The Governance of Energy Transition: Lessons from the Nigerian Electricity Sector

Abstract

BackgroundThe rising need for energy transition towards more sustainable energy sources requires a rethink in the governance of energy systems. Arguably, policy makers have very important roles in governing transitions in any given society through established institutional frameworks. It has also been argued that energy infrastructure choices are determined by institutional dynamics and structures. However, what are the influences underlying changes in energy systems and what lessons can we draw from them for the governance of energy transition? This study focuses on understanding the dynamics of energy transition governance within the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change.MethodsUsing explorative research tools, this research explores the dynamics of energy transition governance within the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change. Data from primary and secondary sources in documentary archives and other published sources that links to the Nigerian historical energy infrastructure provisions were used for analysis in order to draw lessons on energy transition dynamics in Nigeria.ResultsThe study revealed that there were three important factors that had a direct impact on energy transition and energy systems change within Nigeria’s electricity sector. These are: (1) Changing perceptions and goals (during the period leading up to Nigeria’s independence, 1890 – 1960s); (2) Direct government interventions in energy infrastructure provisions (1940s – 1970s); and (3) Major changes in market rules (from 2005 and beyond).ConclusionsThe study concludes by highlighting that: (1) there is a need for government institutions to tackle energy access issues that addresses the needs of the poor; (2) it is imperative to explore technological options that are more sustainable; and (3) there is a need to address energy consumption patterns that are more energy intensive. Indeed, available energy resources, technological changes in electricity supply systems, and the ‘geographies of energy’ are major factors that influence energy production and consumption dynamics. All of these needs to be considered as energy decisions are primarily political choices.

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“…This conclusion is supported by previous research, such as Sung and Park ( 2018 ), who find that government has a positive contribution to the energy transition. Similar findings are reported by Edomah ( 2021 ), who concludes that government intervention has a powerful influence on the transition of energy infrastructure. The coefficient of ERT is negative, but significant at all quantiles (0.05–0.95), suggesting that the imposition of environmental taxes has a negative impact on China’s shift to renewable energy use.…”

“…where t denotes the time period; β s are variable coefficients; μ represents the error term; energy transition is represented by ET ; and GOV , ERT , IND , and GDP represent governance, environmental taxes, industrialization, and economic growth, respectively. Following Edomah ( 2021 ), Nochta and Skelcher ( 2020 ), Lazaro et al ( 2022 ), and Sung and Park ( 2018 ), governance is taken as the main determinant of energy transition and we expect a positive effect of improved governance on energy transition, i.e., β1 > 0. Governance is measured by generating a composite index of governance comprising all six components of governance, corruption control, government effectiveness, rule of law, political stability, regulatory quality, and voice and accountability, using principal component analysis.…”

“…Scholars also argue that technological progress also restricts carbon emissions, hence, defined governance rules that go beyond legislations. They also introduced new lifestyles that are not much energy-intensive and ensure successful energy transition (Edomah, 2021;Zhao et al 2021).…”