Mustapha Suleiman
5 November 2009
Abuja — Nigeria could save an estimated 16% in capital costs - almost 3 billion USD - through increased investment in a decentralised energy plan reveals a study conducted by the World Alliance for Decentralized Energy (WADE), in collaboration with International Centre for Energy, Environment and Development (ICEED) and Christian Aid.
Decentralized energy systems make use of large numbers of small generating units located close to the point of energy use, instead of Nigeria's current system which depends on small numbers of large electricity generating units that require transmission over thousands of miles.
The adoption of decentralised energy in Nigeria provides a cheaper, more efficient and cleaner option than the current highly-centralised model, benefitting public and private sector businesses as well as isolated, rural communities.
"Decentralised energy investments present a ray of hope in the dark shadows of the current power sector policy", says Ewah Eleri, Director of ICEED. "By dumping power sector reforms and discouraging private sector investments in decentralised options, such as small scale hydropower and small gas turbines in the Niger Delta, the Federal Government is missing opportunities to end the power crisis, says Eleri. In addition to 16% in capital costs savings, decentralisation means that Nigeria can cut up to 25% of expenditure in retail costs, including operation and maintenance and high fuel costs. The financing of such a model is more sustainable, as energy plants can be gradually expanded as more investment becomes available and demand increases.
Towards a decentralised energy future in Nigeria, a workshop on decentralised Energy will take place on Monday November 9, 2009 at 9am in Meeting Room A, at the Yar'Adua Centre in Abuja.
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