The Baker Hughes Industrial Power Regional Mini-Conference held recently in Lagos, Nigeria, focused on “The Role of Energy Efficiency in Industrial Power Generation.” Here are lessons the Electricity Hub learned from what panellists said at the event:
- Adopting energy-efficient solutions offers a myriad of advantages: It reduces greenhouse gas emissions, lowers operating costs, reduces electricity price volatility, decreases energy requirements from the grid, and minimizes the need for new electricity generation and transmission/distribution infrastructure while assisting the grid in maintaining required reserve margins to prevent system-wide shutdowns.
- Nigeria’s power sector challenges are varied: ATC & C (Aggregate Technical, Commercial, and Collections) losses and frequent collapses of the national electricity grid due to load rejection of electricity transmitted to distribution companies (DISCOs) by the Transmission Company of Nigeria (TCN), primarily caused by poor transmission and distribution infrastructure. There is also an absence of an Energy Management System (EMS) and Automatic Generation Control (AGC) to help transmission companies implement various levels of Load Frequency Control.
- Innovation plays a role in advancing the power sector. Smart grids, high-efficiency gas turbines, and advanced metering infrastructure are introduced to improve energy efficiency. During the event, Baker Hughes introduced the LT16 Industrial Power Solution to the Nigerian power market, aiming to enhance power efficiency. According to the panellists, achieving energy efficiency in Nigeria is a multifaceted challenge requiring concerted efforts from various stakeholders. Funding availability, regulatory standards, energy availability, and supportive legal frameworks are all critical components that must work together.
- Gas infrastructure and funding: Nigeria’s energy sector is at a critical juncture, where the need for a robust gas network code has become increasingly apparent. This necessity is driven by creating a solid industrial base, simplifying processes for power project off-takers, and enhancing access to funding from lenders. Such a code could be a game-changer for the country’s energy landscape, providing a structured and reliable gas distribution and utilization framework.
- PIA and Electricity Act as catalysts for energy efficiency in power generation: The combined impact of the 2023 Electricity Act and the Petroleum Industry Act creates an effect that amplifies the benefits of each individual piece of legislation. Together, they provide a comprehensive framework for transforming Nigeria’s power generation sector into a model of efficiency and sustainability. With these acts, GenCos are now better positioned to adopt cutting-edge technologies, optimize their operations, and contribute to a more sustainable energy future for Nigeria.