Home Energy NERC says absence of renewable energy policy problematic

NERC says absence of renewable energy policy problematic

The Federal Government has been called upon to intensify efforts to increase the percentage of solar energy in the present energy mix as to encourage investment in renewable energy.
The Nigerian Electricity Regulatory Commission ‘s (NERC) Deputy General Manager in charge of Research and Development, Mr. Imamudeen Talba made the call  recently while speaking  at the Nigeria Photovoltaic Energy Conference, Solarcon 2014  in Lagos
He  decried the absence of a policy on renewable energy in the country, noting that Nigeria had all the potentials for solar power but lacked policies and legislations to drive this renewable energy option.
Talba, said  that grid-connected solar power faced a lot of challenges in the country, adding that grid supplies are usually the cheapest option in areas with high load densities, as well as in areas near the grid.
However, Talba said a number of challenges militate against grid-connected solar energy. He listed the challenges to include high costs of installation and wiring; large land area required and the fact that solar power is not dispatchable, that is, cannot respond to automatic generation control signals from the control center.
Talba also stated that connecting small, isolated villages to a grid can be expensive because of the necessary investment in transmission lines, poles, transformers, and other infrastructure.
Talba listed the incentives that are implied in the feed-in tariff to include guaranteed market; priority grid connection and offtake ; simplified licensing /permit process; concessionary tariff rates and facilitated land acquisition/ site access.
Other recommended policy incentives, according to him, include tax holidays; import duty exemptions; investment tax credits.
He said NERC on its part, had initiated regulatory instruments to drive solar energy in the country. He identified the regulatory instruments provided by the agency to include feed-in tariff methodology; draft standard power purchase agreement (PPA); draft licensing guideline; interconnection guidelines; draft incentive proposal and embedded generation regulation.

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