Energy experts are familiar with the concept, Distributed Energy Resources (“DER”). DER are smaller power sources that can be aggregated to provide power necessary to meet regular demand. As the electricity grid continues to modernize, DER such as storage and advanced renewable technologies can help facilitate the transition to a smarter grid. In Nigeria, as in many developing countries, reliable power supply from the national grid is still a dream, which in reality will require many years of investment and infrastructural development to meet demand. However, over the years, residential, commercial and industrial consumers of electricity have resorted to generating their own power, through the use of smaller generators located at the consumers’ property. The smallest of these generators often referred to as “I Pass My Neighbour.”
The contribution of I Pass My Neighbour to meeting the energy needs of Nigerians are by no means minimal. In fact, many businesses rely more on their I Pass My Neighbour than on the power received from the national grid, which is still largely unreliable and hugely unpredictable. However, as the world moves from fossil fuel generators to more environmental friendly options, it would be interesting to see how these changes occur in Nigeria, especially as it concerns distributed energy resources. In the same regard, the introduction and adoption of these newer and eco-friendly alternatives would be facilitated by the adoption of relevant and incentivizing legal framework. For instance, many households and businesses generate more electricity than they need, a legislative framework that allows these consumers to sell electricity back to the national grid, just as the Net Metering framework that is operated in many states in the United States, will promote the deployment of DER by many consumers and also aid the national grid in achieving the much needed reliability. Furthermore, such mechanism will also ensure that the operating cost of having a DER at one’s property is not borne alone by the consumer, but shared, as payment received from the power sold to the grid will help the consumer pay for the energy he receives from the grid (when available) or to manage his DER.
The qualifying DERs under this framework should be those that are eco-friendly, especially renewable resources, such as solar power, wind power, and biomass. This will ensure that the adverse effects of greenhouse gases produced by these numerous I Pass My Neighbours in Nigeria are curtailed. Cities like Onitsha and Aba (to name a few), adjudged by the World Health Organisation as the most polluted cities in the world, with regard to Particulate Matter 10 (“PM10”) are a strong case studies of the adverse effects fossil fuel powered generators can have on an environment.
Although, I understand that deploying DER in a widespread, efficient and cost-effective manner requires complex integration with the existing electricity grid. Research can identify and resolve the challenges of integration, facilitating a smoother transition for the electricity industry and their customers into the next age of electricity infrastructure.
While we look for permanent solutions to our electricity challenge in Nigeria, it is important to look to the future and not adopt stop-gap approaches. As a developing nation, we are still likely to hugely depend on fossil fuel to grow our economy and industries, but we must make informed choices, which can only be done after a clear study and analysis of the potentials of renewable energy resources and not before.
9 Mar 2017
Distributed Energy Resources: The New “I Pass My Neighbour.”
Energy experts are familiar with the concept, Distributed Energy Resources (“DER”). DER are smaller power sources that can be aggregated to provide power necessary to meet regular demand. As the electricity grid continues to modernize, DER such as storage and advanced renewable technologies can help facilitate the transition to a smarter grid. In Nigeria, as in many developing countries, reliable power supply from the national grid is still a dream, which in reality will require many years of investment and infrastructural development to meet demand. However, over the years, residential, commercial and industrial consumers of electricity have resorted to generating their own power, through the use of smaller generators located at the consumers’ property. The smallest of these generators often referred to as “I Pass My Neighbour.”
The contribution of I Pass My Neighbour to meeting the energy needs of Nigerians are by no means minimal. In fact, many businesses rely more on their I Pass My Neighbour than on the power received from the national grid, which is still largely unreliable and hugely unpredictable. However, as the world moves from fossil fuel generators to more environmental friendly options, it would be interesting to see how these changes occur in Nigeria, especially as it concerns distributed energy resources. In the same regard, the introduction and adoption of these newer and eco-friendly alternatives would be facilitated by the adoption of relevant and incentivizing legal framework. For instance, many households and businesses generate more electricity than they need, a legislative framework that allows these consumers to sell electricity back to the national grid, just as the Net Metering framework that is operated in many states in the United States, will promote the deployment of DER by many consumers and also aid the national grid in achieving the much needed reliability. Furthermore, such mechanism will also ensure that the operating cost of having a DER at one’s property is not borne alone by the consumer, but shared, as payment received from the power sold to the grid will help the consumer pay for the energy he receives from the grid (when available) or to manage his DER.
The qualifying DERs under this framework should be those that are eco-friendly, especially renewable resources, such as solar power, wind power, and biomass. This will ensure that the adverse effects of greenhouse gases produced by these numerous I Pass My Neighbours in Nigeria are curtailed. Cities like Onitsha and Aba (to name a few), adjudged by the World Health Organisation as the most polluted cities in the world, with regard to Particulate Matter 10 (“PM10”) are a strong case studies of the adverse effects fossil fuel powered generators can have on an environment.
Although, I understand that deploying DER in a widespread, efficient and cost-effective manner requires complex integration with the existing electricity grid. Research can identify and resolve the challenges of integration, facilitating a smoother transition for the electricity industry and their customers into the next age of electricity infrastructure.
While we look for permanent solutions to our electricity challenge in Nigeria, it is important to look to the future and not adopt stop-gap approaches. As a developing nation, we are still likely to hugely depend on fossil fuel to grow our economy and industries, but we must make informed choices, which can only be done after a clear study and analysis of the potentials of renewable energy resources and not before.
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