Clean & Renewable Energy for Nigeria

HARNESSING NATURE’S
ENERGY FOR NIGERIA

Nigeria’s increasing Power Deficit, political stability fueling growth, and
exploring its potentials to generate clean and abundant energy to meet
its ever growing appetite. Bon appetite!

TABLE OF CONTENTS

Contents
Executive Summary ______________________________________________________________________________________ 1
Strategic Highlights_______________________________________________________________________________________ 2
Financial Highlights ______________________________________________________________________________________ 4
Operating Highlights _____________________________________________________________________________________ 6
Independent Auditor’s Report___________________________________________________________________________ 8
Contact Information ______________________________________________________________________________________ 9
Company Information ____________________________________________________________________________________ 9

CLEAN ENERGY FOR ALL

Executive Summary
STRATEGIC HIGHLIGHTS
Recent Trends in Nigeria is reflective of the fact that with a stable democracy finally arriving in Nigeria,
businesses are actively seeking refuge in this “World’s last open and available market”. With this, the
government is frantically looking at means to improve its basic infrastructure to support and propel this
opportunity. 30 Years back, when the country found its oil sources, a similar opportunity had come, but it
failed to en-cash on it, for various reasons (This article is not about that failure). This time, the people and
their leaders are not going to let it slip.

FINANCIAL HIGHLIGHTS
This paper will cover details of historical inflation in Nigeria, how the FX rates have fluctuated in the past,
how basic fuel prices have changed, and in what way has it affected the GDP of Nigeria. I will also emphasize
on the manifestos of the current government to identify areas where Nigeria is focusing to improve, so as to
attract more foreign investments. This will also look into the facts on how global organizations like the United
Nations, World Bank, IFC, etc., are working towards funding large infrastructure projects, and how improved
trade relations between Nigeria and emerging economies like China and India, is changing the face of business
in this country.

OPERATING HIGHLIGHTS
This paper will provide information on how clean and Renewable Energy is the way forward for Nigerians.
You will find interesting facts on Nigeria’s solar irradiance and wind power, you will be able to estimate the
commercial, economic, social, environmental advantages of renewable energy for Nigeria.

LOOKING AHEAD
Vitteza Energy is glad to be present in Nigeria during its second stint of success by providing clean and
abundant energy to its people and businesses, generating local employment, and thereby improving the socio
economic status of the country.

Palash Bagchi
Director, Vitteza Energy Ltd.
November 8, 2012

Page 1


Strategic Highlights
The developing nations of Africa are popular locations for the application of renewable energy technology.
Currently, many nations already have small-scale solar, wind, and geothermal devices in operation providing
energy to urban and rural populations. These types of energy production are especially useful in remote
locations because of the excessive cost of transporting electricity from large-scale power plants. The
application of renewable energy technology has the potential to alleviate many of the problems that face
Africans every day, especially if done so in a sustainable manner that prioritizes human rights.

Access to energy is essential for the reduction of poverty and promotion of economic growth. Communication
technologies, education, industrialization, agricultural improvement and expansion of municipal water
systems all require abundant, reliable, and cost-effective energy access. (Source: Wikipedia)

Nigeria Government

Nigeria government follows a federal setup of governance. There are certain constitutional laws according to
which the government of Nigeria works. The constitutional laws are always open to amendments. The
constitution of Nigeria charters that Nigeria as well as of the respective states should remain a democratic
nation. The country is divided into state and local government area where local governments are at work.
However, all the states as well as local government areas are ultimately answerable to the central Nigeria
government.

Minister Ministry Contact Address
Mrs. Hadiza Ibrahim Ministry of Addresses of Federal Ministries
Mailafa Environment
Mr. Ministry of Trade &
- More Addresses
Olusegun Aganga Investment
9th Floor Federal Secretariat Towers, Shehu,
Arc. Mike Federal Ministry of
Shagari Way, Central Area, P.M.B. 468 Garki,
Onolememen Works
Abuja Nigeria
Tel: 09-5234014, 5234119
Minister of State - 9th Floor Federal Secretariat Towers, Shehu,
Ambassador Bashir
Federal Ministry of Shagari Way, Central Area, P.M.B. 468 Garki,
Yugudu
Works Abuja Nigeria
Tel: 09-5234014,
5234119 http://www.fme.gov.ng - More
Addresses
Ahmadu Bello Way, Central Area, P.M.B. 14 Garki,
Federal Ministry of Abuja Nigeria Tel: 09-
Ngozi Okonjo-Iweala
Finance 2346290. http://www.fmf.gov.ng - More
Addresses

Page 2


Minister of State -
Dr. Yerima Lawal Ahmadu Bello Way, Central Area, P.M.B. 14 Garki,
Federal Ministry of
Ngama Abuja Nigeria
Finance
Tel: 09-2346290 - More Addresses
Maputo Street, off Abidjan Street, Wuse Zone 3,
P.M.B. 130, Garki Abuja Nigeria. Tel: 09-5230204-
Amb. Olugbenga Federal Ministry of
6, 09-5230570, 09-5230825, 09-6002588, 09-
Ashiru Foreign Affairs
5230490, 09-5230492, 09-5230828,09-5230185-
9http://www.mfa.gov.ng - More Addresses
Professor (Mrs) Minister of State 1 -
6, 09-5230570, 09-5230825, 09-6002588, 09-
Viola Onwuliri Foreign Affairs
5230490, 09-5230492, 09-5230828,09-5230185-
Dr. Nuruddeen Minister of State II -
6, 09-5230570, 09-5230825, 09-6002588, 09-
Mohammed Foreign Affairs
5230490, 09-5230492, 09-5230828,09-5230185-
Minister of State for
Mr. Bart Nnaji 6, 09-5230570, 09-5230825, 09-6002588, 09-
Power
5230490, 09-5230492, 09-5230828,09-5230185-
Federal Ministry of
Mrs. Sarah Ochekpe More Addresses
Water Resources
Dr. Mohammed Minister of State - Tel: 09-5237112, 09-5238341, 09-5238864 09-
Pate Ministry of Health 5233644
Minister of State -
Dr. Samuel Ioraer Block H, Old Federal Secretariat, P.M.B. 88 Garki
Ministry of Trade &
Ortom Area 1 ,Abuja. Nigeria. Tel: +234-9-234-1884
Investment

*Last updated: August 2012

Page 3


Financial Highlights
HISTORICAL FX RATES
Historical FX Rate Naira ~ USD

2000 85.98 (105.00 PM)
2001 99-106 (104-122 PM)
2002 109-113 (122-140 PM)
2003 114-127 (135-137 PM)
2004 127-130 (137-144 PM)
2005 132-136
2006 128.50-131.80
2007 120-125
2008 115.50-120
2009 145-171

HISTORICAL PRICES OF DIESEL AND ENERGY PRODUCTION
Historical Diesel Price (in USD) for Nigeria

Page 4


HISTORICAL INFLATION RATE
Historical Inflation Rate Nigeria

NIGERIA GDP GROWTH

•

Page 5


Operating Highlights
CLEAN AND RENEWABLE ENERGY
By investing in the long term energy solutions that alternative energy sources afford, most African nations
would benefit significantly in the longer term by avoid the pending economic problems developed countries
are currently facing. Although in many ways fossil fuels provide a simple, easy to use energy source that
powered the industrialization of most modern nations, the issues associated with the widespread use of fossil
fuels are now numerous, consisting of some of the world's most difficult and large scale global political,
economic, health and environmental problems. The looming energy crisis results from consuming these fossil
fuels at a rate which is unsustainable, with the global demand for fossil fuels expected to increase every year
for the next several decades, compounding existing problems. While a great number of projects are currently
underway to expand and connect the existing grid networks, too many problems exist to make this a realistic
option for the vast majority of people in Africa, especially those who live in rural locations. Distributed
generation using renewable energy systems is the only practical solution to meet rural electrification needs.

NIGERIA SOLAR IRRADIANCE

Page 6


WIND POWER

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year2
Annual
Average
5.33 6.29 6.93 6.69 5.95 4.89 4.75 4.59 5.28 4.89 5.28 5.7
wind speed
(m/s)
EPF 1.13 1.07 1.07 1.21 1.03 1.14 1.06 1.06 1.09 1.07 1.22 1.22
Power
Density 104.7 163.6 217.8 222.1 132.7 81.4 69.6 62.6 98.1 76.5 109.4 109.4
(W/m2)
Source: Physical Science Department, Yaba College of Technology, Nigeria

ENERGY CONSUMPTION

Source: CBN 2009

TAKEAWAYS
Average Cost of Electricity Generation using Diesel Generators in Nigeria comes to Naira 120/KWh.

Page 7


Independent Auditor’s Report
Solar and wind power are extremely scalable, as there are systems available from less than 1 watt to
several megawatts. This makes it possible to initialize the electrification of a home or village with minimal
initial capital. It also allows for dynamic and incremental scaling as load demands increases. The
component configuration of a wind or solar installation also provides a level of functional redundancy,
improving the reliability of the system. If a single panel in a multi panel solar array is damaged, the rest of
the system continues functioning unimpeded. In a similar way, the failure of a single wind tower in a multi
tower configuration does not cause a system level failure.

Because solar and wind projects produce power where it is used, they provide a safe, reliable and cost
effective solution. Because transmission equipment is avoided, these systems are more secure, and less
vulnerable to attack. This can be an important feature in regions prone to conflict. Wind and solar power
systems are simple to set up, easy to operate, easy to repair, and durable. Wind resources and solar
resource are abundant enough to provide all of the electrical energy requirements of rural populations,
and this can be done in remote and otherwise fragmented low density areas that are impractical to address
using conventional grid based systems.

Page 8


Contact Information

PALASH BAGCHI
DIRECTOR

Company Information
Vitteza Energy Ltd.
No. 57, Adeola Odeku Street, Victoria Island, Lagos, Nigeria.
Tel +234 7093566480
Email palash.bagchi@vittezaenergy.com
www.vittezaenergy.com

Page 9

Clean & Renewable Energy for Nigeria

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