Governing sustainable industrial energy use: Energy transitions in Nigeria's manufacturing sector

Abstract

The governance of industrial energy use in recent times has been driven by the quest for greater energy security and sustainable industrial growth. Sustainable use of energy necessitates a rethink in the production, use and governance of energy resources that stimulates and supports transition to a more effective and efficient energy system. However, how do we ensure an effective transition in industrial energy use in the midst of gross energy poverty within a developing country context? This paper explores the motives and drivers of changes in energy use within the industrial sector. Statistical data from published reports, as well as informal interviews of stakeholders in Nigeria's industrial sector were used. Following analysis of data, four important salient phases (eras) of industrial energy transition in Nigeria's manufacturing sector was established. These distinct eras are: (1) Grid-dependent era; (2) Self-generation era; (3) Industrial energy outsourcing era; (4) Industrial energy conservation era. The study reveals that: outsourcing of industrial services; cost reduction; and business realignment motives are key drivers of transitions in Nigeria's industrial sector. This paper concludes by highlighting the implications of these changes for the future of energy and sustainable industrial growth in Nigeria.