Leveraging the Clean Development Mechanism to Increase the Percentage of Renewable Energy in Nigeria's Energy Mix

Abstract

Abstract It has been asserted that Nigeria's petroleum age will likely expire in a few decades. This makes the need for a renewable energy based post-fossil national energy vision as articulated in the Renewable Energy Masterpan of 2005 very imperative. While the increased utilization of the gas resources provides a bridge to a low carbon energy future, renewable energy looms large in the long-term energy vision for Nigeria. Specifically, the country is endowed with enormous renewable energy resources, with the average solar radiation estimated at about 5.5kWh/m2-day. Based on a 10 percent economic growth rate and the corresponding projected electricity demand profiles of about 16,000, 30,000, and 192,000 MW in the short, medium and long terms in the country, it is envisaged that renewable energy will contribute about 13, 23, and 36 percent in meeting the total electricity demand of the nation in the short, medium and long terms respectively. The Clean Development Mechanism (CDM) of the Kyoto Protocol, a market-based framework which is predicated on the principles of common but differentiated responsibilities provides the catalyst and incentive for meeting Nigeria's renewable energy vision. Renewable energy projects which are categorized under Energy Industries (renewable-/non-renewable sources) is one of the fifteen (15) sectoral scopes of the CDM. Renewable energy projects represent over 70 percent of the projects so far approved and registered by the Executive Board of the CDM. Using relevant case studies as the basis, this paper discusses the CDM as the seemingly neglected opportunity to increase the percentage of renewable energy in Nigeria's energy mix.