African Focus OPEC Exits: The Delicate Dance of National vs Global Priorities in the Era of Fossil Fuel Phase-Down. by David Omata January 16, 2024 Published by David Omata The decisions by Angola and Ecuador to exit OPEC and that of the United Arab Emirates (UAE) to encourage other OPEC members to increase their production have potential implications for the global effort to phase down fossil fuels, as proposed in COP28. Angola’s decision to leave OPEC is primarily driven by its reluctance to accept further production cuts. This move may complicate OPEC’s efforts to collectively reduce oil production to stabilize prices and address concerns related to oversupply. Angola’s emphasis on avoiding production decline and respecting contracts reflects a focus on national economic interests. This approach may challenge the broader global commitment to reduce fossil fuel production and consumption in line with COP28 goals. With Angola no longer bound by OPEC production quotas, there’s a possibility that the country could increase its oil production, contributing to a higher global oil supply and potentially undermining efforts to transition away from fossil fuels. The UAE’s indication to increase oil production aligns with its historical role as a significant energy supplier. If the UAE successfully persuades other OPEC members to follow suit, it could increase global oil supply, which may counter the COP28 objective of phasing down fossil fuels aside from the OPEC regulations on cutting down production to regulate oil prices. The UAE’s emphasis on stability in oil markets suggests prioritizing economic considerations. This stance may challenge the transition towards renewable energy sources if it leads to prolonged dependence on fossil fuels. Ecuador left OPEC in January 2020, citing economic reasons and a need to increase oil production to address its financial challenges. The country faced economic difficulties, and the decision to exit OPEC was part of its strategy to boost oil revenues. This departure emphasized some member countries’ internal economic pressures, influencing their organisational stance. Among all the countries that exited OPEC, it’s only the exit of Qatar from OPEC in 2019 to focus on gas that aligns with the climate goals of transitioning towards cleaner energy sources; the rest gave economic reasons. OPEC’s historical exits and suspensions indicate challenges in achieving a unified approach to global climate goals. Differences in national priorities and economic interests continue to shape the decisions of member countries. Countries’ decisions to leave OPEC offer valuable insights into the challenges and dynamics that may be relevant to the global energy transition plan and the goal of achieving net-zero emissions by 2060. When nations come to a crossroads where emission reduction initiatives overlap with economic prosperity considerations, the precedent set by OPEC exits suggests a predilection toward prioritizing economic prosperity. Key Lessons and Recommendations National Interests vs. Global Commitments: Countries prioritize national economic concerns when making decisions about their energy strategies. Economic considerations, such as the need for revenue and energy security, can sometimes take precedence over global commitments. In the context of the global push for net-zero emissions, countries may prioritize their immediate economic interests, especially if they rely heavily on fossil fuel industries either as a net importer or exporter. Striking a balance between national economic concerns and global environmental goals will be a significant challenge.Economic Pressures and Transition ChallengesEconomic challenges, such as financial pressures and the need for increased revenue, were key factors in some OPEC exits. These economic pressures can influence a country’s energy strategy. Countries pursuing net-zero emissions must address economic challenges associated with the energy transition. Economic incentives, supporting affected industries, and ensuring a just transition for countries reliant on fossil fuels are essential to a successful global energy transition plan. Shifts in Energy DynamicsThe exits from OPEC also reflected broader shifts in global energy dynamics, with countries like Qatar focusing on emerging energy sources like natural gas. As the world works toward net-zero emissions, acknowledging and adapting to changing energy dynamics is crucial. Embracing new technologies, fostering innovation, and leveraging emerging energy sources are vital to a successful transition plan. Unity and Collaboration Challenges OPEC faced challenges maintaining unity and cohesion among member countries with divergent priorities. Internal divisions can hinder the effectiveness of collective efforts. Global efforts toward net-zero emissions require international collaboration. Balancing the interests of different nations and fostering cooperation will be essential to overcome challenges and achieve the shared goal. ConclusionThe experiences of countries leaving OPEC highlight the complexities involved in aligning national interests with global goals. As the world strives for a net-zero future, addressing economic concerns, fostering innovation, and promoting international cooperation will be critical to overcoming the challenges of phasing down fossil fuels and achieving the 2060 net-zero emission target. January 16, 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 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 Africa’s Expectations from COP28 by David Omata November 28, 2023 Published by David Omata As the global community gears up for the 28th Conference of the Parties (COP28) scheduled from November 30th to December 12th, African nations face unique challenges and opportunities in pursuing sustainable development. COP28 represents a crucial juncture for the continent, with high expectations for meaningful collaboration, robust commitments, and equitable solutions to address climate change. COP28 presents an unprecedented opportunity for the global community to unite and address the world’s urgent climate challenges. The expectations below reflect the continent’s aspirations for a sustainable, equitable, and resilient future. As the world converges to deliberate on climate action, the outcomes of COP28 must reflect a collective commitment to leaving no one behind and forging a path towards a more sustainable and inclusive world. Africa’s expectations are not just regional; they are integral to the success of global climate efforts, and COP28 provides a platform to turn these expectations into tangible actions. This edition of Nextier’s Power Punch explores the primary expectations of Africa from COP28 and the transformative outcomes it aspires to achieve. 1. African Leadership and Representation African nations expect COP28 to recognize and amplify their voices in global climate negotiations. It is crucial to ensure that decisions made at the conference reflect the diverse needs and priorities of the continent. These considerations involve enhancing African representation in key decision-making bodies and fostering partnerships that empower African leaders to lead in shaping climate policies. 2. Climate Finance A critical aspect of COP28 for Africa is securing adequate climate finance to support mitigation and adaptation efforts. The Green Climate Fund and other financial mechanisms should prioritize funding for projects that address the specific vulnerabilities of African nations. It is essential to ensure that funds are easily accessible and that the allocation process is transparent, fair, and inclusive. 3. Technology Transfer and Capacity Building For Africa to transition to a low-carbon economy, there must be a concerted effort to facilitate the transition to clean and sustainable technologies. COP28 should emphasize technology partnerships that enable African nations to leapfrog traditional development pathways. Additionally, capacity-building initiatives should be strengthened to empower local communities in implementing and managing sustainable technologies. 4. Adaptation and Resilience Building Africa is particularly vulnerable to the impacts of climate change, from extreme weather events to shifting agricultural patterns. COP28 must prioritize adaptation measures that empower African nations to build resilience against these challenges. This expectation includes the development of climate-resilient infrastructure, early warning systems, and sustainable agricultural practices tailored to the continent’s unique needs. 5. Just Transition and Social Equity African economies heavily rely on sectors that may be significantly impacted by climate policies, such as agriculture and extractive industries. COP28 must prioritize a just transition that ensures affected communities’ social and economic well-being. This expectation involves creating new job opportunities, providing skills training, and safeguarding the rights of vulnerable populations. 6. Biodiversity Conservation Africa is home to a rich and diverse array of ecosystems and wildlife, many of which are threatened by climate change. COP28 should emphasize the importance of biodiversity conservation and integrating nature-based solutions into climate strategies. Integrating nature-based solutions includes sustainable land management, reforestation projects, and the protection of critical habitats. Conclusion Africa’s expectations from COP28 are rooted in pursuing climate justice, resilience, and sustainable development. The conference’s success would be measured by its ability to prioritize adaptation, secure adequate climate finance, foster technology transfer, and ensure a just transition for all. As the world convenes, it is imperative to recognize that addressing Africa’s climate concerns is pivotal for the continent’s well-being and the collective success of global climate initiatives. COP28 marks a pivotal moment for transformative action, and the world must rise to meet Africa’s expectations with urgency and commitment. November 28, 2023 0 comments 0 FacebookTwitterPinterestEmail
African Focus Balancing Electric Vehicle Charging Stations and Community Power Needs in Africa by David Omata November 27, 2023 Published by David Omata The rise of electric vehicles (EVs) presents a promising solution to mitigate the environmental impact of traditional fossil fuel-based transportation. As of 2022, more than 10 million EVs were already manufactured and sold. In the first quarter of 2023, only about 2.3 million EVs were sold. Based on this current trend, the International Energy Agency (IEA) has projected that EVs would avoid about 500 million barrels of oil daily by 2030. However, as the adoption of EVs increases, so does the demand for energy to power charging stations. In developing countries, particularly in Africa, the challenge lies in finding a balance between catering to the growing electric mobility sector and addressing the broader energy needs of communities. This essay explores the implications of establishing EV charging stations in developing African nations, examining the potential conflicts with overall energy requirements and proposing strategies for sustainable energy infrastructure. Challenges of EV Charging Stations in Developing Countries Energy Competition: The demand for energy from EV charging stations could potentially compete with the energy needs of communities, where access to reliable electricity is often a challenge. In many African nations, a significant portion of the population lacks access to basic electricity, making it crucial to prioritize energy allocations for essential services, industries, and residential areas. For electric vehicle charging stations, reduced capacity Single phase loads, or Level 1 and Level 2 chargers, are most frequently found in residences, parking lots, and commercial fleets. Their average loads range from 2 to 4 kVA. An EV can be efficiently charged in 10–20 minutes using a level 3 charger, often between 200 kVA and 500 kVA. Infrastructure Limitation: Developing countries face infrastructure limitations that impact the establishment of robust electric grids. Insufficient grid capacity and unreliable power sources can hinder the integration of widespread EV charging infrastructure, raising questions about the feasibility and sustainability of such projects. As of 2022, there were about 2.7 million charge stations globally, with more than two-thirds of them in China, with the projection of about 17 million charge stations by 2030. In Africa, only a few countries, such as South Africa, Morocco, and Rwanda, have taken major steps to invest in e-mobility startups with support from private institutions. Financial Barriers: The financial burden of setting up charging stations may divert resources from broader energy development initiatives. Developing countries often grapple with limited budgets, and prioritizing between expanding energy access for communities and investing in EV infrastructure becomes a delicate balancing act. Audi recently started the construction of 33 units of 150kw EV charging units in South Africa. Jaguar has also partnered with Gridcars to launch 88 charging stations nationwide. Total Energies is also working with Ampersand, a Kenyan-based startup, to launch EV charging stations across several points in Kenya. The government’s role in promoting the e-mobility market in Africa is important because it has the power to propel the widespread installation of level 3 charging stations across several cities, even though all of these collaborations contribute to e-mobility’s success in Africa. Strategies for Sustainable Energy Development Integrated Energy Planning: Governments and energy authorities must adopt integrated energy planning approaches that consider the needs of both EV infrastructure and community energy requirements. This involves assessing current energy consumption patterns, identifying high-impact sectors, and strategically allocating resources to balance the interests of different stakeholders. Renewable Energy Integration: Leveraging renewable energy sources, such as solar and wind, for EV charging stations can alleviate the strain on traditional power grids. Implementing decentralized, off-grid charging solutions can be particularly beneficial, especially in semi-urban areas and subsequently to rural communities. Public-Private Partnerships: Collaboration between governments, private sector entities, and international organizations can facilitate the development of sustainable energy infrastructure. Public-private partnerships can attract investments, drive innovation, and accelerate the deployment of EV charging stations while ensuring that community energy needs are addressed. Incentivizing Energy EfficiencyImplementing policies promoting energy efficiency in EV technologies and community power systems can be instrumental. Incentives for adopting energy-efficient appliances, practices, and technologies can reduce overall energy demand, making accommodating the needs of both EVs and communities easier. ConclusionIn less developed nations, especially those in Africa, the switch to electric vehicles may not be an easy transition process as it necessitates carefully weighing the benefits and problems that are associated with it. Sustainable development requires striking a balance between the energy requirements of communities and the energy demand for EV charging stations; this becomes a case of a scale of preference and opportunity cost to be dealt with. These countries may steer toward a future where electric mobility coexists peacefully with the more extensive energy needs of their populations by means of integrated planning, renewable energy integration, public-private partnerships, and energy-saving incentives. African countries may leverage the potential of electric vehicles to boost economic growth, reduce their impact on the environment, and enhance the general quality of life for their population by carefully addressing these issues. November 27, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Advancing E-mobility in Nigeria: Overcoming the Hurdles by Doose Iortyom November 27, 2023 Published by Doose Iortyom The International Energy Agency (IEA) posits that the transport sector is one of the dominant carbon emitters. The energy transition plan also highlights the substantial contribution of the transport sector to total emissions, accounting for over 40%, the second-largest after the power sector. Consequently, the ETP proposes a shift from diesel/petrol vehicles to hybrid and electric vehicles (EVs) as a strategy to decarbonize Nigeria’s transport sector. This article sheds light on the actions and policies to materialize this objective. Electromobility, or e-mobility, encompasses electric cars, bikes, pedelecs, e-buses, and trucks—all of which operate fully or partly on electricity and draw their energy primarily from the power grid. EVs produce less greenhouse gases than internal combustion engines such as gasoline and diesel-powered vehicles. Integrating electric vehicles into public transportation could provide commuters with clean, affordable, and convenient options. This approach would reduce emissions and demonstrate the viability of EVs to the general public. For example, in a city like Lagos, Nigeria, with a relatively large stock of mini-buses for public transit, the bus fleet’s electrification could yield more benefits than other types of vehicles. Electric Vehicles (EVs) are poised to become increasingly common on global roads. Several countries, including Norway, Iceland, Sweden, the Netherlands, and China, embrace e-mobility. Recently, Ford Motors announced that it was investing R5.2 billion into its South African Silverton production plant. They will start producing the first-ever Ranger plug-in hybrid electric vehicle, targeting energy self-sufficiency by 2025. The Federal Government’s strategies thus far Nigeria recognizes the role of EVs in the journey to net zero. This is evidenced by the launch of Nigeria’s first Electric Vehicle in June 2021. Earlier in the year, the Governor of Lagos State, Babajide Sanwo-Olu, informed us about delivering the country’s first set of electric buses. Another Progress made towards advancing E-Mobility in Nigeria is the establishment of commercial charging stations for electric vehicles. Efforts are also under full swing to frame a policy for implementation. The National Automotive Design and Development Council (NADDC) revealed in July 2023 that their Electric Vehicle Development Plan has entered the final stages for ratification and implementation. Possible challenges and solutions Despite the recent progress on EV deployment, reaching a trajectory consistent with climate goals is a formidable challenge, especially for Nigeria. The commercialization of EVs in the country will require that fundamental issues be dealt with. In Nigeria, more than half of grid-connected customers suffer frequent power outages that last several hours or days. To promote e-mobility, the power grid must be stabilized and strengthened to support the increased electricity demand from EVs. Additionally, alternative solutions like solar-powered charging stations could be explored. Furthermore, Public EV charging infrastructure is at its nascent stage in Nigeria. Charging stations are a fundamental composition of an enabling environment where the EV industry can thrive. Charging infrastructure is vital to address “range anxiety,” which is referred to as a fear that the vehicle may run out of power before reaching a charging point. Installing charging stations, particularly in urban areas, is a priority, but the costs and logistical challenges are substantial. These charging infrastructures create more surges in electric load growth, and today’s grid is not equipped to meet this demand for power. To fully enable the EV revolution and decrease emissions from the transport sector, we need faster and smarter grid planning. The comparatively high cost of electric vehicle assembly is a massive deterrent. In Nigeria, the current Tesla line (Model S, Model X, Model 3) ranges from N16 million to N58 million at the current exchange rate without customs. The recent reports by the Nigerian Bureau of Statistics state that half the population’s income remains at $1 per day or less. For many Nigerians, affordability is farfetched. Hence, policymakers in developing countries will need to improve their economy and foster accessibility through incentives and subsidies to lower the initial costs of EVs. These actions will encourage potential buyers to consider the eco-friendly option. Other key issues to be addressed are creating policies and regulations that align with global best practices and addressing the battery recycling challenge. conclusion Finally, the shift towards cleaner transportation systems may cause dire economic implications. Nigeria is a petroleum-dependent country, and a shift to electric vehicles could reduce oil demand, potentially affecting the country’s revenue. The government needs to plan for this economic shift by diversifying the economy through investments in agriculture, sustainable energy sources, and the promotion of manufacturing. Advancing E-mobility in Nigeria is a formidable task with several hurdles to overcome. There is no ‘one-size-fits-all’ approach to EV deployment. However, tackling the issues highlighted above and seizing the opportunities presented by E-mobility solves the dual challenge of reducing emissions and creating economic opportunities that drive technological innovation in the country. November 27, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch The West African Power Pool (WAPP) by Omiesam Ibanibo October 30, 2023 Published by Omiesam Ibanibo Electricity demands in West African countries have rapidly increased over the last decades. However, meeting these demands has been a formidable challenge for the region. The Economic Community of West African States (ECOWAS) estimated electricity demand to double its present levels by 2030 with an average annual growth rate of 6%. This situation is why the ECOWAS heralded the pool of power resources in the region to facilitate cross-border electricity trade. WAPP: a specialised institution? ECOWAS member states established the WAPP to curtail regional power deficits in 2000. By 2006, The ECOWAS Heads of State and Government adopted the Article of Agreement in Niamey, which recognised WAPP as a specialised institution. The ECOWAS Regional Electricity Regulatory Authority (ERERA), in conjunction with the National Association of Regulatory Utility Commissioners (NARUC), was established to develop a functional model on system reliability and electricity market design to provide market operations standards based on the existing national electricity markets within the ECOWAS region. This structure allows member and non-member states to retain regulatory sovereignty over their national grids and cross-border interconnectors. A cursory examination of WAPP’s institutional set-up also reveals this intention. The WAPP was designed to augment and not replace domestic electricity markets and systems. Existing WAPP projects Several inter-country electricity trading have been launched since WAPP’s inception in 2006. Some of these WAPP projects include: Birnin Kebbi (Nigeria) – Niamey (Niger Republic) – Ougadougou (Burkina Faso) – Bemebreke (Benin Republic) 330KV WAPP North Core Transmission Project. 2nd Line 330KV Ikeja West (Nigeria) – Sakete (Benin Republic) Transmission Line. The Organisation of the Development of the River Senegal line connecting Senegal, Mali, and Mauritania to a hydropower plant in Senegal enabled trading from 2002. The Organisation for the Development of the Gambia River linked the Gambia, Guinea, Guinea Bissau, and Senegal. However, these cross-border electricity markets were inefficient due to three primary reasons. First, there were no clear regional market rules. Secondly, electricity supply contracts were not securitised but politicised. Thirdly, the limited reach of the market resulted in more discrepancies between countries engaged in trading and those not. To resolve these discrepancies, WAPP consolidated regional market rules and processes in 2015 to harmonise and launch the regional electricity market (REM) three years later. WAPP: from a Nigerian lens Nigeria’s liberalisation of its electricity market impacts the feasibility of WAPP. Although WAPP has recorded several milestones, such as the synchronism of the interconnected system to advance works on the 225 kV Cote d’Ivoire – Liberia – Sierra Leone – Guinea interconnection project. The Nigerian state governments’ legal authority to create their state electricity laws and markets makes coordination more bureaucratic and complex. The Electricity Act 2021 devolved powers to the states because of the poor coordination of market processes at the federal level. Therefore, advancing a West African regional pool would involve a circle back to central coordination, which is unlikely. Thus, even though the institution has presented its objective as primarily technical rather than political, coordinating market processes for the power pool may become more bureaucratic and complex as states exercise their regulatory autonomy. A West Africa Power Pool is beneficial due to the significant economies of scale advantages. However, achieving WAPP’s infrastructural objective(s), though presented as purely technical, also necessitates political balancing and will from member and non-member states. October 30, 2023 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Spotlighting Opportunities in Nigeria’s Energy Transition Plan by admin October 27, 2023 Published by admin In August 2022, Nigeria launched its Energy Transition Plan (ETP) to address energy poverty and climate change, aiming for SDG7 by 2030 and net zero by 2060. While challenges are on the horizon, spotlighting the opportunities in Nigeria’s ETP can foster support and catalyze this transition. In this episode, we are joined by Lolade Abiola, Programme Manager of the Energy Transition Office, to discuss the benefits of implementing the ETP and how we can collectively materialize its objectives. October 27, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Is Ghana’s $550 Billion Energy Transition Plan Overly Ambitious? by David Omata October 19, 2023 Published by David Omata Ghana’s recent announcement to shift its net-zero emissions target from 2070 to 2060 reflects a significant step towards combating climate change while fostering economic growth. The Energy Transition Plan, unveiled by President Nana Akufo-Addo, outlines a credible pathway for achieving this goal, focusing on key economic sectors. Current Energy LandscapeGhana boasts an impressive 86% electricity access rate, with approximately 12% of its energy mix derived from renewable sources, one of the best in West Africa. However, the nation grapples with high debt levels, especially within the energy sector, which could challenge the ambitious transition plan. Investment and FundingThe energy transition plan outlines an ambitious $550 billion budget, signalling a substantial opportunity for international investors to engage in sustainable development within Ghana. This financial commitment is integral to achieving the outlined goals and is expected to generate an estimated 400,000 net jobs within the Ghanaian economy. Decarbonization TechnologiesThe plan prioritizes four main decarbonization technologies: renewables, low-carbon hydrogen, battery electric vehicles, and clean cookstoves. These innovations will account for over 90% of the targeted emission reductions by 2060. Emission ProjectionsWithout implementing the plan, Ghana’s emissions will surge from 28 Mt CO2e in 2021 to over 140 Mt in 2050. The bulk of this increase is attributed to the transport sector, driven by population growth, rising GDP per capita, and increased vehicle ownership. Potential ChallengesThe plan’s ambitious targets face potential challenges, particularly the high existing debt levels nationally and within the energy sector. Successfully managing this financial burden will be critical to executing the transition plan effectively. The escalating national debt forecasted for Ghana from 2023 to 2028, projecting an increase of 71.82% and culminating in an estimated peak of $106.19 billion in 2028, presents a significant impediment to the finance mobilization for the energy transition plan. With the debt trajectory showing a persistent upward trend in recent years, allocating resources towards the ambitious energy transition goals could become increasingly challenging. The expanding debt burden implies limited fiscal space, potentially constraining the government’s capacity to allocate substantial funds towards the energy transition plan’s budget of $550 billion. This rising debt profile not only narrows the financial scope for new investments but also raises concerns about servicing existing debt obligations, potentially diverting funds from critical initiatives to achieve the transition targets. Navigating this mounting debt challenge will be crucial in successfully implementing Ghana’s energy transition plan. Conclusion Ghana’s Energy Transition and Investment Plan signifies a bold commitment to combating climate change while advancing economic development. The accelerated timeline from 2070 to 2060 reflects a heightened sense of urgency. However, the nation must strategically navigate financial hurdles to ensure the plan’s success. October 19, 2023 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots On Becoming the First Profitable Mini-Grid in Africa by Doose Iortyom October 12, 2023 Published by Doose Iortyom This week, we have Olu Aruike, Country Director for Husk Power Systems in Nigeria, as our guest. Husk Power Systems achieved a historic milestone in January 2023 by becoming Africa’s first profitable mini-grid company, with Nigeria at the forefront. In this episode, Olu discusses this remarkable achievement and how Husk actively contributes to Nigeria’s energy transition. This conversation also burrows into how mini-grids can be leveraged to catalyze economic productivity in Nigeria. October 12, 2023 0 comments 0 FacebookTwitterPinterestEmail
