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

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  • Ikpe, Eka
  • Torriti, Jacopo

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.

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  • Ikpe, Eka & Torriti, Jacopo, 2018. "A means to an industrialisation end? Demand Side Management in Nigeria," Energy Policy, Elsevier, vol. 115(C), pages 207-215.
    • Handle: RePEc:eee:enepol:v:115:y:2018:i:c:p:207-215
    DOI: 10.1016/j.enpol.2018.01.011
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    3. Rilwan Usman & Pegah Mirzania & Sahban W. Alnaser & Phil Hart & Chao Long, 2022. "Systematic Review of Demand-Side Management Strategies in Power Systems of Developed and Developing Countries," Energies, MDPI, vol. 15(21), pages 1-24, October.
    4. Srivastava, A. & Van Passel, S. & Valkering, P. & Laes, E.J.W., 2021. "Power outages and bill savings: A choice experiment on residential demand response acceptability in Delhi," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    5. Wale Arewolo & Philipp Blechinger & Catherina Cader & Yannick Perez, 2019. "Seeking workable solutions to the electrification challenge in Nigeria: Minigrid, reverse auctions and institutional adaptation," Post-Print halshs-01989683, HAL.
    6. Wabukala, Benard M. & Mukisa, Nicholas & Watundu, Susan & Bergland, Olvar & Rudaheranwa, Nichodemus & Adaramola, Muyiwa S., 2023. "Impact of household electricity theft and unaffordability on electricity security: A case of Uganda," Energy Policy, Elsevier, vol. 173(C).
    7. Heffron, Raphael & Körner, Marc-Fabian & Wagner, Jonathan & Weibelzahl, Martin & Fridgen, Gilbert, 2020. "Industrial demand-side flexibility: A key element of a just energy transition and industrial development," Applied Energy, Elsevier, vol. 269(C).
    8. Abdul Conteh & Mohammed Elsayed Lotfy & Oludamilare Bode Adewuyi & Paras Mandal & Hiroshi Takahashi & Tomonobu Senjyu, 2020. "Demand Response Economic Assessment with the Integration of Renewable Energy for Developing Electricity Markets," Sustainability, MDPI, vol. 12(7), pages 1-20, March.
    9. Jacopo Torriti, 2022. "Household electricity demand, the intrinsic flexibility index and UK wholesale electricity market prices," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 7-27, January.
    10. Balasubramanian, S. & Balachandra, P., 2021. "Effectiveness of demand response in achieving supply-demand matching in a renewables dominated electricity system: A modelling approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
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