Professional Documents
Culture Documents
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Introduction
The positive attributes of generating electricity from
renewable energy sources are widely acknowledged
environmental concern,
energy security,
Off-grid supply to small isolated loads especially in rural areas
applications in niche markets where conventional electricity
supply is not feasible.
Peak shaving
Suitable for SMEs.
solar, is particularly suitable for small size day time energy
demand which is exactly the type of energy demand profile of
small and medium scale enterprises, such as hair dressing/
barbing salon, tailoring etc. ironically, the situation in Nigeria
every enterprise depend of fossil fuel generator as stand-bye
power source.
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Other Areas of possible application of RE to support
economic development
Support agriculture and rural economic empower and
reduce rural-urban migration through:
powering agro processing industries
Support irrigation
solar crop drying
Power SMEs in the peri-urban areas
Mini-grid and stand alone power for informal sector
producers
NERC is currently working on mini-grid electric supply
regulation
Introduction (cntd)
However RE power are still to be
commercially competitive with the
fossil fuels which are currently
subsidized and enjoy the economies of
scale.
Other barriers to relates to the facts
that :
operators are usually small scale
unit cost of renewable energy is relatively high
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Mechanisms in the NREEEP
2015
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Renewable Energy Feed-In
Tariff
Features
The main aspects of a REFIT regulatory framework, are as
follows:
Purchase Obligation
Renewable Energy Power Generator
Qualification Criteria
Tariffs for the different qualifying
technologies
Tariff are Sufficiently Differentiated
For Differing Technologies
For Differing Sizes & location
Objective of the Nigerian RE
FIT
Establish a guaranteed price RES-E for a fixed
period of time that provides a stable income
stream and an adequate return on investment;
provide priority access to the grid RES-E
Establish an obligation to purchase qualifying
RES-E
Establish a level playing field for renewable and
conventional electricity generation;
Attract private sector investment to support the
establishment of a self-sustaining renewable
market.
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Qualifying Technology and Size
Range
The programme cap for the REFIT program is 1000MW
Subject to the capacity limits contained in table 1 for each
source:
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Purchase Obligation
Subject to the costs being met by the developer, the Off-taker shall
connect to accredited plants generating electricity from eligible
renewable energy sources. The Off-taker shall treat as must buy all
electricity supplied by such renewable energy projects within the capacity
limits defined in this regulation.
There is no obligation to purchase capacities outside these limits and such
procurement may be done through other complementary mechanisms,
with separate PPAs.
The Feed-in-Tariffs values set in this regulation include a
standardised allowance for interconnection costs.
The costs of connection, including the costs of construction,
upgrading of transmission/distribution lines,
substations, and associated equipment are therefore to be borne by the developer.
The Renewable Energy Power Generators shall be responsible for all
shallow connection costs required to take the power to the point of
connection to the grid/distribution networks .
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Programme Cap
A total of 2,000 MW of RE power is envisaged to be admissible into
the grid (1,000 MW by the end of 2018 and 2,000 MW by the end
of 2020)
while the total grid capacity is anticipated to be within 10,000 MW
to 20000 MW by 2020.
Based on a total cost optimization study and using the
proportions in the Renewable master plan report for the short and
medium term targets, the following technology limits have been
established. The NBET should procure 50% of the requirement and
Disco to procure 50%. The following will be guidelines for NBET
and Discos in respect of technologies
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Schedule 2:
Target Grid-Connected Renewable Generation Capacity by the
year 2018
Solar 380
Wind 100
SHP 370
Biomass 150
Schedule 3:
Allocation of Renewable Energy Capacity by Buyers up to 2018
Step 3: if there are data deficiencies, request missing data from applicant. If all data
is provided, and the application is still deficient, then the license application is
rejected and the project is removed from the applicable REFIT queue. The queue is
updated to transfer an application from the reserve queue to the active queue.
Step 4: If all data is provided and meets the licensing and REFIT program
requirements, NERC issues the license (this could be a conditional license), and
issues the final license upon receiving the Notice of Approval from the Buyer and
also approves the REFIT based PPA.
REFIT License
Application to participate in REFIT
Process
Program
Generation License Application
Place in
Has cap for REFIT Yes Reserve
technology been met? Queue
Remove
application
from queue Update Active Queue
by Technology Type
Remove
application
Reque from
No Evaluate Application
st data queue
Is data Yes
missing? No
Does REFIT
No Does license application meet
application meet REFIT program
requirements? requirements?
Yes Yes
Issue license
PENALTIES
The Commission may establish such
penalties in line with the provisions
of the Act or any of the Commissions
regulations, to ensure the effective
discharge of its duties, and to
promote compliance with this
Regulation.
Penalties for Default
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Conclusion
The FIT framework will bring in investors in
renewable energy based power
Green jobs will be created
It will lead to meeting the national
renewable energy target and improve the
countrys energy mix
Contribute to global emission reduction
A robust REFIT framework will make
Nigerian Electricity market the preferred
destination of RE investors.
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