Changes in environmental legislation and their impact on investment in the UK power sector: a lesson for the Nigerian power sector

Imeh P. Okon, Joseph C. Akunna

    Research output: Contribution to conferencePaper

    Abstract

    The power sector in the UK has been identified as a major emitter of CO2 into the environment, threatening the industrialized and developing nation’s ability to effectively mitigate climate change. Following the negotiations of the Kyoto Protocol (KP) and the allocation of emissions target to signatories, it became imperative that signatories to the convention must all operate within their assigned limits of emission reduction. This subsequently led to the enactment of environmental legislations in the UK geared towards reducing CO2 emissions. These legislations also created uncertainty in the economies of investments in new capacity additions, which would be required to replace conventional power plants that would be affected by the implementation of relevant climate targeted policies. Consequently, the UK government consulted with stakeholders to clarify some of the perceived uncertainties in order to encourage investments in green and low carbon generation technologies. Nigeria on the other hand is not restricted by her environmental commitment, yet is experiencing a generation shortfall of about 50% of total installed capacity due to inefficiencies, and policy uncertainties. Nigeria has produced some policy documents, among which are the Renewable Electricity Master Plan (REMP) to support generation from renewable energy (RE) sources. This will enable it achieve its goal of eradicating poverty through the provision of clean and affordable energy. The implementation of this policy document would require huge investments which the government alone cannot provide hence the call for private sector investment in the Nigeria power sector. Based on the UK experience, this paper examines whether and how the implementation of the policy document which Nigeria have/will enact would cause any significant investment in the Nigerian power sector.
    Original languageEnglish
    Number of pages18
    Publication statusPublished - 22 Jun 2009
    Event32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View" - Grand Hyatt, San Francisco, United States
    Duration: 21 Jun 200924 Jun 2009
    Conference number: 32

    Conference

    Conference32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View"
    Abbreviated titleIAEE International Conference
    CountryUnited States
    CitySan Francisco
    Period21/06/0924/06/09

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    legislation
    Nigeria
    uncertainty
    climate policy
    Kyoto Protocol
    power plant
    energy source
    renewable energy
    electricity
    private sector
    climate change
    stakeholder
    poverty
    commitment
    energy
    economy
    cause
    ability
    experience

    Cite this

    Okon, I. P., & Akunna, J. C. (2009). Changes in environmental legislation and their impact on investment in the UK power sector: a lesson for the Nigerian power sector. Paper presented at 32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View", San Francisco, United States.
    Okon, Imeh P. ; Akunna, Joseph C. / Changes in environmental legislation and their impact on investment in the UK power sector : a lesson for the Nigerian power sector. Paper presented at 32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View", San Francisco, United States.18 p.
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    abstract = "The power sector in the UK has been identified as a major emitter of CO2 into the environment, threatening the industrialized and developing nation’s ability to effectively mitigate climate change. Following the negotiations of the Kyoto Protocol (KP) and the allocation of emissions target to signatories, it became imperative that signatories to the convention must all operate within their assigned limits of emission reduction. This subsequently led to the enactment of environmental legislations in the UK geared towards reducing CO2 emissions. These legislations also created uncertainty in the economies of investments in new capacity additions, which would be required to replace conventional power plants that would be affected by the implementation of relevant climate targeted policies. Consequently, the UK government consulted with stakeholders to clarify some of the perceived uncertainties in order to encourage investments in green and low carbon generation technologies. Nigeria on the other hand is not restricted by her environmental commitment, yet is experiencing a generation shortfall of about 50{\%} of total installed capacity due to inefficiencies, and policy uncertainties. Nigeria has produced some policy documents, among which are the Renewable Electricity Master Plan (REMP) to support generation from renewable energy (RE) sources. This will enable it achieve its goal of eradicating poverty through the provision of clean and affordable energy. The implementation of this policy document would require huge investments which the government alone cannot provide hence the call for private sector investment in the Nigeria power sector. Based on the UK experience, this paper examines whether and how the implementation of the policy document which Nigeria have/will enact would cause any significant investment in the Nigerian power sector.",
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    Okon, IP & Akunna, JC 2009, 'Changes in environmental legislation and their impact on investment in the UK power sector: a lesson for the Nigerian power sector', Paper presented at 32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View", San Francisco, United States, 21/06/09 - 24/06/09.

    Changes in environmental legislation and their impact on investment in the UK power sector : a lesson for the Nigerian power sector. / Okon, Imeh P.; Akunna, Joseph C.

    2009. Paper presented at 32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View", San Francisco, United States.

    Research output: Contribution to conferencePaper

    TY - CONF

    T1 - Changes in environmental legislation and their impact on investment in the UK power sector

    T2 - a lesson for the Nigerian power sector

    AU - Okon, Imeh P.

    AU - Akunna, Joseph C.

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    Y1 - 2009/6/22

    N2 - The power sector in the UK has been identified as a major emitter of CO2 into the environment, threatening the industrialized and developing nation’s ability to effectively mitigate climate change. Following the negotiations of the Kyoto Protocol (KP) and the allocation of emissions target to signatories, it became imperative that signatories to the convention must all operate within their assigned limits of emission reduction. This subsequently led to the enactment of environmental legislations in the UK geared towards reducing CO2 emissions. These legislations also created uncertainty in the economies of investments in new capacity additions, which would be required to replace conventional power plants that would be affected by the implementation of relevant climate targeted policies. Consequently, the UK government consulted with stakeholders to clarify some of the perceived uncertainties in order to encourage investments in green and low carbon generation technologies. Nigeria on the other hand is not restricted by her environmental commitment, yet is experiencing a generation shortfall of about 50% of total installed capacity due to inefficiencies, and policy uncertainties. Nigeria has produced some policy documents, among which are the Renewable Electricity Master Plan (REMP) to support generation from renewable energy (RE) sources. This will enable it achieve its goal of eradicating poverty through the provision of clean and affordable energy. The implementation of this policy document would require huge investments which the government alone cannot provide hence the call for private sector investment in the Nigeria power sector. Based on the UK experience, this paper examines whether and how the implementation of the policy document which Nigeria have/will enact would cause any significant investment in the Nigerian power sector.

    AB - The power sector in the UK has been identified as a major emitter of CO2 into the environment, threatening the industrialized and developing nation’s ability to effectively mitigate climate change. Following the negotiations of the Kyoto Protocol (KP) and the allocation of emissions target to signatories, it became imperative that signatories to the convention must all operate within their assigned limits of emission reduction. This subsequently led to the enactment of environmental legislations in the UK geared towards reducing CO2 emissions. These legislations also created uncertainty in the economies of investments in new capacity additions, which would be required to replace conventional power plants that would be affected by the implementation of relevant climate targeted policies. Consequently, the UK government consulted with stakeholders to clarify some of the perceived uncertainties in order to encourage investments in green and low carbon generation technologies. Nigeria on the other hand is not restricted by her environmental commitment, yet is experiencing a generation shortfall of about 50% of total installed capacity due to inefficiencies, and policy uncertainties. Nigeria has produced some policy documents, among which are the Renewable Electricity Master Plan (REMP) to support generation from renewable energy (RE) sources. This will enable it achieve its goal of eradicating poverty through the provision of clean and affordable energy. The implementation of this policy document would require huge investments which the government alone cannot provide hence the call for private sector investment in the Nigeria power sector. Based on the UK experience, this paper examines whether and how the implementation of the policy document which Nigeria have/will enact would cause any significant investment in the Nigerian power sector.

    M3 - Paper

    ER -

    Okon IP, Akunna JC. Changes in environmental legislation and their impact on investment in the UK power sector: a lesson for the Nigerian power sector. 2009. Paper presented at 32nd International Association of Energy Economic Conference on, "Energy, Economy, Environment: The Global View", San Francisco, United States.