AN ASSESSMENT OF EMBEDDED POWER GENERATION IN NIGERIA

ABSTRACT

In the  last decades,  the power  industry has had  a gradual  and steady  change  from the centralized bulk system (grid) where power  is injected to the transmission  network  from generator to a more decentralized system where power is injected directly to a distribution network  (embedded generation).   Nigeria  is not left out in this trend. In this assessment study, the Siemens’ PSS/E software is used to run the Newton-Raphson  load flow program to see the effect of EG on loss reduction and voltage profile improvement while comparing the results obtained with the installation of the traditional network compensators alongside their impact on network (element) loading. Furthermore, the load factor and EG level of penetration are determined via mathematical methods.  This work shows that EG can reduce the Nigerian transmission network loss by 7% and a section-cut of it; the (Port Harourt) PH Mains network loss to 5 .51 % from 9 .97%.  The work further shows that EG improves the per  unit  (p.u.)  voltage  of a network  especially  at the buses  directly  connected  to it as observed from buses 13(0.914 to 1.02 p.u.) and 14  (0.937 to 1.02 p.u.)  of the transmission network considered.  Similarly,  EG greatly improved the overall voltage profile of the Port Harcourt  Mains  T/S  132/33kV with  all bus voltages  falling within the  statutory voltage profile range (0.95 p.u.  to   1.05  p.u.)  except the Rumuodumaya  Bus that improved from

0.8pu to 0.93pu.  A comparison of the network performance with EG and with Fixed Shunt Compensation  gives EG a better recommendation  in the light of loss reduction, voltage profile improvement capabilities.  Also more efficient consumption of power by consumers are achieved with the EG in operation as seen in the Load Factor studies. At a penetration of

14.76%,  the EG has a positive effect on the overall network performance  which has to be monitored as the level of penetration increases,  so as to mitigate the impact on the technical losses of the network.

CHAPTER ONE

INTRODUCTION

1.lBackground of the Study

The Nigerian  Electricity  Supply Industry  is besought  with a barrage  of issues (i.e. technical  and non technical)  which have placed  the industry  at the front burner  of national discuss for decades now. The issues among others include inadequate generation (to match the country’s growing population, industrial activities and increased    power    demand   that   stems   from   it),   poor   maintenance/planning, inadequate funding,  inadequate gas supply and vandalization  of generation facilities etc.  The recent World Bank Group data on global access to electricity[l],  [2]  shows that about 45% of Nigerians  are connected  to the national  grid.  Sadly,  only about

25%  of the  country’s  population  actually  have  regular  access  to  power  [3].This shows that the national grid is limited in reach(with  5523km 330kV and 6801.49km

132kV  transmission  lines at 2010 against the 911,000km landmass  of Nigeria[4]) thereby   denying over 70% (-  100 million) Nigerians who live in rural areas access to constant  electricity[5].  More  so, the transmission  and distribution  infrastructure of Nigeria  appears  to be underfunded  and the “limited”  infrastructure  is stretched with some transformers  and substations operated close to/above their design ratings. This has a negative impact on system losses and on the available grid power. Furthermore,  the  very  long  transmission  distances  in  the  Nigerian  grid  (310km B’Kebbi  T.S      Kainji  T.S,  285km  Jos  T.S      Makurdi  T.S,  235km  Osogbo  T.S• Ikeja-West  T.S etc) would normally  require  the expensive  installation  of capacitor and reactor banks at low voltage levels ( for power factor improvement  and reactive power control) and at high voltage levels respectively.  This study looks at how EG can help address these issues.

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1.1.1 A Brief History of the Nigeria Electricity Industry

The history of the Nigeria Electric Supply Industry traced in [6]-[ 1 OJ,  narrates that the production of electricity in Nigeria started in Marina, Lagos in 1896/98 about fifteen years after its introduction in England [11] with a total installed capacity of

60KW. After the 1914 amalgamation of the Northern and Southern Protectorates to form Nigeria,  other towns started the building  of their individual  electric power supply  system.  The towns  are  [11];  Port Harcourt,  Kaduna,  Enugu,  Maiduguri, Yola,  Zaria,  Warri and Calabar in the years 1928,1929,1933,1934,1937,1938,1939 and  1939  respectively.  For many years,  the government  and Native  Authorities remained  and  operated  as  separate  entities  until  1946  when  the  Public  Works Department  (PWD)  stopped  having  control  over  the  generating  plants  and  the distribution system of the nation.  This led to the immediate establishment of the Nigerian  Government Electricity Undertaking  (NGEU);  an arm of PWD  charged with the responsibility of supplying power to Lagos state.  In 1950,  the legislative council of the colonial government under ordinance no.15 of 1950,  constituted a central  body  known  as  the  Electricity  Corporation  of Nigeria  (ECN)  with  the responsibility  of overseeing  the  management  and  supply  of electric  power  in Nigeria.  Around April 1951,  the ECN formally took over of the electricity supply business  of Nigeria through the integration  of all government  and native-owned generating plants/systems for a vertically integrated grid-operation of the nation’s power   generation,   transmission   and   distribution   infrastructure.    Some   other institutions like the Nigerian Electricity Supply Company (NESCO) also had the license to produce electricity within this period [6].  Meanwhile, a great milestone was reached in the industry in the yearl 962 with the construction of Kainji Dam (completed six years after)  after an Act of the Parliament established the Nigeria Dams Authority, NDA.  The NDA was charged with the responsibility of building and maintaining dams in the River Niger and other places, generating of electricity via  hydro  resource  among  other  functions.  Thereafter,  the  nation’s  power  grid transmission system started in 1966  through the joint  effort of the then ECN and

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NDA by linking Lagos with Kainji. For power distribution to consumers, the NDA sold the power they produced to the ECN.   The Kainji-Kaduna  link was then also extended to Zaria and Kano. The Oshogbo-Benin-Ughelli  and the Benin-Onitsha• Afam(Alaoji) links were subsequently constructed.  1972 saw the merger of both the ECN and the NDA  in a new organization known as the Nigeria  Electric Power Authority (NEPA) with the following objectives;

■       .•. the vesting of the production and distribution of electricity power supply throughout the country in one organization that would assume responsibility for the financial obligations.

■      integration  of the  ECN  and  NDA  should  result  in  the  more  effective utilization  of the  human,  financial  and  other  resources  available  to  the electricity supply industry throughout the country.

In spite of all these changes in the Nigeria Electricity Supply Industry the following

(see APPENDIX  l)endured over the years till 2005;

■       vertically integrated system with the greatest dependency on generation.

■       monopolistic system managed by the government

■       growing  (peak) demand for power

■      consumer dissatisfaction with the efficiency  and management of the utility company resulting in poor service delivery and high cost of power etc.

In  spite of all the  efforts  of the Nigerian  government  in the power  sector,  the “surmountable” challenges of the sector endued (and still endure) for decades now. The general consensus for a sustainable solution was for Nigeria to join the global trend of restructuring the power sector that had already become imperative.  This explains why by  1983, Nigeria had engaged two panels of enquiry to work out a model for the restructuring of the then NEPA into an independent body or a model to break its monopolistic  operation through privatization.  This was followed up

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with  the  establishment  of electrification  boards  to  improve Nigerians  access to power. Persistent effort led to the official commissioning of the PHCN on the 5″ of May 2005. PHCN was originally modelled as an Initial Holding Company; an IHC that will  transfer  the  assets  and liabilities  of NEPA  to PHCN.  This  led to the enactment of Electricity Power Sector Reform Act of 2005 and the commencement of the National Integrated Power Projects (NIPPs) initiatives. Eventually, the PHCN was unbundled into eighteen companies comprising

•   six generating companies-  Kainji,  Afam,  Sapelle,  Shiroro, Ughelli and the

Egbin Electricity Generating Company

•    One  transmission  company  i.e.   the  Transmission  Company  of Nigeria, completely  owned  by  the  federal  government  but  managed  by  Manitoba Hydro Company of Canada.

•    Eleven distribution companies- Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola Distribution Companies all with 80% equity owned by private investors and 20% by the federal government.

To  put  this  history  in  a better  perspective  would  include  a brief look  at  the objectives of the power sector restructuring in Nigeria which has set the tempo for the present EG concerns in Nigeria.

1.1.2 Objectives of Restructuring the Electric Power Sector

As  government  had  the  sole  control  over  management  of power  generation, transmission  and  distribution  in the  then     monopolistic  scenario,  the  intended separation of the activities of the named constituents of the power system would ensure a better system performance through;

■       breaking of the monopoly in generation and transmission

■       encouraging competition in distribution and supply.

Competition in distribution and supply is very necessary as Isola[l2]  agrees with

Penrose view that competition is the most powerful force pushing the economy to

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higher  levels  of  achievement,  increasing  efficiency  in  the  use  of  resources, protecting consumers against exploitation and ensuring reasonable opportunities for men to make the most of their abilities and assets. In the light of this, the summary of the objectives of the Nigeria power sector restructuring as provided for in the Nigerian EPSR Act 2005 include the following:

•   unbundling of the NEPA.

■       privatization of the unbundled entities.

■       establishment of a regulatory agency known as National Electricity

Regulatory Commission.

■       establishment of the Rural Electricity Agency (REA) and Fund.

■       establishment of a power assistance fund.

■       establishment of West African Power Pool (WAPP).

The incumbent power sector restructuring objectives further aimed at;

■      costs reduction  (i.e. government expenditure and high consumers’ service charges) in generation and supply

■         allowing  Independent Power producers to enter the market

■      allowing independent transmission owners to invest in the transmission business like in South Africa.

■       allowing the electricity distribution industry to restructure and provide funds for major electrification schemes like in South Africa.

As the NIPPs were found to stimulate competition in generation and supply and to control the monopoly in transmission  and distribution  [13], the 2005 EPSR Act, ended the government  monopoly  (in the vertically  integrated power  sector) and enabled institutions build a power sector with the private sector as a key partner in the development. According to Amobi[l3], the unbundling and deregulation of the electricity  industry  was purely  targeted  at increasing  our network  capacity  and reducing the wastage of resources by making the managers’ more efficient.

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The 2005 Act legally ended government monopoly and enabled institutions build a power sector with the private sector as a key partner in the development. The NIPP consists of power plants of 2000MW capacity, the expansion of 330kV and 132kV transmission networks and the expansion of the distribution networks through the constructions of more sub-stations and distribution lines.

Note  that  power  plants  in  Nigeria  have  three  broad  classifications  based  on ownership as[14] puts it;

•    those  owned  by  the  federal  government  (with  most  or  all  of them  now privatized).

•    National  Integrated  Power  Projects  (NIPP)  –  owned by the  three tiers  of government under the Niger Delta Power Holding Company (NDPHC).

•    Independent Power Producers (IPPs) –  wholly owned by state governments and/or private companies, individuals.

In 2010, the Nigeria’s Ministry of Power launched the Road Map for Power Sector Reform to fast track the implementation of the 2005 Act. The Road Map consists of the design and implementation of extensive rehabilitation, replacement, and maintenance of assets across the fuel-to-power, generation, transmission and distribution chains of the power sector. The scope of the NIPP generation delivery was increased from 2000MW capacity in 2005 to a total of 4770MW target by 2013 with an additional 6000MW to be generated in 2014 by the Independent  Power Plants  (IPPs) like the Dangote(  l 50MW in Obajana,  Kogi state alone),  Lafarge (90MW in Ewekoro,  Ogun  State),  Geometric Power (144MW Aba), Coronation Power  and  Gas  (20MW  in Lagos  State),  Nigeria  Agip  Oil  Company  (NOAC) (480MW in Kwale/Okpai, Delta State), AES Barge Power Plant (270MW in Lagos State), Ibom Power Station (190MW in Ikot Abasi, Akwa Ibom State) etc [2] in pursuant  of the  total  generation  target  of 40,000MW  by  2020.  There  is also  a feeling that BUA, Honeywell and Dangote groups   with a few other “consumer industrial   groups”   generate   about   l 5000MW   of  off-grid   power   as   captive generation[ 15].

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Today, the Nigerian power infrastructure has become a national grid connecting all the thirty-six capitals of the federation including Abuja,  the FCT.  See the present transmission grid of Nigeria  in APPENDIX  2.Also,  See APPENDIX   3 for an understanding of the total generating plants and future generation infrastructure  in Nigeria as presented in Sambo et al [8] .

The relevance of this history to this study is that it succinctly shows the fact that in Nigeria, power generation actually started as embedded generation.  The incumbent restructuring has opened a vista of opportunity especially for investors who missed their chance during the privatization of PHCN and the NIPP assets to once more invest in the power sector through EG.  Gas plants bear the greatest dependence for the realization  of the 40000MW  vision  2020  generation  capacity[16].  Nigeria’s short,  medium (I0000MW-   14000MW  by 2014) and long term (>35000MW by

2020) targets for the actualization of the 40000MW goals eludes us every day with the continuous sabotage and vandalism of the gas pipelines by militants. This poses a great future for EG in Nigeria with a likely tendency of a greater investment in EG in Nigeria taking the power sector through a full cycle that guarantees increased accessibility   to   regular   electric   power   with   an   increased   general   system performance.

Some   embedded   generation   plants   are   derived   from   renewable   resources. Renewable resources refer to all forms of energy that are generated from natural resources  like the sunlight, wind, water, tide, geothermal, heat, biomass  and bio fuels.  They are derived  from natural  processes  that  are regenerative;  constantly replenished and each of them has characteristics that determine where and how they are used  [17]. These plants have a small output like the  15.79kW Kindigi  Solar project under construction in Katsina state, the 17.5kW Gaza Solar Project in Shira Local Government Area of Bauchi State and the l0MW wind-farm project in Rimi, Katsina  (See  APPENDIX  4)  and  it  is  uneconomical  to  connect  them  to  the

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transmission  system  [4].  Consequently,  they  are  connected  to  the  distribution network i.e. 33kV,  1 lkV or even 415V.

EG technology  can also be explored from non-renewable  energy sources.  Thus, conventional plants that use fossil fuel generation resource(s) like the Trans/Amadi Gas Turbine plant can also be classified under Embedded Generation.

1.2 Statement of the Research Problem

In the last decades, the power industry has had a gradual and steady change from the  centralized  bulk  system (grid)  where  power  is  injected  to the  transmission network from generator to a more decentralized  system where power is injected directly to a distribution network (embedded generation).

The  drift to  embedded  generation  is  influenced  by power  market  deregulation, technological advances, environmental issues etc. The Nigeria power industry under the  centralized  bulk  system  has  had  an  enduring  generation  challenge  with generation  peak  oscillating  between  1500MW  and  5000MW  in  the  past  four decades. More so, it is a thing of great concern that Nigeria gifted with huge oil, gas and various energy resources still battles to generate enough power. This has had grave economic impact on the country’s growth and development. Growths made in power  generation  could  not  be  consolidated  for  greater  network  growth  and improvement.  In  the  midst  of these  staggering  generation  peaks  recorded,  the country  also  loses  a  reasonable  amount  of active  power  within  the  triad  of generation,  transmission  and distribution points in the grid.  There is therefore, a dire need to manage our generation and reduce network losses while improving our voltage profile,  power quality alongside maintaining a good percentage loading of network elements.  Hence, with improved generation,  minimal  power loss etc the Nigeria Electricity Supply Industry will make more profit which (if plunged back to the power  sector)  can be  utilized  in  the  expansion/maintenance  of the  existing national power infrastructure;  to enhance consumers’ satisfaction as well as reduce

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the tension on the government,  consumers etc to subsidize the inefficiencies of the

Nigerian power system.

1.3Aim/Objectives of the Study

This study aims at evaluating the impact of EG on the Nigeria Electricity Supply

Industry.

Against this background, the specific objectives are:

■      the determination of the impact of EG on the Nigerian power system load flow using Newton-Raphsons’ method.

■       investigating the impact of EG on load factor and

■       the degree of EG penetration on the Nigerian power system

■       the effect of EG on the loading of network elements.

1.4 Justification for the Research

This research is carried out for the following reasons:

■      the need to carry out more research on EG in Nigeria especially as Nigeria presently invests in boosting her generation mix through building more EG plants to meet up with the 40000MW generation target by the year 2020 and beyond.

■       the  need  to  evaluate  the  prospects/performance  of EG  on  the  Nigerian network  as the  helpful  experiences  from  other  countries  alone,  may  not guarantee  the  operational   success  of  EG  in  Nigeria.   This  is  because developed  countries  like the USA,  Australia  etc ventured  into  embedded generation  as  an  effective  way  to  defer  costs  in  grid  extension  while improving the reliability of their already existing system infrastructure ( with over 70% accessibility). On the contrary, the grid in Nigeria has only 45% accessibility  to Nigerians  (with 70% of the rural dwellers yet to be grid• connected).

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■              to  see  how  through  evaluating  the  impact  of embedded  generation  on  the Nigerian power network, can lead to recommendations  to improve the performance   of the  network  with  embedded  generation.  This  will  include whether  the  seeming  success  of embedded  generation  as recorded  in some countries  such  as  USA,  UK,  and  China  etc  can  be  felt  here  on  Nigerian network  with  a view to addressing  the power  issues  of Nigeria.  The power demand  in Nigeria  has been  soaring  over the past  years  for understandable reasons  and the transmission  network  is weak and limited in reach. Also the major  hydro  generation  stations  in Nigeria  (like Kainji,  Shiroro, Jebba)  are concentrated   in  the  North   and  the  same  power   generated   is  consumed nationwide   resulting   in  power   flow  from  the  North   down  to  the  south. Because  of the long distance the transmission  network  “travels”,  the voltage profile and power quality has an appreciable  change (degradation)with  a 40% power   loss  between   transmission   and  distribution[ 19].   This,  if  not  well handled  can become  a major  drawback  in the power network  and it must be resolved technically.  One of the approaches  is buying more reactive power at times of its occurrence.  Another  is to build much smaller plants (EGs) along the network  path  and connect  them  directly  at the  load centers.  In the long run,  it is cheaper  to build  embedded  generators  than  to be buying  reactive power.

■      This  research   is  also  done  because  of the  need  for  Nigeria   (a  founding member   of the  Climate   and  Clean  Air  Coalition)   to  honour   the  Kyoto commitment  which  she  is a signatory  to.  Nigeria  has  to think  and  engage more  renewable  energy  EG plants  to  also  mitigate  our  emissions  of green house gases and the consequent climate change there from.

It is interesting  to note  that  fossil  fuels  account  for 64%  of the  fuels used  in the power  sector alone with  carbon  being  the dominant  source  at approximately  40% and  contributing  nearly  three  quarters  of carbon  (iv)  oxide  emissions[l 7].  The

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world annual generation of electricity is about l 8000TWh approximately equal to an average rate of 2000GW consumption.  This electrical  energy is generated in a very large collection of power stations driven mainly by fossil fuels.  The electricity sector is the fastest growing source of emissions and estimated to increase by a factor of four between now and 2050. According to Freris and Infield  [17], the electricity  sector  would  need  to  be  at  least  60%  decarbonized  by  2050  for atmospheric concentration to stabilize at 550ppm, thereby mitigating the hazards of atmospheric climate change.   This accounts for the paradigm shift from using coal as fuel to the use of gases and to a lesser extent oil for electricity generation and heating over the past two decades [ 1 7].

1.5 Significance of the Study.

This assessment study of EG in Nigeria will be beneficial to the following;

1.   Research   Students-  as  a  study  to  enhance  their  literature  review   for subsequent works on the Nigerian power network and on EG in Nigeria in particular. This work can also guide them on how to use PSS/E software for their load flow studies.

2.  Federal Ministry of Power,  Works and Housing –  as a study to guide future policy formulations for the smooth running of the Nigerian power system/sector.

3.  TCN/PHED-  as  a  study  showing  that  EG  in  Nigeria  can  increase  their revenue earnings through reducing power losses on the power networks they directly operate, maintain and manage.

4.  NERC- for future policy formulation(s) in Nigeria.

1.6 Delimitation  of Study

As stated in section 1.4, the aim of this research work is to evaluate the impact of Embedded Generation on the Nigeria Network. This work is done on the 28 bus Nigeria  330kV  Transmission  network  and  on  a  section-cut  of it-  PH  Mains

132/33kV Transmission/Distribution Network.  The choice case study for this work

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is the Trans Amadi embedded generation plant located in Rivers state of Nigeria. This is seen in the chapter three of this work.

The level of assessment is dependent on the available data as at the time of this study.

1. 7 Outline of Presentation

This work is done and presented in five chapters.

Chapter One gives a general introduction to the practical problems of this study and  highlights  the  role  of EG  in the  history  of NESI.  It  further  presents  the justification, aim, objectives significance and the delimitation of this study.

Chapter Two reviews relevant existing literature with the goal of measuring how the theoretical model in them can be adopted or not in the Nigerian power network with a view to improving our network performance.

Chapter Three presents the research case studies here considered with the choice research method considered, reason for its usage, the research procedures and used data.

Chapter  Four  looks  at the  research  results;  their  presentations  alongside  their analysis and interpretation.

Chapter Five ends with the conclusion as seen in this research. Recommendations made will be based on direct network studies and on general knowledge acquired in the course of this research. Also, in chapter five are the following:

■       Findings

■       Contribution(s) to knowledge

■       Conclusion

■       Recommendations

•   Area(s) of further research

■       Leaming points.

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