Biofuels Opportunities

and Development of
Renewable Energies
Markets in Africa: A
Case of Nigeria

Presented By
Abiodun Olaniyi, MREEEP;MREA;MCREN;MIKMI
President ,Centre For Jatropha Promotions & Biofuels
(CEJAB)
Lagos, Nigeria
cejabng@gmail.com
A paper presented during the Biofuels Market Africa
2007 Conference, in
Cape Town South Africa on November 5-7,2007.

CEJAB AFRICA 1
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CONTENT
ƒ OVERVIEW OF AFRICA
BIOFUELS MARKET
ƒ BIOFUELS OPPORTUNITIES
ƒ NIGERIA BIOFUELS MARKET
ƒ RENEWABLE ENERGIES
MARKET DEVELOPMENT IN
NIGERIA
ƒ FUTURE
ƒ RECOMMENDATION
ƒ CONTACTS
ƒ REFERENCES

CEJAB AFRICA 2
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OVERVIEW OF AFRICA
BIOFUELS MARKET
ƒ Biofuels opportunities abounds in Africa. She
stands as the platforms for the future of
biofuels. Moreso, the mass developments of
renewable energies markets in Africa is very
important to her inhabitants in the areas of
sustainable development. Biofuels have been
getting a lot of attention from Southern Africa
to Western Africa in the past years. A lot of
programmes had been initiated by various
Africa countries governments on biofuels
development and deployments.

ƒ The Southern Africa are leading the pack on

biodiesel development & commercialization
using Jatropha oil. Many bioenergy
companies(D1 oil Plc) had set up shops in
Southern Africa countries. Infact the Southern
African countries are the leading light on
biodiesel and Jatropha plantation in Africa.

ƒ However, the following countries have been

identified with feasible projects on biofuels,
South Africa, Nigeria, Zimbabwe, Tanzania,
Zambia, Mozambique, Ghana, Burkina Faso,
Niger, Senegal

CEJAB AFRICA 3
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 NIGERIA BIOFUELS MARKET
ƒ Globally the clean energy fever is
being fuelled by three factors: fears
over energy security, a growing
concern over global warming and high
oil prices. Oil provides over 90 percent
of Nigeria’s foreign exchange
earnings, even though the oil sector of
the economy contributes only 30
percent of the GDP in comparison to
40 percent from agriculture. The
country benefits from the rise in oil
prices and the strategic importance of
being one of the world’s largest
producers of a vital product.
Oil, however has not guaranteed
ecologically and socially acceptable
development in Nigeria. [5]
CEJAB AFRICA 4
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NIGERIA BIOFUELS MARKET
(cont’d)
ƒ Presently, there are over 11 oil
companies operating 1,481 wells from
159 oil fields in the Niger delta to
produce 2.7 million barrels of crude oil
each day. The bad news is the flaring
of about 17 billion cubic metres of
associated gas spewing 2,700 tons of
particulates, 160 tons of sulphur
oxides, 5,400 tons of carbon
monoxide, 12 and 3.5 million tons of
methane and carbon dioxide
respectively in the process. Nigerians
worry over the polluting practice of oil
exploration, but do not often see this
in the context of contributions to
global concentrations of greenhouse
gases. The finite nature of oil
resources and the need to diversify
the economy away from
overdependence on the product is
emphasized only in rhetoric. Over half
a century since the commencement of
oil exploration in the Niger delta the
country imports more than 70 percent
of domestic fuel requirements
because none of the four refineries
have functionedCEJAB
efficiently.
AFRICA
[5] 5
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 CO2 emissions… increase in the earth’s
temperature

CEJAB AFRICA 66
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 In addition the price of crude oil is escalating at
incredible rate

140.00

120.00 Currently
Iran (Nuclear there is war
in Northern
issue) – USD
Iraq.
100/bbl

100.00
O il P ric e ( U S D /b b l )

Lebanon
War

80.00

Militancy in
Nigerian
Invasion of Niger Delta
Iraq
60.00

Iranian
Revolution
Invasion of
Kuwait
40.00
Yom Kippur
War

20.00

0.00 CEJAB AFRICA 77

1970 1975 1980 1985 www.cejab.org
1990 1995 2000 2005 2010 2015
 NIGERIA BIOFUELS MARKET
(cont’d)

ƒ Nigeria has the potentials to become the

largest biofuels market in Africa if the
enormous feedstocks at her disposal is
well utilized. The question always asked
is, why Nigeria a country that produces oil
should be involved in biofuels promotion &
production. Nigeria as a signatory to the
kyoto protocol is obligated to implement
the treaty in her territory. The effects of
climatic change is so evident that any
country refusing to take urgent steps may
have herself to blame. Nigeria had
through her National oil producing
company partner with the Brazilian oil
company( Petrobas) to integrate biofuels
into Nigeria fossil fuels.

CEJAB AFRICA 8
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 The Energy Situation in
Nigeria
ƒ The Energy Resources in Nigeria
include: Crude Oil, Natural Gas, Coal,
Tar Sand and Renewables (Biomass,
Hydro, Solar, Wind, etc.)

ƒ Current Estimated Oil Reserve in

Nigeria is 35.9 billion barrels with daily
production capacity of 2.4 million
barrels of Crude Oil

ƒ Natural Gas is estimated at 185 trillion

cubic feet of proven reserve as at
¾January 2006
The 35.9 billion barrels (
of-oil
OGJ ). will be depleted by 30 – 36 years
in reserve
period.

ƒ ¾Coal
Renewable Energy (Biofuels) will increase supply and reduce the
demandand Lignite Reserves are
on oil reserve.
estimated at 2.75 billion tons.
Source: Oil and Gas Journal, 2007

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NIGERIA AGRICULTURAL
LAND AREA

ƒ Nigeria’s total land area is

924million hectares, of this area 91
million hectares is adjudged to be
suitable for cultivation.
Approximately half of this cultivable
land is effectively under permanent
and arable crops, while the rest is
covered by forest wood land,
permanent pasture and built up
area. Among the states which have
the most abundant land area are
Niger [7.6 million hectares] and
Borno [2.8 million hectares].
ƒ In 1996, a total of 33million
hectares were cultivated to crops
generally; out of which 17.7 million
hectares were for staples and 4.9
million hectares were for industrial
crops.
CEJAB AFRICA 10
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LAND TENURE SYSTEM
IN NIGERIA
ƒ Land tenure in Nigeria is defined as the
system of land ownership or acquisition
by individuals, family , community or
government agency either for temporary
or permanent use. The system varies
from tribe, community and state.
It can be classified into the following
groups:
ƒ Communal land Tenure
ƒ Inheritance Land Tenure
ƒ Leasehold system
ƒ Rent land Tenure
ƒ Land Tenure by free gift or pledge
ƒ Individual Land Tenure
ƒ Tenancy at the will of government.

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DATA ON AGRICULTURE (AREA OF NIGERIA BY STATES)
STATES HECTARE SQUARE KM ACRES SQ. MILES
ABIA 632000 6320 1561672 1440
ADAMAWA 3691700 36917 9122191 14254
AKWA IBOM 708100 7081 1749715 2734
ANAMBRA 484396 484396 1196952 1870
BAUCHI 6460500 64605 15963896 24944
BENUE 3475900 34059 1485979 13150
BORNO 7089800 70898 17518896 27374
CROSS RIVER 2015600 20156 4980548 7782
DELTA 1769800 17698 4373176 6873
EDO 1780200 17802 4398874 6873
ENUGU 1283100 12831 3170540 4954
FCT 731500 7315 1807537 2824
IMO 553300 5533 1366463 2135
JIGAWA 2315400 23154 5721600 8940
KADUNA 4605300 46053 11379696 17781
KANO 2013100 20131 4974370 7773
KATSINA 2419200 24192 5977843 9341
KEBBI 3682500 36825 9099458 14218
KOGI 2983300 29833 7371734 11519
KWARA 3682500 36825 9099458 14218
LAGOS 334500 3345 826550 1292
NIGER 7636300 76363 18869297 29484
OGUN 1676200 16762 4141890 6472
ONDO 2095900 20959 5178969 8092
OSUN 925100 9251 2285922 3572
OYO 2845400 28454 7030983 10986
PLATEAU 5803000 58030 14339213 22405
RIVERS 2185000 21850 5399135 8436
SOKOTO 6573500 65735 16243119 25380
TARABA 5447300 54473 13460278 21032
YOBE 4550200 45502 11243544 17568

TOTAL 92377096
CEJAB AFRICA
923771 228263320 356666
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 Agriculture Status and Land use in Nigeria

Agriculture
Agriculture in
in Nigerian
Nigerian Agricultural
Agricultural Exports-Imports
Exports-Imports
Economy (2002):
Economy (2002): Balance
Balance (2002):
(2002):

• Agricultural GDP as share of • Total Exports Æ US$ 15107

Million
total GDP Æ 26.4%
• Agricultural Labour Force Æ • Total Imports Æ US$ 7547
Million
31.0%
• Agricultural Exports Æ US$
406.5 Million (2.7%)

Major
• Agricultural Imports Æ US$
Major Exports
Exports (share
(share in
in 1996.4 Million (26.5%)
Agriculture):
Agriculture):
• Agricultural
Export-Import Balance Æ
• Cocoa Beans Æ 62.1% US$ -1589.9 Million
• Cocoa Butter Æ 3.8%
• Cotton lint Æ 2.0%
Major
Major Imports
Imports (share
(share in
in
Agriculture):
Agriculture):

• Wheat Æ 17.6%
• Sugar, refined Æ 10.1%
• Rice, Milled Æ 12.9%

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Sources: FAOSTAT; World Bank – World Development Indicators, 2005
 Agriculture Situation and Land use
in Nigeria

Non Arable and

non Permanent
20%

Agricultural
Area
80%

Others
Commodities Area harvested
10,3% (1000 Ha)
Cocoa beans
2,2% Cassava
8,4%
Sugar Cane and Yams
Sugar crops 6,4%
0,1%
Oil Palm Fruit
Beans, dry equivalents
11,0% 6,8%

º
Groundnuts
5,9%
Sorghum
Citrus fruit 14,5%
1,5%
Rice, paddy
7,6%
Starchy roots and Total Area Harvested (2004): 48.825.370,0 Ha
Millet (Approx 67% of Agricultural Area)
tubers Maize
Vegetables 12,5%
1,5% 9,1%
2,3%

CEJAB AFRICA 14
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Source: FAOSTAT | © FAO Statistics Division 2006, September 2006
The profile for the sugarcane and cassava
ethanol projects to be pursued by NNPC.

Sugarcane Cassava
ƒ Integrated operation: ƒ Integrated operation:
ƒ Farm size: >=15,000- ƒ Farm size: >=7,000 ha
18,000 ha
‹Cassava production: 2.5-3
‹Cane production: 1.8 million
t/year million t/year
‹Irrigated ‹Likely irrigated

ƒ Plant characteristics: ƒ Plant characteristics:

‹Ethanol:>=70 million l/year ‹Ethanol: >=50-60 million
‹Refined Sugar: >=110,000 l/year
t/year ‹Capable of handling 9,000 ha
‹Self-powered: bagasse
‹Self-powered using field
‹Cogeneration
waste;

ƒ Out-grower scheme:
<=1,000 ha (initially) ƒ Out-grower scheme:
<=1,000 ha (initially)
ƒ Qualified for carbon credits
ƒ Cogeneration if developed ƒ Ethanol guaranteed off-take
by NNPC
ƒ Ethanol guaranteed off-take
by NNPC ƒ Investment requirement:
>$39-45 million
ƒ Investment requirement: ƒ Farm: $4-5 million (excl.
$250-300 million land & irrigation)
ƒ Farm: $100-125 million ƒ Plant: $35-40million 15
(incl. land & irrigation) CEJAB AFRICA
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ƒ Plant: $150-$175 million
Locations currently under consideration for
NNPC sugarcane projects are in Benue,
Taraba, Kwara and Gombe states and Ondo
and Anambra states for cassava.

Sokoto
Katsina
Jigawa
Zamfara Yobe Borno
Kebbi
Kano

Kaduna Bauchi Gombe

Niger
Adamawa

Plateau
Kwara FCT
Oyo Nasarawa

Taraba

Ekiti
Kogi Benue
Osun
Ondo
Ogun

Lagos Edo Enugu

Ebonyi
Anambra

Abia
Delta Imo
Cross River

Akwa Ibom
Balyesa Rivers Sugar cane

Cassava
CEJAB AFRICA 16
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BIOFUELS
OPPORTUNITIES
(Feed Stocks)
ƒ There are a lot of biofuels
opportunities in Nigeria owing to
the large feed stocks she
possesses i.e Cassava, Sugar
Cane, Soya, Sweet Sorghum, Oil
Palm, Coconut etc..
ƒ Nigeria is the largest producer of
Cassava in the world. She also
possess a great source for
Jatropha Curcas and a good soil
for plantation.
ƒ Nigeria has the largest capacity
for oil palm plantation which
serves as a great source of
biodiesel. CEJAB AFRICA 17
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CEJAB AFRICA 18
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JATROPHA
ƒ Jatropha plant had been identified as a
very important source of biofuels after
palm oil. It had been used as bio-diesel
and organic fertilizer in several
European, Asia & African countries.
ƒ The market for bio-diesel and organic
fertilizer is growing but there are no
enough raw materials to feed the
growth. There are currently commercial
plantations of Jatropha plants in
Ghana,Mali, Zambia, Zimbabwe,
Tanzania and South Africa.
ƒ Jatropha plants is widely found in
Nigeria. The local names in Nigeria are
‘botuje’, ‘pupa’, ‘lapalapa pupa’, ‘iyalode
pupa’, ‘sherigun’, ‘okpokporu’, ‘olosa’
etc. It can be found in various
communities in Nigeria, especially the
rural areas. [1]

CEJAB AFRICA 19
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WHAT IS THE GROSS INCOME
THAT A HIGH PRODUCTION
JATROPHA PLANTATION CAN
GENERATE PER YEAR?

ƒ CEJAB AFRICA is planning to

plant a density of approximately
2,200 jatropha trees per hectare
and its projection have been
modeled on 10% gestation failure
and an average yield of
approximately 3.5 kg of jatropha
seeds per annum per tree.
However, CEJAB AFRICA have
observed stronger yields of
approximately 6.5 kg per tree per
annum in areas with higher rainfall.

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ƒ 3.5kg x 2,200 trees = 7,700 kg of
jatropha seeds per hectare
ƒ 7,700 kg seeds x 33% oil = 2,541 kg
of jatropha oil per hectare
ƒ 2,541 kg of jatropha oil per hectare =
2,541 kg x 1, 12 = 2,846 liters
jatropha oil
ƒ 2,846 liters jatropha oil x 0.95 liters
bio-diesel = 2,703 liters of bio-diesel
ƒ 2, 703 liters of bio-diesel x N128 =
N345,984 from bio-diesel sales per
hectare
ƒ N345,984 x 50,000 hectare =
N17,299,200,000 gross profit

ƒ That’s over N17 billion in bio-diesel

sales per annum from just a 50,000
hectares high yield planting
program
CEJAB AFRICA 21
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RENEWABLE ENERGIES MARKET
DEVELOPMENT IN NIGERIA
ƒ There are a lot of possibilities for
the development of renewable
energy market in Nigeria. Of all the
modern renewable energy
technologies, excluding large-scale
hydropower ,solar photovoltaic has
shown the highest potential for
early market development in the
country. Indeed, a small market in
imported solar-PV devices and
systems now exists.
ƒ More so, there are great future
prospects for other renewable
energies like Small Hydro power,
Bioenergy ,Wind energy in Nigeria.

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 Table 1: Nigeria’s
Renewable Energy Resources

Energy Source Capacity

Large Hydropower 11,250 MW

Small Hydropower 3,500 MW

Fuelwood 13,071,464 hectares

(forest land 1981)

Animal Waste 61 million tones/yr

Crop Residue 83 million tones/yr

Solar Radiation 3.5 – 7.0 KWh/M2-day

Wind 2-4 m/s (annual average)

CEJAB AFRICA 23
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Targets for Electricity
Generation (MW) [7]
Sources Short Medium Long
Term Term Term
2005- 2008- 2016-
2007 2015 2025
Wind 1 20 40

Solar PV 5 120 500

Solar Thermal - 1 5

Small Hydro 50 600 2000

Biomass - 100 800

Total 56 841 3345

Percentage 0.80 6.00 11.53

Share of
Projected
Electricity
Demand
CEJAB AFRICA 24
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The target for the Long term
period 2016-2025 consists of
the following [7]
Sources Target Demand Detailed Description
(MW) of target

Wind 40 Commercially –driven

and much larger wind
farm projects

Solar PV 500 Larger PV electricity

projects, composed of
grid-connected, mini-
grid systems and grid
connectible Solar
Home System and
stand alone Solar
Home System
Solar Thermal 5 National solar thermal
electricity programme
using one of the 3
proved solar thermal
power (STP)
technologies

Small Hydro 2000 Commercial

development of small
hydro sites all over the
country
Biomass 800 Biomass cogeneration,
biogas, biofuels
electricity generation
projects

CEJAB AFRICA 25
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 The target for the Short term
period 2005-2007 consists of the
following [7]

Sources Target Detailed

Demand Description of
(MW) the Target

Wind 1 Wind Farm

Demonstration Project

Solar PV 5 Solar PV electricity

projects, composed of
grid-connected and
mini-grid systems as
well as grid-
connectible Solar
Home Systems and
Stand alone Solar
Home Systems
Small Hydro 50 There is already an
existing small hydro
capacity of over 30
MW. New planned
capacities include
Oyan, Obudu, Evboro,
etc.
CEJAB AFRICA 26
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TABLE 2: SOLAR PV INSTALLATIONS BY STATE, 1990-99 (mid-yr) [3]

STATE Installed Number of

Capacity Installations

Cap. % No %
KWp

1. Lagos 17.69 8.2 59 19.6

2 Yobe 33.80 15.7 51 16.9
3 Kano 24.234 11.3 27 9.0

4 Akwa- 27.189 12.6 27 9.0

Ibom
5 Jigawa 22.194 10.3 18 6.0

6 Kaduna 12.778 5.9 16 5.3

5
7 Katsina 18.582 8.6 14 4.6
8 FCT 9.94 4.6 10 3.3

9 Rivers 1.33 0.6 9 3.0

10 Taraba 0.616 0.3 8 2.6

CEJAB AFRICA 27
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 STATE Installed Number of
Capacity Installations

Cap. % No %
KWp

11 Benue 5.974 2.8 7 2.3

12 Plateau 4.58 2.1 6 2.0

13 Bayelsa 1.675 0.8 6 2.0

14 Sokoto 11.02 5.1 5 1.7

15 Niger 6.84 3.2 5 1.7

16 Cross 1.375 0.6 5 1.7

River
17 Gombe 0.982 0.3 5 1.7
18 Delta 3.68 0.5 4 1.3

19 Bauchi 1.552 1.7 4 1.3

20 Anambra 3.24 0.7 3 1.0

21 Enugu 0.11 1.5 3 1.0

CEJAB AFRICA 28
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 STATE Installed Number of
Capacity Installations

Cap. % No %
KWp
22 Borno 1.24 0.6 2 0.7
23 Oyo 0.11 0.05 2 0.7
24 Adamawa 3.6 1.7 2 0.7
25 Abia 0.256 0.1 1 0.3
26 Kogi 0.33 0.15 1 0.3
27 Ebonyi 0.07 0.0(<0 1 0.3
.05)
Sub- 215.461 100.0 301 100
Total
23.344 2 cases of 45
installations to all
states: capacity to
each state was not
specified

Total 238.805 346

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 DEMAND/SUPPLY SITUATION
• Electricity Demand
– Household and Industry Projections
• 8% and 9% - High Growth Scenario
• 3% and 5% - Low Growth Scenario
• Principal Consumers of SHP
• SHP Demand Projection
– Faster Pace
• 10% annual rate
-190mW * (2000)
Tab 1 – Projected Small Hydro Power
Demand
-Nigeria
• 2000
-190mW (Demand)
30mW )Supply)
160mW (84%) shortfall
• 2020 -----------90%
No development
• 2030-------------Estimated Demand
3315mW
Estimated potential
3500mW
CEJAB AFRICA 30
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Source: REAP/FMP&S, 2006 – Draft Document
 POWER GENERATION
SCENERIO [2]

• Daily Power Generation

– Jan, 2006 – 3,000mW
• Deduction of Contribution
– AES Barge and AGIP
– Daily Generation hovers
• Around 2,000mW
– 1999 output level
• Projected Power Generation –
NEEDS
– 2006 – 7,000mW
– Available Power – 40% (NEEDS)
– Various Planned Projects – 10,000mW
level (2006/2007)
• Projected Power Generation – SHP
(REP)

CEJAB AFRICA 31
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 SHP Pilot Projects in
Nigeria [2]

ƒ Pilot Projects
ƒ Enugu, 30kW, Test running, Awaiting
Commission
ƒ Waya Dam, 2 x 75 kW equipment installation
soon.
ƒ Obudu Resort, 30kW, DPR.
ƒ Evboro II Village, Benin, 2 x 20kW, DPR
ƒ Commercial projects
ƒ Kakara, Mambilla Plateau 400kW & 200kW-
DPR
UNHCR/UNIDO collaboration
ƒ Ta Hoss, Plateau, 100kW – feasibility Stage
ƒ FCTA Projects
ƒ Primary Health Clinics
ƒ Ketti Health Centre, 5kW – feasibility stage
ƒ Kwaita Health Centre, 6.6kW- feasibility
stage
ƒ Kurmi Dauda, 7kW – feasibility stage

CEJAB AFRICA 32
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 Table 1.
Projected Nigeria Small Hydro Power
Demand [2]

S/ Year Estimated Demand Estimated Potential

N• (mW) (mW)
1. 2000 190 500

2. 2005 300 1,000

3. 2010 500 1,500

4. 2015 750 2,000

5. 2020 1,300 2,500

6. 2025 2,100 3,000

7. 2030 3,315 3,500

CEJAB AFRICA 33
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Table 2:
Existing Small Hydro Schemes in Nigeria
*(Needs Rehabilitation) [2]

S/ River State Installed

N Capacity
(MW)
1. Bagel (I) Plateau 1.0
(II) 2.0

2. Kurra Plateau 8.0

3. Lere (I) Plateau 4.0

(II) 4.0

4. *Bakalori Sokoto 3.0

5. *Tiga Kano 6.0

6. *Oyan Ogun 9.0

7. *Ikere Oyo 6.0

CEJAB AFRICA 34
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 Table 2B: River Basins Identified
Hydro Potential Sites [2]
Organization Potential Site Status Capacity

Upper Benue ƒ Jada Pre- 5MW

River Basin ƒMonkin Dam feasibility 500kW
Dev. Authority ƒKiri Dam level 1083kW
ƒWaya dam 61.8kW
ƒDandinkowa 33kW
Dam

Owena Benin ƒRiver Owena Pre- 1.3MW

River Basin ƒEle River feasibility 1.29MW
Dev. Authority ƒRiver level 600kW
Okhuanwan
Anambra-Imo ƒRiver Igwu Identified 7.55kW
River Basin ƒImo River
Dev. Authority ƒIvo River

CEJAB AFRICA 35
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 KEY DRIVERS OF SHP MARKET[2]

• Population Growth
– Population Pressure
• Demographic Changes
• Settlement Near Water Sources
• Government sponsored programmes
– Rural Electrification, Water Resources
Development
– Cottage Industries, Rural Enterprises
– Poverty Alleviation, Health Care
Services
– Agriculture
• Draw from SHP Schemes
• Absence of National Grid
– Remote Areas
• Diversification of Community Trades
& Services
– Diesel Based Generator
• O & M Costs
• High Fuel Cost
• Unreliability of Fuel Supply
– Ready Markets for SHP
CEJAB AFRICA 36
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 WIND ENERGY MARKET
DEVELOPMENT

50000
45000
40000
35000
30000
MW

25000
20000
15000
10000
5000

05
04
20
20
0
87
89
91
93
95
97
99
01
03
19
19
19
19
19
19
19
20
20

Year

installed power capacity accumulated capacity

>55,000 MW End 2005 (for example: 47,000 MW mid of 2005)
Expected Market Growth up to 2010: >16% p.a.

CEJAB AFRICA 37
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Sources: LAYMEYER INTERNATIONAL, 2006
 WIND ENERGY MARKET
DEVELOPMENT

ALGERIA TUNISIA LYBIA

installed : 0 MW installed : 20 MW installed : 0 MW
planned : 50 MW planned : 300 MW planned : 100 MW

MOROCCO EGYPT
installed : 54 MW installed : ~ 230 MW
planned : 200 MW planned : 3500 MW
MALI
planned : 0.9 MW SUDAN
planned : 2 MW
SENEGAL
planned : 20 MW ETHIOPIA
installed : 0 MW
CAPE VERDE planned : 300 MW
installed : 3 MW 2007-2008: 120 MW

ERITREA
planned : 1.5 MW
Other countries with known activities:
•Namibia
•Angola DJIBOUTI
•Gambia planned : 30 MW
•Kenya
SOUTH AFRICA
installed : 3 MW
planned: 300 MW

CEJAB AFRICA 38
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Sources: LAYMEYER INTERNATIONAL, 2006
The Technical Opportunities That Exist For Wind
Energy in Nigeria
Example for a Wind-Diesel System
(West-Africa)

Institutional
Institutional
Objectives:
Objectives: requirements:
requirements:
• Economical: Minimize
• Government
cost of electricity
appraisal
due to fuel savings
• Environmental:
• International and
local financing
Maximize emissions
reduction • Power purchase
agreement with
community based
Technical utility
Technical requirements:
requirements:
• Power Range: 1 kW -10
• Local contribution to
operation
MW
• Favorable wind conditions
• Technical expertise
for supervision
• Isolated electrical grid
• High fossil fuel cost of the
diesel system

CEJAB AFRICA 39
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Sources: LAYMEYER INTERNATIONAL, 2006
Example 10MW Wind Park at the coastal
area of Nigeria (1/2) and 4MW Wind-Diese
System

Assumptions
• Wind Park: 12 x 850kW
Wind Turbines
• v = 4.65 m/s • No costs for land lease
• Energy yield: 15982 MWh/a • Wind-Diesel System: 5 x
• Losses: 5% (included) 850kW Wind Turbines
Costs of Electricity Generation

Costs of Electricity Generation

18.000
137
Diesel Wind Park 10MW Wind-Diesel 4MW
127
16.000
117
[Naira/MWh]

[US$/MWh]
14.000
Profit Margin107
97
12.000
87
Present Diesel price
10.000 77

67
8.000 Break Even Point
Break Even Point Grid connected 57
Wind-Diesel system
medium size Wind Park
6.000 47
30 35 40 45 50 55 60 65 70
Diesel costs [Naira/Liter] (Dec. 2005)

CEJAB AFRICA 40
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Sources: LAYMEYER INTERNATIONAL, 2006
FUTURE
ƒ The future is bright for the use and
development of renewable energies
market in Nigeria, only if most of the
identified obstacles are cancelled.
ƒ The awareness about renewable
energy are growing by the day and
the citizens are coming to terms to the
efficacy of renewable energies to
national energy mix. There are
enormous markets for renewable
energy technologies yet to be ear
nested.
ƒ The Nigerian rural community are
waiting for a time when the
technologies for maximizing this
renewable resources are affordable.

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RECOMMENDATIONS
ƒ An enabling policy should be
developed for regulatory
frameworks for biofuels
development in Nigeria and
other parts of Africa.
ƒ Moreso, there should be links
to overall sustainable
development policies. Also,
ensuring the participation of
all stakeholders and enhance
energy security.

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 THANK YOU
ƒ MR. ABIODUN OLANIYI
PRESIDENT
CENTRE FOR JATROPHA
PROMOTIONS &
BIOFUELS(CEJAB)
LAGOS,NIGERIA
TEL: 23417432668
2348023201920
2348059042968
EMAIL: cejabng@gmail.com
WEBSITE: www.cejab.org

CEJAB AFRICA 43
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 REFERENCES
1. A. K .OLANIYI(2006)Jatropha Promotion in Nigeria: The Green
Gold:-Paper presented at the International Renewable Energy
Conference at Abuja, Nigeria.
2. A. A. Esan(2006) Small Hydro Power Development Potential In
Nigeria. Paper presented at the International Renewable Energy
Conference at Abuja, Nigeria.
3. A. K .OLANIYI(2007)Jatropha Plantation and Biofuels Market
Development in Africa: Prospects & Challenges. Paper presented at
the Africa Biofuels Conference at Durban, South Africa ,September
25th-27th,2007.
4. C.E. Okeke(2006) Opportunities in Nigeria For Solar Energy Use
and Development. Paper presented at the International Renewable
Energy Conference at Abuja, Nigeria.
5. Ako Amadi(2006)Renewable Energies for Nigeria – Challenges and
Opportunities. Paper Presented at the Renewable Energy
Conference organised by the Goethe Institute, Lagos, Nigeria.
6. Andreas Wiese(2006) Renewable Energy Opportunities in Africa,
Example Nigeria:
Wind and Biofuels -Paper presented at the International Renewable
Energy Conference at Abuja, Nigeria.
7. A.M.A Imevbore(2006) Conclusions and Recommendations on
Roundtable on Renewable Energy Reached at the International
Renewable Energy Conference. A Paper presented at the
International Renewable Energy Conference 2006 at Abuja, Nigeria.
8. NIGERIAN BIO-FUEL INDUSTRY PROGRAMME: Overview & Perspective.
A presentation by Nigeria National Petroleum Company (NNPC) during the
IREC 2006 held in Abuja, Nigeria on 18th October 2006.
9. Energy Commission of Nigeria (2005): “Draft Renewable Energy
Master plan
10. I.H. Umar (1999) Promoting the growth of Local Solar Energy
Industries in the next Millennium: Paper presented at the Solar
Energy Society of Nigeria Annual Conference at Ilorin.
11. Technical Report NO. ECN/EPA/02/3 on a survey of business
activities in solar –PV in Nigeria.

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