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IDENTIFYING THE MARKET, INSTITUTIONAL AND FINANCIAL BARRIERS TO THE IMPLEMENTATION OF RENEWABLE ENERGY TECHNOLOGIES IN NIGERIA

By

Mr. Abdulkareem Ozi Aliyu
abdulozi@yahoo.com

And Mr. Ja’afaru Yahaya Bawa
jaafarub@yahoo.com

Energy Commission of Nigeria, Abuja
A Paper Presented at the 4th Annual NAEE/IAEE International Conference on “Green Energy and Energy Security Option for Africa” 28th -29th April, 2011

ABSTRACT

Introduction of renewable energy system is in the implementation program for Nigeria. The rate of growth of the program can only increase or decrease within the context of the government interest. Certainly, lack of government plans and target in this regard has remained a worrisome phenomenon. There is almost an impossible proper co-ordination and implementation of renewable energy technologies in Nigeria. The growth of renewable energy before 2005 was largely dependent on individuals, societies and few corporate interest and activities. The resultant effects of all these are the growth in the deployment of renewable energy in Nigeria may be slow with the technology costs remaining comparatively high and high percentage of Nigerians not being aware of the grains of the renewable energy technologies. The implementation of renewable energy technology in Nigeria faces a lot of challenges due to economic, social, technical and other barriers. These barriers have to be overcome if renewable energy technologies are to be implemented to make significant impact on the energy mix of Nigeria. Therefore this paper addressed these barriers and suggests how they can be overcome.

1.0 INTRODUCTION

Although research and development activities are still being seriously undertaken in various aspects of renewable energy utilisations. More specifically. In addition technical and financial barriers have contributed to the low levels of uptake of renewable energy technologies in Nigeria. The nonrenewable energy resources include petroleum.depletable energy sources have since been recognized.Several energy resources are available in Nigeria in abundant proportion. also available in limited areas of the world are wind energy and biomass. Estimates of reserves of fossil fuels all reach the same conclusion. however. The rapid development of renewable is often mentioned as an important response option for addressing the power problems faced by Nigerians. biomass. The purpose of my presentation is to highlight the role of renewable energy technologies.000-20. in the current manner will continue for no more than some decades to come. has an estimated potential of the range 2-3TW with an annual output of 10. These include: Solar energy which has an estimated worldwide average power potentials of 24W per square metre of the earth's surface (assuming 10% efficiency). These technologies are very suitable for the rural areas of Nigeria. natural gas. hydropower. hydro and wind energy. The renewable energy potential in Nigeria has not been fully exploited. For example. major sources of which are still underdeveloped. It is now universally accepted that fossil fuels are finite and it is only a matter of time before their reserves become exhausted. prospects for the widescale development and dissemination of renewable energy technologies in the region. Extended use of these reserves. a number of the technologies have since been shown to be feasible and ready. There has been supply-demand gap as a result of inadequate development and inefficient management of the renewable energy sector. These non-depletable sources are replenish able and are also referred to as renewable energy sources as they are available in cyclic or periodic basis. coal. worldwide.000TWh but is only available in certain areas of the world. The renewable energy resources include solar radiation. for adoption into the economy. technical and other barriers in the implementation of . the close relationship between the proximity of energy resources to the potential users coupled with the high cost of conventional energy sources have led to a considerable interest in the development and application of renewable energy resources. Nigeria faced unprecedented power rationing which adversely affected our economies. mainly due to limited policy interests and investment level. tar sands and uranium. The important development that has also increased interest in renewables in Nigeria is the recurrent crises faced by power utilities. in the year 2007 alone. challenges faced due to the social. There are. The need for supplementary or even alternatives that ideally will be non.

70 6. The water turbines which convert the potential energy of water to shaft rotation are coupled to suitable generators. It should be noted that hydropower plants that supply electrical energy between the range of 15kW to 15MW are mini-hydro while those supplying below 15kW are normally referred to as micro-hydro plants. Benue and Cross River (at Shiroro.50 6. hydropower systems rely on the potential energy difference between the levels of water in reservoirs.000MW.renewable energy technologies in Nigeria and suggested how these challenges can be overcome.17 . small hydropower systems can be set up in all parts of the country so that the potential energy in the large network of rivers can be tapped and converted to electrical energy. 2. Makurdi and Ikom. Since that time. The foregoing assessment is for large hydro schemes which have predominantly been the class of schemes in use prior to the oil crisis of 1973. that problems of topography are not excessive. The overall hydropower resource potentially exploitable in Nigeria is in excess of 11. dams or lakes and their discharge tail water levels downstream.650 MW. 2. many developed and developing countries have opted for small scale hydropower with appreciable savings made over the otherwise alternative of crude oil. The first hydropower supply station in Nigeria is at Kainji on the river Niger where the installed capacity is 836MW with provisions for expansion to 1156 MW.1. In this way the nation's rural electrification projects can be greatly enhanced. A second hydropower station on the Niger is at Jebba with an installed capacity of 540 MW.330MW. Indeed small-scale (both micro and mini) hydropower systems possess the advantage. An estimate for rivers Kaduna. Table 2.1 Small Hydro Power Utilisation in Some Selected region Country Nigeria Uganda* Mauritius Kenya Burundi Harnessed (Small) (MW) 33. biomass and wind energy.0 0. respectively) indicates their total capacity to stand at about 4. solar energy. however.0 RENEWABLE ENERGY RESOURCE AVAILABILITY IN NIGERIA For the purpose of this presentation the renewable energy sources that will be considered are hydro. The hydropower potential of Nigeria is very high and hydropower currently accounts for about 29% of the total electrical power supply.1 HYRO Essentially. In effect.28 5. over large hydro systems. Estimates for the rivers on the Mambila Plateau are put at 2.

10 Other stations of total capacity 6. the solar radiation is converted directly into electricity. Most of this energy is transmitted radially as electromagnetic radiation which comes to about 1. 1995.00 0.54 x 106 MWh of electrical energy can be obtained from solar energy. or converted into 'cold'.2 SOLAR ENERGY Solar energy is the most promising of the renewable energy sources in view of its apparent limitless potential. This amount of electrical energy is equivalent to 4.66 million barrels of oil per day. The power generating unit is the solar module which consists of several solar cells electrically linked together on a base plate. is first converted into heat energy. a square metre of the earth's surface can receive as much as 1kW of solar power.5kW/m at the boundary of the atmosphere.50 4. Although solar radiation intensity appears rather dilute when compared with the volumetric concentration of energy in fossil fuels. solar energy.60 4.52 1. it has been confirmed that Nigeria receives 5. Typical such applications are in drying. Studies relevant to the availability of the solar energy resource in Nigeria have fully indicated its viability for practical use. or even into electrical or mechanical energy forms.Somalia Zambia Tanzania Lesotho Malawi Botswana Rwanda South Africa Swaziland Mozambique • 4. cooking. The technique was first observed in 1939.81MW are not operational Source: ECN report.08 x 1012 kWh of energy per day from the sun and if solar energy appliances with just 5% efficiency are used to cover only 1% of the country's surface area then 2. distillation.00 1. averaging to about 0. The heat energy may then be used either directly as heat. Solar energy technologies are divided into two broad groups namely solar-thermal and solar photovoltaic. Karekezi and Turyareeba. In solar thermal applications.30 0.8 x 1023 kW per second. The most common method of doing this is through the use of silicon solar cells. Karekezi and Ranja.40 0.00 3. 2. as electromagnetic waves. Its development had been closely tied to the space programme of the western world. cooling and refrigeration as well as electricity generation in thermal power plants. In solar photovoltaic applications. After traversing the atmosphere.5 over all hours of daylight. On the .54 1. The sun radiates its energy at the rate of about 3. heating.

As for forage grasses and shrubs.Billboard. The energy content of fuel wood that is being used is 6. residues and wastes (forestry.12% is the fraction that is gainfully utilized for cooking and other domestic uses. 6. The biomass resources of Nigeria can be identified as wood biomass.1: Applications For Solar in Nigeria S/N O 1.9 3. 5.1 1.7 23. Although the biomass availability as at 1973 was put at 9. which automatically manages the operation of the total system. the commercial viability of photovoltaic systems have been recognized and concerted international efforts in research and development have led to increase in efficiency and reliability as well as reductions in cost. SOLAR-PV APPLICATION Residential (Mostly lighting) Village electrification & TV Office/Commercial lighting & Equipment Street. power conditioning equipment that convert the dc to ac and provides regulated outputs of voltage and current. 8. apart from being a major source of energy in the form of fuel wood is also used for commercial purposes in various forms as plywood. agricultural.3 BIOMASS Biomass energy refers to the energy of biological systems such as wood and wastes. controller. forage grasses and shrubs.28 . sawn wood. 4. paper products and electric poles. This is largely due to the demand of wood also for construction and furniture industries in addition to its use as an energy source. Nigeria is using 80 million cubic metres (43. estimates show that 200 million tonnes of dry biomass can be obtained from them and this comes up to 2. it is expected that the overall biomass resource availability at present is lower than the 1973 figure. lighting ALL LIGHTING Industrial Health centre/clinic Telecom & Radio Water pumping TOTAL % BY CAPACITY 6.9 3.etc.2 100 2.1 0. In recent times.4 x 109 kg) of fuel wood annually for cooking and other domestic purposes. their interconnections and support. municipal and industrial) as well as aquatic biomass. 3. Wood. 7.1 x 1012 MJ. as well as the optional storage for stand alone (non-grid) systems. Table2. For energy purposes.2. 2.whole the major components of a photovoltaic system include the arrays which consist of the photovoltaic conversion devices.2 15.4 8.0 x 109MJ out of which only between 5 .6 52. Biomass energy is an indirect form of solar energy because it arises due to photosynthesis.

These produce 227. 2.36 x 109 m3 which has an energy content amounting to 2. A seasonal variation in the energy received from the sun affects the strength and direction of the wind.32 m/s for Port Harcourt to a figure of 3.500 tonnes of animal wastes daily which come to 2. horses and pigs as well as poultry birds as 166 million.97 watts per square metre of blade area. For crop residues and wastes. for decades.1 million tonnes of dry biomass that are produced annually leave residues whose energy content approximate to 5. Wind energy has also been utilised. 2. Animal residue can be converted to biogas and estimates show that this is of the order of 5.4. Estimates made in 1985 give the number of cattle. for the same two sites was estimated as 4. A study on the wind energy potentials for a number of Nigerian cities shows that the annual wind speed ranges from 2. in recent times efforts have been directed largely towards the use of wind power for the generation of electricity and in the past twenty years or so rapid changes in technology have occurred and major wind powered generating plants have been installed. sheep. for water pumping as well as for the milling of grains. The ease with which aeroturbines transform energy in moving air to rotary mechanical energy suggests the use of electrical devices to convert wind energy to electricity. again for PortHarcourt and Sokoto. especially in the rural areas of the developed countries.1: Categorization of Wind Power Systems Installed Power 1.3 x 1011 MJ.2 x 109 MJ taking the calorific value of animal dung to be 9. <1kW Categorization Micro systems Wind home systems and hybrid systems Isolated power systems and decentralized generation Wind Power Plants Wind farms on-land Wind Power Plants Wind Turbine Capacity Range <1kW 1-100kW 100kW-10MW >10MW >100MW 1-50kW 100Kw-1MW >500Kw >2000kW .93 x 109 kWh. 4.106MJ of energy.The maximum extractable power per unit area. respectively. 5.4WIND ENERGY Wind is a natural phenomenon related to the movement of air masses caused primarily by the differential solar heating of the earth's surface.89 m/s for Sokoto . And when the duration of wind speeds greater than 3 m/s is considered than the energy per unit area works out as 168. goats. estimates of the 6.51 and 21. 3. Although use of wind energy for water supply has been known and used for hundreds of years. Table2.63 and 1.800 MJ/tonne.35 kWh per square metre of blade area.556.

000 12 100 7 100 650 Sources: ECN-REMP.34 7. 2002 Table 2.2005.4. Razanajatovo et al.62-6.4 Number of Wind Pumps 200 10 1 7 <10 272 50 30. Turyahikayo.1986.Wind farms offshore Table 2. 1994. 1995.128 3.7 28.1 100 Table 2.7 3 2.000MW Resource in Energy Units (Billion toe) 3.7-0.3 Nigeria’s Conventional Energy Resources (Chendo.4 13.5 4 2.4. Karekezi and Ranja.216 1. 2001) Resources Crude Oil Natural Gas Coal & Lignite Tar Sands Hydropower Total Reserve 23 billion barrels 4293 billion m3 2.1992.2 Wind Energy Potentials and Number of Wind Pumps for Selected Countries Country Botswana Nigeria Burundi Djibuti Eritrea Kenya Morocco Mozambique Namibia Rwanda Seychelles South Africa Sudan Tanzania Uganda Zambia Zimbabwe Potential (m/s) 2-3 2-4 >6 4 3-8 3 <10 0.6 3.1994. Sawe.7 billion tones 31 billion barrels of oil equivalent 10.4 Nigeria’s Non-Conventional Energy Resources (Chendo. Kenya Engineering.1994. 1997.8 12.1980. Mwandosya and Luhanga. 1983. Fraenkel et al. Sampa. Stassen. Linden. Diab. Mosimanyane et al.3.0 24. IT Power. Karekezi and Kithyoma.1993.1988.882 4. 2001) Resource Reserves Reserves (billion toe) .1990.679 1.5 3.954(100 years) 14.859 % Total Conventional Energy 21.000 300.29-9. 1993.

• Solar Stills Solar stills are designed to produce distilled water from brackish water and will be useful for hospitals. for community utilisation. industry and private residences and are capable of significant reduction of electricity bills.Fuelwoow Animal Wastes & Crop Residue Small Scale Hydropower Solar Radiation Wind Wind 32. hotels. • Water Pumping Many workers have demonstrated the use of photovoltaic solar modules for pumping water from wells and boreholes especially in rural areas for providing the water requirements of entire communities. • Solar Water Heaters The heaters which are based on flat-plate collectors with appropriate storage units can produce water at temperatures of up to 80oC will find applications in hospitals.0 m/s 1.2 MW 1. • Solar Dryers Both portable cabinet dryers. • Storage of Vaccines and Drugs . industry and laboratories. Photovoltaic powered pumps can also be employed for irrigation purposes.6645 (over 100 years) 3.3 Million tones 144 Million tones/year 734. The dryers which typically attain temperatures of up to 60-70°C are suitable for drying a variety of agricultural produce.0 kW per m2 land area (peak) 2.0 STATUS OF RENEWABLE ENERGY TECHNOLOGIES READY FOR ADOPTION IN NIGERIA A large number of renewable energy devices have been developed by Nigerian researchers in various parts of the country. These devices which are ready for incorporation into the economy especially for rural areas include: • Solar Cookers These are box-type arrangements where most local dishes can be cooked within one hour under average sunshine conditions. have been developed. for individual private use. as well as large-scale units. When sized appropriately they can provide for the needs of comprehensive health centres of semi-urban localities.0-4.143 (over 100 years) - 3.024 (over 100 years) 0.

only laboratory trials have been made in the area of using wind for electricity generation. which are typically constructed from sheet metal or empty drums and fed with slurries of animal dung they can produce biogas and after 2-3 days. an increasing number of wind water pumping sets and wind electricity conversion systems have been installed. • Production of Biogas With biogas digesters. of various designed. This gas which has a reasonable content of methane is combustible and can be relied upon for the production of gas for domestic cooking. Recently. With the use of storage batteries they have also been shown to power street lights continuously without the power outages commonly associated with the mains supply. lead to faster cooking and with the attachment of chimneys they allow for organised exit of smoke and consequently reduce smoke inhalation. It can also be used for powering internal combustion engines for electricity generation in rural areas. however. • Improved Wood-Burning Stoves Clay-based improved cook stoves. Such trails have been made with models of three-bladed aero turbines and the results obtained indicate the potential for stand-alone utilisation especially in the Sahelian zone as well as the coastal areas of the country. • Electricity from Micro hydro Systems The generation of electricity from numerous waterfalls and rivers in the form of micro hydro plants for integration into the national grid as well as for stand-alone utilisations.Photovoltaic power components have also been shown to adequately provide the electricity for refrigerators and deep freezers in which vaccines and drugs can be safely stored without loosing their potencies. in remote locations. • Street Lights and Traffic Controllers Photovoltaic modules have been used to provide uninterrupted electricity during the day and night for traffic controllers in city centres. for quite some time. is a system that has been shown to be viable. have been developed and these conserve the amount of fuelwood consumed by up to 50%. • Wind for Electricity Generation In Nigeria. .

Development & Demo product Sponsor: SERC Beneficiary: Staff. Title: Solar Dryers Location: SERC.00 Year: 2006 Objective: Research. students and investors. Demonstration Area Capacity: 5-10kg of drying Cost: 10.000.SOME RENEWABLE ENERGY TECHNOLOGIES i) The construction of solar dryers at Sokoto Energy Research Centre with the capacity of 5-10 kg of drying product for staff. Students Investors & Solar Still Solar Dryer .

Development & Demonstration Sponsor: SERC Beneficiary: Students.ii) The development of a 2-tonne solar rice dryer at Adarice Company. Enugu and 2-tonne dryer at NAPRI in Zaria. Title: Parabolic solar Cooker Location: SERC Demonstration Area Capacity: Average of 2-3 Persons Cost: N47. Staff & Investors .000:00 Year: 2006 Objective: Research.

2006 Objective: Research.Title: Single and Double box type solar cookers Location: SERC. Students & investors iii) The construction of a solar chicken brooder developed by NCERD Nsukka .000:00 Year. UDUS Capacity: Average of 3-5 persons Cost: : N5. Development & Demonstration Sponsor: SERC Beneficiary: Staff.

vi) The production of family based improved wood burning stoves at SERC. family Wood burning stove Argungu. Sokoto State . Title: Single Hole Improved Location: GGSS. Wamakko LG. Kebbi State of 15-20 persons Capacity: Average Year: 2006 Objective: Cooking Sponsor: SERC Beneficiary: School Community Title: Improved Wood stoves just constructed before firing Location: Danjawa Village.

3. 6.4. 2.0 OVERVIEW OF THE BENEFIT OF SOME RENEWABLE ENERGY TECHNOLOGIES IN NIGERIA 1. 5. among which are: Provision of a basic tool for rural development Very low operation and maintenance costs No fuel costs Kick starting and support for cottage industries Access to remote and often neglected communities Competitive economic and supply advantage over other power systems . 4. Several benefits are derived from the hydropower technology.

with the consequent reduction of the public hazard of faecal pathogens. .000 yearly. . . The benefits of biomass briquetting include. . .000-.Produce homogeneity obtained (same density particle size and Moisture content) from highly heterogeneous group of new materials.Uniform quality of energy per unit feed stock generally assured.7.Biogas technology has the following benefits. Photovoltaic systems the environmental benign. .Time saving by about 32%. . The impacts they are currently making and will continue to make toward national development and poverty alleviation cannot be overemphasized. . with resulting in easier and cheaper transportation. They have positive social and economics impact on the lives of individual uses. .Reduced biomass bulk through densification of the materials.Guided exist of smoke by the chimney and proper damper setting to serve as a mechanism for the content of fire intensity. . . General up-liftment of the social structure of a community The Solar PV and Solar thermal energy is all benefits as far as environmental pollution is concerned.The production of a stabilized residue (the sludge) that retains the fertilizer value of the original material.Reduction in firewood consumption of 30-38% corresponding to cost saving of N6.The production of energy resources that can be stored and used More efficiently.500 yearly for the single and double hole stove respectively.Reduction of fuel wood consumption by above 40% over existing Traditional methods corresponding to the cost of about N 8. .The saving of the amount of energy required to produce and Equivalent amount of nitrogen . - .Highly cohesive fuel products from particular materials that were otherwise difficulty to process. . of the transfer of fungal And other plane pathogens. due to the fermentation process. . Wood stoves technology has revealed the following benefits.Reduction.N7. Reduction of rural-urban migration 8. .Potential for partial sterilization of waste during fermentation.Increase of the energy content per unit volume of materials by reducing the moisture content. communities and the Nation.Containing fertilizer by synthetic process. They do not have poisonous gases or pollutants with the atmosphere and pose little or no threats in climate change and environmental degradation.

It is also clean and will assist in addressing local and global environmental challenges such as global warming. The resource is abundant and inexhaustible. it wills constable in the nation’s energy security in a post. Wind energy is one of the lowest priced renewable energy technologies available today. Geothermal energy is also environmentally benign and releases minimal emissions. When developed. and capacity addition can be in modular form making it adaptable in increasing demand. costing between 4-6cents per kilowatt –hour depending upon the wind resources. institutional and financial penetrations of Renewable energy technologies in Nigeria are as follows. It is available 24 hours a day all the year round. it uses cost-free fuel. geothermal energy is a secure energy source. 5. While the running costs of geothermal plants are low. Geothermal plants have high availability factors. the operation and maintenance cost is very low. It enhances diversification of energy carries for the production of heat fuel and electricity and also helps in saving fossil fuels for other applications and the future generation. Wind energy is fueled by the wind thereby making it a clean fuel source. resource analysis of drilling information.0 GAPS AND BARRIERS TO SOME RENEWABLE ENERGY TECHNOLOGIES PENETRATION IN NIGERIA The major gaps and barriers to market.fossil economy. The construction time of wind energy technology is less than other energy technologies. pipeline construction. and making no demands upon the environment beyond the competitively mostly use of wind fuel. initial cost of well drilling.. . non. design of plant and power plant construction is high.Increase resistance to breakdown of particulars in shipping handling and storage. .polluting.A primary benefit of hydrogen energy in Nigeria is its potential for being the energy of last resorts in the future. • High Cost of Renewable Energy System Components Implementation requires significant initial investment with generally low rate of return while there is very limited level of consumer awareness on the benefits and opportunities .Where the resources exist.

The market price of renewable energy system components. • Inadequate Local Technical Expertise Capacity building through manpower training and development in Renewable energy technologies has not been given priority attention. thus making a level playing field impossible. agents. consultants. particularly. particularly to the rural people. Financing mechanisms for the production or purchase of Renewable energy systems do not exist. SHS) are not affordable. a 55W module costs about N60. • Inadequate Government Advocacy and Promotion. PV modules attract 15% duty while batteries attract 40% duty. failure of such systems discourages market penetration. There is an absence of a framework for power purchase agreement between owners of renewable energy technologies and other users. The economic and social system of energy services is based on centralized development around conventional sources of energy specifically electricity generation.25/watt and may even be lower in 2005.g. One factor that contributes to the high cost in the high import duty charged on PV system components. While the duty on electricity appliances and components is generally around 5%. • Inadequate Commercial Activity and Financing Option.70. Commercial activity in Renewable energy technologies is still very low.Financial. In Nigeria. is yet to be implemented. The National Energy Policy promulgated in 2003. There has also been a lack of assessment of renewable energy technologies market potential and structure necessary to harness renewable energy technological potential.3. there was no government policy on energy in general and renewable energy in particular. non-accredited vendor. In view of the low purchasing power of greater percentage of population. Until recently. the modules of PV system are currently high.of renewable energy development. 000 ($444) or $8/wp which is about three times the factory price. .legal.regulatory and organizational barriers need to be overcome in order to implement the renewable energy projects. distributors. designers and installers of Renewable energy systems have penetrated the Renewable energy technology market. Where quacks design and/or install systems. Factory price in 2003 for single and polycrystalline modules remained at an average of $2. even small PV systems (e. Most of the activity is concentrated in few cities in the country. • Lack of Regulatory Standards Because no regulatory standards have been put in place.

no tax rebates and the inability of PV system to carry air. • Political Stability and Issues Until 1999. particularly in the oil-producing Niger Delta Region undermines investment by foreign and local entrepreneurs. low level of government patronage. through workshop. Other gap and barriers include lack of local manufacture of Renewable energy technology component. in their view. low sensitivity to environmental protection. • Psychological Inertia Relatively new technologies like photovoltaic experience initial low market penetration because potential end users usually posses social inertia that inhibits them from acquiring new technologies they know have performed reasonably well over time. . the Energy Commission of Nigeria and Research Centers under it. the country has suffered political instability and this has discouraged both foreign and local investment in the economy. instead of taking the risk of acquiring a new technology which. particularly photovoltaic. may not have been tested or be cost-effective and reliable. Even recent and ongoing religious / political skirmishes and community agitations. conferences and demonstration projects on renewable energy technologies. seminars.• Low Public Awareness Despite the interventions of the Solar Energy Society of Nigeria. there is still a low level of awareness of the application potentials of Renewable energy technologies.conditioners at affordable price. port delays.

2009 Estimated PV Disseminated in Sub-Sahara African Countries 160000 140000 120000 100000 80000 60000 40000 20000 0 Nigeria Botswana Zimbabwe 958 Uganda 538 5. 1993. 2002 . Diphaha and Burton.724 Zambia 5.468 Kenya. 1991.000 84.Estimated Percentage of Improved Woodstoves Dissemination in Sub-Sahara African 1% 2% 2%1% 2% 3% 10% Nigeria Kenya Burkina Faso Niger Tanzania Ethiopia Sudan Uganda 10% 69% Zimbabwe Source: Sustainable energy development in Sub-Sahara Africa. 2000. Karekezi. 150.000 Source: ECN. Nieuwenhout.

Diphaha and Burton.000 1. 1997. 2002. Nieuwenhout. 2000 . 1993. Karekezi. ECN. Karekezi. 2000.689 286 Source: ECN. 1991.Estimated PV Dissemination in Sub-Sahara African in kWp 12000 10000 8000 6000 4000 2000 0 Nigeria Uganda Botswana Zambia Zimbabwe Kenya 203 152 400 11. 2002 Percentage Distribution of Small and Medium Scale Biogas Units in Selected Sub-Sahara African Country 2% 16% 3% 0% 40% 0% Nigeria Tanzania Kenya Botswana Burundi 22% 17% Zimbabwe Lesotho Burkina Faso Source: Karekezi and Ranja.

2000 500 500 450 400 350 300 250 200 150 100 50 0 50 10 Nig e ria 40 4. 1999. AFREPREN. 2000.8 24 2. 2000. 2000: Mandhlazi. DBSA. 2002 . Mapako. Mogotsi.Estimated Domestic Solar Water Heater Installed Capacity.4 10 Bo Ma Ma Na Se So Zim tsw ych uth mi law ur i ba b ia tius an elle bw i Afr a e ic a s Source: ECN.

the FG has been the sole-investor in the renewable energy technologies. These include: • • • • • • • Getting renewable energy technology investment in the right framework Deciding on the goals of restructuring and the ideal renewable energy technology structure Preparing the players to participate in competitive market Privatizing existing and new renewable energy technological assets Ensuring that a competitive market. there exists. This paper has proved so far that.6. The conclusion of this paper is driven to promote the option of renewable energy technology with particular regards to adopting the measure of Private Sector Participation especially in Solar Energy Technologies in small and medium enterprises. the urgent need to remedy the situation especially as it has to do with investments in the renewable energy sector. and Providing an environment conducive for investment that also protects our national interests. . Hence private sector participation is necessary and imperative.0 RECOMMENDATION AND CONCLUSION Going by the level of comatose that Nigeria’s energy sector is currently operating in. up till the recent past. financing and institutional investment in the renewable energy technology. To attract marketing. Funding. it implies the adoption of those practices that encourages or utilizes a result oriented investment approach. marketing and institutional investments in the sector should be capable of yielding high rates of return and fast pay back periods in order to attract investors. The required type of marketing and financing is long-term and involves both foreign and domestical financing resources. These include: • • Improvement in the financial performance of renewable energy technology supply companies in the country. therefore. and Pursuing international financing within the ambit of the law. certain necessary conditions would have to be met. New investments are needed for exploration and exploitation activities. Considering the risk element involved in renewable energy projects. financing and institution are implemented properly Guarantee mechanisms to be put in place. government alone cannot continue to provide the major finance and marketing for the renewable energy technologies. marketing and institutional requirements for the entire renewable energy sector is substantial. Owing to other competing needs. By upgrading investment in renewable energy technology.

financing and planning Introduce effective renewable energy technological Regulatory Framework Reduce costs through Financing Mechanisms and subsidies Enhance Human Capacity of renewable energy technology through education.7. It could be considered as the seven-point agenda of a strategic renewable energy technology investment plan and are: • • • • • • • Integrate renewable energy technology planning and implementation into a National Strategy Be flexible in renewable energy technology marketing.0 IMPLEMENTATION CHALLENGES This paper closes by outlining additional considerations that need to be borne in mind by energy stakeholders and development partners as they develop and evaluate the energy component of Nigeria’s renewable energy technology sector investment. training and research Address international and regional issues Implement the 2003 National Energy Policy .

E. Prof A. E. Akuru -2009 .0 REFERENCES • Energy Commission of Nigeria (2007) National Energy Databank: Compendium of Renewable Energy Systems Deployed in Nigeria Implementation of Renewable Energy Technologies: Opportunities and Barriers. D. Consequences of energy policies for the urban poor. N. edited by Alexander O. • • • All other references are to be found in Solar and Renewable Energy Company (NIG) LTD:Meeting R & D Commercialization Challenges. Strategic Planning of Electric Power Generation System Expansion in Nigeria Barnes. Animalu. B. Riso.8.Denmark Sambo.FPD Energy note No 7. 2005. S. C. 1995. UNEP Collaborating Centre on Energy and Environment. Osakwe and U.