Tag: Energy

  • ‘Stable energy key to improving telecoms service’

    Stable energy is key to achieving quality telecommunications service, says Prof Umar Danbatta, Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC).

    Danbatta spoke at the 6th annual conference of the Renewable and Alternative Energy Society of Nigeria (RAESON) at the National Centre for Energy Research and Development, University of Nigeria, Nsukka (UNN).

    Danbatta, represented by NCC’s Director, Technical Standards,  Fidelis Onah, decried telecommunications firms’ inability to offer quality services at all times, blaming eratic power supply for poor service delivery and increased operational cost. He described the conference as a critical platform for telecommunications stakeholders to learn how to solve their challenges.

    Danbatta, who spoke on the theme: Renewable energy in the national energy mix, said: “Renewable and alternative energy sources have been in the forefront of proffering solutions to the challenges and crisis of global energy demands. It is one easy way of achieving cheap energy source and penetration. And this is not only about cost, but also about its availability and sustainability.

    “No country develops its industries without sustainable and affordable energy source. Bringing solution to telecommunication industry will go a long way into alleviating the problems of unemployment and high cost of living.”

    He identified poor funding, low manpower, lack of technology base, and lack of political will as stumbling blocks against implementation of renewable energy projects.

    Mr. Umar Bindir, Secretary to the Adamawa State Government, urged the members of the society to monitor global trends on renewable energy in order to gain insights into latest technologies. He said monitoring global trends would help the group contribute enormously to the discussion on energy problems.

    RAESON president, Prof Chidi Akujor, bemoaned the delay in addressing the challenges of inadequate power supply despite President Muhammadu Buhari’s promise to tackle the problem.

    He said it was disheartening to hear the nation’s power production capacity collapsed, adding that any solution to power challenges would require the inclusion of renewable energy.

    He said the society was willing to partner with the government to solve the power problems confronting the nation.

    The UNN Vice-Chancellor, Prof Benjamin Ozumba, hailed the society for hosting the conference in the university. He said the event was in line with university’s vision to embark on research that would solve the nation’s challenges.

  • ‘Nigeria needs energy mix to fix power crisis’

    Nigeria requires a combination of on-grid and off-grid sources of energy to meet the needs of its over 170 million population, the Chairman, Energy Institute, Osten Olorunsola has said.

    Olorunsola, who was a former Director of Department of Petroleum Resources (DPR), said the country would get out if its worsening power problems, if it  adopts and implements various energy sources at its disposal.

    He said energy mix was the most viable option of proffering solution to electricity problems in Nigeria, since the country has tried a single method of generating electricity without much success.

    At the Continuing Professional Development(CPD) Programme organised by the Energy Institute (EI) in Lagos, Olorunsola said to improve the skills of workers in the oil and gas sector and related areas, the Federal Government should leverage on energy sources such as coal, solar, gas, hydro, biomass and others for the power sector growth.

    He said: ‘’Energy mix is the way out of the problems, which Nigeria has found itself. We have no choice than to use a combination of different sources of energy to generate the required electricity megawatts (Mw) in the country. The government needs to marry both the renewable energy and traditional energy sources together to attain the goal of providing electricity for all Nigerians.  While solar, coal, and wind are used to generate renewable energy, gas and hydro are used to provide the traditional energy. Other countries have adopted this strategy, and Nigeria should not be an exception.

    “So, today’s programme is about continuing development programme on  energy business. The real problem is that we have a lot of skills gap, so we are basically using EI as a platform to help brush up and sharpen the capabilities of all our engineers or any energy related professional for that matter.

    “It is doesn’t really matter whether the professionals are lawyers or accountants, because we all have something to do about energy. So, it’s about skills, knowledge and good practice, therefore, bringing young people together to sharpen their professionalism and skills are imperative. We have a lot of young people who are engineers, we want to help them to develop.”

    He said the northern part of Nigeria is blessed with solar, while the eastern part has huge coal and gas reserves, stressing that failure of the government to make use of various sources of energy would not augur well for the country.

    “There is even a global initiative that even compels Nigeria to also be looking in the direction of renewable (the Paris meeting), so all those agreements, which it signed on will be monitored from now onward, so we really don’t have a choice. We really need to be thinking about renewable, even companies. Recently, I went to take a loan in the United Kingdom for some projects and they simply told me sorry, we only give loans to renewable projects, so you can see where the world is going, we better do a mix of all the energy fuels,”he said.

    An official of Total Exploration and Production Nigeria Limited, Chinedu Ogwus, also said the seminar was aimed at developing young professionals, especially engineers in the nation’s oil and gas industry and allied sectors.

    He said: “The benefits of being a professional member of a body such as Energy Institute is enormous. They stand to have some post-nominals after their names, have extra recognitions and different benefits that the Institute has. For example, you can register your company in the Energy Institute and use its logo, have access to online libraries, and gain professional membership.”

  • Energy policy coming, says Fashola

    Energy policy coming, says Fashola

    Power Minister Babatunde Fashola has pledged to unveil his energy policy when next he addresses the media. The policy will holistically show the direction of the government in solving the problems of the power sector in the short and long terms. He has also mandated the distribution companies to significantly improve service delivery. EMEKA UGWUANYI reports.  The Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has promised to make his energy policy public when next he briefs the media, and directed electricity distribution companies (DisCos) to significantly improve electricity supply and customer service delivery.

    Fashola said this during his second monthly meeting with operators in the electricity industry in Lagos. He said: “I will come to energy policy, much more later when I do my second press briefing. All of you in the media owe a bigger responsibility now to enlighten people. Everybody must know how power is produced, because the problem is still with us, gas, transmission, and the way the privatisation exercise was conducted. But I will not lament what has happened in the past, I will move with it.”

    He continued: “When we took over and assessed the situation, nobody was happy with it. This is a problem that has been here for 16 years if you it put mildly, and 100 years ago, if you put it really extremely. I have been here for less than hundred days, and I think we can solve this problem if you give us the tools that we need to do it. I think this problem can be solved and the day I feel it cannot be solved, I will tell you I don’t think it will work.”

    The minister said he reached an agreement with the DisCos to improve customer service delivery by strengthening the operations of their customer centres and providing dedicated phone numbers to ensure consumer complaints within their jurisdictions are promptly responded to.

    The meeting, which holds every month, is meant to identify, discuss and find practical solutions to issues facing the Nigerian Electricity Supply Industry. The Minister has set a goal of attaining at least 7,000megawatts (Mw) of electricity generation by end of this year. Although he has refused to make how to go about it public, but he has discussed with the operators.

    According to Fashola, the most important thing is for Nigerians to access power when they need it and not just mentioning megawatts. He said: “The simplest thing to do is to commit to megawatts, but even if I have 1,000Mw only on the grid, can people access it? As for megawatts, we now have over 5,000Mw, and we are calibrating there. I don’t want to discuss megawatts, but Nigerians will see incremental power output if everybody allows stability to stay. Once you shock this system, gas will hold on, generation companies (GenCos) will hold, contracts are stalled and debts will mount again. Because the person that takes gas will not return it, he must push it out, so people must understand how fragile this system even at the best of time can be.”

    Also at the stakeholders’ meeting, AES Power Plant, Egbin Power Plant and the Nigerian National Petroleum Corporation (NNPC), agreed to meet today to complete the ongoing negotiations with a view to supplying gas to AES power plant.

    The Transmission Company of Nigeria (TCN) addressed some interface issues, discussed ongoing plans to review and resolve them. The firm  identified 51 of them to be resolved, which affect supply in areas such as Alaoji, Sokoto, Ahoada, Damaturu, Gbarain, Calabar, Afikpo, Nsukka, Okigwe, Ihiala, Ayede, Ikeja, Ajah, Lekki, Kebbi, Jos, Kaduna, Kano, Makurdi, Kainji, Kafanchan, Otukpo, Hadejia, Wudil, Kumbotso, Bauchi, Gombe, Katsina, Daura, Abuja and Maiduguri.

    The NNPC also presented its plans of adding significant gas supplies for power generation. The operators said the power sector expects an addition of 220 million standard cubic feet per day (mmscf/d) by the end of first quarter of 2016, and 785 mmscf/d by the end of second quarter of 2016 cumulative.

    To solve the power sector liquidity issues, the Nigerian Bulk Electricity Trader (NBET) said there is need to develop a Power Sector Liquidity Bond to cover validated present and future liquidity gap until 2018 and the Central bank of Nigeria (CBN) committed to immediate resumption of disbursement of the balance of the N213 billion facility previously approved but suspended

    The Nigerian Electricity Management Services Agency (NEMSA) also emphasised the need to improve safety standards by DisCos and their contractors in order to reduce accidents and death. NEMSA underscored the health and safety issues of the sector and the need for improvement in responsiveness to health and safety issues. The operators agreed that NEMSA shall start to rank DisCos for safety compliance and accident reduction, as well as applying sanctions for non-compliance. It cited the case of the electrocuted University of Lagos student.

    On metering, the minister gave targets to the DisCos. Eko DisCo was mandated to install 90,000 by end of June and 150, 000 by December, while Ikeja DisCo is 120,000 and 220,000 within the same timeframe.

    Others are Kano DisCo 40,000 and 100,000; Yola DisCo 30,000    and  75,000; Jos DisCo 45,000 and 120,000; Benin DisCo                         18,000           and 36,000 having 200,000 cleared with Nigerian Electricity Regulatory Commission (NERC), and Port Harcourt DisCo 75,000 and 150,000, all within the same timeframe.

    NEMSA said it is also ready to test and certify over 70,000 additional meters that the Port Harcourt Electricity Distribution Company (PHEDC) is planning to install for customers.

  • Energy talk show debuts

    Energy talk show that tends to dissect the technical issues in the sector has begun to broadcast live for 60 minutes on a radio station in Lagos.

    The first of its kind in contemporary radio broadcast in Nigeria, the show is a voice for the covert energy sector in Nigeria and would be discussing all the topical issues emanating from the sector and other affiliate sectors.

    The programme would cover oil, gas, power, solid minerals, finance, telecoms, aviation, insurance and maritime with a strategy to dissect all and every issues emanating from the above mentioned sub-sectors.

    The show kicked off February 9, in Lagos. The first topic was “Deregulation and the downstream sector: the way forward. The panel of discussants lined up for future discussions include the Executive Secretary Major Oil Marketers of Nigeria (MOMAN), Mr. Femi Olawore, The Director of Operations, Independent Petroleum Marketers Association of Nigeria (IPMAN), former President of the Trade Union Congress, Comrade Peter Esele, the Chairman House of Representative Committee on Petroleum (downstream), Hon. Joseph Akinlaja, the Executive Secretary of the Petroleum Products Pricing and Regulatory Agency, Mr. Ahmed Farouk and a former Minister of Petroleum Resources Professor Tam David-West.

    The programme airs every Tuesday on 99.3 Nigeria Info Lagos 8-9 am, every Tuesday on 92.3 Nigeria Info FM Port Harcourt from 2 to 3pm, and every Friday on 95.1 Nigeria Info Abuja from 4 to 5pm.

    The programme is anchored by Mr. Yemie Adeoye, an experienced energy journalist and Mr. Onimisi Adaba, an experienced broadcaster and presenter.

     

     

     

  • An uncertain year for energy

    An uncertain year for energy

    Falling oil prices dominated discussions in the energy sector late 2014 and last year. From an all-time high of $106 per barrel in 2014, the price crashed to $28 last Monday. Oil price will still be the issue this year. Will it continue to drop or go up? Since oil is Nigeria’s major revenue earner, 2016 will be a tough year for the country, reports. EMEKA UGWUANYI.

    The slide in oil price has become worrisome to players in the industry. The concerns are higher in producer countries, such as Nigeria.

    To explain how challenging the situation is, this year, the government has proposed to borrow N1.8 trillion to fund the budget and may be compelled to even borrow more.

    When the budget was being proposed, oil price was above $30 a barrel, hence the oil benchmark for the budget was pegged at $38 a barrel.

    Today, the price has dropped to below $30 a barrel, creating a huge gap between the benchmark and the current reality. The fall will also adversely affect the power sector despite being controlled by the private sector.

    Ordinarily, Saudi Arabia’s and Iran’s escalating conflict could have spiked oil price in the international market, but this has not been as price slumped just after rising marginally for one day, with Brent crude, the world’s benchmark oil, selling at $34.27 a barrel, showing the level of supply glut in the global oil market.

    Saudi Arabia and Iran are leading oil producers in the Organisation of Petroleum Exporting Countries (OPEC) and indeed in the world. At the outset of the conflict, oil price rose marginally to $39 a barrel from about $37, but dropped below $35 a barrel. The OPEC reference basket rose to $31.79 a barrel from $31.27, and fell the next day to $31.21 a barrel and last Monday it had further dropped to $27.07.

    Expectedly, the Saudi Arabia- Iran conflict ought to have sent the price of crude skyrocketing, but this was not to be, as several factors, including excess supply turned the tide against the norm.

    According to analysts, the market oversupply was caused by self-sufficiency attained by the US, which previously was a major importer of crude oil. The US has just shipped its first oil export in many years. Also, other members of OPEC, especially Saudi Arabia, refused to approve production cuts by OPEC despite entreaties from other members of the organisation.

    The deteriorating Chinese economy also didn’t help matters. According to economists, Chinese yuan’s depreciation could mean the world’s second-biggest economy is even weaker than had been expected. Chinese Yuan last week exchanged 6.6956 to a dollar; the lowest since trading began in 2010 and the weakest in four and half years.

    The slump in oil price may continue despite the conflict between OPEC’s largest and second largest producers, as there seems to be no plan to cut production. If demand for oil continues  to drop and supply remains unchanged, the prediction that price will fall as low as $20 a barrel this year could  happen.

    The last time oil traded at $30 a barrel was in December, 2008, following decline in demand. But, unfortunately, the current situation stemmed from a massive oversupply, which may take price to the levels of the early 2000s when the market experienced a glut.

    Many traders view the current oil price decline as a sign that the world’s economies are falling apart. They are worried that the decline in the energy sector will overwhelm the rest of the economy, despite the fact that higher oil and gas prices are actually bad for most businesses.

    But the fact is that most businesses are getting a huge boost from the decline in oil. According to the President of Petroleum Technology Association of Nigeria (PETAN), an umbrella body of  oil producers and services companies, Mr. Emeka Ene, the period of low oil price is the best for oil producing countries to invest in exploration to find more oil in preparation for the era of high oil  price.

    “We have to recognise that we are going through a lot of uncertainties within the industry globally. Oil prices have fallen more than half of what they were a year ago. Invariably, people are asking, how is this industry going to go? Within the Nigerian context, the Nigerian economy depends a lot on oil. The oil industry is driven primarily by the price and the volume of oil being produced.

    “With these challenges, there are lots of great expectations of change and opportunities to grow the industry within these uncertainties. Oil exploration has to be continuous because you are taking something out of the ground without replacing it. Therefore, the day we start to cut down on exploration is the day our reserves will be limited and at some time, we will start to have a decline in our production. If that is not today, it will come in future. The beautiful thing is that it is not too late to start. This is the best time to do exploration, when the oil price is low and prices of services are low.

    “Therefore, this is the time to encourage exploration. However, exploration has to be actively encouraged. That is the key. Exploration will then create jobs. Apart from that, it will create multiplier effects, with the possibility of jobs to emanate from the process of finding and producing oil.”

    “We are also optimistic that the engagements across all the different stakeholders will continue to emphasise the importance of growing capacity of Nigerian companies in the Nigerian oil industry”, he added.

    Analysts are of the view that with the lifting of sanction against Iran,  output will double, which will further put prices under pressure. Iran has repeatedly said it plans to raise oil output by 500,000 barrels per day post-sanctions, and another 500,000 barrels per day shortly after that, to reclaim its position as OPEC’s second-largest producer.

     

    Impact of declining oil price on firms

     Since last year, oil firms have been taking measures to tackle the impact of the oil price slump. Over 20,000 workers have been laid-off since oil price crash in 2014. Emeka Ene, told The Nation that the over 6,000 technical workers, including geologists, engineers and other ancillary workers have been sacked following oil price slump.

    He said: “The oil service companies employ about 20,000 technical workers with indirect employees of about 100,000. These are people that by virtue of their services, do not have direct dealings with members of the Petroleum Technology Association of Nigeria.”

    He said the fall in price of crude oil has affected the operations of firms that provide technical services. Ene said the current reality in the oil industry is evident in the failure of service firms to secure and implement good contracts. “At a point, oil service firms were directed by oil exploration and production companies to reduce the cost of contracts by 30 per cent,” he said.

    Oil companies in North America are planning to cut $12.6 billion to $18.9 billion in capital spending this year on top of a $68.3 billion reduction last year amid falling oil prices, a Barclays survey found. The report said cutting spending by another 10 per cent to 15 per cent this year would bring North American oil investments down to as low as $106.9 billion. The same corporate budgets totaled $194.1 billion in 2014 and $125.8 billion last year, the British bank found in its breakdown of spending plans by about 175 oil companies.

    Even so, technological advances in drilling and bringing wells into production have “helped usher in a new era of efficiency in the oil field” and U.S. crude output probably will “remain surprisingly robust” though oil prices have crumpled, it said.

    Globally, Barclays’ survey found oil companies shed about 20 percent of their capital budgets to a total $521 billion last year and will cut another three percent to eight percent from their investments next year, marking the first time since the mid-1980s that oil companies will reduce spending two years in a row.

    Last year Nigeria through the Nigerian National Petroleum Corporation (NNPC) reduced its capital budget for joint venture oil operations by 40 per cent to $8.1 billion from $13.5 billion due to the slump in crude oil prices. The joint venture partners  of NNPC include Shell, ExxonMobil, Chevron, Total and Eni (Agip).

    The report said: “The NNPC has informed the joint venture partners that capital expenditures be cut down by 40 per cent from the proposed budget of $13.5 billion. $13.5 billion was the level that has been maintained in the past three years, but because of the drastic decline in oil prices that level cannot be sustained.”

    The government had proposed N1.22 trillion ($7.5 billion) to fund its share of the oil joint venture operations last year with foreign oil firms providing $6 billion. “But since this budget was agreed in the last quarter of 2014, there have been drastic changes in the parameters considered by the partners,” the report added.

    The former NNPC Group Managing Director, Joseph Dawha, also stated last year that three deepwater offshore oil projects and one shallow water oil field were at risk of being delayed or cancelled outright because of the decline in oil prices.

     

    Plans to check continued price fall

    Since early last year, some OPEC member countries have been making moves to persuade Saudi Arabia to agree to cut oil production to shore up price. Even at the OPEC meeting in December, OPEC President and Nigeria’s Minister of Petroleum Resources, Dr Ibe Kachikwu tried to convince the organisation’s largest oil producer but it refused to budge.

    Also Ecuadorian Ambassador to Nigeria, Mr. Leopoldo Rovayo Verdesoto recently called for cooperation of Nigeria as part of the efforts to halt the free fall of price of crude oil at the international market. Ecuador is a major oil producing country and a member of OPEC.

    Leopoldo Rovayo Verdesoto said there is need for cut in the current OPEC daily production, which is over 30 million barrels per day. He also called for the support of Nigeria in the push for the resuscitation of the OPEC monitoring committee, adding it would go a very long way towards halting the free fall of price of crude.

    He said Nigeria and Ecuador could play the lead role in addressing the current situation in the international oil market. “Nigeria and Ecuador could make a sign to the market and work towards reducing production on daily basis. What I would like to do is to improve the relationship between both countries in the field of petroleum and as you have known we are both members of OPEC, and there is a lot of work to do because there are lots of interest and even in OPEC there are different points of views, but it seems that we have to make signs to the market that we could work together to put production in a less daily basis.”

    The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

  • Solar Energy to the rescue

    Solar Energy to the rescue

    Although, the sun has been in existence since man- or even before him, if we’re to follow the Bible and the Qur’an; it wasn’t until recently that scientists began inventing devices that can be powered by solar (Sun) energy. Medinat Kanabe, in this report, looks at the solar energy and how Nigerians can benefit from it.

    As the world continues to evolve, scientists have continued to come up with alternative and easier ways of doing things, one of which is inventing devices that can be powered by solar.

    Nigeria is a country beleaguered by very poor power supply, which has culminated in the people spending so much on alternative energy sources such as petrol, diesel and kerosene.  With the recent scientific developments, many Nigerian homes, organisations and individuals are fast embracing the solar options.

    Fortunately, the common man is not left out in this development, as solar energy-powered equipment now come even in small lanterns, lamps and torch-lights, that can be carried around in replacements of the traditional fire lanterns and candles. Recall that fire lanterns and candles have contributed to disastrous fire incidents, claiming lives and property. With solar-powered home items, that problem appears totally eradicated.

    Solar-powered items also come as mini-chargers for phone devices, and very affordable too. Many of them have the capacity to provide up to 60 hours of lighting, while also charging your phones. And as for the environmentalists, it is green-house energy compliant.

    Prices for solar energy equipment ranges from as little as N1, 500 to millions of Naira, depending on what you’re subscribing to. This also depends on whether the user wishes to compliment it with the electricity provided by power stations or solely run the home or organisation on it.

    The Enterprise Development Centre EDC of Pan Atlantic University, PAU, Ajah, Lagos campus, is a good example of a centre that runs solely on solar energy. Describing the building as a true example of environmental sustainable building in Nigeria and West Africa, the Director, EDC, Peter Bankole told The Nation that they invested heavily on alternate energy to power the building.

    “The 2, 000 square meters EDC building, with three floors is significant in many ways. The first is that this building is a green building; as you walk into the main foyer of the building, there is an instant sense of light. We harvest at least 12 hours of natural light everyday; from the design stage, we wanted to save at least 40 per cent of energy usage when compared with similar buildings in Nigeria and across the continent; so we invested heavily in alternate energy.

    “Embedded in the roof is 96 double length solar panel that produce enough energy to power all the streets and perimeter lighting, all the access control, CCTV, internet, IP phones, the lighting in the main foyer, the general office and 50 per cent of the air conditioning in the general office.

    “Every floor is equipped with an online inverter system that carries other sensitive training equipment, from 5pm to 8pm everyday. On weekends and indeed at off peak periods, we run only on clean energy,” he said.

    Matthew Oshomogho is a family man who lives in his solar-powered house with his wife and four children. He told The Nation that he stopped buying touch lights, fire lanterns and candles since he discovered solar energy.

    “My sister, I built this house with all the money I had at the time and I have not recovered from it. I don’t want a situation where one day due to carelessness, my house will be burnt down. If I try to be very careful, what about my wife and children?

    “When I first stopped candles and fire lanterns, I began to buy battery touch lights but they don’t last. So I discovered the rechargeable touch lights; but when we don’t have steady power supply, how do I charge them? Solar energy don’t need electricity to work; all I do is make sure the panel is outside during the day and by night I can use them in the house. Rain cannot spoil the panels, so I am not scared when it rains and there’s nobody at home to bring the panels in.”

    Oshomogho is therefore of the opinion that very soon, Nigerians will be able to do without electricity, as there are solar energy panels that can power a complete building. He actually hopes to purchase one as soon as he can afford it, he revealed.

    Oshomogho is not left alone in his conviction; stakeholders in the power sector recently called on Nigeria and other African countries to look inwards in order to overcome barriers confronting implementation of renewable energy across the continent.

    The stakeholders who met at the 2015 Power-Gen Africa Conference held in Cape Town, South Africa agreed that Africa, especially the Sub-Saharan region, needs reliable and constant energy to develop.

    Presenting his paper titled: “Overcoming barriers to solar and wind renewable energy development in Sub-Saharan Africa: A new perspective,” at the POWER-Gen Africa 2015 conference held in Cape Town, Republic of South Africa in July, Dr. Maurice Ngwaba of University of Maryland, Eastern Shore, United States, explained that other nations are developing reliable, sustainable and cost-effective energy sources because renewable improves business processes, reduces operational costs and green house emissions.

    “Renewable energy development provides employment and improves quality of life. In the next 15 years, Africa will need $300 billion to have access to electricity. But the challenges that have been identified as constraints to adequate power supply in Africa include lack of infrastructure, present condition of existing infrastructure capacity and transmission limitations. All these make solar and other renewable energy development attractive,” he said.

    Ngwaba further posited that Africa remains a great opportunity area with young and growing population, especially growing middle class. He quoted U.S Assistant Secretary of Commerce for Global Markets, Arun Kumar, as saying, “the time is now to invest in Africa.”

    On how to break the barriers against full utilisation of renewable’s potential in Africa, he advised African leaders to adhere to key values and orientations through trust, respect, accountability, responsibility, courage, transparency, collaboration and understanding the true state of Sub-Saharan Africa (SSA) culture.

    “There is also the need to develop renewable energy policy that is integrated, clear and consistent with the economy, social and environment. Communication and dissemination of renewable energy policy to the citizens and to invest in renewable energy research and development,” he said.

    He said the governments of African nations must, as a matter of urgency, provide regulatory standards, environment that supports investment, develop innovative and implement renewable energy project finance mechanism through tradable renewable energy certificates, bonds, credit assistance, cloud financing and solar leasing.

    Specifically, Dr Ngwaba urged the Federal Government and Nigerians as a whole to explore a lot of potential and alternatives, which will enhance solar and renewable development.

    “Solar leasing is just one of the various aspects where the Nigerian government and other investors can make it affordable to people who have the credit, the capacity to have solar system installed in their houses, and by so doing they can be paying the investors or the government that installed them the actual electricity produced in those areas. By so doing, they will be able to expand the number of people that have access to electricity.

    “Privatisation of the power sector makes it possible for people to decide whether to stay on the grid or not. Knowing who Nigerians are, they would prefer to have their own system and control their units. By so doing, they are not affected by price increases that may come from the Distribution Companies (DISCOS).

    “For instance, at Maryland University, in 2010, I installed the first 2.2MW system at the University of Maryland Eastern Shore of the United States where I got very good rate (9cents per kilowatt/hour) and was commissioned in 2011. Now, I’m developing a new firm called Green Power Developers Ltd that will focus on helping people especially Nigerians to develop solar renewable energy.

    “The Federal Government has to create an enabling environment that includes incentive, tax credit. It can also support states to actually come up with bonds that can be used to create such infrastructures. You can sell municipal-backed bonds to create such infrastructure and it will go a long way to help develop the power sector,” he said.

    For governor of Kaduna State, Malam Nasir El-Rufai, solar is the key to power access in Nigeria.

    The governor who spoke when he accompanied the Vice President, Prof. Yemi Osinbajo, to a solar power agreement signed between Nigeria and the United Kingdom in London, said the application of solar technology in the provision of electricity in Nigeria would democratise power access to the rural poor.

    El-Rufaí said the agreement was an opportunity for the country to acquire the latest technology in the sector.

    “This is a great opportunity for Nigeria to leapfrog from where we are, to the latest state-of-the-art technology to provide electricity to the poor.

    “Many people think that the only way to get electricity to everyone is through building huge power stations with transmission lines and distribution infrastructure. But in the last three to four years, there has been advancement in solar technology that has made it possible to democratise electricity in a way that you would have your own power plant in your own home to serve your needs instead of connecting to a centralised network.

    “I think it is a great step; just as we leapfrogged from having half a million land lines to 150 million mobile phones. There is an opportunity here to leapfrog from having centralised power stations and transmission lines to 60 million Nigerians having electricity that they generate from solar energy in their own homes and paying for it on a pay-as-you-go basis.

    “It is a great initiative and if we are able to follow it through, we will be able to take electricity to the poorest parts of Nigeria without having to do huge investments that we have sank in NEPA and PHCN without results,” he added.

    To underline his conviction, the governor revealed that his state, Kadun,a is already funding the use of solar power in 40 primary healthcare centres.

    “What we want to do when we go back to Kaduna state is to send a team to Tanzania and Kenya to see where this model has worked and immediately begin to deploy it because it is low cost, it can be done very quickly, you don’t need to spend three years building a power station.

  • Fed Govt to invest $25b in  transport, energy

    Fed Govt to invest $25b in transport, energy

    THE Federal Government will set aside $25 billion (about N4 trillion) for investment in transport and energy, Vice President Yemi Osinbajo said yesterday.

    Osinbajo, who broke the news at the Fourth Niger Delta Development Forum in Asaba, Delta State, said President Muhammadu Buhari-led administration was committed to partnering with the private sector to reduce poverty.

    He said the money was being set aside to empower the youth and alleviate poverty.

    “We will not measure how well we have performed by macroeconomic indicators, but by how many millions of Nigerians we are able to bring out of poverty.

    “So, collaborating with the private, we will impact the youths through agriculture, information technology and skills development in other areas aimed at reducing unemployment in the country,’’ the vice president said.

    Osinbajo, who was represented by the Managing Director of Niger Delta Development Commission (NDDC) Mr. Dan Abia, urged those concerned with the development of the Niger Delta to protect and instigate development in the region.

    He urged the private sector operators to explore the opportunities in the energy/power sector to drive the small and medium scale enterprises.

    Delta State Governor Ifeanyi Okowa said although the country was passing through “turbulent time”, the region would benefit if they see it as an opportunity to diversify.

    He asked the forum to provide an overview of the state of natural resource exploitation in the Niger Delta.

    Okowa sought the advice of organisers to deepen the collaboration between the private and public sectors in addressing poverty, unemployment and inequality.

    Imo State Deputy Governor Prince Eze Madumere asked Niger Delta Development Commission (NDDC) and other sectors charged with the development of the region to rise to their responsibilities.

    He said oil exploration had not rightly impacted the people, especially those in Imo State.

    Executive Director, Partnership Initiatives in the Niger Delta (PIND) Foundation Mr. Sam Daibo  said the forum was to proffer solutions to the various challenges militating against development in the region.

    He thanked the United States Agency for International Development (USAID) for partnering with the foundation and called on other development partners to take advantage of the forum to bring development to the region.

    USAID-Nigeria Mission Director Mr. Michael Harvey  said the future of the region laid in the hands of its people and its leadership.

    According to him, there were numerous opportunities begging for exploitation in the region.

    He said the U.S. was willing to collaborate with the people to develop the area.

    The forum, organised by PIND Foundation, in partnership with USAID-Nigeria, had Collaborative Efforts for Stimulating Investment and Inclusive Economic Growth in the Niger Delta, as theme.

     

  • Simba Group wins award at energy expo

    Simba Group, an indigenous conglomerate with business interests in communications, agriculture, software, power and alternative energy, won award at the just concluded 2015 edition of Nigeria Alternative Energy Expo held in Abuja.

    Simba Group is a leading player in the power and alternative energy sector, and also a distributor of luminous brand of inverters and power backup solutions. The firm was conferred the Nigeria Energy Award in the Commercial Category.

    The award ceremony was part of the three-day programme to mark the fifth edition of the Nigeria Alternative Energy Expo, which promotes and recognizes the commitment of Nigerians in the area of energy sustainability and efficiency.

    The organizers of the event said the initiative is designed to honour and recognise companies (of all sizes), government departments, schools, individuals and organisations that demonstrated commitment to the advancement of energy efficiency by implementing policies, projects and training that are relevant, innovative and effective in the fields of green economy, energy efficiency, urban planning, communication, ecology, engineering, policy, clean technology, and lean process, among others.

    The Marketing Manager, Wandel International Nigeria Limited, an arm of Simba Group of Companies, Mr. Rajneesh Gupta expressed the company’s sincere gratitude to the organisers of the event for recognising the efforts being made by both individuals and private organisations to the development of sustainable energy and the power sector in Nigeria.

    Gupta noted that the Nigeria Alternative Energy Expo over the years has become a unique platform where companies, private organisations, government and other relevant stakeholders network, transfer knowledge and skills and exhibit innovative product to potential partners hence the key reason for Simba Groups’ strong participation in this year’s programme.

    “We are very honoured to have received the Nigeria Energy Award – commercial category in this years’ Nigeria Alternative Energy Expo. This award clearly demonstrates the company’s commitment for a better environment and its effort in promoting clean, affordable and equitable energy sufficiency in Nigeria through its luminous range of inverters, static UPS and batteries along with its innovative and high performing renewable energy solutions under its brand name of Simba Solar” he said.

  • Duke Energy stakes $4.9b on Piedmont Natural Gas

    Duke Energy Corp, the largest U.S. power company by generation capacity, said it would buy Piedmont Natural Gas Co for $4.9-billion (U.S.) in cash, helping expand its natural gas distribution business.

    Duke offered $60 in cash for each Piedmont share, representing a premium of about 42 per cent premium to the stock’s Friday close.

    A glut of supply from shale fields has ensured relatively stable pricing for natural gas distributors such as Piedmont.

    This has prompted a number of U.S. power producers to boost their natural gas infrastructure and lower dependence on power generation as demand for electricity weakens due to increased energy efficiency.

    Southern Co said in August it would buy AGL Resources Inc for about $8-billion in cash.

    Duke and Piedmont are also among the partners in the $5-billion 550-mile (885-km) Atlantic Coast pipeline, which moves gas from Pennsylvania’s Marcellus shale field to North Carolina and Virginia. AGL resources also has a five per cent stake in the pipeline.Duke sells power to 7.3 million customers in North and South Carolina, Florida, Indiana, Ohio and Kentucky at rates set by state regulators. It also provides regulated natgas services to about 500,000 customers in Ohio and Kentucky.

    Piedmont has about 1 million customers in North and South Carolina and Tennessee.

  • Group seeks new approach to boost energy access

    Nigeria needs to explore a new market arrangement to boost access to energy, Nigerian Association of Energy Economics president Prof Wumi Iledare, has said.

    He said there was inequity in energy access based on levels of income, and location in the country.

    This situation, he said, means that 52 per cent of Nigeria’s population doesn’t have access to modern energy.

    Prof Iledare, who spoke at a press conference to mark this year’s World Energy Day in Abuja, added that 25 per cent of Nigeria’s population of over 170 million had regular access to electricity.

    The remaining 75 per cent, he said, make do with little or no electricity, adding that 45 per cent of the population was connected to the national grid.

    He said: “This is very vital for our nation because despite the importance of energy to economic development, a large proportion of Nigerians have no access at all to modern energy, in particular, electricity, and for those with access, availability and quality remains a major concern.

    “There is obvious inequity in energy access based on levels of income, and location. Access is nearly 100 per cent in developed countries, compared to 60 per cent in the developing countries. In 2011 alone, the IEA (International Energy Agency) estimated that about 68 per cent of the people in sub-Saharan Africa were without access to modern energy and 52 per cent of Nigeria’s population falls in this category.

    “Using electricity as an example, less than 25 per cent of the total population of over 170 million has regular access to electricity. The remaining 75 per cent make do with little or no electricity. Although 45 per cent of the population is connected to the national grid.”