IMPLEMENTATION OF SMART GRID TECHNOLOGIES: A PANACEA TO INCESSANT GRID FAILURES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The significance of electricity to any nation cannot be overstated. The electricity utility has a fundamental role in the development of the nation as it strengthens all other sectors, resulting in accelerated social and economic progress (Xue et al., 2021). Nigeria has the largest economy in Sub-Saharan Africa, with a Gross Domestic Product (GDP) of around 27.5 trillion dollars, according to the BEA in 2024. Although it is a major global producer of oil and gas, this country faces difficulties in supplying electricity to its population of 200 million (Centre for Democracy and Development, 2020). The country's electrification rate stands at only 45 percent, which is lower than Ghana and Kenya's rates of 83 percent and 64.5 percent respectively. Additionally, the country's electricity consumption per capita is 144 kWh. Self-generation incurs significantly higher expenses compared to grid-based electricity, resulting in substantial economic losses. Due to the fact that only 25% of the total potential energy is really reaching the end-user and around 60% of the population has access to electricity, the country is suffering from an unstable power supply.

In order to achieve parity with peer nations in terms of GDP per capita, Nigeria must augment its electricity usage by around 5 to 6-fold. The power sector faces systemic issues across its entire value chain. The gas pipelines have been severely affected by low operational capacity compared to the installed capacity and acts of vandalism. This has resulted in gas shortages at power plants. Other issues that contribute to the problems in the power transmission system include underinvestment and insufficient maintenance. Nigeria's overall power generation capacity stands at 16,384 MW, comprising of 3 hydro plants and 22 gas plants producing 2,062 MW and 11,972 MW respectively. Additionally, wind, solar, and other sources such as diesel and hydrofluorocarbons (HFC) contribute 10 MW, 7 MW, and 2,333 MW respectively.

Nigeria possesses a total capacity of approximately 9,000MW, with an operational capacity of 3,800MW (Centre for Democracy and Development, 2020). Over time, the Nigerian government has made efforts to tackle the difficulties encountered throughout the electricity power value chain. The Nigeria Power System was formed in 1898, and the Nigeria Electricity Corporation (ECN) was created in 1951. Additionally, the Niger Dams Authority was established in 1962 to promote the utilisation of hydroelectric power. The autonomous National Electric Power Authority (NEPA) was merged with ECN to establish the Authority for Niger Dams (Olatunde & Tola, 2019).

The Nigerian Electric Power Authority (NEPA) was subsequently transformed into the Power Holding Company of Nigeria (PHCN) in response to its deteriorating operational capacity (Ajay & Ibe-Enwo, 2019). The Power Holding Company of Nigeria (PHCN) was divided into six generating companies (GenCos), one transmission company (TransCo), and eleven distribution companies (DisCos) through the implementation of the Reform Act 2005 (Ajao et al., 2017). Additionally, the Nigerian Electricity Regulatory Commission (NERC), a strong regulatory body, was introduced in 2005. The National Integrated Power Project (NIPP) was established to address the challenges of inadequate electricity generation. The implementation of privatisation in the market aimed to enhance the power system. The National Electric electricity Policy (NEPP) was introduced in 2001, and it emphasised the need of Independent Power Plants as a crucial component of electricity generation (Ikem et al., 2017).

Amidst all these alterations, two elements remain unchanging. Firstly, Nigeria continues to have frequent power outages and grid failures. Secondly, Nigeria has not taken steps to adopt SMART grid technologies, unlike South Africa (Ekpe et al., 2020). Nigeria, a country with the highest population in Africa and one of the greatest economies on the continent, has faced persistent challenges in maintaining a dependable electricity infrastructure. The national power grid has been afflicted by recurrent breakdowns, thus impeding economic progress, industrial expansion, and the overall well-being of millions of Nigerians (Falade, 2023). The ongoing challenges with the national grid including regular power disruptions, deteriorating infrastructure, restricted power generation capability, and significant transmission and distribution inefficiencies. Smart grid technology is an innovative method for effectively controlling the supply and demand of power. 

Smart grids differ from traditional grids by integrating digital connectivity, automation, and advanced data analytics to improve the dependability, effectiveness, and environmental friendliness of power networks. A smart grid, as defined by Cornelius (2019), is an electrical network that utilises digital and advanced technology to oversee and control the transmission of electricity from various sources of generation in order to fulfil the fluctuating electricity requirements of end users. Tsado et al. (2022) discussed the advancements in Smart Grid technologies. The work showcased a constructed model that demonstrates the deployment of the Demand Response System (DRS) in the distribution network of a smart grid. Additionally, it assessed the advantages of utilising it in conjunction with traditional grids. Arihilam et al. (2018) investigated strategies to address the challenges of population growth, the industrialization of developing countries, and the conservation of fossil fuels in Nigeria using smart grids. The research suggests that effective data management through smart grids is the solution for utility businesses to thrive in the new energy market. 

Onohaebi et al., (2019) proposed the optimal utilisation of current and new resources from Independent Power Producers (IPP) and National Integrated Power Projects (NIPP) to transform the nation's energy system by implementing smart grid technologies across all power system levels. These benefits include enhanced efficiency, reliability, power quality, reduced risk, fewer repair costs, and decreased energy charges. By incorporating this technology into the Nigerian power grid, the necessity for constructing additional power plants and transmission infrastructure to accommodate the expected increase in electricity demand will be minimised. 

The use of smart grid technologies offers a practical resolution to the difficulties confronting Nigeria's electricity industry. Nigeria can attain substantial enhancements in grid dependability, diminish technical and commercial losses, and augment the overall efficiency of the electricity system by modernizing the grid. This project will assess the effectiveness of SMART grid technology in solving persistent grid failures in Nigeria.

1.2 Statement of the Problem

The persistent power outages in Nigeria present a substantial obstacle to the country's economic progress, industrial efficiency, and the general welfare of its people (Olumide, 2023). The existing conventional grid infrastructure is insufficient to satisfy the increasing energy requirements and lacks the essential characteristics to guarantee dependability, effectiveness, and sustainability. Consequently, there is a pressing requirement for a comprehensive solution that can effectively tackle these difficulties and revolutionize Nigeria's power sector.

An important obstacle to the implementation of SMART grid technology in Nigeria is the lack of research in this area (Ikott, 2022). Although the potential advantages of smart grid technologies are widely acknowledged worldwide, there is a notable dearth of substantial research explicitly addressing their application in Nigeria (Charles et al., 2021). Many previous studies tend to oversimplify the benefits and uses of smart grids without taking into account the specific difficulties and possibilities that are present in Nigeria's electricity industry. To effectively and specifically address the challenges in Nigeria, it is crucial to bridge this significant knowledge gap. Hence, the necessity for doing this investigation.

Objectives of the study

The primary objective of this study is to critically evaluate the implementation of smart grid technologies as a panacea to incessant grid failures in Nigeria. Specific objectives of this study are to:

To evaluate the extent of grid failures in Nigeria.

To assess how smart grid technologies can improve grid reliability in Nigeria.

To evaluate the key factors hindering the implementation of smart grid technologies in Nigeria

To provide solutions to overcome barriers and support the implementation of smart grid technologies.

1.4 Research Questions

The following research questions which are in line with the objectives of this study will be answered in this study:

What is the extent of grid failures in Nigeria?

How can smart grid technologies improve grid reliability in Nigeria?

What are the key factors hindering the implementation of smart grid technologies in Nigeria?

What are the solutions to overcome barriers and support the implementation of smart grid technologies?

1.5 Research Hypotheses

To determine the effectiveness of this study, the following research null hypotheses will be formulated to guide the study and it will be tested at 0.05% levels of significance.:

Ho: Smart grid technologies cannot improve grid reliability in Nigeria.

Ha: Smart grid technologies can improve grid reliability in Nigeria.

1.6 Significance of the study

The relevance of this study rests in its capacity to revolutionize Nigeria's energy sector through the promotion and execution of smart grid technology. The project seeks to provide a sustainable, dependable, and efficient power supply that supports economic growth, environmental stewardship, and societal well-being by using technology innovation to address grid faults. The study will yield advantages for policymakers, the general populace, students, and intellectuals.

The study can provide policymakers with valuable insights into the advantages of smart grid technologies, which can then be used to formulate laws and regulations that encourage investments in grid modernization. Suggestions can harmonize regulatory frameworks with technical progress, guaranteeing that regulations foster innovation while protecting consumer interests and grid dependability.

Moreover, Smart grid technologies facilitate energy conservation and enhance efficiency measures that are in line with worldwide environmental objectives and obligations. The integration of smart grids with renewable energy sources enables the expanded implementation of clean energy, leading to a decrease in greenhouse gas emissions and promoting environmental sustainability. Moreover, a dependable energy supply amplifies the availability of vital services such as healthcare, education, and communication, thereby enhancing the general standard of living for communities. 

Moreover, future academics will employ it as a comprehensive analysis of the existing literature. As a result, other students who are interested in studying this subject will have the chance to use this work as trustworthy information that can be carefully assessed. 

1.7 Scope of the study

Broadly, this study focus is to critically evaluate the implementation of smart grid technologies as a panacea to incessant grid failures in Nigeria. Specifically, this study seeks to evaluate the extent of grid failures in Nigeria and assess how smart grid technologies can improve grid reliability in Nigeria. 

Further, this study will focus on evaluating the key factors hindering the implementation of smart grid technologies in Nigeria and it also seeks to provide solutions to overcome barriers and support the implementation of smart grid technologies.

1.8 Limitations of the study

As is common in all human endeavors, the researchers faced minor limitations when conducting the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available for implementation of smart grid technologies: a panacea to incessant grid failures in Nigeria. Consequently, a significant amount of time and effort was necessary to locate the appropriate materials, books, or information and to gather data. 

Additionally, this study is constrained by its small sample size and narrow geographical scope, focusing just on Nigeria. Consequently, the results of this study are not applicable for generalization, thereby leaving room for further research. 

Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling the obligations of attending lectures and other educational activities.

1.9 Definition of terms

Voltage collapse: Voltage collapse is the partial or complete loss of end users' or customers' access to the electrical power grid

Power outage: an interruption or failure in the supply of power, especially electricity. the period during which power is lost

National grid: The national grid is an interconnecting system that comprises all generation stations, transmission substations, and distribution substations.

Smart grid: A Smart grid is an electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end users.