Nigeria_white paper_final_version_2018_11_14.pdf -

Please enable JavaScript to view the full PDF

Electrification Roadmap for Nigeria Siemens Value Proposition supports reliable and affordable power supply siemens.com/nigeria Electrification Roadmap Nigeria | Siemens Value Proposition Smart meter and automation for secure revenue streams, rehabilitation of existing assets for sustainable economic growth and future development Improve entire power supply chain to evolve Nigeria’s human and physical resources for steady economic growth. Nigeria’s power system is constrained by an Additionally, upgrading existing control imbalance between power generation and center to the latest state-of-the-art technol- consumption. While >13 GW of power gen- ogy backed up with extensive training of eration capacity is available, only ~3.4 GW is Transmission Company of Nigeria (TCN) reaching final customers (households, personnel enhances the quality of opera- commercial and industrial users). Existing tional and business decisions while protect- assets are partly idle and do not actively ing previous and future investments. Fur- participate in the energy system. Removing thermore, accurate revenue collection can severe bottlenecks within the transmission be improved through deployment of smart and distribution grid is necessary to allow metering systems. free flow of electricity. Rehabilitating defec- Short-term goal is the rehabilitation of tive connections of key substations to the available infrastructure with special focus on existing control center is fundamental to distribution and transmission system. To- improve the operation of transmission gether with rehabilitation of existing power network and unlock its potential. generation assets, the grid will be able to evacuate 7 GW of power generation to end customers. In a long-run, additional genera- tion capacity shall be built to support rural electrification and economic growth. Nige- rian National Petroleum Corporation (NNPC) power generation projects already under planning can be first projects for execution in addition to other projects identified based on feedstock availability. In the end 25 GW of generation capacity would be available to meet the basic power demand in a prosper and electrified economy. 1 Siemens Value Proposition | Electrification Roadmap Nigeria I. Nigeria Electrification Roadmap Holistic and modular approach to deliver 25 GW to Nigerians Siemens Value Proposition: • targeted power generation of 25 GW Siemens delivers a comprehensive concept • 5,000 direct jobs for upgrading the grid and reducing techni- cal and non-technical losses while involving • 100,000 indirect jobs local partners to maximize the local contri- • local training center and workshop bution within this plan. The ambitious 25 GW of power generation would provide reliable electricity for nearly 200 million Nigerians. The anticipated power generation mix includes fluctuating renewables (Hydro, Photovoltaics, and Wind) as well as dis- patchable conventional generation. This concept enables the creation of about 5,000 direct jobs and over 100,000 indirect jobs. This long-term, sustainable job creation also includes comprehensive training, education and ‘Corporate Social Responsibility’ (CSR) concepts to train young Nigerians for maxi- mal in country value creation. 2 Electrification Roadmap Nigeria | Siemens Value Proposition II. Proposed Electrification Roadmap Multi-step approach to maximize benefits for Nigeria The Siemens proposal is a holistic approach • Resolve fuel supply (gas) constraints: +2.0 GW to maximize the use of existing assets and • Additional NNPC power generation (central delivers results within several months. The and northern regions): +4 GW graph below shows the possible gains the individual enhancements can achieve. And • Additional power generation to support highlights the importance of cross-concept economic growth ambitions: +7.6 GW focus topics to maximize benefits for Nige- • Financing and best practice transfer as ria. proven in many countries The picture above shows the smart meter, • Integrate ‘Learning / Education’ to maximize transmission and distribution (T&D), power in country value add. generation and service projects to be ex- ecuted for a sustainable power supply. The proposal suggests the following actions to maximize the electricity usage within Nigeria: • “Advanced Revenue” Smart Metering system for end customers and all metered entities to ensure revenue security (pilot DISCOs before a national rollout). • Resolving distribution and transmission bottlenecks: +1.6 GW • Additional small-scale power generation to support T&D grid • Rehabilitation of power generation: +6.5 GW 3 Siemens Value Proposition | Electrification Roadmap Nigeria Ambitious GDP growth requires additional investments in the entire energy supply chain, such as • exploration, • flare gas collection, • gas pipeline, • transmission and distribution grid, and • power generation. Nigeria’s electrification as a basis for economic development There was a moderate economic recovery in 2017 with real ‘Gross Domestic Product’ (GDP) projected to grow at 2.2% spurred by in- creased infrastructure spending and restora- tion of oil production to previous levels. There is awareness of electricity constraints as hurdle to more economic prosperity and development. The per capita electricity consumption in 2015 was only 0.15 MWh/ capita (or 0.69 toe/capita), compared to South Africa with 4.0 MWh/capita and Ghana with 0.3 MWh/capita. To close the gap to peer countries (such as Algeria and Morocco) the power generation consumption per capita needs to increase 8-fold. While South Africa is leading the energy development, past developments of Algeria is a reasonable proxy for Nigeria. Therefore, additional investments in the overall energy supply chain is necessary to drive the ambitious GDP growth expectations. Beside flare gas collection, treatment, and distribution through national and interna- tional gas pipelines, the rehabilitation of existing infrastructure, as well as enhancing metering to all customers are other key tasks to be done for short- and medium-term improvements. A reliable and secure power “Security of Supply” through flare gas utilization. system supports the ambitious governmental targets of electrification of economy as a “Security of Finance” through smart meter infrastructure. prerequisite for economic growth of the Nigerian nation. 4 Electrification Roadmap Nigeria | Siemens Value Proposition Create attractive business environment in power generation sector by combining measures of loss reduction and power generation expansion. Our analysis of Nigeria’s power sector clearly above 10 GW in the short-term and 25 GW in shows that a bold move in increasing the the mid-term. countries power generation is necessary to Based on this ratio, to unleash the full create earnings in the mid-term. economic potential, Nigeria must not only With Business-as-usual capacity additions, aim to remove ATC&C losses, but also in- deficits of the power generation sector will clude a rapid increase of power generation result in multi-billion USD economic losses. capacity in their short- and mid-term plan- Due to insufficient collection of revenues, ning. high technical and commercial losses and below optimal performance of the existing power plants fleet, the power generation sector will continue to require subsidies and face harsh financing conditions for new projects. Removing the ‘Aggregate Technical and Commercial Collection’ (ATC&C) Losses will result in positive earnings of the power generation sector after only a few years lead time. Still, without additional expansion of generation capacity, accumulated earnings will only become positive after 2028. Fur- ther to electrifying Nigeria, ATC&C will lead to a sound business environment in the power generation sector that will benefit local companies as well as attract additional foreign investment into Nigeria. To further speed up electrification of Nige- ria, satisfy the demand for power, and enable earnings in the power generation sector above 5 bn USD annually, power generation capacity must be expanded to 5 Siemens Value Proposition | Electrification Roadmap Nigeria Required T&D and power generation extension to reach 25 GW capacity There was a moderate economic recovery in This proposal touches the following tasks: 1. Describe the current situation in all distri- bution companies/ sectors, 2. Assess the future power grid availability and requirements, 3. Assess future fuel availability, and 4. Add gas-fired and renewable power generation for a sustainable and reliable power system. A National or centralized “advanced rev- The following sub-chapters describe the enue” smart metering system is an enabler proposed projects to maximize the use of Top-Down approach: for security of revenue to ensure proper existing assets in the most efficient and • Generation payback for the ‘distributions companies’ economical way as well as build on them to (DisCo’s) to ‘Nigerian Bulk Electricity Trading’ expand for future requirements. • Transmission (NBET), as well as to Meter Asset Providers • Distribution The structure follows a top-down approach, (MAP’s) and their respective investors. • Smart Metering meaning: after generation, transmission, DisCo’s currently receive only 45% of total and distribution solutions also end customer revenue (average aggregate technical and solutions are considered within this offer commercial collection losses, ATC&C, are (see picture below). 55%), whilst only paying 28% on average for electricity received from Transmission Com- pany of Nigeria (TCN) to NBET and further on to power generating companies. 6 Electrification Roadmap Nigeria | Siemens Value Proposition Rehabilitation of existing power genera- tion asset The Afam Power PLC site buries a broad The value proposition is, with the existing array of technologies, with blocks I-V hous- site infrastructure, foundation and equip- ing twenty gas turbines in aggregate. A site ment can be further used for this footprint well-positioned to serve a key economic concept; the investment per additional area, Siemens proposes the rehabilitation of power output for the rehabilitation of Afam the block V (hereafter “Afam V”). This pro- V is 50% below a new open cycle gas turbine posal would maximize the benefit to the power station or comparable new installa- asset owner and country by enabling a key tion. asset to be productive once more for the As a second step we propose a replacement country. of the existing blocks with a new combined cycle power plant as fuel supply and grid integration do already exist. In brief, the work scope would include: • Exchange of core engine and upgrade of GT19 and GT20 to latest version • Off-site rewind of GT19 and GT20 genera- tor rotors • On-site rewind of GT19 and GT20 genera- tor stator • Rehabilitation and upgrade of I&C Systems to SPPA-T3000 • Replacement of some electrical system components and inspection/ testing of others subject to findings • Replacement of some balance of plant system component and inspection/ testing of others subject to findings 7 Siemens Value Proposition | Electrification Roadmap Nigeria The table below provides the summary of this sub-concept ‘Rehabilitation Power Generation Assets’. Status Challenge Proposed solution Benefit Next step • Afam V not • Additional • Rehabilitate • Minimize • Define detailed operational power needed existing assets additional costs scope and timeline A more extensive collection of information as well as the detailed offering for this project is attached as Appendix A. New power generation to support central and northern regions Nigerian National Petroleum Corporation Additional projects (e.g. Independent Power (NNPC) is already in progress of bid prepara- Producer (IPP) projects) are required to close tion for some of the planned power plants the capacity gap to 25 GW. These projects in Abuja, Kaduna, and Kano region. Siemens could be for example in the Lagos region or is happy to support in any pending item any other location where demand for addi- wherever possible to speed up this process tional power is especially high. to build new power capacity in central and northern Nigeria. NNPC aims for four projects in central and northern Nigeria: • Abuja region; +1350 MW, • Kaduna region: +900 MW, • Kano region: +1350 MW, and • Agura (Lagos region): +450 MW. 8 Electrification Roadmap Nigeria | Siemens Value Proposition For all NNPC projects the proposal is based on the SGT-2000E technology, as it shows excel- lent start-up and part-load behavior (fast start-up in ~17.5 minutes / optional <12 minutes), has outstanding fuel flexibility, (e.g. natural gas. low-calorific gases, crude and heavy fuel oil), has a service-friendly design (can be offered with one major overhaul in lifetime only), has more than 17 million of equivalent operating hours, and a fleet reliability of above 99%. On top of that it is already used in Geregu I, II, Azura Edo IPP, and Afam V. The table below provides the summary of this sub-concept ‘New Power Generation’. Status Challenge Proposed solution Benefit Next step • Capacity deficit • Unreliable fuel • New flexible and • Reliable power • Define detailed in central and supply reliable power generation scope northern Nigeria generation (incl. • Enable economic renewables and growth conventional) A more extensive collection of information as well as the detailed offering for this project is attached as Appendix B. 9 Siemens Value Proposition | Electrification Roadmap Nigeria Resolving transmission bottlenecks and To minimize transmission losses and mal- stability issues function of the transmission assets (such as substations, protections) the following Peak operating capacity in 2016 was 5,075 MW: projects are proposed: • Initial studies of the Lagos Region have • Rehabilitation of telecommunications of been performed. disconnected substations to existing control • Certain additional capacity is available. center, • 132/33 kV transformers feeding into the • Improve operational efficiency of critical distribution companies are the major bottle- substations with substation automation, necks. • Secure existing grid assets with latest • Increasing the peak power further will protection solutions, require significant investments. • Efficiency increase of telecommunication through powerline carrier PowerLink IP, and Further studies for Nigerian transmission • Knowledge transfer for transmission system to be done: company (Transco) employees. • Review of operational issues (analyses of large outages / blackouts). • Draft proposals for fast and effective measures to mitigate/limit impacts of opera- tional issues. • Review of existing bottlenecks and defini- tion of required projects to solve the prob- lems. • Plan for higher capacities and prioritize projects together with TCN and FMPW. The first areas in the transmission system to target as pilots are within the Abuja region, Yola region (Damaturu, Maiduguri) and the Lagos region (Alagbon). Afterwards, a national wide rollout is planned. The table below provides the summary of this sub-concept ‘Resolving Transmission bottlenecks’. Status Challenge Proposed solution Benefit Next step • High ATC&C • Improve quality • Upgrade with • Reduce ATC&C • Potential pilot losses and efficiency high voltage losses substations: Oko product, system Oba, Epe, and EPZ • Safe and reliable and solutions (Free Trade Zone). transmission of electricity A more extensive collection of information as well as the detailed offering for this project is attached as Appendix C. 10 Electrification Roadmap Nigeria | Siemens Value Proposition National Control Center (NCC) – Rehabilita- tion and enhancing operation of transmis- sion network Real time visibility of transmission substations is o Rehabilitation of telecommunications crucial for monitoring and dispatching existing between disconnected substations and the transmission assets by National Control Center. control center (Key 60% of substations), Therefore, availability of actual data from o Providing Maintenance and Services. primary substation equipment to ‘remote terminal units’ (RTU), functioning communica- • Step 3 (24-36 months): tions between RTU’s / Substation Automation o Provision of Advanced Transmission Net- systems and Control Center are necessary for work Management, successful operation. Constantly keeping SCADA system healthy, the know-how of o Rehabilitation of telecommunications personnel up-to-date and applying upgrading between disconnected substations and the and maintenance strategies in-time guarantee control center (Key 30% of substations), and smooth operation, protect previous and future o Integrating new substations. investments while provide piece of mind to TCN organization through quality operational and business decisions. Some of expected key benefits for TCN and Siemens propose the following steps, to achieve Nigeria can be listed as below: above goals: • Improving visibility of transmission network • Step 0 (6-12 months): and avoid continuing the current unpleasant Rehabilitation of connections between situation at first step, primary assets and marshaling panels and make signals available to RTU’s • Faster start and smooth implementation of system upgrading due to existing knowledge in • Step 1 (6-12 months): TCN and Siemens, Rehabilitation of telecommunications be- tween disconnected substations and the • Avoid complex process of data migration from existing control center (Key 10% of substa- existing system to control center technology tions) from different vendor, • Step 2 (12-24 months): • Quick utilization of upgraded system and new o Upgrading existing control center to the features with minimum efforts, latest state-of-the-art software and hardware • Protect previous and future investments, technologies, advancing & optimizing current business pro- o Enablement of TCN personnel through cesses with min time and efforts, and extensive trainings, • Saving of costs and times in overall. The table below provides the summary of this sub-concept ‘New Power Generation’. Status Challenge Proposed solution Benefit Next step • No real time • No data • Upgrade existing • Improved • Rehabilitation visibility and collection SCADA visibility of connections controllability between primary • Low automation • Establish lost • Minimum efforts assets communication in upgrading links • Upgrade control center • Train personnel • Have support and maintenance strategy A more extensive collection of information as well as the detailed offering for this project is attached as Appendix D and includes. 11 Siemens Value Proposition | Electrification Roadmap Nigeria Resolving distribution bottlenecks Today, power distribution by the Distribution companies to the end-customers is limited by power infeed from TCN. In addition, capacity bottlenecks in the distribution networks do exist. Investigation of peak supply by TCN compared to non-coincidental peak load of distributions feeders. 1,200 1,000 800 TCN peak load Power [MW] Disco non-coincidental peak load 600 400 200 0 Eko Ibadan Kano Distribution networks (“last mile”) are capable to as Siemens PTI does offer this as a service. In a supply twice as much demand! long-run local staff can be hired and trained so this service is full-filed locally. Assumption for Nigeria is that it sums up to 11 GW, which would need to be verified in further The following projects are recommended: studies off the overall Nigerian Network (TCN • Monitor DisCo’s energy flow, and the 11 DisCo’s). • Knowledge transfer for DisCo employees. To avoid malfunctional distribution companies (DisCo’s) in the future it is recommended to The first pilot distribution companies (DisCo’s) purchase PSS®SINCAL licenses and train the to target are Abuja region, Yola region, and DisCo employees accordingly. In a short-run Lagos Region (Alagbon, Eko DisCo). Afterwards, proper planning and execution can be ensured all DisCo’s shall be targeted. 12 Electrification Roadmap Nigeria | Siemens Value Proposition The table below provides the summary of this sub-concept ‘Resolving Distribution bottlenecks. Status Challenge Proposed solution Benefit Next step • Not all customers • Revenue • Network analysis • Reduced service • Data collection and are metered nor collection cost validation • Online billed. • High ATC&C monitoring • Higher customer • Simulation and • For several losses satisfaction planning of all 11 DisCo’s no DisCo’s information available. An intelligent overall solution from a trusted partner for Distribution System Operators for reliable electricity distribution. and includes. A more extensive collection of information as well as the detailed offering for this project is attached as Appendix E. 13 Siemens Value Proposition | Electrification Roadmap Nigeria Additional embedded small-scale conven- tional power generation to support special electrification requirements after removal of grid constraints Small-scale power generation can be used to The deployment of SGTs-A45 is intended for fulfill specific needs such as delivering power to Abuja to quickly upgrade and improve the remote areas or for supplying power to special energy situation for its people and economy. “eligible” customers as in the industry, or com- The SGT-A45 achieves significantly higher mercial sector, after removal of grid constraints. power output and fuel efficiency than any other The first pilot projects discussed are: mobile gas turbine unit. It has a modular de- sign, consisting of three trailer-mounted mod- • 40 MW conventional generation in Abuja ules to minimize the number of items that must region (e.g. SGT A45), and be installed on site. The systems on each trailer • 30 MW hydro power plant in Jos region (Dadin are self-contained to reduce the number of Kowa). interconnections to be completed on site. Abuja, the capital city of Nigeria, is located Questions to be answered before an SGT A45 within the Federal Capital Territory (FCT) the can be put into operation: seat of the federal government at the very • Where does the fuel come from (truck vs. center of the country. It is one of the fasted pipeline)? growing cities in the world, having experienced a rapid population increase in the past decade, • Where is the T&D system ready to offtake the which has been coupled with a steady econom- power? ic growth particularly within its key tourism and hospitality sectors. However, with this growth in its resident population and number of busi- nesses, comes an increase in the electric power demand in the city and its surrounding subur- ban districts. Therefore, there is a clear motivation to improve the local electricity supply by building new power generation capacity, and since the gas and T&D infrastructure are already in place and considering its location as the seat of the federal government, it is best positioned for immediate actions to be taken by the govern- ment to move the project forward. 14 Electrification Roadmap Nigeria | Siemens Value Proposition The table below provides the summary of this sub-concept ‘Additional small-scale power generation’. Status Challenge Proposed solution Benefit Next step • Limited • Increase power • Embedded • Reliable power • Define scope (incl. availability of delivery to key generation supply to key e.g. location) energy for large customers (conventional, customers customers hydro, and other renewables) A more extensive collection of information as well as the detailed offering for this project is attached as Appendix F. Embedded small-scale hydro power genera- sumed. If customers do not “top-up” their tion central wallet on the system in time, they can be disconnected remotely – thus secur- Siemens is also capable to deliver small-scale ing revenue. hydro power plants. To provide any kind of offering for the targeted 30 MW run-of-the-river By centralizing the Smart Metering solution, hydro power plant in Jos region (Dadin Kowa) government and private institutions such as more details such as location, drop height, MAP’s, DisCo’s, NBET, NERC, TCN and Gen- design water quantity, preferred technology, eration Companies (GenCo’s) can gain and seasonal details are required. valuable insight in load consumption data so that strategic planning is made easier No offering for this kind of project as infor- and more accurate – reducing unnecessary mation available by now is insufficient. costs for grid upgrading and new infrastruc- ture. Also, revenue protection is ensured and due to the nature of the centralized Centralized Smart Metering system to ex- system, each MAP and DisCo is ensured their tend customer base and ensure security of revenue, alongside NBET and investors so revenue that all parties enjoy the security of revenue A Centralized “Advanced Revenue” Smart – making investment into the Nigerian Metering system will allow for Government Electricity infrastructure a “risk free” reality. owned metering data, as well as control In a first step the distribution companies revenue on a National basis. (DisCo’s) in Abuja region, Yola region, and This concept makes the customer behavior Lagos region are targeted for pilot imple- transparent. Due to revenue being based on mentation. a “Advanced Revenue” or “Prepaid”, revenue is secured upfront before any kWh is con- 15 Siemens Value Proposition | Electrification Roadmap Nigeria The figure below shows how a national AMI “Advanced Revenue” Smart Metering system could look like. The table below provides the summary of this sub-concept ‘Centralized Smart Metering system’. Status Challenge Proposed solution Benefit Next step • Above 50% of • High OPEX • Standardized • Lowering ATC&C • End-to-end customers not (manual reading!) smart meters incl. losses and OPEX architecture to be metered nor billed PrePay option designed • Low revenue • Government to • High ATC&C collection own the data losses A more extensive collection of information as well as the detailed offering for this project is attached as Appendix G. 16 Electrification Roadmap Nigeria | Siemens Value Proposition Flare gas utilization Nigeria has developed a detailed roadmap to end routine gas flaring and to leverage the full potential of gas for power generation. Over 130 flare sites have been identified for flaring down projects so far (distributed in the Niger Delta, onshore and offshore). Collecting the flare gas would significantly decrease the fuel import dependency and would substantially contribute to carbon emission reduction as well as reduc- ing public health hazards. Treated flare gas use (up to 3,300 MMscfd) would be enough to power up to 15 GW of baseload high-efficient Combined Cycle Gas Turbine (CCGT) power plants across the country depending on the collected flare gas quality. Siemens offers an integrated solution from flare gas capturing via conditioning and transport to power plants (see chart below). The table below provides the summary of this sub-concept ‘Flare gas utilization’. Status Challenge Proposed solution Benefit Next step • Associated gas is • Reduce GHG • Collect • Fuel savings • Define scope flared emissions associated gas (incl. e.g. location, • GHG emissions and use in power amount, quality) • Gas supply for reduction generation and power generation industry A more extensive collection of information as well as the detailed offering for this project is attached as Appendix H. 17 Siemens Value Proposition | Electrification Roadmap Nigeria Financing A very important part of this proposal is financ- ing. Please find below some information about the Mega Projects in Egypt where Siemens Financial Services arranged multi-billion financ- ings. Similar structures could be pursued for state-owned customers in Nigeria; details are outlined in Appendix I. Status Challenge Proposed solution Benefit Next step • Ministry • Financing the • ECA (Export • Favourable •Information of Finance investments for Credit Agency) interest rates requirements guarantees are grid enhancement covered buyer (see Appendix I) • Long repayment available and new power credits periods plants For customers not entirely owned by public entities different financing solutions might be applicable. The financing possibilities have to be evaluated carefully in close co-operation with the management of the respective customers taking into consideration their particular needs. 18 Electrification Roadmap Nigeria | Siemens Value Proposition Learning / Education For a sustainable development also training of Nigerian youth is substantial. See the graph below to see the different options. The table below provides the summary of this sub-concept ‘Education / Learning’. Status Challenge Proposed solution Benefit Next step • Lack of •Better link Educa- • Combination of • Project with High • Design will be appropriate tion to Industry vocational and Social Value. based on demand skills rising (dual vocational industry-specific (short-term as well • Localization of unemployment education and training. as long-term). training on global (unemployment training approach). • Strengthening industry standards. • Understand the rate of 18.8%, 2017 • Siemens Road- and revitalization recent Vocational Q3). • Job creation and map for Electrifica- of preselected Education and employability. • World Bank tion results in high Nigerian Public Training (VET) report “a transition demand of a skilled Vocational Schools strategy. into more produc- workforce. and Higher • Align on matching tive employment Education VET concepts. requires more Institutes. skills.” A more extensive collection of information as well as the detailed offering for this project is attached as Appendix J. In addition, Appendix K contains the “Anticorruption Proposal: Compliance Pact and Supplier Training”. 19 Siemens Value Proposition | Electrification Roadmap Nigeria III. Summary, Timeline, and Action Items Summary The proposal suggests the following actions Step 3: to maximize the electricity usage within • Resolve fuel supply (gas) constraints: +2.0 GW Nigeria in a 3-step approach: • Additional NNPC power generation to support central and northern regions: +4 GW Step 1: • Additional power generation to support • Pilot “Advanced Revenue” Smart Metering economic growth ambitions: +7.6 GW system for end customers and all metered entities to ensure revenue security. The pilot will target certain Discos before a national rollout. Supportive actions: • Resolving distribution and transmission • Financing and best practice transfer as proven bottlenecks: +1.6 GW in many countries • Integrate ‘Learning / Education’ into this offering to maximize in country value add. Step 2: • Rehabilitation of power generation: +6.5 GW • Additional embedded small-scale power generation to support T&D grid 20 Electrification Roadmap Nigeria | Siemens Value Proposition To resolve Nigeria’s electricity constraints and unleash its full economic potential, we propose a structured roadmap addressing five major areas divided into specific sub- concepts: 1. Generation Rehabilitation 5. Fuel • Rehabilitation of Afam V (Okoloma region) to • Flare gas collection and utilization in power maximize benefits from existing power genera- generation tion assets and improve security of power • Finalization of Gas Pipeline AKK to support supply electrification of central and northern regions (by end of 2020) 2. Additional Embedded and Central Generation • Push projects for embedded power generation 6. Supportive actions in Abuja region (40 MW, SGT A-45) and Jos • Enabling Financing – recent success in Egypt region (30 MW, hydro power plant) would have not been possible without energy • New Power Generation in Central and North- finance (Project & Export Finance, Trade Fi- ern Nigeria: Abuja region, Kaduna region, Kano nance Advisory and Insurance); Siemens has region, Lagos region (Agura) excellent track record in supporting customers to secure financing. • Additional Power Generation to close the gap to 25 GW in high demand centers such as • Siemens has shown great commitment in all Lagos. countries and pushed Corporate Social Respon- sibility to a new level. In close collaboration with German government Siemens involvement 3. Transmission Grid Rehabilitation & Expansion ranges from corporate Citizenship (e.g. equip- ment donation, software grants) to be a key • Transmission network reinforcement in Yola player in local education (e.g. tailormade Region, Abuja Region, Lagos Region, Eastern training concepts for customers). Corridor, Based on the recommendation from network system study. • Automation of Transmission and Distribution network by Improving and Upgrading TCN SCADA Network. 4. Distribution Grid Rehabilitation & Expansion Siemens Value Proposition consideres: • Enable power distribution through distribu- • Generation Rehabilitation tion infrastructure reinforcement in regions • Additional Central and Embedded Generation Abuja, Yola and Lagos (Alagbon, Eko DisCo) Capacity • SCADA and Advance Distribution manage- • Transmission Grid Rehabilitation ment system for DISCOs • Distribution Grid Rehabilitation • Introduce a centralized smart metering tech- • Financing nology in regions Abuja, Yola and Lagos to • Learning / Education & Training secure revenue stream and ensure payback of investments into power infrastructure. 21 Siemens Value Proposition | Electrification Roadmap Nigeria Proposed Timeline The timeline shows a multi-phase approach and is based on timely availability of missing infor- mation as prerequisite for further detailed planning. Information has been requested already from governmental representatives. After receiving all missing information, the timeline below might need to be adjusted. Important to mention is that the assumption is that all tasks start immediately and only the real execution, construction of the hardware (such as meter, substations, power plants) is shown indicatively within the timeline. After receiving all information from government and other organizations the timeline will be adjusted in close cooperation with all stakeholders accordingly. The table below provides the summary of the entire Siemens proposal. Status Challenge Proposed solution Benefit Next step • ~50% of custom- • Limited • Rehabilitation of • Reliable power • Assess (requested ers are metered availability of existing assets supply supports but not yet available) finance (power genera- economic growth data • High ATC&C tion, transmission, losses • Unstable power • Improved money • Individual work- and distribution) supply collection shops for each • Unreliable power • Finance projects proposal refine supply because of • Localization of out of the system scope of each fuel supply issues training and job improvements individual proposed creation and • DisCo & utilities through installing solution employability cannot finance Smart Meters • Reassess and refine new projects individual offerings themselves 22 Electrification Roadmap Nigeria | Siemens Value Proposition Appendices Appendix A Rehabilitation of power generation Appendix B New power generation Appendix C Resolving transmission bottlenecks and stability issues Appendix D National Control Center - Telecommunication rehabilitation and SCADA update Appendix E Resolving distribution bottlenecks Appendix F Additional small-scale embedded power generation to support special electrification requirements Appendix G “Advanced Revenue” Smart Metering system to extend customer base and ensure security of revenue Appendix H Flare gas utilization Appendix I Financing Appendix J Learning / Education Appendix K Anticorruption Proposal: Compliance Pact and Supplier Training Appendix L Business to Society: Modular Agro-Processing 23 Siemens Value Proposition | Electrification Roadmap Nigeria Appendix A - Rehabilitation of power generation 24 Electrification Roadmap Nigeria | Siemens Value Proposition 25 Siemens Value Proposition | Electrification Roadmap Nigeria 26 Electrification Roadmap Nigeria | Siemens Value Proposition Appendix B - New power generation 27 Siemens Value Proposition | Electrification Roadmap Nigeria Appendix C - Resolving transmission bottlenecks and stability issues Challenge Benefit • Improve transmission quality and efficiency • Safe, reliable and consistent transmission & distribution of electricity • Reduce the technical and non-technical loses • Interface on the 33kV Level with distribution grids (transformer capacity, n-1, etc.) Next Step • Based on feedback received from TCN’s System Planning Department, first potential Proposed Solution substation projects could be realized, for ex- • High voltage products (e.g. circuit breakers, ample, in the Lagos area: bushings, coils, surge arresters, disconnectors, o 330/132/33KV AIS in Oko Oba gas-insulated switchgear, and instrument transformers o 330/132/33KV AIS(2X150MVA) in Epe • High voltage substations, both gas and air o 330/132/33KV AIS(2X100MVA) in EPZ (Free insulated. Trade Zone). • Transformers from compact distribution • Inclusion of North-East transmission corridor transformers to large power transformers with for power evacuation (subject of final confirma- ratings over 1000 MVA tion, the security aspects needs to be evaluated) • SPECTRUM POWER (SCADA) transmission grid • Incorporate different planned feeder lines into control system. the existing TCN network. Detailed information to be obtained from TCN and priorities to be aligned. 28 Electrification Roadmap Nigeria | Siemens Value Proposition Substation Projects & Operations (TCN) Turnkey substations After the analysis of the data, that TCN will High-voltage substations provide for their Network, the potential are interconnection points within the power number of substations on 330 kV, 132kV and transmission and distribution grids between on the sub-transmission Level of 33 kV, regions and countries. Different applications would be identified that would require of substations lead to high-voltage substa- upgrade/or that needs to be newly built. tions with and without power transformers: Siemens can offer turnkey substations, • Step up from a generator-voltage level to a together with selected partners, as the high-voltage system (MV/HV): Power plants solution to the identified need. Whereby (in load centers), Renewable power plants different applications of substations lead to (e.g., windfarms); high-voltage substations with and without power transformers, for example: • Transform voltage levels within the high- voltage grid (HV/HV) • Step up from a generator-voltage level to a high-voltage system (MV/HV): Power plants • Step down to a medium-voltage level of a (in load centers), Renewable power plants distribution system (HV/MV) (e.g., windfarms); • Interconnection in the same voltage level. • Transform voltage levels within the high- voltage grid (HV/HV) • Step down to a medium-voltage level of a distribution system (HV/MV) • Interconnection in the same voltage level. High-voltage substations are interconnec- tion points within the power transmission and distribution grids between regions and countries. Therefore, the scope of high- voltage substations offering comprise not only the high-voltage equipment which is relevant for the functionality in the power grid. Siemens plans and constructs high-voltage substations comprising high-voltage switch- gear, medium-voltage switchgear, major components such as high-voltage equip- ment and transformers, as well as all ancil- lary equipment such as auxiliaries, control systems, protective equipment and so on, on a turnkey basis or even as general con- tractor. 29 Siemens Value Proposition | Electrification Roadmap Nigeria High-voltage switchgear – overview Depending on the answers, either AIS or GIS can be the right choice, or even a compact High-voltage substations comprising high- or hybrid solution. voltage switchgear and devices with differ- ent insulating systems: air or gas (SF6). The development of this switchgear has When planning high-voltage substations, been based on two overall production some basic questions must be answered to targets: to meet the high technical stan- define the type of high-voltage switchgear: dards required of high-voltage switchgear, and to provide maximum customer benefit. What is the function and location within the This objective can only be achieved by power grid? What are the climatic and incorporating all processes in the quality environmental conditions? Are there specific management system, which has been requirements regarding locations? Are there introduced and certified in accordance with space/cost restrictions? EN 29001/DIN EN ISO 9001. The table below shows the product range of ‘gas insulated substations’ (GIS) which covers a range from 72.5 up to 550 kV rated voltage. 30 Electrification Roadmap Nigeria | Siemens Value Proposition The figures below show the possible substations to be considered within this offering. 31 Siemens Value Proposition | Electrification Roadmap Nigeria Transformers The construction, rated power, voltage level, and scope of the application are all crucial factors that determine the transformer’s design. Siemens provides the right trans- former for every need – from compact distribution transformers to large power transformers. Siemens offers a wide range of products, which are embedded in a complete power system from generation via transmission to distribution networks. Siemens Transformers covers all mainstream solutions, and fulfill specific requirements for UHV DC applications, low noise emis- sion, and environmentally friendly products with alternative insulation liquids. The long-term reliability of a transformer begins with its initial high quality. State-of-the-art innovative transformer concepts and prod- ucts ensure grid resilience and stability along the entire energy value chain. Table. 2 offer an overview of how various transform- ers can be used in a network. 32 Electrification Roadmap Nigeria | Siemens Value Proposition Protection, substation automation, power international standards and flexible expand- quality and measurements ability The demands on substation automation • Efficient engineering for the entire auto- solutions are contin¬ually growing, which mation chain, from the control center to the leads to greater complexity and more inter- field device. faces. High availability, with all individual components working together smoothly, is one of the most important system operators Complete technology from one partner. needs in energy automation. Siemens supplies devices and systems for: With a comprehensive approach to the • Power system protection SIPROTEC and entire automation chain, the system Reyrolle oper¬ator gets an overview of the entire plant, from planning and start up to opera- • Substation control and automation SICAM tion and maintenance. Energy automation • Remote control (RTUs) products and solutions are based on three main pillars that ensure simple operation: • Measurement and recording SICAM. • Reliable IT security through high-quality applications and seamless network struc- This technology covers all of the measure- tures ment, control, automation and protection • Limitless communications by means of functions for substations. This uniform technology from a single source saves the user time and money in the plan- ning, assembly and operation of substations. The figure below shows some of the Siemens energy automation products. The first areas in the transmission system to target are within the Abuja region, Yola region (Damaturu, Maiduguri) and the Lagos region (Alagbon). 33 Siemens Value Proposition | Electrification Roadmap Nigeria Presentation covering the entire offering: 34 Electrification Roadmap Nigeria | Siemens Value Proposition 35 Siemens Value Proposition | Electrification Roadmap Nigeria 36 Electrification Roadmap Nigeria | Siemens Value Proposition 37 Siemens Value Proposition | Electrification Roadmap Nigeria 38 Electrification Roadmap Nigeria | Siemens Value Proposition Appendix D - National Control Center - Telecommunication rehabilitation and SCADA update Challenge • Quick utilization of upgraded system and new features with minimum efforts • Real time visibility of transmission substations is crucial for monitoring and dispatching exist- • Protect previous and future investments, ing transmission assets by National Dispatch advancing & optimizing current business pro- Center. Therefore, availability of actual data cesses with min time and efforts. from primary substation equipment to RTU’s, • Saving of costs and times in overall functioning communications between RTU’s / Substation Automation systems and Dispatch Center are necessary for successful operation. Next Step Constantly keeping SCADA system healthy, the know-how of personnel up-to-date and apply- • Step 0 (6-12 months): ing upgrading and maintenance strategies o Rehabilitation of connections between pri- in-time guarantee smooth operation, protect mary assets and marshaling panels and make previous and future investments while provide signals available to RTU’s piece of mind to TCN organization through quality operational and business decisions. • Step 1 (6-12 months): o Rehabilitation of telecommunications be- Proposed Solution tween disconnected substations and the exist- ing control center (Key 10% of substations) • Rehabilitation of connections between discon- nected key substations and the existing control center • Step 2 (12-24 months): o Upgrading existing control center to the latest • Upgrading existing control center to the latest state-of-the-art software and hardware tech- state-of-the-art technologies nologies • Enablement of TCN personnel through exten- o Enablement of TCN personnel through exten- sive trainings sive trainings • Sustainable maintenance and service strategy. o Rehabilitation of telecommunications be- tween disconnected substations and the control center (Key 60% of substations) Benefit o Providing Maintenance and Services. • Improving visibility of transmission network and avoid continuing the current unpleasant situation at first step • Step 3 (24-36 months): • Faster start and smooth implementation of o Provision of Advanced Transmission Network system upgrading due to existing knowledge in Management TCN and Siemens o Rehabilitation of telecommunications be- • Avoid complex process of data migration from tween disconnected substations and the control existing system to control center technology center (Key 30% of substations) from different vendor o Integrating new substations 39