Category: Energy

  • Communities laud Egbin Power

    Communities laud Egbin Power

    Three communities in Ijede Local Council Development Authority (LCDA) – Egbin, Ipakan and Ijede – have lauded the just-concluded free three-day medical outreach conducted by Egbin Power Plc for residents of the communities.

    The Baale of Ipakan Community, Chief Mustapha Lasisi, who thanked the power generation firm for giving back to the community, said the gesture is in no small measure taking care of the prevailing health problems of some members of the community. “Since 2019, the company has been carrying out this commendable initiative and to us, it is a good development and we really appreciate their effort,” Chief Lasisi said.

    Similarly, Odofin of Ijede High Chief Babatunde Ogunmuyiwa, commended the company for the impactful initiative. According to him, the initiative has become a yearly routine which the community always look forward to. “Egbin Power provides us with cardiovascular care, dental care among other treatment and we are quite appreciative of this. It is part of the Corporate Social Responsibility (CSR) interventions which they have been doing and we hope they will continue to do more of this. Over 4,000 of our people were offered cardiovascular check-up, diabetes screening, dental care and medications to beneficiaries who were attended to by healthcare professionals,” Chief Ogunmuyiwa said.

    The Head, Corporate Communications and Branding, Egbin Power Plc, Felix Ofulue, said the firm was committed to driving sustainability, people empowerment and promoting the welfare of members of its host communities in line with its CSR intervention programme.

    “Our CSR initiatives are devoted to benefitting and improving the quality of life within the community. This initiative started in 2019 and thousands of residents of these communities have benefitted. We are quite pleased with the turn out this year,” said Ofulue, adding that the exercise was also part of the company’s commitment to a beneficial relationship with its host communities.

    The Medical Officer of Health in Ijede LCDA, Dr. Tajudeen Saheed, commended the firm for the initiative. “Even though we have primary and secondary health centres within the LCDA, it is important to note that this initiative of the power company is free and accessible to all.  We are blessed in the LCDA to have such an impactful programme, which will further help provide the needed health care to residents of host communities.”

    A beneficiary of the programme, Alasela Akinyemi, lauded the positivity the programme had brought to the community. “I came here because I have been having body aches and immediately I got here, the doctors attended to me. They even attended to the older people on time.

    I want to appreciate the company for bringing this kind of programme to our doorstep because I didn’t pay anything for these medications,” she said.

  • Cleaner Energy: Taking the center stage

    Cleaner Energy: Taking the center stage

    At various fora across the African continent, stakeholders in the energy sector are uniting on a common front, exploring the inherent benefits in energy transition. MUYIWA LUCAS report.

    Africa is finding its voice on conversations around sustainable energy. This was evident in the different presentations at various gatherings when the burning issue of energy transition is discussed.

    At the 40th annual international conference and exhibition of Nigerian Association of Petroleum Explorationists (NAPE) concluded in Lagos, this week, the Group Chief Executive Officer, Nigerian National Petroleum Corporation (NNPC) Limited, Mele Kyari, challenged stakeholders to exploit the country’s huge oil and gas resources to boost the economy.

    The conference with the theme: “Global Energy Transition and The Future of the Oil and Gas Industry: Evolving Regulations, Emerging Concepts, and Opportunities,” Kyari, who was represented by the Executive Vice President (Upstream) of NNPC, Mr Adokiye Tombomieye, said before the window closes on fossil fuel, Nigeria must promote sustainable growth and social development for the present and future generations of Nigerians. He said the role of energy in economic growth and sustainable development of a nation was vital and could not be overemphasized, saying the Nigerian economy was a good example of the impact oil and gas resources had made in promoting growth and prosperity.

    “Even though Africa has the world’s lowest levels of per capita use of modern energy; its demand is set to increase with growth in population and incomes. As its population and incomes grow, demand for modern energy expands by a third between 2020 and 2030. Today, 970 million Africans lack access to clean cooking gas,” he said.

    Kyari however noted that financing oil and gas projects had become more complicated as banks, multilateral lenders, and investors were diverting capital away from fossil fuels to renewable energies. According to him, there is also a need to recognise that while aggressive energy transition programmes are being pursued in developed countries; many emerging countries, especially those with hydrocarbon-dependent economies like Nigeria require a more gradual and flexible approach.

    He said Nigeria’s energy transition created significant investment opportunities such as the establishment and expansion of industries related to solar energy, hydrogen, and electric vehicles.

    “It is pertinent to acknowledge that Nigeria is well endowed with abundant renewable energy which includes hydropower, solar photovoltaic technology, wind, geothermal and biomass. These alternative energy sources can be exploited to diversify the nation’s energy mix beyond the current fossil fuel sources and guarantee energy security for the nation,” Kyari said.

    He added that the renewable energy sector still had many unexplored potential and securing the appropriate funds, partnerships, and technology would accelerate large investments in the nation and put it in line with the global decarbonisation movement.

    President of NAPE, Dr James Edet, said the increasing need for transition towards more sustainable energy sources and global geopolitics required strategic reappraisal of the energy industry in Nigeria. Edet said the nation had an energy transition plan to get to net zero green house gas emission by 2060.

    He, however, said there were many factors to be considered and appropriately addressed in the nation’s shift to its sustainable energy future. “The reality of the climate change is facing Nigeria with desertification in the north and flooding in the south and some parts of the north. This change calls for a crucial need to significantly reduce carbon emissions while ensuring available and affordable electricity,” Edet observed, adding that that globally, significant consumers of the hydrocarbon industry were undergoing a massive technological shift towards low or zero carbon energy usage like electric vehicles.

    At another forum, the convergence on energy transition remains the same. For instance, the Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, is of the opinion that energy transition has the capacity to create huge opportunities in the country as it supports economic and social development, job creation, improved health and education.

    Brown spoke during a panel session at the University of Dundee Alumni, Nigeria Chapter seminar held in Lagos recently, under the topic “Optimising energy security in a global transition era.”

    The Seplat boss explained that energy transition conundrum is all about how stakeholders balance three realities of climate change and the need to decarbonise the world; the need for energy security and urgent need for economic development in Africa, tackling poverty and lack of access to energy.

    He explained that his firm remains committed to improving the country’s access to affordable and reliable energy that drives social and economic development, in line with the United Nation’s Sustainable Development Goals. He was emphatic that Nigeria could become a more attractive destination for global energy investment that will allow her to fund her energy transition towards lower-carbon sources of energy, such as gas to provide baseload, and renewables.

    “By developing our gas industry we can transition Nigeria’s population away from expensive and polluting diesel generators and from using biomass for cooking. I believe we can achieve all of these development wins for Africa at little incremental cost to the environment,” he said.

    According to Brown, Nigeria’s gas resources must be used for the direct benefit of the citizens like to increase production of grid-scale energy that will power people’s homes without choking them on diesel fumes and allow them to cook without having to collect firewood and have the risk of open fires in the home.

    “This gas-fired power will also keep the lights on at night so the kids can study, and power businesses across Nigeria so they can create wealth at much lower costs,” he noted, adding that, “increasing access to cheaper, more reliable energy creates so many positive effects that will drive economic and social development in Nigeria; access to energy supports wealth creation, improves health and will allow Nigeria to achieve development goals,” he posited.

    Brown also noted gas as the natural transition fuel that will support a longer-term transition to renewables, submitting that his firm is looking at ways to combine gas-fired power generation with solar arrays, so gas can provide the essential baseload overnight.

    Still stakeholders in the sector are leveraging different speaking opportunities to lend their voices and join the United Nations’ cause of cutting greenhouse gas emissions to as close to zero as possible by 2050.

    At the recently concluded 2022 Africa Oil and Gas Week held in Cape Town, South Africa, the CEO of ND Western, an indigenous oil exploration and production company, Eberechukwu Oji, assured of rallying other energy sector players in the continent to join hands and chart a course for achieving the United Nations Sustainable Development Goals number 7 (SDG7) – affordable and clean energy.

    Orji, in a panel discussion on “Natural Gas and the African Continent: Bridging Regional and Global Energy Deficit Using Natural Gas as a Transition Fuel,” posited that investments in natural and renewable energy coupled with support from policymakers are crucial to bridging the regional and global energy deficit.

    “As the Nigerian government translates the new Petroleum Industry Act (PIA), it is creating more opportunities for tangible projects for gas development in Nigeria. This way we can promote the use of natural gas thereby reducing carbon emissions and air congestion in the country. Of course, there are businesses like ND Western, an independent producer of gas in Nigeria. With an installed capacity of 600 mmscfd, we currently produce about 350 million cubic feet of gas per day (mmscf/d).

    “We believe that maximising gas production to suit the economy’s needs is crucial. With better infrastructure and more support from policymakers, we’ll be able to provide Nigeria with alternative clean sources of energy, providing extra benefits to Nigeria and the region,” said Oji.

  • OPEC inaugurates 2022 World Oil Outlook

    OPEC inaugurates 2022 World Oil Outlook

    The Organisation of Petroleum Exporting Countries (OPEC) on has inaugurated its 2022 World Oil Outlook (WOO). The WOO was inaugurated at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2022 in the United Arab Emirates (UAE). The conference, which ended yesterday in the UAE, had as its theme: “The Future of Energy: Secure, Affordable and Sustainable.”

    First published in 2007, the WOO offers a detailed review and assessment of the medium- and long-term prospects for the global oil and energy industries to 2045.

    OPEC’s Secretary-General, Haitham Al Ghais, in launching the publication said the 16th edition of the flagship publication incorporated analysis of the industry’s various internal and external linkages.

    He said it dwelt on shifting dynamics that had seen a renewed focus over the past year of the interplay between energy affordability, energy security, and the need to reduce emissions.

    “It provides insights into energy and oil demand, oil supply and refining, the global economy, policy and technology developments, demographic trends, environmental issues and sustainable development concerns,” he said.

    He said the WOO 2022 again underscored the increasingly complex nature of the global oil and energy industries.

    “Is a great honour to return to ADIPEC to launch this year’s WOO, an event that continues to go from strength-to strength. This is tribute to the leadership in the UAE.

    “Highlights from 2022 WOO include that ‘The world economy is expected to be more than double in size, and the global population rise by 1.6 billion between now and 2045,” he said.

    Based on the outlook, he said global primary energy demand was forecast to continue growing in the medium- and long-term, increasing by a significant 23 per cent in the period to 2045.“The world needs to annually add on average 2.7 million barrels of oil equivalent a day to 2045, while all forms of energy will be needed to address future energy needs.

    “Oil is expected to retain the largest share in the energy mix throughout the outlook period, accounting for almost a 29 per cent share in 2045.

    “Other Renewables – combining mainly solar, wind and geothermal energy – expand by 7.1 per cent p.a. on average, significantly faster than any other source of energy.

    “All major fuel types witness growth, with the exception of coal.

    “Globally, oil demand is projected to increase from almost 97 million barrels a day (mb/d) in 2021 to around 110 mb/d in 2045,” he revealed.

    He said the outlook indicated that India was set to be the largest contributor to incremental demand, adding around 6.3 mb/d to 2045.

    He said Global refining capacity additions were projected at 15.5 mb/d between 2022 and 2045 while global oil sector would need cumulative investment of $12.1 trillion in the upstream, midstream and downstream through to 2045, equating to over $500 billion each year.

    “Recent annual investment levels have been significantly below this, due to industry downturns, the pandemic, and the increasing focus on environmental, social, and governance (ESG) issues,” he said.

  • EKEDC boost infrastructure with 150 transformers

    EKEDC boost infrastructure with 150 transformers

    Eko Electricity Distribution Company (EKEDC), said it has taken the delivery of 150 transformers in its bid to improve services to its customers and as part of its continuous infrastructure and assets upgrade initistive.

    In a Statement signed by EKEDC’s General Manager, Corporate Communications, Mr. Godwin Idemudia and made available to The Nation, the 150 transformers have been purchased with 110 already on ground, ready to be distributed to relieve communities whose transformers are currently overloaded.

    Idemudia stated that this is one of the numerous CAPEX investments the company has made towards improving its services to the customers, assuring that more developments are underway. He further explained that this will improve the distribution company’s services to its customers as it will help in providing a steady and stable power supply across its franchise areas.

    According to Idemudia, the transformers distribution and installations will begin soonest across the network as he called on affected areas to please bear with the company as all hands are on deck to reduce overloading on all transformers in the network adding that EKEDC is committed to ensuring 100 percent customer satisfaction.

    The EKEDC spokesperson also encouraged customers to support the company in its fight against vandalism and destruction of electrical equipment, citing it as one of the causes of irregular power supply in its network. He urged customers to make use of its whistle-blowing platforms to report illegal and unethical activities describing the platforms as safe, confidential, and secure ways of alerting the company of illicit activities.

    The whistle-blowing platforms can also be used to report unscrupulous members of staff that partake in illegal activities such as fraud and extortion of customers.

  • ‘We’ll provide meter in 24 hours’

    ‘We’ll provide meter in 24 hours’

    The Manager, Integrated Resources Limited, in charge of Ibadan Electricity Distribution Company (IBEDC) Region, Adebowale Adeogun, said the company is ready to correct the perspective that there is no meter or that meters are scarce or that IBEDC is hoarding meters. This he said is why the firm embarked on a sensitisation roadshow of IBEDC mobile map initiative across the state and its regions of coverage this week. The scheme, Adeogun said, will ensure that customers get meter within 24 hours of applying.

    “The advantage of the scheme is that once customers do it, it won’t take long to get the meter. It is a fast-tracked method of getting metres with N63,000 for single phase and N117,000 for three phases. Customers will be paid back their money used to purchase the meter in tranches as they are vending, because every meter is the property of the distribution companies,” he said.

    Adeogun, then assured the customers that the meters were durable and designed to withstand Nigeria’s weather, saying it had gone through various standardisation and certification processes.

    “There will also be sales support service, if after installation, the meter developed any issue, within like space of time, we will replace the meter,” Adeogun said.

    In similar vein, IBEDC’s Lead Media Relations, Ms Busolami Tunwase, IBEDC revealed that the firm is determined to close meter gap and end estimated billings within its franchise area, adding that it would not relent until its customers have meters.

    “This is for customers in Akanran and Oyo environs. This is upscaling our customer service delivery to be faster and closer to the people, as well as meet the yearnings of our customers.

    “Metering is a major issue and IBEDC is determined to close the metering gap for our customers, hence, the mobile map.

    “You don’t have to wait for estimated billing, you can change the narrative by going for pre-payment meter so that you can control your energy usage. This is one of the many initiatives; we have to reposition the business and to also help us serve them better, especially when the bills are properly paid; the issue of estimated billings and wrong or late bills are sorted out,” she said.

  • Lagos partners AfDB, USAID on Lekki stable power supply

    Lagos partners AfDB, USAID on Lekki stable power supply

    THE Lagos State Government, in partnership with the African Development Bank (AfDB) and United States Agency for International Development (USAID), is set to kick off the first phase of the Lekki Electric Cooperative (LEC) project.

    Under the LEC, the partners will fund the project, through the state government while the cooperative will manage it and the assets.

    Target benefiting communities are Solo Alade, Eko, Magbon, Orimedu, Akoko and Osoroko.

    At the Stakeholders’ Engagement Meeting on Wednesday in Ibeju-Lekki, the Permanent Secretary, state Ministry of Energy and Mineral Resources, Ms Solabomi Shasore, expressed satisfaction with the communities for embracing the model.

    Ms Shasore, who was represented by Mr. Anthonio Ayodele, a Deputy Director, tasked the people to give it their best to enable it succeed.

    Also, a representative of the commissioner of the same ministry, Mr. Hafiz Momoh,

    said meetings had been held since October 21, last year to create awareness on the importance of LEC. Momoh, a Deputy Director, said the contract for the first phase had been awarded and that the government had provided smart meters.

    He urged the councils in the area to support the state government to realise the objectives of the project.

    Director of Cooperatives, Mrs Zulikha Ibrahim, who represented the ministry’s commissioner, urged the residents to choose credible people to represent them in LEC.

    Ibeju-Lekki Local Government Area Chairman, Hon. Abdullahi Sesan Olowa, recalled that though the communities had had light in the past 20 years, the last 15 had been poor due to unreplaced decayed infrastructure, a problem that made the people to refuse to pay for power.

    Noting that the residents were excited by the new LEC model, Sesan as “it is unique, we look forward to it,” assuring of the people’s assistance.

    An official of the National Electric Rural Cooperative Association (NERCA) International, Thomas Williams, was optimistic that the new model, which succeeded in Liberia, would not fail in Nigeria.

    He explained that the LEC is autonomous, non-religious, and non-political. Board members would be chosen by the 10 members that would be drawn from the benefiting communities and no preferatial treatment would be given to any.

    A low-voltage scheme, it would serve 5,000 houses and businesses in its initial year with a goal to expand to 13,000 houses mid-term, Williams, a Liberian explained.

    AfDB and USAID are providing the cash to the state government to rehabilitate the MV network and create a conducive environment to operate while EKEDC will grant the franchise.

  • ‘Africa needs $40 billion annually for grid investments’

    ‘Africa needs $40 billion annually for grid investments’

    Over the next five years, African countries will require an annual average of $40 billion to invest in her power grid if it hopes to deliver stable electricity to her citizens on the continent.

    This was the submission of the Group Managing Director, Sahara Power Group, Kola Adesina, while delivering a keynote address on “The Future of Power in Africa” at the Lagos Business School. He also noted that projections indicate an increase in energy demand across Africa in the coming years.

    He noted that in 2040, this demand could be around 30 per cent higher than what was obtainable currently, adding that it was vital for all stakeholders to work towards shoring up the continent’s power grids through continuous investments.

    “Massive investment in Africa’s grids is critical to improve system reliability, expand access and facilitate the integration of variable renewables,” he stated.

    Adesina added, “Annual investment in electricity grids should more than triple in the 2026-30 period, compared with 2016-20, reaching $40b per year on average. Distribution networks account for over two-thirds of this total.”

    He explained that the projected increase in energy and electricity demand makes access to electricity a quest that Africa must pursue relentlessly. “In 2021, 43 per cent of the population of Africa, around 600 million people, still lacked access to electricity, 590 million of them were in sub-Saharan Africa,” he said.

    According to Adesina, 90 million people, or six per cent of the current total population would need to gain access each year on average from 2022 for every African to have access to electricity by 2030

    “Africa needs to generate 575 terawatt-hours more in 2030 than in 2020 to meet the increase in electricity demand projected, an average rate of growth of five per cent per year,” he added.

    Power experts say most electricity on the continent are currently produced by thermal plants – gas, in many coastal areas, including North Africa; coal in South Africa in particular; and older, generally smaller oil fuel plants almost everywhere.

    There are also industry projections that the use of drones and digitalisation, including geographic information systems, outage management systems and smart metering is expected to increase among African power players.

    Adesina called for market reforms and outlined the priority areas for action to include tariff structure reform, and use of concession agreements granting rights to private operators. Others include regulatory carve-outs for private sector investment and ownership and the introduction of auctions and competitive tenders. “Reforms to make electricity tariffs cost reflective has been implemented or is under discussion in 24 African countries,” he concluded.

  • The race for energy transition

    The race for energy transition

    The global focus on cleaner energy usage is gaining huge momentum in developed economies. This is why international oil companies and multinational corporations are divesting investment in hydrocarbon to alternative sources of energy; some have even set targets for exiting fossil fuel operations. But, with huge hydrocarbon deposit and great prospects for earning good revenue, African countries may be challenged in the race for the new dawn in the industry. The United Nations, however, points the way forward on needed steps. MUYIWA LUCAS reports.

    In recent times, the oil and gas industry has been challenged on many fronts to  engage and adapt to a changing policy and investment landscape and to also evolve in ways which support contribute and even lead efforts to decarbonise the energy system.

     This is why globally, there is a gradual shift from policies that have supported oil and gas production to policies that instead are starting to disincentivise fossil fuels, including carbon pricing and the European Union’s Emission Trading Scheme (EUETS). In addition to disincentives, many governments are encouraging the use of substitute technology and fuel, especially renewable energy.

     Investors are also becoming a strategic driver of decarbonisation action, growing increasingly attuned to the demand horizon for hydrocarbons and shifting attention to the environmental impact of oil and gas production through Environment Social Governance (ESG)-focused investing. Oil and gas companies are responding by looking at where and how they do business and confronting a rethink of business models in a decarbonising world.

     But the dwindling investment in hydrocarbons by the IOCs may be a source of concern for African countries endowed in fossil fuel. It is a common knowledge that huge funding is required in exploiting the commodity from its exploration to production and distribution.

     A warning bell to this unfolding scenario was sounded at the second virtual workshop on Refining and Specifications organised by the African Refiners and Distributors Association (ARDA). Speaker after speaker warned of the need for the continent to upgrade in the light of the energy transition regime.

     For instance, speakers at the workshop were unanimous that in transiting to the cleaner energy regime, Nigeria and other African countries would require at least $15.7 billion to upgrade existing refineries if they are to reduce sulphur content in their operations and products. The association noted that the upgrade was necessary to ensure that Africa embraces cleaner sources of fuels.

     Sulfur is a major by-product of oil refining and gas processing. The Sulphur content of crude oils varies from less than 0.05 to more than 10 weight percent (wt%). Crude oil containing less than 0.5 wt % of sulfur is considered to have low sulfur content and is known as ‘sweet crude oil’. Higher sulfur content than 0.5 wt % results in crude oil being known as ‘sour crude oil’.

     The Executive Secretary of ARDA, Anibor Kragha, noted that adoption of harmonised specification would halt importation of fuels not meeting the AFRI specs into Africa. In addition, he explained that it would give existing refineries until 2030 to upgrade their facilities to produce cleaner, lower sulphur AFRI-6 specifications, arguing that targeted financing was urgently needed for projects to upgrade refineries and infrastructure.

     “Another key focus area is for African countries, especially those sharing common fuel supply chains to develop an integrated policy covering both fuel quality and vehicle exhaust emissions. This is to achieve the ultimate objective of clean air in our African cities. Without this integrated and coordinated policy, the objective of clean air will not be realised whether by imports or local production,” he said.

     Also speaking at the event, Oil and Refining Research Analyst at Vitol, Maryro Mendez, noted that despite the withdrawal of fund from fossils, investment with sustainability plan had been on the rise. Citing statistics from Bloomberg, she noted that sustainable debt annual issuance now borders around $824.7 billion as capital raised for renewables funds now dominate the energy sector.

     According to Mendez, lack of uniform policies make it difficult for refineries to pass on the cost of carbon to customers as carbon price shifts the cost burden of climate change from society as a whole to the entities responsible for the emissions, providing lack of incentive for refiners to reduce emissions.

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     She noted that the refining sector accounts for only three per cent of the global energy sector emissions, adding that while refineries contribution to global energy sector emissions is low, the opportunities for reducing them are significant.

     “Refineries globally have started thinking about measuring, monitoring and reducing carbon emissions and environmental sustainability has to be a priority for refiners and Africa is no exception,” Mendez said. She said 80 per cent of refinery carbon emissions come from fuel combustion, hence fuel source and energy optimisation would present the biggest opportunity to reduce emissions.

    ‘’ The challenge is not technical but is commercial with facilities requiring sufficient incentive and capital to invest without impacting on their competitive position,” Mendez added.

     Speaking on “Upgrading refineries to produce AFRI-6 standard fuels,” Data Manager at CITAC, Richard Augood, said investment was still needed to make African refineries comply with AFRI-6. New process units required are to improve key fuel specifications, especially Naptha Hydrotreater (NHdT), Diesel Hydro-desulph. (DHDS), Benzene Extraction, Sulphur and Hydrogen Plants.

     For compliance in the aspect of gasoline, Augood noted that North African countries such as Algeria would need to upgrade its Adrar refinery, while in Egypt, refineries like Amreya would need Benzene extraction. In Libya, Azzawiya would need Benzene extraction, El Brega would need NHT, Benzene extraction while Sarir would need to be upgraded with NHT, Benzene extraction,” he stated.

     In West and Central Africa, Angola, Sonaref refinery needs NHT, benzene extraction as Chad’s SRN needs CGDS and Benzene extraction while Congo’s CORAF needs NHT, Benzene extraction and H2 and Côte d’Ivoire’s SIR needs Benzene extraction and H2.

     In Nigeria, Warri, Kaduna and Port Harcourt refineries, he said , would need NHT, CGDS, Benzene extraction while Senegal’s SAR must be upgraded with benzene extraction to meet AFRI Specifications.

     Also speaking at the event, Honeywell-UOP’s Luque Guillermo decried that the oil and gas industry has been hit hard by the current global economic situation with rapid drops in demand. He added that the changing mix of preferred products, volatile crude prices, and difficulty safely staffing production sites posed a challenge.

     This prevailing development according to him, is forcing demand for some products such as diesel and naphtha to exceed demand for gasoline and jet fuel.

     Jump starting transition

     The United Nations (UN), Secretary-General, António Guterres, maintained that renewable energy technologies like wind and solar already exist today, and in most cases, are cheaper than coal and other fossil fuels.  Hence, there is the need to put them to work, urgently, at scale and speed. He listed five ways to jump-start the renewable energy transition which the world needs to prioritise now to transform energy systems and speed up the shift to renewable energy.

     “The good news is that the lifeline is right in front of us, because without renewables, there can be no future,” he said.

     These steps include:

     Make renewable energy technology a global public good: For renewable energy technology to be a global public good – meaning available to all, and not just to the wealthy – it will be essential to remove roadblocks to knowledge sharing and technological transfer, including intellectual property rights barriers.

     Essential technologies such as battery storage systems allow energy from renewables, like solar and wind, to be  stored and released when people, communities and businesses need power. They help to increase energy system flexibility due to their unique capability to quickly absorb, hold and re-inject electricity, says the International Renewable Energy Agency. Moreover, when paired with renewable generators, battery storage technologies can provide reliable and cheaper electricity in isolated grids and to off-grid communities in remote locations.

     Improve global access to components and raw materials: A robust supply of renewable energy components and raw materials is essential. More widespread access to all the key components and materials – from the minerals needed to produce wind turbines and electricity networks, to electric vehicles – will be key. It will take significant international coordination to expand and diversify manufacturing capacity globally. Moreover, greater investments are needed to ensure a just transition – including in people’s skills training, research and innovation, and incentives to build supply chains through sustainable practices that protect ecosystems and cultures.

     Level the playing field for renewable energy technologies: While global cooperation and coordination is critical, domestic policy frameworks must urgently be reformed to streamline and fast-track renewable energy projects and catalyse private sector investments. Technology, capacity and funds for renewable energy transition exist, but there needs to be policies and processes in place to reduce market risk and enable and incentivise investments – including through streamlining the planning, permitting and regulatory processes, and preventing bottlenecks and red tape. This could include allocating space to enable large-scale build-outs in special Renewable Energy Zones.

     Nationally Determined Contributions, countries’ individual climate action plans to cut emissions and adapt to climate impacts, must set 1.5C aligned renewable energy targets – and the share of renewables in global electricity generation must increase from today’s 29 percent to 60 percent by 2030. Clear and robust policies, transparent processes, public support and the availability of modern energy transmission systems are key to accelerating the uptake of wind and solar energy technologies.

     Shift energy subsidies from fossil fuels to renewable energy: Fossil-fuel subsidies are one of the biggest financial barriers hampering the world’s shift to renewable energy. The International Monetary Fund (IMF) says that about $5.9 trillion was spent on subsidising the fossil fuel industry in 2020 alone, including through explicit subsidies, tax breaks, and health and environmental damages that were not priced into the cost of fossil fuels. That’s roughly $11 billion a day. Fossil fuel subsidies are both inefficient and inequitable. Across developing countries, about half of the public resources spent to support fossil fuel consumption benefits the richest 20 percent of the population, according to the IMF. Shifting subsidies from fossil fuels to renewable energy not only cuts emissions, it also contributes to the sustainable economic growth, job creation, better public health and more equality, particularly for the poor and most vulnerable communities around the world.

    Triple investments in renewables: At least $4 trillion a year needs to be invested in renewable energy until 2030 – including investments in technology and infrastructure – to allow us to reach net-zero emissions by 2050. Not nearly as high as yearly fossil fuel subsidies, this investment will pay off. The reduction of pollution and climate impact alone could save the world up to $4.2 trillion per year by 2030. The funding is there – what is needed is commitment and accountability, particularly from the global financial systems, including multilateral development banks and other public and private financial institutions, that must align their lending portfolios towards accelerating the renewable energy transition.

     Indeed, in the Secretary-General’s words, “renewables are the only path to real energy security, stable power prices and sustainable employment opportunities.”

     He disclosed that four key climate change indicators – greenhouse gas concentrations, sea level rise, ocean heat and ocean acidification – set new records in 2021. This, according to him, is yet another clear sign that human activities are causing planetary-scale changes on land, in the ocean, and in the atmosphere, with dramatic and long-lasting ramifications.

     In conclusion, “the key to tackling this crisis is to end our reliance on energy generated from fossil fuels – the main cause of climate change,” Guterres.

  • Pipeline explosion threatens energy infrastructure worldwide

    Pipeline explosion threatens energy infrastructure worldwide

    Russian President Vladimir Putin has said that all energy infrastructure throughout the whole world is “under threat”, following Nordstream 1 and 2 mystery explosions.

    Putin referred to the explosions that took the Nordstream 1 pipeline—which had its flows halted prior to the blast—offline as an act of terror that set a dangerous precedent. “It shows that any critically important object of transport, energy or utilities infrastructure is under threat,” no matter where it is or who it belongs to.

    Also last,  the Polish pipeline operator PERN said it detected a leak on its Drzhba oil pipeline, which carries crude oil from Russia to Europe. PERN switched off the line to Germany immediately, and while the cause of the leak is unknown, Poland sees it for now as accidental.

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    In October, train service across Germany was halted when severed cables in two separate locations disrupted train travel. In that incident, Germany referred to the incident as sabotage. “We have increased vigilance since the beginning of the war in Ukraine, because we know that infrastructures have become an increased target,” German Transport Minister Volker Wissing told a German public broadcaster on Monday.

    Pipeline infrastructure is critical to Europe and Russia as the only means of energy shipments that will not be subject to the upcoming EU embargo, which covers only seaborne shipments.

    Putin has blamed the Nordstream 1 and 2 pipeline incident on the United States, Ukraine, and Poland, while the U.S. hasn’t ruled out Russia’s involvement.

    Russia has, however, offered to ship gas through the second Nordstream 2 line, which remains undamaged. That line has not received certification to ship gas into Europe due to Russia’s invasion of Ukraine.

  • NEITI warns against mismanagement of extractive resources

    NEITI warns against mismanagement of extractive resources

    Mismanagement of extractive revenues and other infractions in the country’s extractive sector are a violation of human rights, the Nigeria Extractive Industries Transparency Initiative, NEITI has said.

    Its Executive Secretary, Dr. Orji Ogbonnaya Orji stated this in Abuja when he led a delegation of the NEITI Board, management and a coalition of civil society advocates in the sector on a visit to the National Human Rights Commission (NHRC).

    Orji said the lack of transparency and accountability in the management of extractive revenues could lead to many social vices.

    He said: “NEITI considers mismanagement of oil, gas and minerals resources as a violation of human rights. This is manifested in terms of environmental pollution, climate injustice, violation of host communities’ rights, denial of participation in the natural resources management, inequity in benefits sharing, revenue and social infrastructures, and in extreme cases, intimidation, and harassment of civil society advocates”.

    Orji called for a Memorandum of Understanding and the establishment of a technical committee between NEITI and the NHRC to work out modalities for the partnership.

    He pointed out that under the Extractive Industries Transparency Initiative (EITI) Standard 2019, it was the duty of the government to protect the rights of its citizens, media and civil society actors that were engaging in the campaign and advocacy for transparency and accountability in the management of the oil, gas, and mining resources. “This commitment is part of the requirements of the 2019 EITI Standard and Civil Society Protocol which must be followed by all member countries. These rights include freedom of expression; assembly; association and access to public decisions and information in the extractive industries”, he stated.

    Orji said the protection of civic space was of great concern to NEITI as well as the Global Extractive Industries Transparency Initiative. According to him, “NEITI has therefore identified the NHRC as a sister agency that it can partner with to grant protection to those in the sector.

    “We are here to seek collaboration, support and discuss the partnership between our two agencies and put in place mechanisms for the protection of civic space, including the rights of non-state actors that are engaging in the extractive sector,” he restated.

    The Executive Secretary of the National Human Rights Commission (NHRC), Mr. Anthony Ojukwu, expressed the delight at the collaboration between NEITI and the NHRC on relationship management with civil society.

    He said that the mandate of the NHRC centered on the protection of the citizenry who were carrying out their legitimate activities.

    “NEITI is a credible organization and I’m happy to identify with an institution that is at the center of efforts aimed at pushing the frontiers of good governance. I have followed the achievements and impacts of NEITI in the governance of the extractive industry.”

    I believe that the protection of civic space is an initiative we can work together to strengthen”, Ojukwu stated.

    The Civil Society Representative on the NEITI Board, Peter Egbule reiterated the urgency and importance of assuring civil society actors of the safety and protection of their space which would enhance and facilitate good governance of the country’s extractive sector.

    National Coordinator of Publish What You Pay (PWYP) Nigeria, Taiwo Otitolaye expressed optimism that NEITI’s doggedness and determination to lead efforts to strengthen civic space in the extractive sector in Nigeria will yield the desired results.