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EU, Germany Urge Nigerian Industries to Cut Energy Consumption

EU, Germany Urge Nigerian Industries to Cut Energy Consumption

– ThisDay

By Chineme Okafor on February 9, 2016

The European Union Commission (EU) and German government have said that Nigerian industries could save up to 20 per cent of the energy they consume in production if they switch to a new international standard for energy management system (EnMS).

According to the Head of Programme of the Nigerian Energy Support Programme (NESP), Ina Hommer, at a workshop in Abuja, adopting the international standard (ISO 50001) for EnMS, industries in Nigeria could make such percentage cut in the use of electricity at their various sites.

Hommer explained at the workshop which was attended by relevant stakeholders in Nigeria’s power sector that the implementation of ISO 50001 by other developed countries of the world has proven to be useful to their industries and economy

“The EnMS is a proven method for sustainable energy efficiency and improved energy performance in industries across the globe,” said Hommer, while encouraging stakeholders to commit to the implementation of the standard.

Already, data from the National Bureau of Statistics (NBS) and the Nigerian Electricity Regulatory Commission (NERC) have indicated that the energy cost takes up to 40 per cent of the total production costs of industries in Nigeria.

This is however compared to less than 15 per cent of what is obtainable in other developed markets or economies in transition.

The NESP thus explained that by reducing energy consumption through increased energy efficiency, industries could reduce their costs on using electricity for production.

While quoting a United Nations Industrial Development Organisation (UNIDO) report, the NESP said that the immediate impact of industrial energy efficiency on the competitiveness of countries is much greater in developing countries than for developed ones.

It explained that the huge economic, environmental and social benefits derivable from adopting energy efficiency measures in industries have remained largely untapped by Nigerian industries due to lack of awareness, technical know-how as well as paucity of funds to invest in energy efficiency projects.

“These benefits include reduction in manufacturing cost, increase competitiveness of the Nigerian industry, grid stability and reduction in the number of power outages, and employment opportunities,” NESP added, saying it opened up partnership with the Manufacturers Association of Nigeria (MAN) and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The NESP is a €24.5 million technical assistance framework that is funded by the EU and German government. The program aims to promote investments in renewable energy, energy efficiency and rural electrification in Nigeria. It is implemented by the Deutsche Gesellschaft fur Internationale Zussamenarbeit (GIZ).


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