1
a
RENEWABLE ENERGY INVESTMENT IN NIGERIA –
PROSFECT AND CHALLENGES
By:
Mr. Lawal Y. Gada
Project Manager
BOI/UNDP AtRE Pr...
SYNOPSIS
Introduction
Why Renewables?
Global Perspectives
Africa’s Overview
RE investment in Nigeria
Prospects & Challenge...
Introduction
• The potential of Renewable Energy (RE) investment in Nigeria is
very enormous . This is due to the obvious ...
Introduction Cont...
• The global Investment in Renewable Energy across the
globe is increasing significantly from $33 bil...
Why Renewables
• Global Warming/Climate Change – UNFCCC Kyoto Protocol
• Depletion of fossil fuels (petroleum, coal, etc) ...
Why Renewable Energy Options?
• The option to close the wide energy demandsupply gap is Renewable Energy.
• This is energy...
Barriers to Investment in Renewable
In Nigeria
 Sustainability question.
 Maintenance
 Procurement
 Branding
 Risk A...
Barriers to Investment in Renewable
In Nigeria (Cont...)
Knowledge/awareness
 Knowledge to the financial institutions
 ...
Way forward
Policy to promote investment in RETs
Capacity Building for Financial Institutions
and RE Services providers
...
Thank you
Lawal Y. Gada.
Project Manager
BOI/UNDP AtRE Project
lygada2001@yahoo.com
Tel: 08035854295, 08026500526.
a
Access to Renewable Energy (AtRE) Project
• AtRE Project was initiated in continuation of UNDP’s
support to Private Sect...
a
Expected Outcomes of (AtRE) Project
• Improve access to reliable and renewable
energy service options for MSMEs
• Devel...
a
Deliverables of (AtRE) Project
•
•
•
•
•
Increase the number of RE projects in Nigeria
Increase the level of RE service...
a
Benefits of (AtRE) Project
• Economic development through empowering
MSMEs
• Job creation
• Poverty alleviation
• Financ...
a
Project Board
1.
2.
3.
4.
5.
6.
7.
Ms. Evelyn Oputu, MD/CEO BOI Board Chairperson
Mr. Ade Mamonyane Lekoetje, Country D...
a
AtRE Project Activity Update
• Project officially launched and document signed – June
16, 2011
• PMU Management Team rec...
a
AtRE Project Activity Update
• Working with Scheider Electric to Replicate and
commercialise the ‘Access to Energy’ prog...
a
AtRE Project Activity Update
• Engaged consultants and service providers to
conduct Business Plans and Feasibility studi...
a
AtRE Project Activity Update
• Developed a comprehensive communication plan
towards increasing awareness of rural MSMEs ...
a
BoI and Renewable Energy
• In partnership with Ebonyi State and UNIDO in the
development of a 5MW biofuel RE Plant using...
a
Challenges
• Standards for Renewable Energy Products
• Technical Know-how (capacity of the industry
player)
• Financing ...
a
Collaboration and Support for AtRE
• Investment in Renewable Energy Projects
• Training/Capacity building for renewable ...
Conclusion
Think
Globally
Economic
Growth/Climate
Change
Mitigation
Renewable
Energy
Development
Act Locally
Renewable...
A
Thank You
of 25

NAEE 2013 Bank Of Industry Presentation

RENEWABLE ENERGY INVESTMENT IN NIGERIA – PROSFECT AND CHALLENGES By: Mr. Lawal Y. Gada Project Manager BOI/UNDP AtRE Project
Published on: Mar 3, 2016
Published in: Investor Relations      Technology      Business      
Source: www.slideshare.net


Transcripts - NAEE 2013 Bank Of Industry Presentation

  • 1. 1
  • 2. a RENEWABLE ENERGY INVESTMENT IN NIGERIA – PROSFECT AND CHALLENGES By: Mr. Lawal Y. Gada Project Manager BOI/UNDP AtRE Project lygada2001@yahoo.com; lgada@boinigeria.com Tel: 08035854295, 08026500526 RE Investment in Nigeria – Prospects and Challenges by: L.Y. Gada. 1
  • 3. SYNOPSIS Introduction Why Renewables? Global Perspectives Africa’s Overview RE investment in Nigeria Prospects & Challenges Way Forward RE Investment in Nigeria – Prospects and Challenges by: L.Y. Gada. 3 15
  • 4. Introduction • The potential of Renewable Energy (RE) investment in Nigeria is very enormous . This is due to the obvious gab in the supply of conventional energy coupled with global covenants for Climate Change mitigation and adaptation which tends to promote Renewable Energy development as alternative to conventional fossil fuels that releases Greenhouse Gases (GHG) into the atmosphere, the opportunities for RE investment therefore cannot be overemphasised. • There is no doubt that country has abundant renewable energy resources such as higher intensity solar energy resource throughout the country; large forest and farmlands that can be used to cultivate plants like Jatropha curcus for bio-fuels; wind energy potentials; large number of dams and other water resources that can generate energy through hydropower generation most of which are underexploited.
  • 5. Introduction Cont... • The global Investment in Renewable Energy across the globe is increasing significantly from $33 billion in 2004 to $211 billion as of June this year, 2011. In Africa, total investments in renewable energy on the continent rose from $750 million in 2004 to $3.6 billion in 2011, largely due to strong performance from Egypt and Kenya which are in the Northern and Eastern parts of the continent. • In Nigeria, investments in renewable energy have a large potential for growth given the large gap between energy demand and supply and the enormous renewable energy options available. This gab can only covered by we (the stakeholders here present: financial institutions and RE service providers).
  • 6. Why Renewables • Global Warming/Climate Change – UNFCCC Kyoto Protocol • Depletion of fossil fuels (petroleum, coal, etc) – Energy Security; • Escalating costs of conventional sources of energy; • Environmental protection; • Need to achieve key Millennium Development Goal (increased access to electricity). • Africa has the lowest per capita consumption of energy in the world; • Africa’s average energy consumption per capita: 0.66 Tons of Oil Equivalent (TOE) vs 1.8 TOE world average (est. 2008) 6
  • 7. Why Renewable Energy Options? • The option to close the wide energy demandsupply gap is Renewable Energy. • This is energy supply options from natural resources which can be replenished (infinite and renewable) • Sources include sun, wind, biomass, hydro, geothermal etc. • These sources are found in abundance in Nigeria and it has been estimated that the potential energy that can be generated from these sources is about 600,000 MW.
  • 8. Barriers to Investment in Renewable In Nigeria  Sustainability question.  Maintenance  Procurement  Branding  Risk Associated with  Security risks  Project risks  Human/personnel risks  Technical risks  Political risks  Policy –law to promote Renewable Energy Options
  • 9. Barriers to Investment in Renewable In Nigeria (Cont...) Knowledge/awareness  Knowledge to the financial institutions  Awareness by the general public on RETs Capacity  Technical know-how by the service providers  Knowledge by the policy makers Lack of incentives
  • 10. Way forward Policy to promote investment in RETs Capacity Building for Financial Institutions and RE Services providers Enlightment campaigns to create awareness Synergy between the different financial institutions and Development finance institutions Exploring other funding sources like CDM, CIF, CEF, etc.
  • 11. Thank you Lawal Y. Gada. Project Manager BOI/UNDP AtRE Project lygada2001@yahoo.com Tel: 08035854295, 08026500526.
  • 12. a Access to Renewable Energy (AtRE) Project • AtRE Project was initiated in continuation of UNDP’s support to Private Sector (MSMEs) Development and UN’s commitment towards ensuring universal access to modern energy services. • BOI was chosen as the Implementing Agency (IA) for the project because of its strategic position between the Financial Institutions, MSMEs and Government. • The UNDP/BOI AtRE is an intervention project aimed at expanding renewable energy services for rural and periurban MSMEs. • The Project is to facilitate investment in renewable energy options and linkages for enterprise development.
  • 13. a Expected Outcomes of (AtRE) Project • Improve access to reliable and renewable energy service options for MSMEs • Develop capacity of stakeholders to facilitate investments in renewable energy sector • Establish and maintain policy level dialogue.
  • 14. a Deliverables of (AtRE) Project • • • • • Increase the number of RE projects in Nigeria Increase the level of RE services accessed by MSMEs Train and build the capacity of project developers Train and build the capacity of financial institutions Capacity development and support for public policy formulation and development at Federal and State level • Develop guidelines and tools based on best practices for disseminating information to project developers, financial institutions and policy makers • Dialogue to influence RE policy development • Dialogue to support RE energy planning
  • 15. a Benefits of (AtRE) Project • Economic development through empowering MSMEs • Job creation • Poverty alleviation • Financial Inclusion • Achieving the MDGs • Improving the environment • Reducing rural-urban migration
  • 16. a Project Board 1. 2. 3. 4. 5. 6. 7. Ms. Evelyn Oputu, MD/CEO BOI Board Chairperson Mr. Ade Mamonyane Lekoetje, Country Director UNDP Janthomas Hiemstra, Deputy Country Director UNDP Dr Patrick Kormawa, UNIDO Rep in Nigeria & Director Regional Office Honourable Minister of Finance Mr. Kingsley Moghalu, Deputy Governor, Financial System Stability, CBN Prof. A.S. Sambo, DG/CEO Energy Commission of Nigeria & SA to the President on Power 8. Engr Mrs. Bahijjahtu Abubakar, National Coordinator, National Renewable Energy Project 9. Chief Kola Jamodu, Chairman Manufacturers Association of Nigeria (MAN) 10. Mr. Aigboje Aig-Imokhuede, MD/CEO Access Bank Plc & Chairman, SubCommittee on Economic Development, Bankers’ Committee 11. Alhaji Aliko Dangote, Chairman Dangote Group of Companies 12. Lawal Gada, Project Coordinator, AtRE
  • 17. a AtRE Project Activity Update • Project officially launched and document signed – June 16, 2011 • PMU Management Team recruited and commenced implementation of project in September, 2011 • Organised State-level stakeholder forums and compilation of database of stakeholders in RE in 10 states + FCT in October 2011 • Launched the BOI/UNDP/State Energy Access Challenge Facility for Enterprises – Oct-Nov, 2011. where winning applicants accessed a grants of up to US$30k • Engaged NABTI/ECN to create an interface between research institutes and industries in renewable energy best practices
  • 18. a AtRE Project Activity Update • Working with Scheider Electric to Replicate and commercialise the ‘Access to Energy’ program launched in Asore Village, Ogun State for BoP with Support from BOI • Conducted different RE Training programme for Capacity Development for our stakeholders: eg. Banks, RECs, MFI. • Engaging with the Policy makers at State and Federal Level to increase activity in RE • Evaluating potential RE project proposals for prospective funding • Initiating collaborations with development institutions such as KfW, Adaptation funds, IFC, ADB, World Bank, etc to increase the level of renewable energy funding
  • 19. a AtRE Project Activity Update • Engaged consultants and service providers to conduct Business Plans and Feasibility studies to different RECs, especially the winners EACFEs • Working with Renewable Energy Programme of Federal Ministry of Environment to deliver energy solutions to various states in Nigeria including women through – Rural Women Energy Security (RUWES) Initiatives. • Identifying clusters of MSMEs to deploy creative Renewable energy services
  • 20. a AtRE Project Activity Update • Developed a comprehensive communication plan towards increasing awareness of rural MSMEs and households to adopting renewable energy options • Conducted studies on the Comparative cost between RE and Fossil Fuels such as Petrol and Diesel • Engaged consultants who conducted the mapping of banks activities in renewable energy finance • Engaging with MFIs to develop financial products to deploy RE solutions for BoP • Holding an Investment Forum, December 15, 2011
  • 21. a BoI and Renewable Energy • In partnership with Ebonyi State and UNIDO in the development of a 5MW biofuel RE Plant using Rice Husk • This project will serve a cluster of MSMEs who are engaged in Rice processing • BOI is collaborating with various state governments such as Ondo, Osun, Kwara and Niger in areas of small hydro power projects to serve clusters of SMEs. • Provisions of financial support for clusters of cooperatives who ordinarily have been excluded from access to finance due to collateral constraints • Facility for the Bottom of the Pyramid (BoP) -RUWES
  • 22. a Challenges • Standards for Renewable Energy Products • Technical Know-how (capacity of the industry player) • Financing by Commercial Banks • Awareness on the positive impact of RE • Funding for the Project Management Activities • Sustainability question 22
  • 23. a Collaboration and Support for AtRE • Investment in Renewable Energy Projects • Training/Capacity building for renewable energy project stakeholders • Technology Transfer • Funding for the management and expansion of the Access to Renewable Energy project • Policy development • Multilateral and intergovernmental collaboration • Projects Monitoring and Evaluation • Project Management Support (Unfunded Bugdet)
  • 24. Conclusion Think Globally Economic Growth/Climate Change Mitigation Renewable Energy Development Act Locally Renewable Energy & Climate Change by: L.Y. Gada. 24 23
  • 25. A Thank You

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