Rethinking the energy efficiency option for Nigeria

It is no longer news that an estimated 98 million Nigerians do not have access to grid-connected electricity owing largely to the numerous financial and infrastructure challenges bedeviling the power sector.

Reports indicate that since the privatisation of the sector in 2013, all the successor distributions companies (DISCOs) have found it difficult to collect sufficient revenue to meet their full market obligations and as a result, the upstream sectors (transmission and generation companies, gas producers) do not receive full compensation for their costs.

It is against the backdrop of this worrying situation that those who know in the power industry have insisted that for Nigeria to realise its full socio-economic potential as a country, there is need for a robust power infrastructure to deliver affordable, clean energy to all of its citizens irrespective of where they are located.

They argue further that managers of the power sector must be open to a review of the country’s energy sustainability strategy to stand any chance of making progress.

Energy conservation and efficiency in the opinions of analysts remain a critical tool to relieve pressure on energy supply. According to them, “to promote the more efficient use of energy in Nigeria, our national energy policies remain crucial. Yet, market-based methodologies can be an effective element to channel private decisions in the right direction”.

Industry experts in the power sector opine that a combination of advocacy, research and development, energy policy and urban planning are required to overcome the hurdles of propagating the message of energy efficiency among Nigerians locally.

A cursory look at the trend in the power sector shows that there is an emerging ecosystem of private companies and non-profit organisations who are trying to bring power to more people through market-driven approaches such as energy efficiency.

According to a World Bank report, Nigeria’s power deficit stands at 94,500 MW while there are indications that Nigeria’s electricity demand should hit an estimated 96,000 MW by 2020.

Analysts, however, argue that it will be near impossible to bridge the power infrastructure gap required to realise Nigeria’s power availability expectations within such a short time frame. The solution, therefore, is to find ways to do more with less energy and this is why the energy conservation and efficiency conversation is most critical.

To them, “a key component of this approach to efficiency involves getting consumers to use less energy through simple behavioural and lifestyle changes”.

It is a known fact that access to capital remains the most important barrier to the deployment of energy efficient technologies as simple equipment retrofits and upgrades often require high upfront investment; however, behaviour-based energy efficiency does not face the same funding challenges as capital intensive upgrades.

In the opinion of industry close watchers saving energy is cheaper and faster than making energy adding that energy efficiency investments do not only bring financial returns to investors they also create public benefits in terms of lower greenhouse gas emissions, increased employment and most importantly increased power availability.

“With the right leadership, vision and policies, Nigeria can use its power infrastructure deficit as an advantage as it leapfrogs to building the energy system of the future while connecting millions of people to modern electricity services”, they said.

KELECHI EWUZIE