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
Connecting The Dots Electricity Act 2023: The Future of State Electricity Markets by Doose Iortyom November 30, 2023 Published by Doose Iortyom On the 9th of June, 2023, President Bola Ahmed Tinubu enacted the Electricity Act 2023 (EA). It is anticipated that the Act will remedy the challenges that derail the Nigerian Electricity Supply Industry (NESI). In this episode, we shed light on the EA provisions, opportunities, challenges and the Act’s potential to shape the future of state electricity markets positively. Discussing this with us is Eyo Ekpo, CEO of Excredite Consulting. November 30, 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
African Focus How Much can Mini-grids contribute to the African Energy Transition Plan? by David Omata November 20, 2023 Published by David Omata In a press release from the World Bank on the 27th of September 2022, it was reported that solar mini-grids have the potential to provide uninterrupted electricity to over 500 million people in unpowered and unserved communities by 2030. Today, there are about 750 million people without access to electricity, and more than 50 per cent of them live in sub-Saharan Africa. In a recent interview, the practice manager for the World Bank’s Energy Sector Management Assistance Programme (ESMAP) spoke on how Africa can leverage private finance and mini-grid technology to bridge the power access gap. However, he emphasized the need to have more sustainable policies that would drive the mini-grids across Africa as the current policies, if not changed, would keep at least 670 million people without access to electricity by 2030. He added that the current pace of electrification on the continent is not fast enough. While Mini-grids have been applauded as crucial in accelerating access, they cost about $0.4/KWh, which is higher than the $0.16 average cost of electricity globally in terms of production cost. In a recent study undertaken by Nextier’s technical associate along with other researchers from Ghana on the profitability of renewable energy sources in the country, it showed that while the levelized cost of energy (LCOE) for a solar PV project is 2.34/KWh. At the same time, the national tariff for electricity is 1 GHC/Kwh. Considering that solar PV is currently the most affordable among renewable energy sources, this calls for concern about the ability of the communities where these mini-grids are connected to pay the associated tariffs. According to the Mini Grids for Half a Billion People Handbook, the production cost currently is high. Still, it is projected to come down to about $0.2 by 2030 if all the necessary measures are put in place to drive the mini-grids. The Nigeria’s Energy Transition Plan established a target of 7GW for mini-grid generation by 2050. However, given the existing state of the sector and the growth in the capacity of mini-grids nationwide over time, this objective is nearly impossible to reach. The sustainability has been called into doubt because, Aside from Husk Power Systems, no other African developer of mini-grids has been able to break even or turn a profit, even though some of them have been in business for roughly ten years. Several studies have demonstrated that customers’ ability and willingness to pay is high, and Husk Power Systems has distinguished itself from other mini-grids by achieving corporate profitability. Early-stage businesses find it extremely difficult to raise capital to advance beyond grant or private equity-backed pilot stages despite the fact that their services are reliable and predictable. The sustainability and scalability of mini-grids in Africa will require targeted interventions. First, large-scale, long-term loans at low-interest rates are crucial. As infrastructure initiatives, mini-grids should receive funding appropriate to their significance. De-risking instruments, patient debt, and equity capital are essential to luring semi-commercial and commercial lenders. Secondly, a concerted effort is needed to empower communities through business training and asset finance. Relying solely on energy for lighting is insufficient to ensure the economic viability of mini-grids. Elevating local incomes through productive use training and micro-finance or implementing cross-subsidization of energy costs will be pivotal in making energy accessible to the most vulnerable segments of society. In conclusion, mini-grids hold the key to unlocking Africa’s energy potential and propelling the continent towards a sustainable future. This feat can be achieved by adopting a multi-pronged approach that encompasses policy reforms, strategic investments, and community empowerment. We can bridge the power access gap and usher in an era of inclusive and reliable electricity for all. The time to act is now, for a brighter, more electrified Africa awaits. November 20, 2023 0 comments 0 FacebookTwitterPinterestEmail
