A means to an industrialisation end? Demand Side Management in Nigeria

Eka Ikpe, Jacopo Torriti

Research output: Contribution to journalArticlepeer-review

22 Citations (Scopus)
153 Downloads (Pure)

Abstract

Electricity is essential for economic development and industrialisation processes. Balancing demand and supply is a recurrent problem in the Nigerian electricity market. The aim of this work is to assess the technical and economic potential of Demand Side Management (DSM) in Nigeria given different future levels of industrialisation. The paper places industrialisation at the centrefold of the appraisal of DSM potential in Nigeria. It does so by designing industrialisation scenarios and consequently deriving different DSM penetration levels using a cost-optimisation model. Findings show that under the high industrialisation scenario by the year 2050 DSM could bring about 7 billion USD in cumulative savings thanks to deferred investment in new generation and full deployment of standby assets along with interruptible programmes for larger industrial users. The paper concludes by providing policy recommendations regarding financial mechanisms to increase DSM deployment in Nigeria. The focus on DSM serves to shift the policy debate on electricity in Nigeria from a static state versus market narrative on supply to an engagement with the agency and influence on industrial end-users.
Original languageEnglish
Pages (from-to)207-215
JournalENERGY POLICY
Early online date28 Jan 2018
DOIs
Publication statusPublished - Apr 2018

Keywords

  • Demand Side Management; Electricity; Industrialisation; Nigeria

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