Nigeria Energy Transition Plan

About
Energy Transition

The Nigeria Energy Transition Plan (ETP) is a home-grown, data-backed, multipronged strategy developed for the achievement of net-zero emissions in terms of the nation’s energy consumption.

The Nigeria ETP sets out a timeline and framework for the attainment of emissions’ reduction across 5 key sectors; Power, Cooking, Oil and Gas, Transport and Industry.

Within the scope of the ETP, about 65% of Nigeria’s emissions are affected.

Sectors

Power

Including electricity generation, both on and off grid, this sector represents about 27% of in-scope emissions.

Transport

Including urban, rural and commercial Transportion. This sector represents about 24% of in-scope emissions.

Cooking

Including urban, rural and commercial cooking. This sector represents about 22% of in-scope emissions.

Industry

This sector represents about 16% of in-scope emission.

Oil/Gas

This sector represents about 11% of in-scope emissions.

The ETP requires significant
emission reductions in 5 key sectors

Slide Background

power

Emissions in this sector are largely driven by off-grid diesel/petrol generator use and on-grid gas combustion in power plants.

Due to insufficient generation and grid constraints, majority of households, businesses and industries in the nation generate their own electricity with diesel/petrol generators.

An urgent priority for decarbonization is the transition away from these diesel and petrol generators to cleaner sources of energy.

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Slide Background

Oil and Gas

Emissions from the sector reduce primarily due to declining global demand. Residual emissions (post-demand reduction) of Oil and Gas extracting activities can be abated using levers such as:
Fugitives -
Instrument air systems, vapour recovery units on storage takes, replace compressor rod packaging and quarterly leak detection and repair

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Slide Background

Cooking

LPG plays a significant role up to 2030 due to urgency of the achievement of universal access to clean cooking (SDG7), the relevance of the fuel across household categories and Nigeria’s natural gas endowment. However, LPG is a stepping-stone in Nigeria’s Net Zero strategy.
Biogas and electric cookstoves are prioritized for deployment post 2030 since they are carbon neutral:
Electric cookstoves are used in grid-connected households
Biogas is available in rural areas which employ off-grid sources for primary electricity supply.

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Slide Background

transport

The ETP proposes the reduction of transport emissions by switching to low-emissions transport technology and mode-shifting. The focus of the ETP analysis is on passenger vehicles which accounted for ~72% of transport emissions in 2020.capacity)  Initial expansion of gas generation capacity to establish baseload capacity for meeting increased electricity demand and integrating renewables.  Ramp up of renewables-backed electrification to facilitate decarbonization in sectors such as buildings (cooking), industry and transportation.

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Slide Background

Industry

Emissions in this sector are reduced through the substitution of clinker with calcined clay and application of Bioenergy with Carbon Capture and Storage (BECCS) in cement production, the replacement of grey hydrogen (Hydrogen produced from fossil fuels) with green and blue hydrogen in ammonia production, and the adoption of zero emissions fuels such as clean electricity and hydrogen for heating instead of natural gas and biomass.

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Key Objectives

Finance

$1.9

Trillion

Required to get to Net Zero by 2060

$410

Billion

Above projected usual spending

$10

Billion

Additional cost
annually

This figure covers counter acting dynamics:
Most of the effort will be needed in the power sector: extra CAPEX is needed to finance the power sector generation capacity ($270Bn), and the T&D infrastructure ($135Bn)

Significant savings in terms of fuel costs for power considering the switch to 90% renewables (-$121 Bn) compensates for some of the CAPEX increases

Partners

Achieving Nigeria’s climate ambitions and energy needs requires strong partnerships and coalitions. The Energy Transition Office is supported by the following partners.