RURAL ELECTRIFICATION INFRASTRUCTURE DEVELOPMENT IN NIGERIA USING ON-GRID AND OFF-GRID SOURCES

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1 RURAL ELECTRIFICATION INFRASTRUCTURE DEVELOPMENT IN NIGERIA USING ON-GRID AND OFF-GRID SOURCES By Engr. Kelechi Eke MNSE, FMP, CFM PTP/O/NM, SPDC Industrial Area, Port-Harcourt, Abstract: About half of Nigeria s estimated population of 150million people live in the rural areas characterized by high rural-urban migration rate, high unemployment rate and low per capita income of US$2,748. The provision of electricity in the rural areas will catalyse the growth of cottage industries especially agro-allied industries which will help to curb these challenges. Electricity in the rural areas can be provided via grid and non-grid energy sources. However, about 60% of Nigerians are not connected to the national grid [Enogholase G., 2011]. Nigeria currently produces about 3.7GW of electricity to the grid, 60% (2.2GW) of which is from conventional nonrenewable energy sources (coal and gas) while the remaining 40% (1.5W) is from hydro-energy source. The demographic and geo-physical features of rural settlements in Nigeria varies widely across the country and plays a predominant role in determining the most feasible source for providing electricity in those areas. This paper examines in detail the features that influence the use of grid and non-grid power supply with emphasis on the development of rural electrification infrastructure in Nigeria. It also focuses on harnessing renewable energy sources especially wind energy for the Niger Delta creeks, solar energy for rural settlements in northern, eastern and western Nigeria and micro-hydro power stations as the major means of non-grid power supply in Nigeria. Recommendations are also made on how grid and non-grid energy sources can be combined to develop rural electricity infrastructure in Nigeria and thus help to solve the country s various socioeconomic problems. Key Words: Electrification, Grid, Infrastructure, Renewable, Rural 1 Introduction The power industry plays a vital role in determining the quality of life of people. In today s modern economy, power generation and power consumption per person are indices used to determine the level of development and growth of any country. Total world demand for electric power has more than tripled over the past three decades from 1.2TW of electricity in 1970 to over 5TW of electricity in 2010 with more 80% of the energy generated from non-renewable sources mostly fossil fuels hydrocarbon gas and coal. This shows that there has been a steep rise in the global demand for electricity. With the ever increasing global population, expanding urban centres and industrialization, the demand for electricity will continue to increase. In Nigeria, fossil fuels account for about 60% (2.2GW) of electricity produced. The provision of electricity from non-renewable energy sources to meet the present and future demand for electricity is clearly not sustainable. There is thus an urgent need to increase energy generation from renewable sources. 1a On-Grid and Off-Grid Power Supply A grid is an inter-connection of different power stations via a network of transmission, subtransmission and distribution channels up till the point of consumption or utilization. A national grid provides such a wide network across the landscape of a country. One major advantage of a grid is flexibility of power supply such that the loss of any generation, transmission or distribution channel does not cause loss of power supply to the consumers since such loss is easily overcome through alternative sources available within the grid. Typical grid lifespan is 50 years [Nwogwugwu U.C.,

2 2002]. Power generation, transmission, sub-transmission and distribution channels connected to a grid are said to be part of the on-grid power supply. On the other hand, off-grid power supply is power supply that is not connected to other independent power stations, transmission, sub-transmission and distribution channels. In other words, it is a standalone system. A major disadvantage of non-grid power supply is the absence of flexibility of supply. There is usually no alternative source of power supply in the event of non-availability of the non-grid source. Non-grid source of power supply is usually deployed in areas that are in remote locations from existing grid or where because of topography and geo-technical challenges, it is uneconomical to extend the grid to such locations. Power stations from renewable sources are usually off-grid partly because of the relatively smaller size of the power stations (suitable for domestic or small-scale agricultural consumption) and also because of their remoteness from existing grids. 1b Renewable and Non-Renewable Energy Renewable energy. Renewable energy are those sources of energy that are regenerated naturally without human intervention. Renewable energy sources are replenished by nature as they are being consumed and are assumed to be theoretically inexhaustible. It comes from energy resources which are naturally replenished on a human timescale [Wikipedia: Examples of renewable sources of energy are solar energy, waves, wind, and biomass and geo-thermal energy. Small hydro-electricity. Is the same as hydro-electricity but of a much smaller size. In Nigeria, small hydropower is defined in the Renewable Master Plan as all hydro-electricity schemes below 30MW. (Detail Commercial Solutions, 2012). Hydro-electricity (large scale) is the electricity generated by directing the flow of a river to turn turbines (mechanical energy) which are is converted into electrical energy (electricity). The river is usually dammed to create sufficient potential head. In Nigeria, a hydro-electricity scheme is a one that is above 30MW. Solar energy is the energy produced as a result of nuclear fusion of hydrogen within the mass of the sun. Solar panels, called Photovoltaic (PV) cells, are used to trap the concentrated energy of the sun and convert it to electricity. Tidal energy (waves) are produced as a result of gravitational pull of the moon on the earth. The energy associated with the waves is tapped and converted into electricity. The technology for the generation of electricity from tidal energy is still at a nascent stage of development. Wind energy is produced as a differential pressure between different masses of cold and warm air. Electricity is generated from wind energy using wind mills. Biomass energy is the energy (ethanol, etc) produced from plants and waste materials such as animal dung, wood waste, decayed forage, etc. Energy is extracted from biomass through combustion and converted into electricity. Geo-thermal energy is the (heat) energy produced from rocks buried within the earth s crust as a result of metamorphic and tectonic activities within the earth s crust. The (heat) energy produced is then used to turn mills which in turn are converted into electricity. Non-renewable energy. In non-renewable energy, the energy source is not replenished as they are utilized. In other words, nature does not replenish the supply and so, they are exhaustible. The most commonly used non-renewable energy sources are the fossil fuels coal, oil and hydrocarbon gas. Wecsi of 10

3 2. Overview of Energy Supply The history and characteristics of energy supply varies from one part of the globe to another across continents and countries. The features of energy supply in Nigeria also vary from one region in the country to another as enumerated below: 2a Overview of Energy Supply: Global Coal (a fossil fuel) was initially the dominant global energy source for power generation until the discovery of crude oil and gas (yet another fossil fuel) in the early nineteenth century and the development of crude oil refining technology. Petroleum gas has since become and has remained the main global energy source. However, over the past two decades, following increasing awareness on global warming and the consequent development of eco-friendly technology and products, renewable energy sources has grown in global importance and usage for power generation especially in the developed countries. Currently, about 18% of global power generation is from renewable energy sources. Of all the renewable energy sources, hydroelectricity is the most widely used, accounting for about 80% of global power generation from renewable energy sources (see Figs 1 and 2). Fig 1 Annual electricity net generation in the world (source: Wecsi of 10

4 Fig 2 Annual electricity net generation from renewable energy in the world (source: Photovoltaic cells and wind sources are other renewable energy sources in wide usage with global energy contribution of 16GW and 121GW respectively. Almost all the rural settlements in the developed countries of the world have access to electricity either through on-grid or off-grid sources. However, many rural settlements in the under-developed countries have access to neither on-grid nor off-grid sources. 2b Overview of Energy Supply: Africa Africa has a huge potential for electricity generation from renewable energy sources. For example, (13) only 5-7% of Africa s hydro-electric potential has been tapped for electricity generation. Africa produces about 619TWh of electricity annually. It is estimated that this production represents about 30% of her electricity demand. This shows that there is huge market for energy that is yet to be tapped into. Power generation capacity, prospects and projects varies from one region of the African continent to another. Fig 3 shows the fossil fuel resources and renewable energy projects in Africa Fig 3: Power generation projects (fossil fuels and renewable energy) in Africa (source: In eastern Africa, countries such as Ethiopia have invested heavily in power generation using renewable energy sources. The 5.3GW Grand Ethiopian Renaissance Power Project when completed will enable Ethiopia to export power to neighbouring countries Egypt, Kenya, Somalia, South Sudan and Uganda [Oil Review Africa Magazine, 2013]. Northern Africa with abundant petroleum deposits (non-renewable energy) and solar energy (renewable energy) can utilize these resources to increase power generation to meet the demand for energy in the region. Southern Africa with abundant coal reserves (about 91% of Africa s coal reserves), uranium deposits and hydro-electric potential can also utilize these resources to build coal-fired power stations, nuclear power stations and hydro-electric power stations. Tanzania, which currently imports about 14MW energy, will double her power generation capacity to about 3GW upon the completion of her pipeline network expansion project in 2015 and thus become a net exporter of electricity. Wecsi of 10

5 Central Africa has the largest hydro-electric potential in Africa and can utilize this to build power stations with enough capacity to meet the energy needs of the region. In West Africa, fossil fuels (Nigeria and recently, Ghana) and renewable energy sources (available in many countries in the region) can also be used for power generation. 2c Overview of Energy Supply: Nigeria All power generation stations in Nigeria are either hydro-electric power stations or fossil fuels (hydrocarbon gas and coal) power stations. Some of these power stations are Hydro Power Stations: Kainji/Jebba Hydro-Electric Power Station, Shiroro Hydro Power Station; Gas (Thermal) Power Stations: Afam Power Station, Egbin Power Station, Sapele Power Station, Ughelli Power Station; Coal Power Station: Oji River Power Station. Several new power stations are currently being built (and are at various stages of completion) by both the Federal and State Governments under the National Integrated Power Projects (NIPP) and the Integrated Power Project (IPP) schemes in order to increase power generation. Under the New Energy Master Plan, the power generation and power distribution industry in Nigeria has been privatized. However, power transmission is still owned by the Federal Government but under third party management (see Fig 4: Privatized generation (GENCOs) and distribution (DISCOs) companies in Nigeria). Current peak power generation in Nigeria is 3.6GW. This is estimated to be about 35% of the true energy demand for the country. The new NIPP and IPPs will upon completion increase power generation capacity to about 7GW. Current power transmission capacity in Nigeria is 5GW with grid expansion planned to increase it to 7GW in the immediate term. Power distribution channels are also weak with under-capacity problems. Fig 4: Privatized power generation (GENCOs) and distribution (DISCOs) in Nigeria (source: ygrid.shtml) 3. Rural Electrification Infrastructure in Nigeria It is estimated that about 15.3 million households in Nigeria, most of them in the rural areas, are not connected to the National Grid [Premium Times, 2012]. This is about 60% of Nigeria s population. Wecsi of 10

6 They also do not have access to off-grid power sources and are without access to electric power supply. Most of the rural settlements in the oil-rich Niger Delta creeks, along Nigeria s international boundaries, in the mountainous areas of northern Nigeria and in remote locations from their state capitals are not connected to the National Grid and not have access to electricity. As Nggada H. (2002) observed, rural electrification infrastructure in Nigeria is weak and in dilapidated state where they exist or are non-existent as in most areas. 3a Available Energy Resources in Nigeria for Rural Electrification Development Nigeria is blessed with abundant renewable and non-renewable energy sources. Most of the first set of power stations built in Nigeria was powered from non-renewable energy sources - the fossil fuels (coal and crude oil). Almost all the new power stations being built under the National Integrated Power Projects (NIPP) and the Integrated Power Projects (IPP) will be powered from non-renewable energy sources, mostly gas. Tables 1 and 2 shows the estimated size of non-renewable and renewable energy sources respectively in Nigeria [Nwulu N.I. and Agboola O.P., 2011] Energy Type Crude oil Reserve Estimates 36billion barrels Natural Gas 185 trillion ft 3 Coal 2.75b metric tons Table 1: Non-renewable Energy Resources in Nigeria Energy Source Reserve Estimates Hydropower, large scale 10,000MW Hydropower, small scale 734MW 13,071,464 hectares (forest land Fuel-wood 1981) Animal waste 61 million tones/yr Crop residue 83 million tones/yr Solar radiation kWh/m 2 -day Wind 2-4m/s (annual average) Table 2: Nigeria s Renewable Resources The tables illustrate that Nigeria has plenty of alternatives from both renewable and non-renewable energy sources for the purpose of power generation for both the rural and urban areas. It is estimated that Nigeria has a potential of 8 x102mj of biomass and an average of x 1015kWh of solar energy annually [ 2012]. Average wind power in Nigeria is 50.1Wm -2 [Awogbemi O. And Ojo A.O, 2009]. Nigeria s biomass potential is largely untapped. 3b Challenges with Rural Electrification Infrastructure Development in Nigeria The major challenges with the development of rural electrification infrastructure in Nigeria are: Technical challenges. The amount of electricity that Nigeria currently produces (about 3.6GW) is well below the demand for electricity in the country. In other words, the current power generation capacity is grossly inadequate. The power transmission capacity cannot transport the total power generation Wecsi of 10

7 capacities of all the power stations. The distribution network is poorly maintained and inefficient. In general, the existing electrification infrastructure is weighed down by inadequate capacity and poorly maintained facilities. This implies that it is technically not possible to expand the grid to the rural settlements currently without power supply without carrying out extensive upgrade and expansion of the existing power generation, transmission and distribution network. Geographic and geo-technical challenges. Many rural communities in Nigeria are located far away from the towns and cities where there is already the presence of (on-grid) electrification infrastructure. Besides, a good number of the rural settlements are characterized by low population densities and are widely separated from one another. In some circumstances, the terrain is difficult to access (swamp, desert, etc) and makes construction of (electrification) infrastructure very challenging, expensive and time consuming. This makes the extension of electrification infrastructure to the rural communities to be unattractive. Economic challenges. The cost of construction of electrification infrastructure in the rural areas in Nigeria is usually higher than in the towns and cities because of the factors mentioned above. This thus makes it to be unattractive. Political challenges. It is usually politically expedient to develop electrification infrastructure in towns and cities because it is cheaper and takes less time in those locations. The political gain of urban electrification infrastructure development is also much higher than doing the same in the rural areas. This makes the political will to embark on urban electrification infrastructure development compared to rural electrification infrastructure development to be more politically rewarding. Socio-cultural challenges. The strong feudal and socio-cultural attachment of the Nigerian people to land has made Right of Way acquisition for power generation and transmission infrastructure cumbersome and time consuming. People tend to hold on to their ancestral heritage (land) rather than give them up to the Government for rural electrification infrastructure development even with adequate compensation considerations. This tends to slow down the pace of rural electrification infrastructure development. 4 Development of Rural Electrification Infrastructure in Nigeria There are three options available for providing power supply to the rural settlements in Nigeria that are without electricity. There options are on-grid, off-grid and hybrid power supply. 4a On-grid Solution On-grid solution simply means the provision of power supply to an area from a grid. In the case of Nigeria, the development of rural electrification infrastructure for the rural settlements from on-grid power sources will be the most viable solution especially for locations that are not too far from existing National Grid. All exiting power stations in Nigeria that are connected to the National Grid are all from non-renewable sources hydro-electric or fossil fuel fired. 4b Off-grid Solution Off-grid solution requires that power supply sources are not connected to the grid. The power stations will only provide electricity to a defined geographical location and it will not be synchronized to the grid. The power supply sources for off-grid power supply to rural settlements in Nigeria will be either from fossil fuels for rural settlements that are located close to oil and gas producing facilities or from renewable energy sources for rural settlements that have any of the renewable energy sources in abundance. Wecsi of 10

8 4c Hybrid Solution Hybrid solution is the combination of on-grid and off-grid solutions. Rural settlements that are colocated can be on hybrid solution in order to take advantages of the hybrid solution so long as the features for this purpose are available. 4d Applications for Rural Electrification Infrastructure Development in Nigeria On-grid non-renewable power supply is the most popular form of electrification infrastructure development in Nigeria. Almost all the old power stations in Nigeria fall within this category. However with increasing awareness of the benefits of renewable energy supply, the Government has shown interest in the development of renewable energy sources. The renewable energy supply technology is not yet as developed as fossil energy supply and so while the later is used for big power stations, the former is usually used for smaller power stations. The decision to use renewable or non-renewable (fossil) sources of power supply depends on the availability of the materials. Renewable energy source is recommended where there is the availability of renewable energy materials. Different types of renewable energy materials are available in Nigeria as one transverses from one part of the country to another. The use of on-grid or off-grid power supply depends on proximity to grid supply as well as the size of the power station. Generally, it is recommended to connect rural communities that are located close to the grid to the National Grid. Small sized power stations will usually not be connected to the grid (offgrid). Niger Delta creeks rural electricity infrastructure development. Most rural communities in The Niger Delta creeks are usually located far away from the nearest National Grid. Such settlements are located in the swamps (in Bayelsa, Rivers, Delta states, etc) where access is by boat; the population density is low and the settlements are spaced widely apart [Afa J.T, 2013]. The cost of extending grid power supply to these settlements is thus very expensive thus making on-grid solution unattractive. However, the availability of strong wings, rivers with the desirable geo-technical features and with enough head as well as the abundance of fossil fuel (gas) deposits in the coastlands of the Niger Delta creeks makes the use of wind turbines, hydro-electricity and petroleum gas for power generation suitable alternatives for the development of rural electrification infrastructure in these locations. Recommendation: Renewable (wind) energy, off-grid; Non-renewable (petroleum gas), off-grid South East rural electricity infrastructure development. The rural settlements in south eastern Nigeria are characterized by consolidated soil, high population densely and proximity to one another. The proximity of most rural settlements in the south eastern part of Nigeria to the National Grid makes use of on-grid power supply suitable for rural electrification infrastructure development. A few small hydro-electricity potential is also available in this region. Recommendation: Non-renewable (small hydro-electricity), on-grid South West rural electricity infrastructure development. The features of rural settlements in south western Nigeria is similar to those of the south east and so the use of on-grid power supply is also recommended and small hydro-electricity schemes can also be developed. Recommendation: Non-renewable (small hydro-electricity), on-grid Northern Nigeria rural electricity infrastructure development. The wide geographical footprint of the rural settlements in northern Nigeria as well as the abundance of renewable energy sources especially wind and solar energy makes the use of off-grid renewable energy sources to be excellent source of power supply to the rural communities especially those that are located far from existing National Grid. Fig 5 (Solar map of Nigeria) shows the abundance of solar energy in northern Nigeria Wecsi of 10

9 Recommendation: Renewable (solar and wind), off-grid, on-grid Fig 5: Solar map of Nigeria (source: geosun.co.za/wp-content/uploads/2012/08/solargis-solarmap-nigeria-en.png) Boarder communities rural infrastructure development. Nigeria s National Grid is not close to her international boundaries. Besides, access to (rural) settlements close to Nigeria s international boundaries is difficult and harsh usually long stretches of deserts or thick rainforests. The population density in these locations is low. These features make extension of the National Power Grid to these locations to be expensive and unattractive. Recommendation: Renewable (solar and wind), off-grid Note: The specific features for each rural settlement have to be taken into consideration before making decision on the best method for developing electrification infrastructure in the areas. The recommendations above are purely generic. Conclusion The development of rural electrification infrastructure in Nigeria is vital for the acceleration of the growth of Nigeria s rural economy. This in turn will stem rural-urban migration, reduce youth unemployment rate and improve the standard of living of Nigerians. The development of rural electrification infrastructure in Nigeria can be achieved through the expansion of the National Grid to the rural settlements with power supply mainly from fossil fired (non-renewable) energy sources (ongrid) and also through renewable energy sources which will usually be off-grid. This requires a strong political will, focus and dedication especially from the Government. Private sector participation should be encouraged through the formulation and implementation of appropriate regulatory policies. With the concerted effort of all, this can be made an achievable reality. References Afa J.T. (2013): Problems of Rural Electrification in Bayelsa State: American Journal of Scientific and Industrial Research, pg 1 Awogbemi O. And Ojo A.O. (November 2009): Harnessing Wind Energy to Solve Nigeria s Energy Crises: The Pacific Journal of Science and Technology, Vol 10, No. 2, pgs Detail Commercial Solicitors: Nigeria Power Guide, Vol 1, 2012 Edition, pgs Wecsi of 10

10 Enogholase G. (23 March 2011): 60 per cent of Nigerians Not Connected to National Grid: The Vanguard Newspaper, pg 1 Nggada H.(2002): Review of Federal Government Rural electrification Programme: Energising Rural Transformation in Nigeria, ICEED Press in association with Federal Ministry of Power and Steel, pg 98 Nggada H.(2002): Renewable Energy Development in Nigeria Status and Prospects: Energising Rural Transformation in Nigeria, ICEED Press in association with Federal Ministry of Power and Steel, pg 118 Nwogwugwu U.C. (July 2012): Energy Access for Nigeria s Rural Economy: Viable Options: Universal Journal of Management and Social Sciences, Vol. 2, No. 7, pgs 5 8 Nwulu N.I. and Agboola O.P. (2011): Utilizing Renewable Energy Resources to Solve Nigeria s Electricity Generation Problem: International Journal of Thermal and Environmental Engineering, Vol 3, No. 1,pg Oil Review Africa Magazine ( (2013): African Rig Count, Volume 8, Issue 5, pg 50 Premium Times Newspaper (15 December 2012): 15.3m Nigerian Households Lack Access to Grid Electricity Group, pg 1 Rural Electrification in Nigeria, pgs 1 2 Wikipedia ( Renewable energy, pgs 5 9 Wikipedia ( in Africa.com): Energy in Africa, pg4 (March 2012): Harnessing Renewable Energy in Nigeria, pg 2 3 Figures Fig 1: Annual electricity net generation in the world (source: Fig 2: Annual electricity net generation from renewable energy in the world (source: Fig 3: Power generation projects (fossil fuels and renewable energy) in Africa (source: Fig 4: Privatized power generation (GENCOs) and distribution (DISCOs) in Nigeria (source: ml) Fig 5: Solar map of Nigeria (source: geosun.co.za/wp-content/uploads/2012/08/solargis-solar-map- Nigeria-en.png) Tables Table 1: Non-renewable Energy Resources in Nigeria Table 2: Nigeria s Renewable Resources Wecsi of 10