Power Punch Hydroelectricity Projects in Africa by Chiamaka Asoegwu October 27, 2022 Published by Chiamaka Asoegwu Despite Africa being home to 17 per cent (%) of the world’s population, it accounts for just 4 per cent (%) of global power. The African continent has vast natural resources, but access to electricity across the continent is limited and uneven. Among these resources are abundant water bodies, which means there is a massive potential for more hydroelectricity projects in Africa. According to the IEA, Africa’s population without access to electricity increased in 2021 after experiencing a decline for the past six years. Only three countries in West and Central Africa are on track to provide electricity for their populations by 2030. It is estimated that by 2070, the West African Power Pool (WAPP) region will represent one-third of the continent’s total population, with over 1.5 billion people. With her energy demand growing twice as fast as the global average, Africa has the opportunity to be the first continent to develop its economy using renewable and efficient energy. The African continent is vastly rich in renewable energy sources, one of which is hydropower. This low-cost source of clean electricity generation presents an opportunity for economic development and the achievement of the Sustainable Development Goals (SDGs), and in the near future, it will become an essential resource for Africa as the global shift towards net-zero progress. Hydropower potential exceeds current and medium-term energy demand in Africa. According to the International Renewable Energy Agency (IRENA), the cost of electricity from new hydropower projects remains among the cheapest renewable energy sources globally. The continent is estimated to have up to 350GW of hydropower potential, but as of 2021, the installed capacity of hydropower was 38 GW, with only 3GW of pumped storage installed capacity. This represents about 17% of total electricity generation, but it also means that only 11% of the potential has been tapped. This is an incredibly low rate considering that in the US and Europe, 60-80% of hydropower potential has been utilized. Hence, this means that there is much work to be done to fully maximize the opportunity to develop more hydroelectricity projects in Africa. Various countries on the continent have set ambitious hydropower targets and also have significant hydropower projects on-going. For example, Nigeria, which has an installed capacity of 2.1GW and a potential of 14.7GW, has set hydropower development targets of 12,801 MW by 2030. Notable on-going projects in the country include the Mambilla and Zungeru Hydropower projects, with capacities of 3,050MW and 700MW, respectively. Other projects across Africa include the Batoka Gorge Hydroelectricity Scheme on the Zambesi river, which will have an installed capacity of 2.4GW, the Grand Ethiopian Renaissance Dam on the Nile river for 6.4GW, the Caculo Cabaça Dam in Angola for 2.2GW, and the Rufiji Hydropower Dam in Tanzania which will have an installed capacity of 2.1GW. The International Energy Agency (IEA) says that Africa will require more than US$300 billion in investment to achieve universal electricity access by 2030. In addition, according to a recent survey by Ernst & Young, 44 % of businesspeople in Africa identified inadequate infrastructure as one of the key constraints to doing business in the region. This is a clear indication that as Africa continues to grow, energy infrastructure development must top the investment agenda. So, the question then becomes, how can funding be sourced to encourage the development of more hydroelectricity projects in Africa? October 27, 2022 0 comments 0 FacebookTwitterPinterestEmail
Power Punch ENGIE’s Deployment of a Mini-grid System in Niger State by Chiamaka Asoegwu July 26, 2022 Published by Chiamaka Asoegwu ENGIE Energy Access has deployed a mini-grid system in Gbangba village, a rural community located in Gbako Local Government Area of Niger state. The mini-grid is a 90kWp solar hybrid system that supplies clean and reliable power to over 300 customers comprising households, small businesses, agricultural processing establishments, and other productive energy initiatives for the first time. In addition, ENGIE’s deployment of the mini-grid system will help unlock the community’s economic development potential. Recently, ENGIE Energy Access signed performance-based grant agreements with the Rural Electrification Agency (REA) under the Nigeria Electricity Project (NEP) – a Federal Government scheme designed with the World Bank, the African Development Bank (AfDB), and other partners to provide energy access to unserved and under-served communities in Nigeria using renewable sources. The grants will enable ENGIE to deploy and scale decentralized electricity access solutions in rural Nigeria. The company has also hinted at its ambitious plan to build another 119 mini-grids in Nigeria in the short run. This represents an excellent opportunity to bridge the electricity access gap in the country, where forty-three per cent of people live without access to energy. Indeed, Sub-Saharan Africa has the world’s lowest energy access rate, with more than half of its people unconnected to electricity. The Gbangba mini-grid will directly impact more than 1,500 people by providing them with affordable, reliable, and clean power. The mini-grid system will also foster socio-economic prosperity in the community by enabling the development of specific economic value chains and triggering business opportunities for entrepreneurs in the village. Furthermore, the project will boost agricultural productivity in the community and improve food processing and preservation by electrifying agricultural loads such as irrigation pumping and cold storage and productive loads such as grind mills and other mechanisms. Other light industrial activities such as carpentry and welding establishments and semi-industrials such as telecom towers in the village will also be beneficiaries of ENGIE’s deployment of the mini-grid. Recall that in 2020, the ENGIE Group consolidated Fenix International, Mobisol, and ENGIE PowerCorner to form ENGIE Energy Access. With this first deployment in Nigeria, ENGIE Energy Access has installed mini-grids in five African countries, including Benin, Uganda, Tanzania, and Zambia. In addition to mini-grids, ENGIE Energy Access is active in Nigeria’s solar home systems space under the MySol brand. Recently the company celebrated a milestone of 60,000 customers with over 300,000 lives positively affected. Earlier this year, the company signed an addendum to the Output-Based Fund (OBF) Agreement under the Nigerian Electrification Project, solidifying its commitment to driving access to energy in Nigeria. In Nigeria and Africa, solar energy is cheaper than the grid. So, solar could be our default go-to technology to resolve the energy crisis in the continent, with the paradigm of utilizing decentralized solutions to increase access to electricity and the fact that mini-grid delivers up to 99.5 per cent uptime. This represents a great opportunity for electrifying off-grid rural Nigeria with an energy access gap currently at 64 per cent. These factors highlight the need to explore this avenue in Nigeria and why ENGIE’s deployment of a mini-grid system in Niger state is a good step toward that path. But other components need to be improved, including the implementation of extant policies such as the NREEEP 2015, incentivizing the sector players and developers. Also, the government’s willingness to invest in solar power projects beyond relying on funding from development partners needs to be improved. After resolving these challenges, the scalability of solar becomes “plug and play”. July 26, 2022 0 comments 0 FacebookTwitterPinterestEmail
Power Punch EU Plans Increased Gas Supply From Nigeria by Chiamaka Asoegwu July 19, 2022 Published by Chiamaka Asoegwu The International Energy Agency (IEA), the Paris-based think tank that draws up energy policies for Western countries, has published a 10-point plan to help Europe cut its dependence on Russian gas, which could open new markets for other gas producers. The European Union (EU) plans increased gas supply from Nigeria and other African countries to help replace imports of Russian natural gas and reduce dependence on Moscow by almost two-thirds this year. The communication on external energy engagement is set to be adopted by the European Commission later this month as part of a package to implement the bloc’s plan to cut energy reliance on Moscow. Countries in Western Africa, particularly Nigeria, primarily offer the untapped potential for liquified natural gas. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria’s proven natural gas reserve has risen to 209.5 Trillion Cubic Feet (TCF) as of Jan. 1, 2022. This is the ninth largest proven reserve globally. This resource size puts Nigeria in an enviable position within the comity of global hydrocarbon producers. Even in this era of the global energy transition, the oil and gas sector remains pivotal to the Nigerian economy. The 27-nation bloc wants to shift away from its biggest supplier after President Vladimir Putin invaded Ukraine. The draft energy strategy also seeks to prepare the region to import 10 million tons of renewable hydrogen by 2030. This strategy aims to help replace gas from Russia, in line with the ambitious EU Green Deal to walk away from fossil fuels and reach climate neutrality by mid-century. The continent’s internal pressures have also opened conversations about the possibility of more cost-effective power generation sources like nuclear. In 2021, the EU imported 45 per cent of its gas from Russia, representing almost 40 per cent of its total gas consumption. However, the EU’s backing of Ukraine in the war against Russia is opening fissures other producers can exploit. Hence, the EU plans to increase gas supply from Nigeria, which is currently the fourth gas supplier to Europe. As the future of Nigeria’s energy, industrial and economic development, gas has become more pressing, given the country’s growing population and urbanization. While this represents a massive opportunity for Nigeria’s foreign exchange and improved GDP, the sector is mainly underdeveloped as production-to-reserves is approximately 1%. To exploit this opportunity fully, the government of Nigeria must galvanize its efforts in the following ways: Gas infrastructure should be rehabilitated through concession (Public-Private Partnerships). Investments in vital infrastructure are, now more than ever, crucial to boost the production and supply of gas. However, most gas exploration and production activities are geared towards associated gas, even though Nigeria holds more reserves in non-associated gas. This is due to the shortage of investment needed to pursue non-associated gas sites.Security challenges should be resolved. The concentration of activities in the Niger Delta makes gas exploration and production highly susceptible to regional security challenges.The government should review and prioritize commitment to the implementation of the long-term plans of the National Gas Policy. The unfavourable business climate in Nigeria is responsible for International Oil Companies (IOCs) leaving Nigeria. And while local players are taking advantage of this situation, there exists the problem of how they would navigate the Nigerian business terrain. And until the government passes applicable legislation that will tackle vandalism and insecurity, it may not adequately exploit the opportunity to strengthen its economy as the EU plans increased gas supply from Nigeria. July 19, 2022 1 comment 0 FacebookTwitterPinterestEmail
