Nigerian Energy Support Programme II
Title: Nigerian Energy Support Programme II
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ), European Union (EU)
Lead executing agency: Federal Ministry of Budget and National Planning, Federal Ministry of Power
Overall term: 2017 to 2021
Nigeria’s electricity supply is influenced by inadequate production, transmission and distribution capacity. Expensive and ecologically harmful diesel generators are widely used. The pace of reform is slow. Until recently, the private sector has developed only very few projects in the sector. Nigeria therefore continues to suffer from a shortage of electricity. With an estimated 190 million inhabitants, the country has an installed electricity generation capacity of around 13,700 megawatts (MW), of which only around 4,500 MW were available in 2018 due to gas supply bottlenecks, grid limitations and other technical issues. Around 55 per cent of the population, and as many as 75 per cent in rural areas, have no access to on-grid electricity. The lack of access to electricity is hindering industrial production and economic growth.
The electricity supply in Nigeria is better, more reliable and more environmentally friendly. This contributes to Nigeria’s economic and social development.
The programme builds upon the initial project phase from 2013 to 2018. Over these five years, it supported measures to promote renewable energy and energy efficiency, as well as investments in these areas. The programme is being implemented with the aid of cofinancing from the European Union (EU) to the amount of 20 million euros. The Nigerian Energy Support Programme II (NESP II) provides advisory services with regard to energy policy and management, and imparts technical knowledge for various interest groups in the following areas:
- Data management and electrification planning: The programme aims to develop an interactive database for the energy market in Nigeria. This is to contain information about on-grid power, off-grid power and energy efficiency, and also to provide public actors with a basis for planning and monitoring strategies and services, for example providing market data for the private sector.
- Environmentally friendly power supply (on-grid and off-grid): In the on-grid area, the programme establishes the necessary framework conditions, thus providing incentives for private investments in on-grid energy generation from renewable energy sources. It also improves the efficiency of transmission and distribution grids. In the off-grid area, the programme supports the Rural Electrification Agency and the federal states in the public-private process to extend the provision of off-grid renewable energy solutions to 100,000 people.
- Enabling environment for renewable energy and energy efficiency investments: This area comprises measures to improve energy efficiency in industry and in buildings. The programme supports the enforcement of energy efficiency directives that have already been developed, and also the development of new directives. It provides training courses on energy efficiency for selected employees of partner institutions to enhance their skills. It also promotes mechanisms to improve access to funding solutions.
Results at the end of the first phase in 2017:
- Nearly 16,000 people have gained access to solar power in rural areas. A total of 3,147 households in five different states are provided with environmentally friendly power using six off-grid village electricity plants (referred to as mini-grids) funded by public-private partnerships. A further 100,000 people are to be provided with environmentally friendly electricity by 2020.
- Eleven laws and regulations have been introduced including, for example, the national directive for renewable energy and energy efficiency, a mini-grid regulation, a building energy efficiency code and an energy efficiency label for household appliances.
- More than 600 people have taken part in training courses on photovoltaics and mini-grid design. Particular attention has been paid to gender equality, with 33 women receiving grants for the above-mentioned training courses and a further 74 women being trained in local energy advisory services (known as energy audits).