By Oluseyi Ugonna Ajayi
Renewable energy is energy from sources that are naturally replenishing but flow-limited; renewable resources are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. The major types of renewable energy sources are: Biomass, wood and wood waste.
The toxic effects of pollution has become more visible and the need for sustainable development takes on a more central role in the global energy conversation, and there has been suggestions that it is important to shift focus towards renewable energy and other clean energy sources to foster economic growth, especially in developing countries such as Nigeria, where the need for investment is greatest.
This global paradigm shift, along with various policy initiatives by governments to incentivise renewable energy development and financing has led to an unprecedented growth in renewable energy (especially solar and wind) projects in many countries. Even for a country like Nigeria, where renewable energy has always featured in the energy mix (hydropower accounts for about 12.5 per cent of its on-grid energy), the current trend provides an opportunity to promote and attract sustainable investment in its energy sector.
The main regulatory legislation amongst others is the Electricity Power Sector Reform Act (EPSRA) 2005 which established the main regulatory body, the Nigerian Electricity Regulatory Commission (NERC) Other legislations which were succinctly enacted to aid the ESPRA in the regulation of the activities of renewable energy include:
NERC Renewable Energy Feed-in Tariff (REFIT) This was issued in 2015. It applies to energy generated and supplied through the national grid, for renewable and energy-based power generation which is aimed at promoting the investment of renewable energy in Nigeria.
Mini-Grid Regulation This was issued by NERC in 2016. A major aim is to accelerate electrification of unserved areas and underserved areas. It applies to all mini-grids with a generation capacity of up to 1MW, the owners, operators, and users of the mini-grid as well as other private or public stakeholders.
National Renewable Energy and Efficiency Policy It was authorised as a policy document on April 20, 2015 by the Federal Executive Council (FEC). It is the first and only coordinated tool to drive renewable energy development and improve energy efficiency in Nigeria. Amongst other functions it mandates that the National Renewable Energy Action Plan (NREAP) and the National Energy Efficiency Action Plan (NEEAP) be set up and the implementation timeline agreed. It is uniquely focused on hydropower, biomass, solar, wind, geothermal, wave and tidal energy power generations.
National Biofuels Policy and Incentives This policy was approved by the FEC on the 20th of June 2007. The key thrust of the policy was to develop and promote the domestic fuel ethanol industry through the utilisation of agricultural products. The policy further aimed at the gradual reduction of the nation’s dependence on imported gasoline, reduction in environmental pollution, while at the same time, creating a commercially viable industry that can precipitate sustainable domestic jobs. The input of the policy to the renewable energy regulatory environment includes the establishment of a Biofuels Commission, issuance of a biofuels regulation by the Minister of Petroleum.
Nigerian Electricity Management Services Agency (NEMSA) Act The legislation has the objective of enforcing technical electrical standards and regulations as prescribed by NERC, including technical inspection, the testing and certification of electrical installations, electricity meters, and instruments to ensure the efficient production and delivery of safe, reliable and sustainable electric power supply and the guarantee of the safety of lives and property in the Nigerian electricity supply industry.
Renewable Electricity Policy Guidelines It was issued in 2006 for the provision of adequate and reliable power supply in Nigeria.
National Energy Policy 2003 There was no comprehensive energy policy in Nigeria before the approval of the National Energy Policy. The focal goal of the policy is to create energy security through a robust energy supply mix by diversifying the energy supply and energy carriers based on the principle of “an energy economy in which modern renewable energy increases its share of energy consumed and provides affordable access to energy throughout Nigeria, thus contributing to sustainable development and energy conservation. As it appears, the policy lacks neither legislative backing nor force of law and does not impose particular statutory obligations on either the government or the investors, private or institutional. This invariably implies that the relevant stakeholders in the energy sector, most especially the government, cannot be compelled by way of a Court order or injunction to implement and execute the key objectives of the policy. This definitely will not augur well with the development of the renewable energy sub-sector.
Energy Commission of Nigeria Act (ECA) The Act establishes the Energy Commission of Nigeria and saddled it with the responsibility of coordinating and general surveillance of the systematic development of the various energy resources in Nigeria.
Captive Energy Generation Regulations (CEGR) These regulations were issued by the National Electricity Regulatory Commission (NERC) in 2008. Principally, the regulations provide for the procedure for the application, renewal and cancellation of the captive generation permit, including the supply of power by a captive permit holder to an off taker in excess of 1MW; and the provisions of data to the commission by captive generators.
National Electric Power Policy. The goal of the policy is to ensure that the electricity supply industry meets the demand efficiently and economically in Nigeria. It lays out the framework for the reform and liberation of the Nigerian Electricity Supply Industry (NESI)
Nigeria Renewable Energy Master Plan 2005 and 2012 (NREMP). The major aim of the plan is to articulate Nigeria’s vision and targets for addressing essential development challenges through the accelerated development and exploitation of the Renewable Energy. The Master Plan released in 2006 was the collaborative effort of the Energy Commission of Nigeria (ECN) and the United Nations Development Program. The Master Plan is based on certain economic and social assumptions. The Master Plan provides a regulatory framework for achieving these objectives and targets such as creating a level playing ground, maintaining a renewable portfolio standard, creating fiscal and market incentives, integration of Renewable Energy into Non-Energy Sector policies, establishment, and reinforcement of regulatory institutions and also, standardisation of Renewable Energy Products.
Environmental Impact Assessment Act Cap E2, LFN 2004. The Act makes it mandatory for environmental impact assessment to be conducted for projects likely to have significant effects on the environment, which also includes power projects. Section 2 of the Act provides for the assessment of public or private projects likely to have a significant impact on the environment.
Regulatory Agencies in charge of Renewable Energy
Nigerian Electricity Regulatory Commission (NERC) National Environmental Standards and Regulations Enforcement Agency (NESREA) Rural Electrification Agency (REA) Nigerian Electricity Management Services Agency (NEMSA) Nigerian Bulk Electricity Trader (NBET) Federal Ministry of Environment Standard Organisation of Nigeria (SON) Transmission Company of Nigeria (TCN)
CONCLUSION
Environmental, social and governance related issues are becoming increasingly more critical for providers of capital, and renewable energy tends to be an important element of this in Nigeria, where energy asset development represents a large proportion of infrastructure investment, thus, with these laws and agencies, it will be easy to manage issues relating Renewable Energy in Nigeria.
REFERENCES
Energy explained, available at https://www.eia.gov/ Renewable Energy in Nigeria: law, regulation, trends and opportunities, available at https://www.ibanet.org Legal frameworks for renewable energy in Nigeria, available at https://www.mondaq.com An overview of the legal and regulatory framework for renewable energy projects in Nigeria, available at https://unilaglawreview.org Ajayi is currently a legal intern at Elcrest Exploration and Production LTD, and a law student of Adekunle Ajasin University, Akungba-Akoko, Ondo State.