Nigerian Energy Support Programme II

Project description

Title: Nigerian Energy Support Programme II (NESP)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ), European Union (EU)
Country: Nigeria
Lead executing agency: Federal Ministry of Budget and National Planning, Federal Ministry of Power, Works & Housing
Overall term: 2017 to 2021

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Context

The power sector in Nigeria is characterised by an inadequate and unreliable capacity for production, transmission and distribution, the use of expensive and ecologically harmful diesel generators, delays in implementing sector reforms and – until recently – very little projects developed directly by the private sector. Nigeria continues to suffer from a chronic shortage of electricity. With an estimated 190 million inhabitants, the country only has an installed electricity generation capacity of around 13,000 megawatts (MW); of which, only around 4,000 MW were available due to gas constraints, grid limitations and other technical issues in 2016. Around 55 per cent of the population; and up to 75 per cent in rural areas, have no access to grid-connected electricity. Additionally, unavailability of electricity hinders industrial production, and thus economic growth.

Objective

The project has contributed to Nigeria's economic and social development through better access to reliable and sustainable energy.

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Approach

The programme builds upon an initial five year phase from 2013-2018, during which it supported activities geared towards the improvement of access to and investments in Renewable Energy (RE) and Energy Efficiency (EE). NESP II implements a multi-level approach by combining advisory on energy policy/economy and technical knowledge for a wide range of stakeholders.

NESP II activities are focused around the following topics:

Data Management & Electrification Planning: The programme aims at creating a robust interactive database for the energy sector in Nigeria. This includes on-grid, off-grid, and energy efficiency and will provide public actors with a basis for the planning and monitoring of sector strategies and serves, such as market intelligence for the private sector.

Sustainable Energy Access: The programme works in the areas of on-grid and off-grid access to RE. In the area of on-grid, it supports the structured procurement of additional solar generation capacity feeding into the transmission grid, and improving the overall efficiency on the transmission and the distribution level. In addition, the programme will continue supporting on regulatory matters to enhance the attractiveness for private investment into grid connected solar energy, as well as to establish a fully functional market for ancillary services. In the area of off-grid, the programme supports the Rural Electrification Agency and State Governments in public-private mechanisms to scale off-grid distributed energy solutions to 100,000 people.

Enabling Environment for Renewable Energy and Energy Efficiency Investments: This programme component combines activities on EE in industries, EE in buildings and on further enabling the environment for investments into RE and EE. The programme supports the enforcement of already developed energy efficiency standards, as well as the develop-ment of new RE/EE standards. Training courses on energy efficiency for selected profession-als of partner institutions will continue to enhance the capacities of the power sector. The programme also contributes to the strengthening and implementation of support mechanisms to increase access to finance and promote investments in the energy sector. 

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