This thesis investigates the role of support schemes to promote investment in renewable energy in the Nigerian power sector. The current situation does not favour investment in renewable energy. The argument developed by this thesis shows that the feed-in tariff (FIT) scheme is most suitable for encouraging investment in renewable energy in Nigeria. Drawing from legal analysis of international best practice and established FIT schemes in Germany and China, the research puts forward assertions that the FIT, with a design structure containing a fixed tariff for a guaranteed duration, tariff differentiation and degression, purchase obligation, guaranteed priority and guaranteed access to the grid, review measures and effective administration and implementation can encourage investment in renewable electricity in Nigeria. The thesis goes on to discuss how typical models of the FIT schemes used in the developed world need to be adapted to meet the existing challenges in the Nigerian electricity market if the FIT scheme is to be effective. The principal challenge is that consumers are unable to bear the cost of subsidies to investment in renewable energy. There are the concerns that purchasers of renewable electricity are not creditworthy. There are also general rule of law challenges which may lead to regulatory uncertainties and changes in support offered to investors. These require departures in design from the typical FIT models including those employed by Germany and China. The thesis proposes solutions to the particular difficulties in using an FIT scheme in Nigeria and concludes by providing a legal framework that includes suggested responses. It proposes that the FIT should be financed by the Nigerian state, by establishing a fund from the oil revenue account under the constitution. The risks of non-payment by the purchasers should be removed by establishing government guarantees backed by international financial institutions. Measures such as saving provisions in the law, stabilisation clauses in investment contracts and reliance on the provisions of bilateral investment treaties are important mechanisms that are proposed to check regulatory and investment uncertainties. The thesis presents a proposal for a legal framework for promoting renewable energy in the Nigerian power sector that incorporates these solutions.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:635973 |
| Date | January 2014 |
| Creators | Oniemola, Peter Kayode |
| Publisher | University of Aberdeen |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://digitool.abdn.ac.uk:80/webclient/DeliveryManager?pid=222677 |
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