Nigerian Energy Support Programme
Title: Nigerian Energy Support Programme (NESP)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Federal Ministry of Budget and National Planning
Overall term: 2013 to 2018
Nigeria is the biggest hydropower producer and has the largest oil reserves in the Economic Community of West African States (ECOWAS). It also offers great potential for renewable energy. However, the country’s electricity sector is unable to meet the increasing demand for electricity. Currently, only half of the installed capacity of 8,900 megawatts is available on the national power grid, and around 60 per cent of the population has no access to electricity. In rural areas this number increases to over 75 per cent. At the same time, neither industry nor householders are sufficiently aware of the importance of using energy efficiently. In order to address the challenges in the electricity sector, the Nigerian government has initiated various reforms. The Electric Power Sector Reform Act (2005) among others started the process of privatising the sector. Yet, reforms designed to promote renewable energy sources, energy efficiency and rural electrification have only recently started to be introduced and implemented. For the private sector to play a more active role, there needs to be further harmonisation across the institutional landscape and between the current political, regulatory and legal frameworks. It is also necessary to build technical and administrative capacities so that the measures introduced by the federal government and the federal states can be properly planned and implemented.
The conditions for the application of and investments in renewable energy, energy efficiency and rural electrification are improved.
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and with co-financing by the European Union (EU), the Nigerian Energy Support Programme (NESP) is supporting the Nigerian Federal Ministry of Power, Works and Housing and other public and private partners to improve access to sustainable energy.
NESP’s activities are focused around the following topics:
- Policy reform and on-grid renewable energy. The programme is supporting implementation of the Electric Power Sector Reform Act, while helping to improve the legal framework for investment in renewable energy. Key stakeholders in the sector are also being supported to coordinate and harmonise their activities.
- Energy efficiency. The programme is contributing to draw up strategies and standards for energy efficiency in accordance with international best practice, and to encourage the implementation via support mechanisms and demonstration projects.
- Rural electrification and sustainable energy access. A standardised approach at national level to planning and promoting rural electrification is being supported. Five federal states are being supported to produce electrification plans and develop a data management system. The electrification of off-grid villages, social facilities and small businesses will demonstrate how renewable energy can contribute to providing electricity access to rural areas.
- Capacity development. The capacity of organisations for training delivery is being strengthened by NESP. The National Power Training Institute of Nigeria (NAPTIN) and other training institutes are being assisted to deliver a range of relevant training courses on renewable energy and energy efficiency for engineers, architects and technicians. Interventions will also train selected professionals of partner institutions and enhance capacities of the power sector as whole.
The consulting firms GFA, EPOS, GOPA und INTEC support the implementation of the project.