A means to an industrialisation end? Demand Side Management in Nigeria. (April 2018)

• Record Type: Journal Article
• Authors: Ikpe, Eka; Torriti, Jacopo
• Is Part Of: Energy policy. Volume 115(2018)
• Page Start: 207
• Page End: 215
• Publication Date: 2018-04
• Subjects: Demand Side Management -- Electricity -- Industrialisation -- Nigeria; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2018.01.011
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: Electricity is essential for economic development and industrialisation processes. Balancing demand and supply is a recurrent problem in the Nigerian electricity market. The aim of this work is to assess the technical and economic potential of Demand Side Management (DSM) in Nigeria given different future levels of industrialisation. The paper places industrialisation at the centrefold of the appraisal of DSM potential in Nigeria. It does so by designing industrialisation scenarios and consequently deriving different DSM penetration levels using a cost-optimisation model. Findings show that under the high industrialisation scenario by the year 2050 DSM could bring about 7 billion USD in cumulative savings thanks to deferred investment in new generation and full deployment of standby assets along with interruptible programmes for larger industrial users. The paper concludes by providing policy recommendations regarding financial mechanisms to increase DSM deployment in Nigeria. The focus on DSM serves to shift the policy debate on electricity in Nigeria from a static state versus market narrative on supply to an engagement with the agency and influence on industrial end-users. Highlights: Cost-optimisation model run for three industrialisation scenarios in Nigeria. Major increases in energy demand from chemical, ironsteel and non-ferrous industries. DSM penetration based on interruptible programmes and standby generation. By the year 2050 DSM could bring about 7 billion USD in cumulative savings.