CPEEL Monograph Series - Volume 1, Issue 2, 2014
Volume 1, Issue 2, 2014
Source: CPEEL Monograph Series 1, pp 1 –9 (2014)More Less
Two key developments have pushed energy higher up the global sustainable development agenda in recent decades. First is the established relationship between expanded access to adequate, reliable and affordable modern energy services, including the dramatic increase in world economic growth and significant reduction in poverty in the last century. The large increase in productivity, sustained economic growth, and significant socioeconomic progress in the world economy was largely fuelled by low and stable energy prices until the early 1970s. Despite the fact that a precise causal link may be difficult to state, the strong correlation between higher level of consumption of modern energy services per capita and higher income per capita suggests the important role of expanded energy access in achieving rapid economic growth, poverty reduction and sustainable development (UNDP, 2005; World Bank, 2002). The link between energy and the Millennium Development Goals (MDGs) provides further evidence of the important role of energy in achieving significant reduction in income and energy poverty as well as overall sustainable development. Access of poor people to reliable and adequate modern energy services, especially electricity, is basic in meeting virtually all the MDGs.
Source: CPEEL Monograph Series 1, pp 10 –21 (2014)More Less
The United Nations Secretary General, Ban Ki-Moon, declared 2012 the International Year for Sustainable Energy for All, and launched the global energy initiative, Sustainable Energy for All (SE4All) against the background of the ongoing discussion on sustainable human development underscored by Rio+20 and the ongoing global debate on energy and climate change. The main objective of this section is to provide an overview of SE4All from global perspective and the justification for domesticating the initiative in Nigeria. This discussion would serve as an important background to the study. However, before discussing SE4All from the global and domestic perspectives, it is useful to examine the nexus between energy and development. This is the focus of the next sub-section.
Source: CPEEL Monograph Series 1, pp 22 –48 (2014)More Less
This sub-section summarizes key trends and patterns in Nigeria's economic growth and development. It focuses on identifying the potential challenges to the sustainable utilization of Nigeria's energy resources for economic growth from both the short and long run perspectives.
Source: CPEEL Monograph Series 1, pp 49 –78 (2014)More Less
What have been the global responses to the recent end of the era of inexpensive energy in the last three decades? What have been the responses of income and energy poor developing countries, including Nigeria, where low electricity access have undermined their economic, social, and environmental sustainability because of the new global energy conditions? The latter question is the focus of the discussion in this section.
At the global level, developed and developing countries designed significant policy, legal, regulatory and institutional reforms in order to tackle their diverse energy challenges and provide access to efficient, reliable, affordable and sustainable energy services to support sustainable human development. The liberalization of their energy markets, albeit at different speed and content, was the central underpinning of the reforms which brought far reaching changes in the energy sector and the economy at large.
This global trend in energy sector reforms has also been domesticated in Nigeria with the government embarking on a variety of policy and institutional reforms and activities to ensure improvement in access to modern energy services. Among the notable policy, legal, regulatory and institutional reforms to tackle the crisis in the electricity industry are: The Electricity Power Sector Reform Act (2005), the establishment of the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency and the Rural Electricity Fund, as well as the unbundling of the Power Holding Company of Nigeria (PHCN). The subsequent discussion in this section will focus on providing an overview of the policy, legal, regulatory, and institutional frameworks with particular focus on rural electricity access in Nigeria.
Source: CPEEL Monograph Series 1, pp 79 –92 (2014)More Less
Insufficient electricity supply and delivery to end users highlighted by the current generating capacity of 4,500MW is a major obstacle to rapid and sustained economic growth and development in Nigeria. The investment requirement to increase generating capacity from the current 4,500MW to 40,000MW in the next decade or two would involve an unprecedented scaling up of financial resources. Clearly, and from the perspective of this study, the financial implication in delivering universal rural electricity access based on the current conditions, seem quite daunting given that the investment risks in rural electricity projects are perceived to be far higher than in urban areas. Also, the return on investment adjusted for risks is less than urban or grid-based electricity supply. Improving electricity access for the rural poor is more challenging than in urban areas due to:
- Low electricity consumption per capita;
- High distribution cost because of more dispersed spatial configuration; and
- Low affordability capacity of the rural economy because of their relative poverty, dependence on a less productive rural economy exacerbated by the migration of the more productive labour force.
Source: CPEEL Monograph Series 1, pp 93 –104 (2014)More Less
One of the major challenges confronting economic and social development in Nigeria currently is the poor access of the rural economy to electricity. From the earlier discussion the numerous efforts (both in the past and those ongoing) by all tiers of government and the international development organizations have not translated into significant positive outcomes in terms of substantial expansion in access of the rural population to stable and adequate electricity. The importance of universal electricity access to the rural economy and population is highlighted in Figure 10, which shows the linkages between universal rural electricity access and the economic, social and environmental factors. However, the rural populace is bedevilled with many problems of modern energy services, especially that of electricity. The objectives of this section are to examine the emerging issues and challenges, and how the challenges can be harnessed to opportunities.
Source: CPEEL Monograph Series 1, pp 105 –114 (2014)More Less
Can Nigeria achieve the objectives of expanded rural electricity access eliminating duality in the energy economy that should drive its sustainable energy future plan given the multi-dimensional challenges described? The answer lies in the design and implementation of appropriate policy strategies embodied in an action plan. Before elaborating on the action plan, it is important to identify a number of principles that should underpin such a plan.
Source: CPEEL Monograph Series 1, pp 115 –129 (2014)More Less
The projected amount of investment to meet system expansion to achieve 40,000MW and, implicitly, universal rural electricity access, the first objective of SE4ALL, is estimated at about US$262 billion. This amount is enormous given industry experience, yet it is achievable. Much would depend on the political will to achieve results. It also requires having in place the right institutional framework, policy consistency, appropriate incentive structure and security of investment, as well as input. All these would guarantee the required flow of investment. The successful privatization of the telecommunication industry, which brought in multi-billion dollars of investment in less than a decade, provides support for this position. Ending the monopoly of NITEL and opening up of the telecommunications sector to a vibrant private sector-led dominance with one of the fastest system growth rates in the world has been due to the combination of right institutional framework, policy consistency and appropriate incentive structure.