Power Punch STRENGTHENING NIGERIA’S ENERGY FUTURE: Policy Recommendations for Achieving Renewable Energy and Efficiency Targets by 2030 by Kenechukwu Nnaka October 14, 2024 Published by Kenechukwu Nnaka Nigeria’s energy scene has witnessed a considerable focus on renewable energy and energy efficiency over the last decade, with the National Renewable Energy and Energy Efficiency Policy (NREAP) launched in 2015 and the National Energy Efficiency Action Plan (NEEAP) in 2016. These documents laid the groundwork for Nigeria’s transition to a cleaner, more sustainable energy future. However, while significant milestones have been achieved, several challenges remain in meeting the targets set by these policies. This episode of Nextier’s Power Punch discusses key milestones achieved, challenges faced, and recommendations to fully implement the objectives of these landmark policies, ensuring that Nigeria meets its renewable energy and energy efficiency targets by 2030. Click here to download. October 14, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Restructuring Nigeria’s Electricity Market: Transitioning from NBET to Bilateral Trading by Kenechukwu Nnaka August 22, 2024 Published by Kenechukwu Nnaka The Nigerian Electricity Regulatory Commission has issued an order on the switch to bilateral trading in the country’s electricity supply sector. This edition of The Nextier’s Power Punch has analyzed the document and provided the key points in the new order, including how they might affect the Nigerian Bulk Electricity Trading Company Plc. (NBET) operations. Below are all you need to know from the document “Order on the Transition to Bilateral Trading in the Nigerian Electricity Supply Industry (NESI).”Click here to download. August 22, 2024 0 comments 0 FacebookTwitterPinterestEmail
African FocusPower Punch Accelerating Nigeria’s Energy Transition with CNG-Powered Vehicles by David Omata May 17, 2024 Published by David Omata President Bola Tinubu’s recent directive mandating the procurement of compressed natural gas (CNG)- powered vehicles by all government ministries, departments, and agencies is a significant step towards advancing Nigeria’s energy transition agenda. This policy brief by Nextier outlines the implications of this directive for Nigeria’s Decade of Gas initiative and the broader energy transition plan. Background Nigeria’s Decade of Gas initiative, launched in 2021 by President Muhammadu Buhari, was designed to tap the country’s substantial gas reserves to drive economic growth and development. CNG, while not entirely devoid of emissions, emits lower levels of CO2 compared to conventional fuels, positioning it as a transitional element within Nigeria’s energy transition strategy towards achieving net-zero emissions targets. Nigeria has strategically embraced the Decade of Gas initiative as a foundational phase in its journey towards sustainable energy practices. Even though Nigeria is the 9th largest country with natural gas reserves globally, its domestic gas utilization has been underwhelming, with most of the gas directed towards the export market. President Tinubu’s Directive President Tinubu’s directive aligns with the objectives of the Decade of Gas initiative by promoting the domestic use of natural gas. The President’s mandate on procuring CNG-powered vehicles will reduce Nigeria’s reliance on traditional petrol-dependent vehicles and set an example for the private sector and the general populace to follow suit. This move is expected to increase the country’s natural gas demand significantly. Implications for the Decade of Gas Initiative • Increased Domestic Gas Utilization: The mandatory procurement of CNG-powered vehicles will create a substantial new market for natural gas within Nigeria. This increased demand will incentivize further gas exploration, production, and distribution infrastructure investment. • Environmental Benefits: CNG-powered vehicles produce e lower emissions than traditional petrol-dependent cars, contributing to Nigeria’s efforts to combat air pollution and mitigate climate change. This aligns with global trends towards cleaner energy sources and sustainable development. • Economic Growth and Job Creation: The Decade of Gas initiative aims to attract foreign direct investment, generate revenue through royalties and taxes, and create more jobs. The mandatory adoption of CNG-powered vehicles contributes to achieving these goals by stimulating economic activity in the gas sector and related industries. • Energy Security and Cost Reduction: This directive will improve the country’s energy mix and reduce reliance on imported petroleum products. With this, Nigeria can enhance its energy security and mitigate the impact of volatile global oil prices. Additionally, CNG is more cost-effective than petrol, offering potential savings for the government and consumers. Policy Recommendations • Policy Implementation: Not until this recent directive from the President to encourage CNG production did the decade of gas policy receive less attention to its implementation. The presidency and the relevant regulatory agencies should follow up to ensure effective implementation and enforcement of the directive across all government agencies, with clear timelines and targets for transitioning to CNG-powered vehicles. • Infrastructure Development: The federal and sub-national governments need to Invest in expanding CNG refuelling infrastructure to support the growing fleet of CNG vehicles nationwide while creating opportunities for private investors to invest in the project. This includes establishing refuelling stations along major transportation routes and in urban centres. • Public Awareness and Education: A comprehensive public awareness campaign to educate citizens about the benefits of CNG-powered vehicles, dispel myths or misconceptions, and encourage widespread adoption is needed. This should be done through the National Orientation Agency and involve relevant CSOs and NGOs. • Private Sector Engagement: The government should collaborate with private sector stakeholders, including vehicle manufacturers and energy companies, to incentivize the production and adoption of CNG-powered vehicles and support the development of related technologies. Our Conclusion President Tinubu’s directive to mandate the procurement of CNG-powered vehicles represents a significant opportunity to advance Nigeria’s energy transition agenda and realize the objectives of the Decade of Gas initiative. Nigeria can achieve sustainable economic growth, improve environmental quality, enhance energy security, and reduce transportation costs for its citizens if we leverage its abundant natural gas resources. Effective implementation of this policy directive, supported by strategic investments and public-private partnerships, will be critical in realizing these benefits and positioning Nigeria as a leader in the global transition to cleaner energy sources. Click here to download. May 17, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch The Urgency for Nigeria’s Hydrogen Development Strategy by David Omata March 22, 2024 Published by David Omata Nigeria has made remarkable advancements in integrating hydrogen goals into its national energy strategies. However, these goals are contained in distinct documents in various government offices. Presently, no institution assumes exclusive responsibility for managing all aspects of the country’s green hydrogen energy agenda. Instead, multiple government bodies undertake diverse roles within the energy sector. This highlights the urgent need for Nigeria to develop a comprehensive hydrogen development strategy. The recent synthesis report from the GIZ Nigeria Energy Support Program outlined the roles and obligations of various agencies in Nigeria regarding hydrogen production. This includes entities with explicit hydrogen targets and those expected to have such mandates but currently do not. The report also indicates that the National Energy Policy (NEP), the National Energy Master Plan (NEMP), and the Energy Transition Plan (ETP) included provisions for H2 in Nigeria’s decarbonization strategy. The above situation calls for an urgent need to fill this conspicuous gap of the absence of a unified strategy specifically targeting hydrogen development. As other countries are already embarking on hydrogen strategies, Nigeria risks being left behind unless it swiftly formulates and implements its comprehensive plan for hydrogen utilization. Drawing insights from international experiences, particularly those of Australia, the European Union (EU), Germany, Saudi Arabia, Namibia, and South Africa, Nigeria can leverage the lessons and tailor a strategy that aligns with its unique context and aspirations. Learning from Global Experiences Australia, for instance, emphasizes the production and export of hydrogen while concurrently addressing domestic consumption needs. Australia aims to build cost-competitive production capabilities and stimulate global markets through phased implementation and establishment of hydrogen hubs. Similarly, the EU’s strategy prioritizes investments, research, and international cooperation, setting phased targets for hydrogen deployment while fostering demand through strategic partnerships and financial mechanisms such as the European Hydrogen Bank. Germany was focusing on its robust governance structure and targeted funding programs to support domestic and international hydrogen initiatives. They use mechanisms like the H2Global program, and Germany incentivizes investment to foster market competitiveness. Meanwhile, Saudi Arabia leverages its abundant renewable energy potential to pioneer green hydrogen production, strategically positioning itself in the global hydrogen economy. Namibia and South Africa also leverage the significance of coordinated efforts and strategic planning in realizing their hydrogen ambitions with clear goals, governance frameworks, and funding mechanisms in place. The Imperative for Nigeria’s Hydrogen Strategy Against this backdrop, Nigeria’s absence of a cohesive hydrogen development strategy becomes increasingly glaring. Despite having individual policies touching on energy and sustainability, there is a pressing need for a unified approach that explicitly addresses hydrogen utilization. A comprehensive hydrogen strategy, referred to as “The Hydrogen Document,” would serve as a roadmap to harmonize existing policies, capitalize on Nigeria’s vast renewable energy potential, and position the country as a critical player in the global hydrogen market. Recommendations • Policy Harmonization: The Hydrogen Document would consolidate and align existing energy and sustainability policies incorporating hydrogen elements. This may be done by streamlining efforts and ensuring coherence across sectors. By this, Nigeria can maximize the impact of its initiatives and avoid duplication of efforts. • Stakeholder Engagement: Engaging stakeholders from government, industry, academia, and civil society is paramount. Establishing advisory councils similar to Germany’s National Hydrogen Council would ensure diverse expertise and perspectives are considered in strategy formulation and implementation. • Investment Framework: Like the EU’s European Hydrogen Bank and Germany’s H2Global program, Nigeria should establish mechanisms to incentivize investment in hydrogen projects. Public-private partnerships and innovative financing models can mobilize capital and mitigate investment risks. • Research and Innovation: A robust research and innovation ecosystem is essential for technological advancements and market competitiveness. As demonstrated by Australia and the EU, collaboration with international partners can accelerate knowledge transfer and capacity building. • Capacity Building: Developing a skilled workforce capable of driving Nigeria’s hydrogen agenda is critical. Training programs, knowledge-sharing platforms, and educational partnerships will nurture talent and foster innovation in the hydrogen sector. • International Cooperation: Engaging with global hydrogen initiatives and forging partnerships with leading hydrogen-producing nations will facilitate knowledge exchange, market access, and technology transfer. Conclusion With the existing hydrogen road map and strategies by other countries, Nigeria stands a better chance to draw inspiration from international experiences. With this, the government can chart a path towards a hydrogen-powered future. The formulation and implementation of a comprehensive hydrogen strategy, encapsulated in “The Hydrogen Document,” will harmonize existing policies and catalyze investment, innovation, and socioeconomic growth for the nation and its people. Now is the time for Nigeria to seize the opportunity and embrace the hydrogen revolution. AuthorOmata DavidTechnical Associate- Nextier Power March 22, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch The Role of International Corporations in Combating Climate Change in Africa by Doose Iortyom January 30, 2024 Published by Doose Iortyom The global energy market has long been characterized by the commanding influence of developed nations, wielding substantial control over market dynamics, global decisions, and financial injections. This dominance has perpetuated a landscape where the developed countries dictate the trajectory of the energy sector, leaving developing nations, particularly those in Africa, grappling with pressing energy security challenges. This power asymmetry emphasizes the urgent need for international collaboration to address the impending consequences of climate change on these developing economies heavily reliant on oil production. Africa in Focus It is no longer news that oil-rich nations in Africa must manage their economies; however, this growth driven by natural resources must be considered for their environmental and climate impact. These countries have traditionally been dependent on fossil fuels, and their share of greenhouse gas emissions has increased over the years, even though Africa currently emits less than 5% of the global emissions. Diversification of their economies to become sustainable energy sources has emerged as a requirement for long-term resilience as set by the Intergovernmental Panel on Climate Change. International cooperation can make this transition process easier through knowledge supplies, technological transfer and funding. While there have been several corporations and meetings to facilitate funding, there is still more to be done by the developed countries, especially in their pledge, as the annual pledged climate finance fund for developed countries has never been met since its establishment. During the Nigerian President’s address at the 19th Summit of Heads of State and Government of the Non-Aligned Movement in Kampala, Uganda, Ahmed Bola Tinubu emphasized the proactive stance of developing nations in addressing climate-related challenges with courage and ambition. President Tinubu spoke on the importance for developed countries to expeditiously fulfil their commitment to providing $1 trillion in climate finance. This financial support is essential to meet their pledged annual commitment of $100 billion for climate finance to assist developing countries in their sustainable development efforts. Source: OECD (2023), Climate Finance Provided and Mobilised by Developed Countries in 2013-2021. Also, cooperation among nations entails the transfer of knowledge and advancement in research and development. Learning from best practices and developing innovative solutions can help developing countries move faster in dealing with the challenges of energy security and those related to climate change. For example, clean energy technologies can be transferred through collaborative efforts; these include progress in renewable energy, energy storage and energy efficiency. Capacity-building programs can enable local systems to utilize these emerging technologies, developing a long-lasting energy grid. International coordination of policies is crucial for ensuring an enabling environment that supports sustainable development. This entails linking economic growth strategies with climate change mitigation objectives. Coordinated efforts can promote the adoption of green policies and regulations. International cooperation also has an effective positive effect beyond environmentally related concerns when it comes to developing countries, especially in Africa. Focusing on energy security and climate change in an integrated approach allows African countries to undergo transformations in many fields. The relationship between energy security, economic growth and climate change requires international cooperation that will offer practical solutions to meet the challenges of Africa, especially the oil producing countries. Through the utilization of shared resources, knowledge and finances, the world can promote sustainable development and build a resilient world where the fight against climate change is inseparable from the pursuit of economic prosperity for all. January 30, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch COP28: OFF TRACK TO MEET CLIMATE GOALS by Omiesam Ibanibo December 20, 2023 Published by Omiesam Ibanibo The recently concluded Conference of Parties (COP28) was significant for many reasons. One crucial reason is the global stocktake (GST). The global stocktake reveals the collective progress of member states and other stakeholders toward meeting the goals of the Paris Agreement. This stocktake informs countries and investors on the world’s climate action trajectory, identifying the gaps and collaborative areas; this is why COP28 was primarily significant. Who oversees the GST? The Conference of the Parties (the CMA) is the governing body overseeing the implementation of the Paris Agreement and comprises representatives of the countries’ signatories. The technical aspect of the work is carried out by two subsidiary bodies (SBs), the SB for Scientific and Technological Advice (SBSTA) and the SB for Implementation (SBI). The former is responsible for the data collation and technical components of the GST, while the latter assists in the final implementation phase. What does the GST reveal? The Paris Agreement designed the GST to start in 2023 and occur every 5 years. The stocktake process takes two years to conclude and comprises data gathering technical and political phases. The respective phases involve the information collection, technical assessment and consideration of outputs at COP sessions, where the implications of the findings are presented to the Parties. Upon the GST conclusion, a two-year process to 2025 would commence, during which countries must update their Nationally Determined Contributions. The stocktake is benchmarked against the below-listed Paris Agreement goals under Article 2: Drastically reduce greenhouse gas emissions (GHG) to keep global warming below 2°C and ideally 1.5°C Build resilience and reduce vulnerability to climate impacts Secure finance and support for low-carbon and climate-resilient development. The first GST synthesis report revealed 17 key findings and concluded that nations are off-track to meeting global emissions targets. Some of these findings are: 1. Global emissions are not in line with modelled global mitigation pathways consistent with the Paris Agreement’s temperature goal, and the window to raise ambition is rapidly narrowing. 2. More ambition in action and support is needed to implement domestic mitigation measures and set more ambitious targets in NDCs to realize existing and emerging opportunities across contexts to reduce global GHG emissions. 3. Economic diversification is a crucial strategy to address the impacts of response measures with various options that can applied in different contexts. 4. Capacity-building is foundational to achieving broad-ranging and sustained climate action and requires practical country-led and needs-based cooperation to ensure capacities are enhanced and retained over time at all levels. 5. Making financial flows – international and domestic, public and private – consistent with a pathway toward low greenhouse gas emissions and climate-resilient development entails creating opportunities to unlock trillions of dollars and shift investments to climate action across scales. As a result of these findings, the COP28 summit concluded with a signed deal to transition away from oil, gas and coal. What does Nigeria need? These findings are certainly not favourable to Nigeria and developing countries. The Nigerian Energy Transition Plan (ETP) posits gas as its transition fuel, with national leaders such as the director of Nigeria’s National Council on Climate Change (NCCC) expressing his displeasure with the signed deal. The advent of this closed deal to move away from oil, gas, and coal muddles the trajectory of Nigeria’s ETP. Consequently, Nigeria must re-evaluate investment strategies and actively diversify its revenue sources, particularly its foreign exchange earnings, as oil accounts for 95%. Thus, while action is proceeding, much more is needed now on all fronts. The nation’s leaders must advance the political will to implement carbon mitigation and abatement strategies and ease global warming. December 20, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch COP 28 FOCUS: Beyond the Pledges by Doose Iortyom December 19, 2023 Published by Doose Iortyom The United Nations Environmental Programme’s (UNEP) latest emissions gap report reveals an alarming surge in global average temperatures. In September 2023, temperatures were 1.8°C above pre-industrial levels. In light of these findings, the 28th edition of the Climate Change Conference of Parties (COP) assumes unparalleled significance. These statistics also indicate an imperative for nations to not only make commitments but, more critically, to implement them swiftly. Annually convened, the Climate Change Conference of Parties (COP) re-evaluates climate commitments, ensuring nations progress towards net-zero targets. A core point of COP is the commitments and initiatives that enable progress on a just, equitable and sustainable energy transition. This approach is crucial to drive down the impacts of climate change. Reasonably, Nigeria’s participation in COP28, led by President Bola Ahmed Tinubu, underscores commitments to end gas flaring, reduce carbon footprint and commit not just to an energy mix but an eco-friendly future driven by sustainable energy sources to turn Nigeria into an investment-friendly environment for the carbon market investments. Despite these commitments, the pivotal task is to turn these pledges into productive actions. Hence, a focal point of COP28 is to examine implementation through the inaugural Global Stocktake. The global Stocktake was designed under the Paris Agreement to assess our global response to the climate crisis and chart a better way forward. Scheduled every five years, the Stocktake is intended to inform the next round of nationally determined contributions (NDCs) to be put forward by 2025. The objective of the Stocktake is to aid policymakers and stakeholders in strengthening their climate policies and commitments in their next round of NDCs, paving the way for expedited action. The success of COP28 depends largely on the effective mechanisms that monitor progress and ensure adherence. For Nigeria, a significant gap remains in advancing the green transition. The Nigeria Energy Transition Plan posits that Nigeria will spend $410 billion above business-as-usual spending, which translates to about $10 billion annually, to support its 2060 Net-Zero goal. Clearly, finance is a critical part of an energy transition; this informed the historic launch and operationalization of the loss and damage fund to cater to vulnerable African Communities like the Niger-delta regions. Nigeria must position itself to access these funds. The Nigerian government must employ different instruments such as climate bonds, public-private partnerships, and mechanisms that incentivize sustainable investments. Adaptation and resilience strategies are also crucial components that must be explored to support the green transition agenda. In addition, actualizing these commitments demands investments in sustainable technologies. COP28 emphasizes the significant role of information and communication technologies (ICTs) in early warning systems, monitoring and adapting to climate change, and mitigation strategies, including increasing energy efficiency, creating green networks, and creating circular economies. Against this backdrop, Nigeria must explore incentives and partnerships that promote developing and deploying green technologies on a global scale. Lastly, turning these commitments into real and meaningful action will require the participation of every citizen. This is because our lifestyles have a profound impact on our planet. Efforts should be intensified towards facilitating knowledge exchange and support systems to empower vulnerable regions in building resilience. Also, emphasizing the importance of environmental education urges nations to integrate sustainability into curricula and engage communities in climate-related initiatives. In conclusion, COP28 marks a crucial juncture where nations must move beyond pledges into tangible, transformative actions. Transparency, stakeholder engagement, technological innovation, finance, adaptation, and public awareness constitute the bedrock for successful implementation. The conference’s impact will be measured by the transformative steps taken to secure a sustainable future for generations ahead. December 19, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch ETP: Decarbonizing Nigeria’s Industrial Sector by David Omata December 18, 2023 Published by David Omata In 2020, the industrial sector contributed significantly to Nigeria’s emissions totalling 29MtCO2. To drive down these emissions, the Nigerian Energy Transition Plan (ETP) details a comprehensive strategy designed to achieve net-zero emissions in the country’s energy consumption, with the industrial sector as one of the five targeted areas. The ETP details a decarbonization strategy focused on the cement and ammonia production industries. The plan sets ambitious targets for clinker substitution for cement production, aiming to transition to a composition of 19% calcined clay and 81% clinker by 2030. In addition, the plan envisions an even split of 50% calcined clay and 50% clinker substitution by 2050. Simultaneously, integrating Bioenergy with Carbon Capture and Storage (BECCS) is proposed to play a crucial role in reducing emissions. The short-term goal is to implement 2% BECCS and 98% conventional heating by 2030, gradually progressing to an equal distribution of 50% BECCS and 50% conventional heating by 2050. In the ammonia production sector, the ETP is set for a shift in hydrogen sources. By 2030, the plan aims to adopt 33% blue hydrogen and 67% steam methane reforming to transition to an equal distribution of 50% blue hydrogen and 50% green hydrogen by 2050 to align with global efforts to reduce dependence on fossil fuels and promote sustainable alternatives. Potential Challenges with the Industry Decarbonization Target While the Nigerian Energy Transition Plan (ETP) outlines ambitious targets for decarbonizing the industrial sector, several challenges, including financial barriers, may pose obstacles to achieving these goals. The transition to sustainable technologies often requires significant upfront investments. Industries may face financial constraints, hindering their ability to adopt new processes and technologies. With a total target of $1.9 trillion and an annual target of $10 billion, financing this ambitious target may pose some challenges, except some pragmatic steps are taken through foreign direct investments (FDI), Public-Private Partnerships (PPP) PPPs and creating a more enabling business environment to attract investments into the country. Another potential challenge of the ETP will be Nigeria’s technological readiness. The readiness and availability of technologies for clinker substitution, BECCS, and hydrogen adoption are still in the early stages. Industries may face challenges integrating and adapting these technologies to their existing processes. This goes hand in hand with the challenge of the workforce transition; shifting to new processes and technologies requires a skilled workforce. Addressing potential skill gaps and retraining the existing workforce poses a challenge and may lead to temporary disruptions in productivity. Also, Public perception and acceptance of new technologies may affect their adoption, which can delay the transition. Other challenges may include Inadequate infrastructure for renewable energy sources and hydrogen distribution, as this can impede the widespread adoption of clean technologies. Therefore, developing the necessary infrastructure may require substantial time and resources. Also, implementing regulations promoting low-carbon practices depends on effective enforcement and industry compliance. Inconsistencies or delays in policy enforcement could hinder progress. In addition, the market volatility may be a challenge because the global market dynamics, especially in sectors like hydrogen production, can be volatile. Dependence on external factors may affect the availability and cost-effectiveness of certain technologies, impacting the transition. Conclusion The industrial sector’s decarbonization strategy outlined in the Nigerian ETP presents a comprehensive roadmap to achieve emission reduction targets. By focusing on clinker substitution, BECCS, and hydrogen adoption, Nigeria can significantly contribute to global climate goals while fostering economic growth and job creation. Navigating these challenges will require a concerted effort from the government, industry, and other stakeholders. Flexibility in approaches, proactive problem-solving, and continuous adaptation to changing circumstances will be essential to overcoming these obstacles and realizing the goals set for 2060. December 18, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Clean Cooking and the Energy Transition Plan by David Omata December 13, 2023 Published by David Omata The Nigerian Energy Transition Plan (ETP) encompasses five key sectors: power, transport, oil and gas, cooking, and industry. While power often dominates discussions around the ETP, it is essential to note the significance of the cooking sector, which accounts for approximately 22% of Nigeria’s total greenhouse gas emissions, emitting around 40 million metric tons of CO2 in 2020. Sadly, an alarming 87% of the Nigerian population, totalling 175 million individuals, lack access to clean cooking facilities, resulting in severe environmental and health consequences, particularly for women and children. Health Impacts and Environmental Consequences The United Nations reported that in 2021, Nigeria had the highest number of child deaths globally due to pollution-related pneumonia, reaching nearly 70 thousand cases. According to UNICEF, 40% of these deaths are due to air pollution caused by the combustion of solid cooking fuels within households. Decarbonization Strategy Recognizing the urgency of addressing this issue, the Nigerian Energy Transition Plan has outlined a comprehensive strategy to decarbonize the cooking sector by 2050. The targets include transitioning urban dwellings to 95% electric stoves and 5% efficient wood stoves by 2050, rural dwellings to 57% electric stoves, 22% efficient wood stoves, 20% biogas, and 1% LPG by 2050, and commercial dwellings to 85% electric stoves, 10% efficient wood stoves, and 5% biogas by 2050. Key Components of the Decarbonization Strategy The pivotal elements of the strategy involve a shift from traditional firewood, charcoal, and kerosene to Liquefied Petroleum Gas (LPG) until 2030, followed by the adoption of efficient wood stoves, electrification, and biogas, particularly in rural areas. Given its relevance across household categories and Nigeria’s abundant natural gas resources, LPG is highlighted as a crucial transitional fuel. Post-2030 Focus on Carbon-Neutral Technologies Post-2030, the emphasis shifts to carbon-neutral technologies such as electric cookstoves for grid-connected households and biogas for rural areas relying on off-grid electricity sources. The transition is expected to significantly reduce energy needs as more efficient technologies replace inefficient firewood stoves. Challenges and Accountability Despite the plan’s feasibility, some challenges need to be addressed. One instance is the misappropriation of funds in a past initiative. In 2014, the Federal Executive Council approved 9.2 billion Naira to procure 750,000 stoves and 18,000 Wonder Bags to distribute to rural women. Regrettably, only 45,000 clean cookstoves were provided, and a mere 15% of the approved funds were released to the contractor, raising concerns about financial mismanagement. RecommendationTo ensure the success of clean cooking projects under the energy transition plan, stringent monitoring of associated funds is imperative. Learning from past experiences, the Nigerian government must institute transparent mechanisms and strict accountability measures to safeguard funds allocated to these critical initiatives. Only through responsible governance and rigorous oversight can the laudable strategies outlined in the Energy Transition Plan manifest into tangible and impactful solutions for the Nigerian population, addressing both environmental concerns and public health challenges. December 13, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Is NESI embracing automation? Part II by Omiesam Ibanibo November 30, 2023 Published by Omiesam Ibanibo The nation’s power grid lacks adequate automation. Nigeria’s electricity is generated from hydro and thermal sources, whose transmission lines have been continually subject to vandalism. As such, there has been a longtime failure to detect faults during distribution, adversely impacting power generation forecasting and electricity supply. This situation is why fully modernizing the Nigerian Electricity Supply Industry (NESI) for real-time monitoring and control of distribution systems is vital to achieving a reliable electricity supply. The first part of this series highlighted automation benefits. This part explores the challenges. Challenges Automation comes with several challenges. These challenges include cybersecurity risks, financial implications, and regulatory and workforce gaps. For a country like Nigeria, navigating these challenges necessitates political and economic balancing due to its complex composition. The nation’s institutions, governance structures, and social, political, and economic dimensions are heavily interdependent. Thus, seamless automation may be challenging. Cybersecurity Electricity is an integral part of all modern economies, and as electricity sectors become more digitalized, threats of cyberattacks rise. In 2021, 71% of organizations suffered cyber-attacks, with 44% paying an average cost of $3.43 million as ransom to protect sensitive data. These figures indicate the importance of an appropriate cybersecurity regulatory framework to protect against threats. There are several policies and laws for cybercrime activities in Nigeria, and the primary legislation for cybersecurity is the Cybercrime (Prohibition, Prevention, etcetera) Act 2015. Despite the efforts of the Nigerian government to combat cybercrime, there are still stumbling blocks that limit cyber-attacks, such as infrastructure and inadequate regulatory frameworks. On the former, automating the power system requires responsive incident response centres, cybersecurity training facilities and development centres. Whilst on the latter, relevant regulations must be continually reviewed and updated to address current and emerging cybersecurity threats. Financial costs The capital investment required to implement automation technologies is exorbitant. As noted in Series I, the Transmission Company of Nigeria (TCN) estimated $65 million to automate the national grid with a new SCADA system in 2018. This figure has likely increased. Nigeria’s electricity sector’s costs far exceed its revenues, and the deficit has widened. The Federal Government of Nigeria allocated ₦239 billion to the power sector in 2023, highlighting ₦232,620,744 832 as the capital costs for running the sector. According to the National Bureau of Statistics, the revenue collected by distribution companies in the last quarter of 2023 was ₦202.62 billion. Operational costs are typically 10 times the sector’s revenue or higher in most emerging countries. For instance, Iraq’s total explicit operational costs amounted to $9.3 billion, equivalent to 4.0 per cent of its GDP, with revenues totalling less than 800 million dollars. While similar power sector financial challenges exist in other emerging countries, Nigeria faces particularly substantial financial gaps, as evidenced by its market illiquidity. Regulatory and policy framework Several regulatory overhauls have been implemented to increase liquidity in Nigeria’s power sector. These changes aim to improve financial liquidity, fostering an enabling environment for significant automation in the sector. Among these changes is the approval of the Fifth Bill (No.33), the Devolution of Powers (National Grid System), which amends the 1999 Nigerian Constitution. This amendment, signed by former President Muhammadu Buhari, empowers states to generate, transmit, and distribute electricity in areas covered by the national grid. Furthermore, the Electricity Act 2023 stimulates investments for automation by promoting indigenous capacity in technology for renewable energy sources. This regulatory framework signals Nigeria’s readiness to enhance financial feasibility for full-scale automation. Nevertheless, the efficacy of these initiatives is significantly dependent on their implementation. A phased approach to automation Nigeria’s power systems rely on manual tap changers, leading to increased power outages and reduced system safety. Many transmission and generation stations lack supervisory control, data acquisition (SCADA), and telecommunication systems. Automating the electrical power distribution system, including procuring a new SCADA system and integrating the Internet of Things (IoT) into transmission operations, is crucial to swiftly address power sector issues like power outages and revenue losses. November 30, 2023 0 comments 0 FacebookTwitterPinterestEmail
