The core of the electricity system expansion analysis in this Study entails using Low Emissions Analysis Platform (LEAP) for optimization of power supply options for Nigeria by minimizing system costs to meet the forecasted demand, hour-by-hour, throu...
The core of the electricity system expansion analysis in this Study entails using Low Emissions Analysis Platform (LEAP) for optimization of power supply options for Nigeria by minimizing system costs to meet the forecasted demand, hour-by-hour, through the year using realistic resources availability data for wind, solar irradiation, hydrological resources, natural gas availability, coal, nuclear fuels and storage systems. Once the power demand envelope is determined using the Nigerian Energy Calculator (NECAL), the model estimates the least-cost expansion path for meeting that demand, based on a cost minimization basis for all electricity generation technologies that are either available or planned for within Nigeria. The LEAP model automatically accounts for the necessary transmission and distribution infrastructure including losses. 5 scenarios including The Optimized BAU, Emissions Pricing Scenario (EPS), Demand Side Management Scenario (DSM), Reduced Emission Scenario, and Renewable Target Scenarios were explored using an assumed set of thematic policies for each of the scenarios. These scenarios are explored in terms of cost generation, renewables penetration, cost of production and emissions level associated with them between 2019 and 2060. At the end of the optimization period, the DSM scenario comes up with the least capacity requirement at 107.8GW and the Reduced Emissions scenario has the highest capacity requirement of 157GW.
The study also presents a decomposition analysis of the CO2 emissions for each scenario using several factors that represent population size, economic growth, conversion efficiency, carbon intensity and energy intensity. Overall, the positive contributors to increase in emissions are the population and the economic activity effect, whereas the carbon intensity effect, conversion efficiency effect and energy intensity effect are negative contributors to emissions in the NESI given the 5 scenarios. The main contributors to emissions were identified for each scenario across a 5-year grouping. The study notes the responsiveness of the Nigerian Electricity Supply Industry (NESI) to modern electricity market policies and also recommend the adoption of a mix of policies in achieving planned electrification.