Leadership (Abuja)
Aminah Mohammed
7 November 2009
Abuja — The World Alliance for Decentralised Energy (WADE) has revealed that Nigeria can save an estimated 16% in capital costs which is almost $3 billion through increased investment in a decentralised energy.
In a study conducted by World Alliance for Decentralised Energy in collaboration with International Centre for Energy, Environment and Development(ICEED) and Christian Aid, the executive director of ICEED, Ewah Eleri, said, "Decentralised 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. It presents a ray of hope in the dark shadows of the current power sector policy 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.
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. According to the Executive director of WADE David Sweet, the study also demonstrates that decentralised energy is more efficient, and by reducing the transmission distance, Nigeria can produce more energy per unit of investment, as well as reduce network losses.
This results in a 285% saving in fossil fuel use, as well as less water use, and more effective response to the needs of energy consumers. "Greater deployment of decentralised energy technology has been used around the world to reduce delivered power costs, improve the reliability of electricity service and reduce pollution. Nigeria stands to realize these benefits and more as policies favourable to decentralized energy are adopted" "Nigeria needs new options to improve the performance of the power sector and to address the very real challenge of climate change. Negative impacts are already being felt by the northern and southern parts of the country, and we must use the COP-15 conference in December to lobby for the means to bring decentralised energy options to Nigeria", he added.
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A bunch of good points. Big national grids are a 1960s solution to a 1950s problem in America: Excess power needing distribution to a far away market. There are so many local power sources to be used if you don't have to ramp them up for distribution. The same applies to fuel gas. There is an enormous amount of valuable fuel gas being wasted or not produced because it is not pipeline quality.