To answer the question ‘’what would be the related insights for scale-up of the related interventions for commercial building (new and existing) for Nigeria?’’ it was important to understand that the main factors driving energy efficiency are savings realised from a reduced need for investment in infrastructure (economy level) or savings on fuel expenses (individual
138 entity level) as well as the mitigation of environmental effects and climate change (global level) by reduction of GHG emissions.
Any cost-related decision concerning energy efficiency, at the individual level, is based on a trade-off between an immediate cost and a future decrease in energy expenses expected from increased efficiency. The higher the energy price, observed or expected, the more attractive energy efficiency becomes.
Energy efficiency has three basic strategies to achieving minimized energy consumption in buildings (whole energy load reduction, efficiency of the systems, and on-site generation of electricity). But this is achievable depending on the scale of the facility and hours of operation, the use of advanced technology and mechanisms is more effective in enhancing energy efficiency during the buildings operational stage. The research work is built on the energy efficient principles which provided the essential tools needed to achieve low energy consumption in office building.
Inferring from various literatures and gathering information from the case studies indicated energy as a major problem and reducing its consumption is a paramount concern. Energy efficient buildings are beneficial in terms of economic growth, increased productivity, emission reduction and so on. It is expected that providing a large office building which is capable of reducing the amount of energy it consumes through provision of advanced technological means would act as an example of how the building industry can contribute to the economic growth of a country by saving money and using it elsewhere.
The general anticipation of this research is that, it will provide a model for the application of principles of energy efficiency not just in office buildings, but in any existing and every proposed building.
6.7 Conclusion
From finding, it became clear that securing financing for the upfront cost in Nigeria is difficult. The promoters of Renewable energy technology face the problems of high transaction costs and restricted access to capital. On the other hand the end users of renewable energy technology, especially the poor, face problems of access to credits. Lack of access to micro financing, high interest rates, poor business development skills by renewable energy system vendors and unsupportive climate for investments are some of the primary barriers to market growth at the moment.
139 Therefore, in order to support RE in Nigeria, funding requirements should be substantial. New investments are needed for research and exploitation activities. The required type of financing is long-term and should involve both foreign and domestic financing resources. Foreign investment capital will provide the greater proportion of needed funds. The Government should provide guarantees and financial frameworks aimed at stimulating the expansion of the renewable electricity market. Considering the risk element involved in financing renewable electricity projects. Government investments should enhance rates of return and shorten pay back periods in order to attract investors.
Additionally, the Federal Government should continuously improve the climate for enhanced funding of renewable electricity through equity, debt financing, grants and micro finance. Additionally, Government should be more committed to mobilizing resources through international cooperation, towards the development of renewable energy for sustainable development in Nigeria. Grant financing from agencies of government and independent foundations should also be promoted.
Owing to other competing needs, the Nigerian Government alone cannot continue to provide the major finance for developing the renewable energy sub-sector. Hence private sector participation is necessary and imperative. To attract foreign investments in the renewable energy sub-sector, the sub-sector will first need to be developed to a certain extent, via indigenous participation. To attract domestic banking sector participation, efforts should be made to sensitise them to renewable energy and to incentivise their investments in lending to renewable energy projects.
Exploration, production and conversion activities in the renewable energy sub-sector are characterized by large capital demands and often advanced technology. The capital formation capability of the country's private sector and the level of domestic technological development are still low, in relation to what are needed by the renewable energy sub-sector. Consequently, government and NGO’s had played a dominant role in investments in the sub-sector, while private sector presence, technological input and value added in energy sector activities have hitherto been overwhelmingly foreign, mainly from NGO’s.
If private sector participation in the renewable energy sub-sector is increased and government spending in the sector is optimised, the ability of the indigenous private sector, including ordinary Nigerian citizens, to participate and compete in the process should be encouraged, so as to allow for a secure and healthy development of the renewable energy sub-sector. The local
140 content of value added in the renewable energy sub-sector activities should be raised to, and maintained at, a high level.
The integration of smart grid technology and renewables into the Nigerian electricity grid system will help the electricity crisis in the country. However, for smart grid technology to be realised in Nigeria, stable and operational grid as well as various technological integrations, enhancement and policy recommendation as discussed in section 6.5 that will support feed in tariff is required. The benefits of the smart grid technology will not only improve electricity production and efficiency in Nigeria, but will also enable electricity consumers to become producers of electricity and enhance Nigeria’s international competiveness.
141 Chapter 7
Conclusion and Recommendations
This report has identified the potential for energy efficiency and foresees the positive impact that implementing energy efficient lighting and systems performance could have on the energy demand and the environment in Nigeria.