Tag: Energy

  • Fed Govt invests 48m euros in phase 2 energy support programme

    Fed Govt invests 48m euros in phase 2 energy support programme

    The Federal Government has invested 48 million euros for the second phase of its Energy Support Programme, the Component Lead, Enabling Environment Nigerian Energy Support Programme (NESP), Mr Joshua Yari, has said.

    Yari stated this at the one-day summit organised by Energy Commission of Nigeria (ECN) in collaboration with Abloom Trust Nigeria Ltd yesterday in Abuja with the theme: “Prospects of Energy Transition Plan”.

    He noted that the project is co-funded by the European Union of the German Federal Ministry for Economic, Corporation and Development, adding that the Nigerian government is also at the NESP to put almost about 19 million euros to support its government for the third phase.

    He added that the World Bank with the Nigerian Electrification Programme is bringing in 750 million dollars to support the Nigerian government in terms of integration of renewable energy and energy efficiency, particularly in the rural areas.

    Speaking further, he said the energy transition plan had five focal areas and one of them was to create an enabling environment to support and foster investments within Nigeria.

    In his remarks, the Director-General, ECN, Dr Mustapha Abdullahi, said Nigeria must confront challenges such as investment barriers, grid integration issues, robust policy frameworks and some hurdles of energy transition goals.

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    Abdullahi highlighted some of the solutions to include innovative policy measures, regulatory reforms, and investments in grid modernisation to address the challenges and pave the way for a sustainable energy transition.

    He however added that collaborating with stakeholders was crucial to achieving goals of energy transition in Nigeria.

    The collaboration, he said, would provide the avenue for robust discussions, knowledge sharing, and formulation of actionable policy recommendations to guide the country’s energy transition journey.

    “It is imperative that we come together to explore opportunities and address these challenges.

    “Energy transition is not merely a buzzword. It is a fundamental shift in our approach to energy production and consumption,” he said.

    In his remarks, Ogbugo Ukoha, Executive-Director, Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the impact of the environment was promising as Nigeria migrates from heavy consumption of Premium Motor Spirit (PMS0, optimising gas utilisation in the country.

  • Shift fuel subsidies to renewable energy

    Shift fuel subsidies to renewable energy

    • By Chisom Clement John

    Sir: One of the key factors exacerbating Nigeria’s power woes is the persistent reliance on fossil fuels, and with it the issue of fuel subsidy removal. While the government may justify the measure as necessary for economic reform, the repercussions on the populace, particularly in terms of energy access, cannot be overlooked. The removal of fuel subsidies in 2024 has led to increased costs of living, further burdening the already struggling masses. With the government set to inject N1.6billion for on-grid electricity subsidize through the 11 electricity Distribution Companies (DISCOs), we must not forget the over 45% of the population without electricity mostly in rural areas, and the poor electricity supply by the on-grid players who lack transparency and accountability, poor metering plans and lack a grid expansion plan – as much as we know it.

    However, amidst the gloom and discontent lies a potential solution: the shift from centralized power generation to Distributed Renewable Energy (DRE). Unlike traditional fossil fuel-based grids, DRE systems harness energy from abundant renewable sources such as sunlight, wind, and water, offering a decentralized and sustainable alternative. Yet, despite its potential to revolutionize energy access, DRE adoption remains hindered by various challenges, including high cost for renewable solutions, lack of available consumer financing for poor informal groups, inadequate incentives to transit to clean energy solutions and policy frameworks that are not implemented.

    One glaring irony is the failure of governments to reallocate subsidies from fossil fuels to incentivize DRE adoption so as to ease the suffering of the masses and bridge energy access. Instead of perpetuating dependency on finite resources with volatile prices like fossils, the governments should redirect these funds towards promoting renewable energy solutions that empower citizens and foster resilience against power disruptions.

    Imagine a scenario where the funds previously allocated to fuel subsidies are channelled into initiatives that promote DRE adoption at the grassroots level and medium and small scale businesses across Nigeria – boosting their production activities, cutting business operating cost by 40% which was previously used to fuel generators, and creating more jobs. Subsidies could be redirected to subsidize the cost of solar panels, wind turbines, or mini-hydro systems, making renewable energy technologies more accessible to households and businesses alike. Additionally, government-backed incentives such as tax breaks, grants, and low-interest loans could spur investment in DRE projects, stimulating economic growth while addressing energy poverty.

    Furthermore, investing in DRE infrastructure not only enhances energy access but also mitigates environmental degradation and reduces greenhouse gas emissions, contributing to global efforts to combat climate change. By embracing renewable energy, nations like Nigeria can position themselves as leaders in sustainable development, harnessing their abundant natural resources to drive progress while safeguarding the planet for future generations.

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    The shift towards DRE is not merely a matter of technological advancement but a paradigm shift in governance and energy policy. Governments must prioritize the welfare of their citizens by investing in resilient, decentralized energy systems that provide reliable power and empower communities to thrive. And where the government feels its lacking resource and technical capacities to deliver reliable decentralized energy, it must explore partnership and support the work of development partners and private sector players making bold investment and delivering support to make DRE accessible to Nigerians.

    For instance, international partners like All On, is stepping forward to transform Nigeria’s energy landscape. Since inception, it has facilitated over 80,000 off-grid solar connections, revolutionizing energy access across the nation. Collaborating with 50 off-grid energy companies, they’ve enabled 8,000+ mini-grid connections, sold 45,000+ solar home systems, and empowered 2,500+ users with solar refrigerators.

    Their impact extends beyond numbers: 14 MWh of installed capacity, cutting 29,000+ MT of CO2 emissions, and generating 1,900 kWp of power across 21 mini-grid sites. Moreover, over 400,000 lives have been directly impacted, with 800 jobs created and 560 businesses powered by clean energy, fostering socio-economic growth from the grassroots.

    The success of All On’s initiatives underscores the urgency for decentralized renewable energy adoption. Redirecting subsidies towards DRE initiatives could subsidize solar panels, wind turbines, and mini-hydro systems, making renewable technologies accessible to all.

    By shifting subsidies from fossil fuels to Distributed Renewable Energy, governments not only alleviate the burden on citizens but also catalyse a green energy revolution that benefits both people and the planet. As Nigeria navigates towards a greener future, partnerships like All On exemplify the transformative power of decentralized renewable energy.

    •Chisom Clement John,

    REAN, Abuja.

  • ‘Bridging energy access gap critical for economy’

    ‘Bridging energy access gap critical for economy’

    The Nigerian National Petroleum Company Limited (NNPC Ltd) has emphasised the critical importance of bridging the energy access gap to the creation of economic prosperity of the country.

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    According to a statement signed by the NNPCL Chief Communications Officer, Femi Soneye, and obtained by The Nation, the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, made this submission in a keynote address on industry operations with the theme: “Stability in the Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security,” at the 2024 edition of Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum (SPE OLEF) held in Abuja, yesterday.

  • Energy  firm gets $20m to expand Nigerian operations

    Energy  firm gets $20m to expand Nigerian operations

    Husk Power Systems, a leading provider of decentralized renewable energy solutions, has announced the acquisition of $20 million in debt financing from the European Investment Bank (EIB) to scale its operations in Nigeria.

     In a statement by Husk’s Chief Marketing Officer, William Brent, the groundbreaking investment marks the largest-ever corporate debt financing for the community solar minigrid industry in Sub-Saharan Africa.

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     The financing from EIB will be instrumental in funding various initiatives aimed at expanding access to clean energy across Nigeria.

     The initiatives include construction of community solar minigrids, installation of rooftop solar systems for commercial and industrial (C&I) customers, expansion of appliance sales to households and small businesses and scaling of value-added services such as agro-processing and e-mobility.

  • Embrace clean energy to tackle climate change, Fed Govt urges Nigerians

    Embrace clean energy to tackle climate change, Fed Govt urges Nigerians

    The Federal Government, through the Presidential Compressed Natural Gas Initiative (P-CNGi), has urged Nigerians to embrace clean energy to tackle climate change.

    Head of Media, P-CNGi, Taiwo Fashipe said this at a press conference in Abuja organised by Climate Action Africa ahead of the Climate Action Africa Forum (CAAF24).

    Fashipe said the government was looking to expand the CNG conversion centres from 12 to 45 by May, this year.

    “We have 21 centres across the country and we are looking at increasing the centres to 45 by May 29.

    “The P-CNGi acknowledges the critical role of cleaner energy solutions such as CNG in combating Climate change and promoting sustainability. Our partnership with the Climate Action Africa Forum reaffirms our dedication to driving Climate- smart initiatives.

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    “We remain steadfast in supporting endeavours like CAAF24 that advocate a greener and more resilient future for Africa.”

    Executive Director/Co-founder, Climate Action Africa, Grace Mbah called for a tech-driven solutions and innovations in “the fields of emissions reduction, transportation, agriculture, energy, building and construction to apply to participate in the deal room.”

    She added: “It is no news that the world stands at a critical juncture, where decisive action is imperative to mitigate the adverse impacts of climate change. Against this backdrop, CAAF24 is a pivotal platform for key stakeholders to engage in meaningful discourse and forge collaborative pathways towards a greener and more sustainable future.”

  • Women in energy push for nurturing experts

    Women in energy push for nurturing experts

    The Nigeria International Energy Summit (NIES) has announced the integration of the Women in Energy Roundtable as a central pillar of its highly anticipated 7th edition scheduled to take off in Abuja, this month.

    The session will serve as a catalyst for transformative dialogue, offering women professionals in the energy sector a vital platform to share experiences, foster inclusivity, and champion gender diversity.

    The Women in Energy Roundtable promises an invigorating exploration of the multifaceted experiences of women across diverse roles within the energy landscape. By illuminating the pivotal themes of inclusivity, mentorship, and leadership development, the Roundtable will chart a course towards a more equitable industry future. Additionally, by delving into pressing industry trends and the instrumental role of women in propelling innovation and sustainability, this session is primed to ignite a compelling narrative of progress and empowerment.

    “As we gather to celebrate the achievements of women and amplify their voices, at NIES 2024 Women in Energy Roundtable, we are not only shaping the present but also paving the way for a more inclusive and equitable future in the energy sector,” said Dr. Mrs. Blessing Enakimio, Director of Events at Brevity Anderson, NIES event producers.

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    At its core, the Women in Energy Roundtable stands as a beacon of celebration, amplifying the extraordinary achievements of women across varied domains within the energy sector. Through candid discussions, panelists will navigate personal career trajectories, articulate the significance of female leadership and mentorship, and strategize on combatting entrenched gender biases and stereotypes endemic to the field.

    The Roundtable will be graced by esteemed guests of honour, including Barrister Uju Kennedy-Ohanenye, Minister of Women Affairs, and Dr. Doris Anite, Minister for Industry, Trade & Investment.

    Among the illustrious panelists slated to grace the session are: Mrs. Olu Arowolo Verheijen, Special Adviser to the President of Nigeria on Energy; Mrs. Adesua Dozie, Vice Chairman, ExxonMobil Nigeria; Mrs. Oritsemeyiwa Eyesan, Executive Vice President (E & P), NNPC Limited; Mrs. Elohor Aiboni, Managing Director, SNEPCo; Mrs. Uju Ifejika, Chairman/CEO, Brittania U Limited; Mrs. Nkechi Obi, Group Managing Director, Technooil Limited; Mrs. Eyono Fatayi-Williams, President Women in Energy Network/Former GM (External Relations), NLNG Limited.

    With an unwavering commitment to catalyzing positive change and nurturing the next generation of women pioneers in the energy sector, the Women in Energy Roundtable pledges to inspire, empower, and galvanize towards a future defined by inclusivity, equality, and sustainable progress.

  • Energy deficit

    Energy deficit

    The Lagos municipality was first electrified in 1886, long before our country came into being.

    That is certainly impressive but much so is the fact that New York, now known to the world as the city of lights was first electrified in 1882,  a mere four years before Lagos was connected to the modern miracle of municipally supplied electricity. Lagos was, in the beginning juiced up with electrify provided by two generators with a combined capacity of 60 Kw and must have generated a great buzz among the Lagosians who were alive at the time.

    I spent my early years in the provinces and was witness to the arrival of electricity in Osogbo in 1957 where it generated great excitement, not least in our household. We had just arrived from Oyo at the time where we were familiar with the brightness of the electric light bulb. This is because we lived on the premises of the famous St Andrew’s College which had a generator which was operational until 10 pm and so we were very excited at the prospect of resuming our acquaintance with the wonders of electricity. By the time we arrived in Lagos in 1960, Lagos had a steady supply of electricity from the coal powered station at Ijora and from the point of view of electricity, life could not be better as power supply could, at that time be taken for granted at all times. The streets of Lagos were brightly lit by electric lamps which everywhere banished the oppression of darkness and turned Lagos into a twenty four hour city which never slept. The lights went off during the Civil War and never really came back again so that today, landing at the Lagos airport at night is like landing in another century, one that existed before the world knew the wonders of electricity. This is in sharp contrast to other more fortunate cities whose welcoming lights could be seen a long way off before your plane begins its descent into the sea of lights which they represented.

    Now, there are not too many places in Nigeria where there is no supply of electricity, at least nominally. The vast majority of houses are wired for electricity even if the supply is at best, only fitful. But long after the miracle of 1886, electricity is no longer about light but power, power to do so many things that to be without it is to descend into the hell of the Middle ages and before. Now, the modern household will feel terribly deprived if electricity supply lasts only until 10 pm because fans, television sets,  fridges, not to talk of those mobile phones waiting to be charged and all those other  wonderful gadgets which keep us constantly in touch with modernity and life itself, need a constant all round supply of electricity.  This is a far cry from what it was in 1886 when the mere provision of light was enough to send the citizenry into undiluted ecstasy. And there is no limit to the boundaries which electricity can cross at will.

    This is a far cry from 1831 when Michael Faraday first created an electric current. This was a marvellous invention which caused such great excitement that Prince Albert, consort to Queen Victoria had to come to see for himself what all the fuss was about. Apparently, he was more puzzled than impressed by the demonstration of the existence of electric currents because after seeing the demonstration of this phenomenon he asked the expectant scientist what was the point of the electric current . As far as the royal visitor was concerned, the infant current was no more than a gimmick, something to provide some short lived entertainment for the multitudes of the great unwashed. The inventor, taken aback by the question replied with a question of his own. ‘Your Majesty, what is the point of a new born baby?’ That particular new born baby, treated by the prince with a distinct lack of enthusiasm has grown and is growing  in so many directions that life on this planet would simply be impossible without it. In fact any debate about the usefulness of electricity to the world would be like the argument about the chicken and the egg as to which came first because in terms of the modern world, can there be a world, any world at all, without electricity? All round the world the materials which we consume in vast quantities are coming off all kinds of conveyor belts all driven by electricity without which nothing is made that was made. These days, you cannot even get a hair cut or clean your teeth without the involvement of electricity and we carry the badge of our serious underdevelopment in our inability to generate enough electricity to power the machines which produce all those artefacts which give meaning to our lives. And this is in spite of the fact that Lagos, the so called economic capital of Nigeria was electrified only four years after New York entered her own electrical age.

    Lagos was dragged into her electrical age but unlike New York, the industrial revolution which ensured the phenomenal growth of that city did not come to Lagos and therefore, to be honest, no pre-industrial society has any real need of electricity. This is why Lagos can be said to have very little, if any need of electricity. Were the lights to go off completely in New York today, that city would be dead within twenty-four torrid hours. All the millions of lifts which keep those sky scrapers for which the city is famous operational will stop moving in an instant and for how long will the hundreds of thousands of people trapped in them survive? Navigating the streets will become impossible as all the street lights would be decommissioned with immediate effect and traffic snarled up for thousands of city miles. And what about the hospitals, tied as they are to the life support of continuous electricity supply? Those patients on life support would be dead in minutes and those undergoing any form of surgical intervention for whatever ails them would follow shortly thereafter. As for Lagos, if the lights were to go off for any length of time, the primitive beat of life in the city will go on, perhaps indefinitely and the situation, at least in the first few days, will excite nothing more than snide remarks or some form of gallows humour to make the situation bearable. There are precious few conveyor belts to be halted in Lagos and babies can be born in the feeble glow of torch lights. Under those conditions, life would go on and a lot more babies will be conceived. Humourous Lagosians would notice the bump and come up with a nickname for the cohort of babies born during the period covered by the extended power outage. In time, the dark days will be relegated so far back that it would be completely forgotten much sooner than later. For New York, life without electricity for twenty-four hours will be like a massive heart attack whereas for Lagos, it will maybe register as a little blip, not worthy of mention.

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    For all that, the most single topic of conversation in Nigeria is electricity or to be more specific, the lack of it. I went to a secondary school in Lagos in the sixties, more than seventy years after the electrification of the city. I spent seven memorable years in that school and throughout that period, the school routine was disturbed on less than six occasions by a power cut and this was brought about by the general strike of 1964 when workers walked off their places at Ijora. As a result of this, evening prep had to be suspended, much to the delight of the student body which savoured the unexpected but most welcome  suspension of engagement with dull school books. We gathered in little groups to tell tall tails and waited for normalcy to be restored. Now, even with generators and other backup facilities, I wonder if there are schools in Lagos that can guarantee that power cuts will not disrupt their activities at some point in time throughout the school year. This sign of a regression to the distant past is unmistakeable.

    In the intervening years between my experience in a Lagos in which electricity supply could be taken for granted and now, electricity has taken on a new and disturbing meaning in Nigeria.  A vast and expanding sum of money has been spent  only to be incinerated in the search for the provision of electricity to the expanding population of a country that has become bogged down in a morass of underdevelopment and an insane expansion in population. More and more people are facing the contradiction of dwindling resources amidst the rigours of galloping inflation and rising demands for a better life even as the possibility of meaningful employment receded on a more or less daily basis forcing the indefinite postponement of life goals, a postponement that is threatening to become a termination. We are confronted with myriad problems but right at the bottom of the pile is that of productivity. There is a lack of the means of production and so we are unemployed, misemployed or underemployed and those that are lucky enough to be employed are underpaid and disgruntled. There is a shortage, an acute shortage of power in this country and as our population grows, our ability to cope diminishes to the same extent as the number of people needing any form of service increases.

    For close to eight months now, we have been scratching our heads as to solve the pressing problem of how to afford the cost of diesel, petrol, aviation fuel, cooking gas, charcoal and even fire wood. When we factor in the uncertain supply of electricity, it becomes clear that we are in the fierce grip of an acute shortage of power to produce anything. This is why we are forced to import virtually everything from other countries where the problem of any shortage of productive power has been solved. At various times in history, certain countries have stepped forward to claim the title of workshop to the world. Following the Industrial Revolution in the middle years of the eighteenth century, the global workshop was centred in Birmingham, England. At that time, coal provided power for production and so much coal was burnt in the area around Birmingham that that area acquired the name of Black country because the whole place was blackened by the smoke from burning coal. Since then, other parts of the globe have taken up the challenge of producing the industrial goods consumed all over the world. The USA, Germany, Japan have at various times provided the world with finished goods. Today, India and more strongly, China are the leaders of consumer goods production and their respective economies are booming which is why their peoples are being promoted into a comfortable global middle class.

    Over in Nigeria, we have not yet arrived at the starting point of industrial production because we are in the grip of a suffocating energy shortage. This is in spite of the fact that  even though for more than half a decade Nigeria has been one of the leading producers of the greatest source of energy, crude oil from which other countries have extracted vast quantities of energy. They are using the energy availm produced all sorts of wonderful goods for which we have developed an unhealthy appetite. All we have done is set up a rentier economy which has bred nothing other than rank corruption for which we are justly famous of if you like, infamous. More and more Nigerians are falling into intractable poverty and terror stalks the land with a ferocity which is destroying our joys and well being. Nigeria is slowly roasting in the unquenchable fires of crude oil and it is becoming apparent that there is nothing we can do about it.

  • Climate change and Africa in energy transition framework

    Climate change and Africa in energy transition framework

    • By Kola Ibrahim

    The current global approach to fighting climate change and systematically transitioning to clean energy will leave Africa in the cold. While Africa’s participation in the research and development of climate adaptation is very negligible, its role in the climate mitigation technology and development is also controlled by external forces. Despite Africa having significant natural resources necessary for mitigation technology, the continent plays no fundamental role in mitigation development.

    For instance, Africa has some of the important natural resources for renewable energy, yet most of the renewable energy investments and technologies are not in Africa, neither is Africa playing any role in important aspects of the renewable energy technology value addition.

    For starters, over 70% of Cobalt mining is from Democratic Republic of Congo (DRC); 65.2% of Manganese mining is in South Africa, Gabon, Ghana and Cote d’Ivoire; 21.3% of Graphite resources is in Mozambique and Madagascar; 89% of Iridium resources is in South Africa; 73.6% of Platinum is in South Africa, and 13.5% of Copper in DRC and Zambia (IRENA, 2023). This is based on current information. There is possibility that more deposits of these and other minerals may be discovered, both within and outside Africa. Moreover, new technology may expose new natural resources useful for renewable technology. An instance is the discovery of phosphate, titanium and vanadium deposit in Norway, which quantity, according to Norge Mining Company, could provide 50 years of global supply (IRENA, 2023). In fact, more than half of African countries have at least one critical mineral needed for renewable energy development (AfDB, 2023). 

    Aside the mineral resources are other natural capital, including wind power, solar potential, water bodies, rainforests, mangrove and water bodies. According to a brief by International Finance Corporation (Whittaker, 2020), Africa’s wind energy technical potential is more than 250 times its current electricity generation. IRENA (2022) also estimated Africa’s solar energy technical potential at 7,900 Gigawatt. Yet, if the 93 Gigawatt of wind power added globally in 2022 was installed in Africa, it will provide electricity for 737 million people in Africa, who lack access to electricity. This means that Africa has all the wind and solar resources to provide universal electricity access not only for the current population, but also for powering its development and industrialisation on an environmentally sustainable basis. Africa has the second largest river (Nile) and longest river (Congo), aside several rivers across Africa that provide opportunity for hydro renewable energy generation (AfDB, 2023). 

    Another example of Africa’s natural capital is the Congo basin rainforest, the second biggest rainforests in the world, spanning six central African countries (DRC, Congo Brazzaville, Gabon, Cameroon, Central African Republic and Equatorial Guinea). These forests, spanning 3.3 million square kilometres, provide natural mitigation services for the world, with annual net carbon dioxide sequestration put at 600 million tonnes of CO2 equivalent, while the forests reportedly store an estimated 25 to 30 billion tonnes of CO2 equivalent (Creeze et al, 2022). This is aside other rainforests (e.g. West Africa rainforests) across the continent.

    In spite of these huge natural capital that can facilitate Africa’s sustainable clean and sustainable energy sufficiency and provide leadership in climate mitigation development globally, the continent is far behind in development of renewable and clean energy technology. This is not unconnected with the lack of serious investment in research and development and funding for climate change technology (both mitigation and adaptation). This is coupled with gross underdevelopment of the continent, which means it has little fund for research and development, that often require huge financial resources. Worse still, global climate change and green technology, research and inventions have been patented and controlled by the developed capitalist countries and big multinational corporations. Consequently, the continent’s built renewable energy capacity, aside being very little, is also controlled by global finance capital outside of Africa. Currently, global renewable energy market, especially wind and solar PV and battery technology and market are dominated by China, Europe and the US. 

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    Africa has only a tiny share (2.5%) of global renewable electricity generation. Africa came third after Oceania and the Caribbean regions, which are smaller regions in terms of landmass, population, economic size and resources (IRENA and AfDB, 2023). Moreover, majority of Africa’s renewable electricity generation comes from hydro-power generation. Out of the 54GW of renewable energy generation capacity, hydropower contribute at least 38GW (63%) in 2021, with 60 percent of this installed hydropower being more than 20 years old (IHA, 2022). Solar and wind energy contribute 10.4GW and 6.5GW respectively (IRENA and AfDB, 2023). 

    With renewable sources constituting only 20.7% of Africa’s current electricity generation (hydro, 17.4%; solar, 1.5%; wind, 1.2%, and geothermal, 0.6%), and Africa’s electricity shortfall at 160GW, it means Africa’s renewable energy generation will be overwhelmingly dominated in the coming period by external sources. Currently, China, North America, Europe, Asia Pacific and India control 91% of global solar energy manufacturing market with Africa having only 1.65%. Also, in the wind energy market, Africa only has 1.1% of the market share, while China, US and Europe control 82% of the market. The wind farms in Africa are controlled by foreign businesses. 

    Interestingly, most of the investments in Africa are from external sources. For instance, in the hydropower energy sub-sector, China accounts for 60% of all investment in Africa between 2009 and 2018. China also account for 55% of solar PV module supply, and 19% of solar product EPC (engineering, procurement and construction) in Africa (SEforAll, 2023). In terms of renewable research and development (R&D), Africa is far behind. Of the $3.14 billion spent on renewable energy R&D globally in 2022, Africa’s contribution is very negligible (IEA, 2023). Furthermore, Africa does not appear in major patents ownership in the renewable, clean energy and low-carbon energy technology, which is dominated by Japan, United States, China, Germany and Korea (IEA, 2021). 

    The implication of these facts is that Africa will be an insignificant player in the global energy transition. Beyond this, it will mean Africa’s economy, which is in dire need of power, will be more tightly controlled under the green economy than – or as much as – under the current fossil fuel (black) economy. While Africa will be severely impacted by climate change and global warming, caused by historical and current emissions from major industrialised economies, the pro-market solutions being proposed through the green economy, energy transition and climate adaptation by global multilateral institutions will further put Africa’s economy and society under the dictates of global finance capital, as Africa is currently playing an insignificant role in technology, investment and knowledge acquisition. 

    In summary, Africa, aside being terribly impacted by global warming and climate change caused historically and in the contemporary period, by major industrialised economies, will also bear the cost of adapting to impacts of climate change and global transition to clean energy, not with its own technology, but through opening up its economy to exploitation of its natural capital, human resources and wealth. Yet, the biggest challenge is that most African countries are stuck with fossil economy, either as fossil fuel producer or major consumer, whose economies and infrastructures are dependent on fossil fuel.  Therefore, African governments, and especially its people demand for serious restructuring of the global climate change governance system, if they are to come out of climate change stronger, economically and socially.

    •Ibrahim, an author and scholar-activist, is a public intellectual and climate justice researcher and campaigner.

  • Minister hails Optimera Energy on gas distribution infrastructure

    Minister hails Optimera Energy on gas distribution infrastructure

    The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, yesterday described the construction of infrastructure to distribute Natural Gas to companies operating within the Lagos Free Zone as a significant milestone in the country’s journey toward a more sustainable and energy-efficient future.

    Ekpo, who spoke yesterday at the flag off ceremony of the project being undertaken by Optimera Energy LFZ Enterprise, an integrated energy solutions provider, at the Lagos Free Zone, congratulated the firm for its visionary approach and commitment to advancing the nation’s energy landscape.

    According to the minister, the development of a 25 million standard cubic feet per day City Gate Station, scalable to 100 million standard cubic feet per day, along with the necessary ancillary infrastructure by Optimera Energy, reflects not only the company’s dedication but also a shared vision for a thriving and resilient Nigeria.

    “Natural Gas is a pivotal component in our energy matrix, offering cleaner and more efficient solutions. The infrastructure we are launching today is not just about pipes and stations but about powering communities, industries, and dreams. It is about creating a foundation for economic growth, job creation, and environmental sustainability. It is about making Nigeria an economic giant using our abundant gas resources,” he said.

    Explaining the scope of the project, the Managing Director, Optimera Energy, Mrs. Audrey Joe-Ezigbo, disclosed that the infrastructure, aside from comprising of a 25MMScf/D, scalable to 100MMScf/D, together with necessary ancillary infrastructure, also includes 10km distribution lines within the zone as well as a 6.5km x 10 inches gas pipeline from the Escravos – Lagos Pipeline System tie-in point in the Lekki corridor outside the zone to Optimera City Gate Station at the Lagos Free zone.

    She further revealed that the firm had signed a 20-year Gas Infrastructure Development Agreement (GIDA) with the Lagos Free Zone Company (LFZC) to connect off-takers to its gas distribution infrastructure within the zone.

    “The LFZC has invested over $2.5 billion in building a world-class facility integrated with Lekki Deep Seaport in the Zone, and we are excited to be part of this infrastructural development in our nation, Nigeria, particularly as this project is fully aligned with the nation’s Decade of Gas aspirations,” Mrs. Joe-Ezigbo said.

    Noting that the firm was established to address gaps in energy access while creating sustainable value for its stakeholders, the Managing Director pledged the continued commitment of the firm to championing the country’s energy transition to cleaner fuels by leveraging on the Nation’s abundant natural gas low-carbon resources.

    “We are working to ensure that Nigeria’s natural gas resources are responsibly and efficiently utilised from the upstream and downstream sectors of the value chain. Our mandate is to execute projects to deepen domestic natural gas consumption and utilisation in Nigeria and across Africa,” she submitted.

    In similar vein, the Special Adviser to the President on Energy, Mrs. Olu Verheijen, stated that the partnership between Optimera Energy and LFZ is a landmark achievement in Nigeria’s energy sector, noting that the 20-year infrastructure development agreement signifies more than just an investment but a testament to the company’s commitment to harnessing Nigeria’s natural resources responsibly and efficiently.

    Also speaking at the ceremony, the Chief Executive Officer of Lagos Free Zone Company, Mr. Dinesh Rathi, stated: “Today is a critical milestone for us at Lagos Free Zone to get one step closer to our goal of providing reliable and cleaner energy solutions to meet the needs of existing and future tenants at LFZ. With the start of commercial operations at Lekki Port, delivery of piped natural gas to each enterprise at LFZ would further realise our vision to be the preferred industrial hub in West Africa with world-class infrastructure”.

  • Energy poverty as the bane of development in Nigeria

    Energy poverty as the bane of development in Nigeria

    Energy is a shorthand for various sources of power, such as electricity, petrol, diesel, kerosene, gas, solar and other renewable energy sources. One of the major deprivations fueling world-wide poverty is lack of access to regular and affordable energy. Other deprivations include lack of access to healthcare, education, and meaningful income. These deprivations are rampant in Nigeria, where at least 46 percent of the population is rated as poor. That’s at least 104 million people, according to recent World Bank estimates. Majority of them have limited or no access to any source of energy beyond age-old firewood.

    Unfortunately, however, energy deprivation has not been given due attention, because it is either tucked away under living standards along with housing and drinking water or considered as part of infrastructure, where the focus is often on roads and bridges. Yet, energy, especially electricity, is universally acknowledged as the most potent catalyst for economic development and for lifting people out of poverty. It is needed for operating factories; for transporting crops and other goods; for powering or charging modern technologies of production and communication; for illuminating homes and offices, refrigerating foods, and operating household appliances; for powering schools, hospitals, financial institutions, and media houses, and so on.

    For years, the Federal Government has been struggling to improve the infrastructure, generation, transmission, and distribution of electricity with minimal success. It is universally acknowledged that corruption has repeatedly dampened the efforts. That’s why, today, the maximum electric power generation capacity the government could boast of is only about 14,000 megawatts.

    However, with grid collapse every now and then, only about 5,000 megawatts of this capacity has ever been in use. This is abysmally low for a population of over 200 million. The result is that nearly half of the population, living mostly in rural areas, has no access at all to electricity at all. Of those who have access to electricity, about 80 percent do not a supply of more than 10 hours a day. This implies that most households and businesses do not have access to electricity for more than 10 hours a day.

    If, according to international standards, a population of 1 million people needs at least 1,000 megawatts of electricity, then Nigeria needs at least 200,000 megawatts of electricity for its present population. Good planning would require that this number be doubled in less than 30 years, when the country’s population is also expected to have doubled.

    Right now, the United States, our model country for the constitution and structure of government, has a generating capacity of about 1.3 million megawatts of electricity for a population of less than 345 million people. The electric grid in the country has been described as an engineering marvel: It has more than 9,200 electric generating units, producing more than 1 million megawatts of generating capacity connected to more than 600,000 miles of transmission lines! What is more, the largest source of electric power in the United States is gas. This is a commodity we produce in large quantities but have failed to properly harness it. Instead, we flare most of it!

    There are at least three reasons Nigerians have been complacent with low electric power output. First, those who can afford it find an alternative power supply in diesel- or petrol-fueled generators and/or solar powered backup units, while others limit their energy consumption to kerosene, cooking gas, and, of course, raw firewood, all used for cooking.

    However, with a steep rise in the cost of petroleum products, due to the removal of fuel subsidy and multiple exchange rates, many households are finding it difficult, if not impossible, to keep up, while many businesses, including manufacturing industries, are closing down. A hotelier in Lagos expressed doubts about keeping up with diesel costs to power generators, because of the high cost of diesel and continued electric power outage, sometimes for as long as three or four days in a row!

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    Second, Nigerians from about age 45 and upwards have been used to hard times. Whether it was the Electric Corporation of Nigeria, Nigeria Electric Power Authority, or Power Holding Company of Nigeria, epileptic or no power supply had been their lot.  For most of them now, it is a case of nothing is new under the sun. However, the younger generation, mostly their own children, are more intolerant and restive. As this restive population grows in number and in age, the government can expect a revolution, if the present trend of poor electric power supply persists. Here, for example, is what a 32-year-old welder told me: “Sir, I changed from welder to okada rider when my generator packed up after one heavy job. I was using it everyday for two years. Now, I don’t get enough riders to make profit and petrol price is killing us. Now I want to go back to welding, but I can’t because I can no longer afford to buy and fuel a generator. The one I bought for 180,000 three years ago is not about 400,000. Where can I find that kind of money? If they (government) don’t do something about light (electricity), in two or three years, the youths will rise. The suffering is too much.”

    Another reason for complacency is the periodic distribution of palliatives by federal, state, and local governments as well as by individual politicians, especially those currying favour for the next round of elections. But palliatives only provide temporary cushions for the poor in harsh economic times. They do not fix the energy deficits.

    That’s why what manufacturers need to hear the most from the Minister of Trade, Industry and Investments, Doris Uzoka-Anite, during her ongoing tour of selected manufacturing industries, are assurances of stable, regular, and affordable electric power supply.

    Yet, we know that President Bola Ahmed Tinubu is aware of the shortcomings of electricity supply and has robust plans for power generation and power sector reform in the country (see Renewed Hope 2023, pages 30-32). That’s why he acknowledged that “Our economy is constrained by our inability to generate, transmit and distribute power efficiently” (page 30). He has taken several measures to improve on the power situation. For example, he recently signed an agreement with the German Chancellor, Olaf Scholz, to have Siemens inject 12,000 megawatts of electricity into the national grid. Regulations are relaxed for state and local governments as well as the private sector to supplement the government’s Rural Electrification Project in generating electricity for rural areas. Furthermore, the presidency and the National Assembly are working on reforming the regulatory and governance structure of the nation’s power sector.

    But we have heard many of these ideas before, including contracts with Siemens by previous administrations. The expectation is that this one will be different, by producing desired results.