied for the MRV. Additional financial support might be required with the establishment of new institutions for designing MRV standards, until the full operationalization of the domestic MRV system
Presentation of Grid Emission Factor for the Nigerian Power Sector
Mr. Raymond Caguioa stated that the presentation covered a summary of the process for the establishment of the grid emission factor for the Nigerian National Grid and the process of its update As well as brief training plan for data collection for the update of the grid emission factor.
In presenting the overview Mr. Raymond Caguioa mention that there is an existing Clean Development Mechanisms (CDMs) Standardized Baseline (SB) ASB0034 Grid Emission Factor for the West African Power Pool, covering a number of countries including Nigeria but there is need to develop a grid emission factor specific to Nigeria’s specific conditions. Mr. Raymond Caguioa further mentioned that consultations have already been done with UNFCC Secretariat, RCC in Lomé, and the Designated National Authority (DNA) for CDM in Nigeria agreed to develop a grid emission factor which will be updated by the NDA every year.
According to him “The emission factor of the Nigerian National Grid is determined following the provisions of the “Tool to calculate the emission factor for an electricity system” ver.07.0.
The data applied covers the information provided as part of the initial submission of ASB0034 covering Nigeria, as well as the data collected as part of the project.
The approaches and steps are:
1. Identify the relevant electricity system
2. Choose whether to include off-grid power plants in the project electricity system (optional)
3. Select a method to determine the operation margin (OM)
4. Calculate the operating margin emission factor according to the selected method
5. Calculate the build margin (BM) emission factor
6. Calculate the combined margin
Transferring of the ownership of the emission factor to the CDM DNA of Nigeria
Validation of the results of the calculations
The DNA needs to start data collection process and aim to update the grid emission factor from 2019 onwards.
Training needs and training plan
Training on data collection for the calculation of the grid emission factor. Training on calculation of GHG emissions reduction from grid-connected power plants
The participants were given practical training on calculation of MRV by the International Consultant.
The DREI National Project Coordinator/Manager, Engr. Isaac Ierve, gave brief recap of what transpired the previous day of the workshop. This was followed by presentation of the draft report on Development of Technology Action plans.
There was also presentation of Draft Report on the Development of Three Comprehensive Technology Action Plans for Solar PV, Wind and Biomass.
The representative of KPMG, India Mr. Shouvik Sen gave a background of the current status, existing policies, stakeholders and the systematic challenges in the Nigerian power sector. Selected technology action plans and the implementation challenges for solar PV, wind and biomass were also presented.
He recommended Solar PV crystalline Si and concentrated solar thermal parabolic trough as the selected technologies for solar PV in Nigeria. He further stated the key challenges of solar PV implementation in Nigeria include; limited grid infrastructure, Nigerian custom service and import charges, limited skilled human resource for O&M and grid integration risk for off-grid installations.
The selected technologies for biomass are mass incineration using Direct Combustion (On-grid) and anaerobic digestion off-grid. The key challenges in adaptation of biomass in Nigeria are; sustainable availability of biomass feedstock, quality and cost of biomass feedstock, logistics (transportation and storage), emission control, limitations in scalability and replicability of technology.
The selected technology action plans for wind are Utility Scale HAWT (On-grid) and Wind-Solar PV Hybrid Mini-grid (Off-grid) whereas the key challenges for the adoption of wind technology in Nigeria include; lack of policy and push for the adoption of wind, high initial capital cost, limited skilled human resource for O& M.
Mr. Shouvik Sen also proposed supporting interventions for the adoption of TAPs and targeted stakeholder matrix.