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Law, Policy, and the Development of Renewable Energy for Electricity: A Case for a Renewable Energy Law in Nigeria

Published online by Cambridge University Press:  22 July 2021

Abstract

Nigeria faces a perennial problem of inadequate electricity generation and supply. Electricity generation from fossil fuel sources has not succeeded in meeting the electricity needs of the country. And attempts to diversify electricity generation sources to include renewable energy sources have not been successful. Although there is a policy direction supporting the inclusion of renewable energy sources for electricity generation, the Electric Power Sector Reform Act 2005 (ESPR) has not succeeded in achieving the country's sustainable electricity drive. Nigeria needs to vigorously pursue its renewable electricity objectives through a law dedicated to encouraging uptake of renewable energy. This article examines the law and the policies underpinning Nigeria's sustainable electricity drive through a critique of the EPSR Act and the energy policy in light of Nigeria's renewable electricity objectives.

Type
Articles
Copyright
Copyright © The Author(s), 2021. Published by International Association of Law Libraries

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Footnotes

© Kamoru Taiwo Lawal 2021. The author is a research student at the Adelaide Law School, University of Adelaide, and also a Legal Practitioner & Consultant.

References

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19 Ibid.

20 Energy Commission of Nigeria (ECN), National Energy Policy (Presidency, April 2003), p. 4.

21 There was an attempt in 1984 to produce a Draft Energy Policy Guideline by the then Federal Ministry of Science and Technology. Similar attempt by the Energy Commission of Nigeria to develop the Draft Energy Policy in 1993 did not see the light of the day. See, ECN, National Energy Policy (n 19), 2.

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24 ECN, National Energy Policy (n 19) 36.

25 Ibid.

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27 National Planning Commission, “Report of the Vision 2020 National Technical Working Group on Energy Sector” (Presidency, 2009), p. 144.

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29 Mark Lambrides, John A. Armstrong and Jan Hamrin, “The Renewable Energy Policy Manual” (United States Export Council for Renewable Energy, 2000) <http://www.oas.org/usde/publications/Unit/oea79e/oea79e.pdf>.

30 See, International Renewable Energy Agency, “Off-grid renewable energy solutions to expand electricity access: An opportunity not to be missed” (Abu Dhabi 2019) 5 <https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Off-grid_RE_Access_2019.pdf>.

31 United Nations Department of Economic and Social Affairs, “Improving sustainable energy access for rural areas,” (New York, January 2014) <http://www.un.org/en/development/desa/news/sustainable/rural-energy-access.html>.

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34 Federal Ministry of Power, “National Renewable Energy and Energy Efficiency Policy” (Federal Republic of Nigeria, 2015), pp. 1–2.

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39 NPC, Report of the Vision 2020 National Technical Working Group on Energy Sector (n 26) 60; Oyedepo et al, ‘Towards a Sustainable Electricity Supply in Nigeria’ (n 35) 11.

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42 Ayodele Oni, “The Nigerian constitution, states and electricity regulation” (BusinessDay 10 April 2014).

43 FMPS, Renewable Electricity Policy Guidelines (n 19) 9; Yemi Oke, “Conflicting laws keep Nigeria's electricity supply unreliable” 23 August, 2017 <https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supply-unreliable-81393>.

44 Concurrent Legislative Lists, Second Schedule to the 1999 Constitution, paras 13, 14; Worika, Ibibia L, ‘Rural Applications’ in Richard Ottinger et al. (eds), UNEP Handbook for Drafting Laws on Energy Efficiency and Renewable Energy (United Nations Environmental Programme, 2016), p. 279. Although Item 13 does not contain the phrase “national grid”, it can be inferred from the provisions of Item 14 that the electricity generation and transmission referred to in Item 13 relates to the national grid.

45 Yola Electricity Distribution Company, “About Us,” <yedc.com.ng>.

46 Ismaila H. Zarma, Hydro Power Resources in Nigeria, Energy Commission of Nigeria (Country position paper presented at 2nd Hydro Power for Today Conference, International Centre on Small Hydro Power, Hangzhou, China 2006).

47 Electricity Act 1990; National Electric Power Authority Act 1990.

48 Energy Commission Act 2004 preamble and ss 1(1) and 5(d)&(e); Federal Ministry of Power and Steel, “Renewable Energy Policy Guidelines,” (Federal Republic of Nigeria, 2006), p. 22.

49 Ifeyinwa Ufondu, Ike C. Ibeku and Felix Obetta, “Renewable Energy in Nigeria,” (Bechmac and Ince) <https://www.lexology.com/library/detail.aspx?g=e3a5d485-f596-4f59-b9bd-ba5dd5ae31f5>.

50 Energy Commission of Nigeria Act s 5(d)(i).

51 Energy Commission of Nigeria (ECN), Renewable Energy Master Plan (Energy Commission of Nigeria, Abuja, 2012).

52 Electric Power Sector Reform Act 2005 s 99.

53 Dimitri Papaefstratiou, “The Nigerian power market experiment: a critical appraisal of the PHCN privatisation,” DLA Piper, Insights (15 March 2019) <https://www.dlapiper.com/en/uk/insights/publications/2019/03/the-nigerian-electricity-market-experiment/>.

54 Electric Power Sector Reform Act 2005 s 76.

55 Vincent Emodi, “Energy Policies for Sustainable Development Strategies: The Case of Nigeria” (Springer, 2016), p. 52.

56 Federal Environmental Protection Agency, “Draft Revised National Policy on the Environment” (Presidency, 1998).

57 ECN, National Energy Policy (n 19) 2; Ibibia L Worika, ‘Rural Applications’ in Richard Ottinger et al., UNEP Handbook for Drafting Laws on Energy Efficiency and Renewable Energy (United Nations Environmental Programme (UN Environment), 2016), p. 269.

58 ECN, National Energy Policy (n 19) 1.

59 Ibid. 1, 8.

60 ECN, Energy Implications of Vision 20: 2020 and Beyond (n 39) 19.

61 Ibid. 61.

62 ECN, National Energy Policy (n 19) 36, 45, 64.

63 Energy Commission of Nigeria (ECN), Renewable Energy Master Plan 2005.

64 Ibid. 26–32.

65 Ibid. 5–6, 23–4.

66 International Renewable Energy Agency, “Policies and Regulations for Renewable Energy Mini-Grids,” (November 2018), p. 24.

67 FMPS, Renewable Electricity Policy Guidelines (n 43).

68 Ibid. 3.

69 Ibid. 4.

70 Ibid. 3, 13 and 16; Worika, Rural Applications (n 49) 269.

71 Worika, (n 49) 269; Yemi Oke, “Beyond Power Sector Reforms: The Need for Decentralised Energy Options (DEOP's) for Electricity Governance in Nigeria” (2015).

72 FMP, National Renewable Energy and Energy Efficiency Policy (n 33) viii; Dalberg Global Development Advisors, “Improving Access to Electricity Through Decentralised Renewable Energy, Policy Analysis from India, Nigeria, Senegal and Uganda” (2017), p. 47.

73 FMP, National Renewable Energy and Energy Efficiency Policy (n 33) 67.

74 Ibid. iv, 7, 10.

75 Ibid. viii.

76 Ibid. 4.

77 Ibid. 21; Dalberg Global Development Advisors (n 66) 56.

78 Dalberg Global Development Advisors (n 66) 56.

79 NERC, Regulation on Feed in Tariff s 4(i)(a).

80 Nigerian Electricity Regulatory Commission (NERC), Regulation on Feed-in Tariff for Renewable Energy Sourced Electricity in Nigeria (2015) ss 3, 8(f); Nigerian Electricity Regulatory Commission, ‘Renewable Energy Sourced Electricity’ <http://www.nercng.org/index.php/home/operators/renewable-energy>.

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82 NACOP, Sustainable Energy for All Action Agenda (n 13) 11–2.

83 Ibid. 31, 37, 40.

84 Ibid. 29.

85 ECN, National Energy Policy (above n 8) 36.

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89 Ibid. 215.

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94 Thomas von Danwitz, “Regulation and Liberalization of the European Electricity Market – A German View,” Energy Law Journal vol. 27 (2006), p. 432.

95 Allan E. Bollard and Michael Pickford, “New Zealand's ‘Light-Headed’ Approach to Utility Regulation,” AGENDA vol. 2 (1995), p. 411.

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101 Electric Power Sector Reform Act 2005 s 32(a).

102 Osaretin Aigbovo and Ebiton Ogboka, “Electric Power Sector Reform Act 2005 and the Development of Renewable Energy in Nigeria,” Renewable Energy Law and Policy Review vol. 7 (2016), pp. 20–21.

103 The Electric Power Sector Reform Act gives the Ministry certain oversight powers over the electricity industry. See Electric Power Sector Reform Act 2005 ss 24, 27, 28.

104 Energy Commission of Nigeria Act ss 4(a)(d)(e)&(h) and 33; Energy Commission of Nigeria, “Energy Commission of Nigeria's Mission Statement” <http://www.energy.gov.ng/index.php?option=com_content&view=article&id=78&Itemid=89>; Peter K. Oniemola, “Powering Nigeria through Renewable Electricity Investment: Legal Framework for Progressive Realization,” Afe Babalola University Journal of Sustainable Development, Law and Policy vol. 2 no. 1 (2015), p. 89.

105 Chris Ochayi, “NERC, NBET disagree over renewable energy policy,” (Vanguard, 18 August 2015) <https://www.vanguardngr.com/2015/08/nerc-nbet-disagree-over-renewable-energy-policy/>.

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107 E. L. Efurumibe, “Barriers to the development of renewable energy in Nigeria,” Journals of Biotechnology vol. 2 no. 1 (2013), pp. 11–12.

108 Electric Power Sector Reform Act 2005 s 82(4)&(5).

109 Maria Vagliasind, “Implementing Energy Subsidy Reforms: Evidence from Developing Countries” (World Bank, Washington, DC 2013), p. 248.

110 The rationale behind the non-discrimination provisions is to make the electricity sub-sector more competitive.

111 Kaisan Muhammad Usman, Aminu Haruna Isa and Johnson Oluyemi Ojosu, ‘Renewable Energy Financing: Towards a Financing Mechanism for Overcoming Pre-Commercialization Barriers of Renewable Energy Financing System in Nigeria’ International Journal of Scientific & Engineering Research vol. 3 no. 4 (2012), p. 3.

112 Yemi Oke, ‘Conflicting Laws Keep Nigeria's Electricity Supply Unreliable’ (The Conversation, 24 August 2017) <https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supply-unreliable-81393>.

113 Electric Power Sector Reform Act 2005 ss 31, 32; Yemi Oke, Conflicting Laws Keep Nigeria's Electricity Supply Unreliable (n 104).

114 Yemi Oke, Conflicting Laws Keep Nigeria's Electricity Supply Unreliable (n 104).

115 Yemi Oke, “Challenges and Developments in the Nigerian Power Industry” (2014) ALP Business Review-Energy (2014), p. 22.

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119 Yinka Omorogbe, Promoting Sustainable Development through the Use of Renewable Energy: The Role of the Law (n 89) 45.

120 Yinka Omorogbe, The Role of Law in Promoting Renewable Energies in Africa (n 3) 219.

121 Bradbrook, Sustainable Energy Law: the Past and the Future (n 96) 511–12 & 514.

122 United Nations Department of Economic and Social Affairs, “Improving sustainable energy access for rural areas,” (8 January 2014) <http://www.un.org/en/development/desa/news/sustainable/rural-energy-access.html>.