Abstract for: The dynamics of feed-in tariff as a financial policy tool for sustainable Solar Photovoltaic generation in west Africa, Nigeria
Despite the enormous abundance of renewable energy resource of solar, most West African countries including Nigeria are yet to harness her solar resources and lack the appropriate financial mechanism. However, the Feed-in Tariff (FIT) has been considered the most appropriate financial mechanism to both enhance full deployment of solar generation, distribution and meet appropriate energy sustainability in the power sector. In November, 2015, the Nigerian Government implemented a solar policy initiative to install and generate about 2000 MW of electricity by year 2020 from solar photovoltaic, driven by FIT, but unfortunately, the set policy initiative was not realized. Our current study therefore aims to explore why solar PV-FIT failed in Nigeria and investigate how the solar FIT could be better deployed to enhance sustainable solar PV penetration in the Nigerian power sector using a system dynamics paradigm. In the system dynamics approach, first, we developed a mental model in form of Causal Loop Diagram (CLD) to elucidate the dynamic interactions and feedback among influencing parameter and policy elements. Subsequently, mathematical and simulation models would be developed in VENSIM DSS software to design a stock and flow diagram which provide dynamic quantitative evidences from the CLD mental model.