1. ENERGY EFFICIENCY REVIEW AND
POLICY RECOMMENDATIONS
Benjamin Ogbalor & Kunle Odeyemi
EverlinkSourcing Ltd
10 Zambezi Crescent, Maitama - Abuja
BY

2. PRESENTATION OUTLINE
1. Introduction and Background
2. Energy Challenges in Nigeria
3. Defining Energy Efficiency
4. Energy Conservation and Energy Efficiency
5. Barriers to Promoting Energy Efficiency in Nigeria
6. Recommendations for Energy Efficiency Practice
and Management in Nigeria
7. Nigeria Draft Energy Efficiency Policy (Excerpts)

3. INTRODUCTION/BACKGROUND
Global energy needs are likely to continue to grow
steadily for at least the next two-and-a half
decades. If governments stick with current policies
– the underlying premise of the World Energy
Outlook’s Reference Scenario – the world’s energy
needs would be more than 50% higher in 2030
than today, an average annual growth rate of 1.6%.

4. • The developing countries including Nigeria
have more than 80% of the world’s
population but their energy consumption
amounts to only 40% of the world total
energy consumption. This signal the need
for creative methods of improving and
optimizing energy potential

5. The Response to such a need therefore is
ENERGY EFFICIENCY

6. What is Energy Efficiency (EE)
• Energy Efficiency is the goal to reduce the
amount of energy required to provide
products and services.
• Energy efficiency is "using less energy to
provide the same service“

7. ENERGY CHALLENGES IN NIGERIA
• Unstable and Inadequate Power Supply
The total installed capacity is 6,000 MW.
Hydroelectric dams contribute 40%
Thermal stations contribute 60%.
The total energy currently generated in Nigeria is
far below 5,000 MW.

8. The Electric power transmission and distribution losses (% of output) in Nigeria
was 5.87 in 2009, according to a World Bank report, published in 2010. Electric
power transmission and distribution losses include losses in transmission
between sources of supply and points of distribution and in the distribution to
consumers, including pilferage.
Electric power transmission and distribution losses
(% of output) in Nigeria

9. In 2012, Nigeria attained the target of generating 6,000
MW while the current grid network could only carry
4,000 to 4,500 MW and in the course of evacuating the
entire MW generated, the entire system collapsed.
This is an indication that if Nigeria generates up to
10,000 MW, evacuation will be a problem since the
current grid network will not be able support the
generated power to the end-users.
It is therefore important that Nigeria invests in building
its capacity to distribute with grid collapse – a feat EE
can assist with

10. Energy Demand in Economic Sectors in Nigeria
Source: www.iisd.org
ENERGY CONSUMPTION – By Sector

12. Energy Production (kt of oil equivalent) in Nigeria
The Energy Production (kt of oil equivalent) in Nigeria was 228721.61 in 2009, according
to a World Bank report, published in 2010. Energy production refers to forms of primary
energy--petroleum (crude oil, natural gas liquids, and oil from nonconventional
sources), natural gas, solid fuels (coal, lignite, and other derived fuels) and combustible
renewables and waste--and primary electricity, all converted into oil equivalents.

14. • Infrastructural Challenges
Nigeria lacks necessary energy support
infrastructures, for example the wide variation
noticed in power supply in figure1.1 above also
resulted from difference between generation
capacity and facility to transmit.

15. • Underutilization of Energy Resources
Vast deposits of energy resources especially
renewable resources that could have been
harnessed for their contribution to the total energy
mix are grossly under-utilized.

16. Energy Efficiency in Context
When you replace an appliance, such as a light
bulb, refrigerator or clothes washer, or office
equipment, such as a computer or printer, with a
more energy-efficient model, the new equipment
provides the same service, but uses less energy.
This saves you money on your energy bill, and
reduces the amount of greenhouse gases going
into the atmosphere.

17. ENERGY CONSERVATION AND
EFFICIENCY
• While government is investing huge resources to build
more power stations to meet up with energy demand,
more energy could be saved and made available.
• Experts have asserted that the country could save up to
67% of the energy spent for lighting if we replace all the
incandescent bulbs in Nigeria estimated at 150 million
with energy saving bulbs.
• Huge potentials to save energy are also available for other
appliances such as refrigerators, air conditioners, electric
motors and heating equipment.

18. BARRIERS TO PROMOTING EE IN
NIGERIA
• Policy Barrier
• Legal and Regulatory Barrier
• Information Barrier
• Technical Barrier
• Research and Development Barrier
• Cost Barrier
• Income Barrier

19. • Institutional Barrier
• Market Barrier
• Governance Barrier
• Funding Barrier
• Behavioural Barrier
• Technological Barrier
• Enforcement Barriers

20. Governance Framework
The Bureau for Energy Efficiency
IMPLEMENTING AGENCIY
(BUREAU FOR
ENERGYEFFICIENCY)
EE ENFORCEMENT AGENCIES
(SON, CUSTOMS) EEDEVELOPMENTPARTNERS
Figure3.1 EE Institutional Framework for Nigeria
ENERGY SERVICE COMPANIES (ESCOs)
APPLIANCES END USERS/ ENERGY
CONSUMERS
PARTNERS
•MANUFACTURERS
•IMPORTERS
•DISTRIBUTION COMPANIES
(DISCOs)
•ENERGYAUDITORS
•ENERGYMANAGERS
•STANDARD TESTING AND
VERIFICATION LABORATORIES
•RESIDENTIAL
•COMMERCIAL BUILDINGS
•PUBLIC /GOVERNMENTBUILDINGS
•INDUSTRY
•INTERATIONAL DONOR AGENCIES
(UNDP,GEF,ESMAP, CLAPS)
•NGOs
•CIVIL SOCIETIES
•RESEARCH ORGANIZATIONS
•EDUCATIONAL INSTITUTIONS
•TRADEASSOCIATIONS
•MEDIA

21. Before Bureau is Set Up
REGULATORYAGENCY
(NERC)
IMPLEMENTING AGENCY
(Fed Min of Power or ECN)
EE ENFORCEMENT AGENCIES
(SON, CUSTOMS) EE DEVELOPMENT PARTNERS
Proposed EE Institutional Framework for Nigeria
ENERGYSERVICECOMPANIES(ESCOs)
APPLIANCESEND USERS/ ENERGY
CONSUMERS
PARTNERS
•MANUFACTURERS
•IMPORTERS
•DISTRIBUTION COMPANIES
(DISCOs)
•ENERGY AUDITORS
•ENERGY MANAGERS
•STANDARD TESTING AND
VERIFICATION LABORATORIES
•RESIDENTIAL
•COMMERCIAL BUILDINGS
•PUBLIC /GOVERNMENT BUILDINGS
•INDUSTRY
•INTERATIONAL DONOR AGENCIES
(UNDP,GEF,ESMAP, CLAPS)
•NGOs
•CIVIL SOCIETIES
•RESEARCH ORGANIZATIONS
•EDUCATIONAL INSTITUTIONS
•TRADE ASSOCIATIONS
•MEDIA

22. Nigeria Bureau for Energy Efficiency Organogram
Governing Council
Director General
Directorate
of MEPs
Directorate of
Enforcement
Directorate of
Planning and
Statistics
Directorate of
Mobilization/
Awareness
Directorate of
Finance and
Administration
Technical Advisory
Committee
The Bureau will be a statutory government agency with a
mandate to perform regulatory, coordinating and monitoring
functions in the implementation of Energy Efficiency Policy.

23. • The bureau shall provide appropriate guides to various stakeholders that would be
involved in energy efficiency practice e.g. SON (SONCAP), ECN, UNDP etc.
• The bureau shall publish catalogue showing appliances that are under Standard and
labelling (S&L) programme .
• (Except under special circumstances ) The Bureau SHALL ALWAYS aligned Nigerian
EE S&L and MEPS with the ECOWAS EE framework.
• The bureau shall develop national energy efficiency practice and ethics manuals.
• The bureau shall develop appliances testing procedure manuals.
• The bureau shall develop any materials or tools that can provide useful information
to the stakeholders.
• The bureau shall update her catalogues, manuals and other relevant publications at
least 1 nos time every two years.

24. Justification
• The financial benefits/saving that accrue from
Energy Efficiency makes it worthy of attention
and investment.
• Cross Cutting nature of Energy Efficiency
,Effective Coordination,Optimisation
,Sustainability and Results (One Coordinating
Agency with Autonomy).
• Commercialization potential of Bureau
• Countries with demographics similar to Nigeria
have agencies charged solely with Energy
Efficiency

25. COUNTRY IMPLEMENTING
AGENCY
ENABLING MECHANISM INSTITUTIONAL MODEL
Brazil PROCEL Presidential decree (1985) Public agency
focused on EE
China Energy
Research
Institute
Energy Conservation
Information
Center
Government order (1980)
Government order (1998)
Public energy
Agency
Public agency
focused on EE
Japan Energy Conservation
Center
Japan Natural
Resources and
Energy Agency
Energy Conservation Law
(1979)
Agency reorganization
(1980)
Public agency
focused on EE
Public energy
agency
South Africa Energy Efficiency
Agency
Government order (2006) Agency focused strictly
on EE
Thailand Dept. of Alternative
Energy Development
and Efficiency
Energy conservation and
promotion act (1992)
Public agency
focused on EE
United
Kingdom
Energy Saving Trust National legislation (1993) NGO focused strictly
on EE

27. IMPLEMENTATION FRAMEWORK
• A monitoring, inspections and compliance
regime
• Education, Awareness creation and Capacity
Building
• IN LINE WITH ECOWAS
• Setting Minimum Energy Performance
Standards (MEPS) for a range of end user
equipment and appliances;
• Mandatory labelling for all energy appliances
• Guidelines for EE best practices (in-country)

28. THE ENERGY EFFICIENCY
POLICY
Policy Goal
• To reduce Nigeria’s energy-related CO2
emissions by mitigating the demand for
energy in Nigeria’s residential and public
sectors .Amongst other measures
including the introduction of Standards
and Labels (S&Ls) and Minimum Energy
Performance Standards (MEPS for new
equipment and appliances.

29. STRATEGIC OBJECTIVES
• To ensure energy is efficiently utilized in order to
save cost for the citizens and make available
sufficient energy for the consuming public.
• Strategic Market transformation from sales of non-
energy efficient products to massive sales of energy
saving domestic and industrial electrical appliances
in Nigeria.
• To cut carbon dioxide emission and GHG in order to
combat climate change challenges
• To encourage efficient energy utilization and
discourage wasteful use of energy among Nigerians.

30. • To promote energy efficient technologies for
buildings, homes and industry.
• To create employment opportunities for the citizens
through interconnected activities that will be
involved in the implementation of the Energy
Efficiency policy. (outcome)
• To enforce mandatory labelling of home and office
electrical appliances(INCLUDING APPLIANCES AND
SYSTEMS IN OTHER SECTORS);
• To promote mandatory energy audit for homes and
commercial or public buildings
• Institutionalisation of Energy Efficiency management
in the Country

31. TARGETS
• Produce Guidelines on all the key components of EE by 2015;
• Enact all relevant legislation required for policy
implementation by 2015;
• Nigeria to attain 60% consumption of Energy efficient lighting,
Fridge, Freezers and Air conditioners by 2016 and 100% by
2020.
• Attain replacement of 40% (by 2016) and 100 % (by 2020) of
old non- energy efficient appliances in Nigeria with energy
efficient appliances.
• Review and improve on the recommended EE practices by
2016.
• Sustain best EE practices beyond 2025.

32. Other Areas Covered in Policy
• Institutional Framework for the Policy
• Policy on the Key Areas of Energy Efficiency
Practices
• Policy Implementation Strategies
• Roles and Responsibilities of Stakeholders
• Funding Mechanism
• Proposed Nigerian Minimum Energy
Performance Standards for some end-user
appliances

33. Thank You