African Focus The Africa Energy Bank: A Boon or Bane for Africa’s Energy Transition? by David Omata July 21, 2024 Published by David Omata Nigeria has recently won the bid to host the Africa Energy Bank (AEB). The bank’s establishment is a collaborative effort by the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank), with the primary aim of tackling shortages in energy funding in Africa. The arrival of the Africa Energy Bank (AEB) is poised to significantly shift the African energy sector. However, the AEB’s approach raises critical questions about its impact on Africa’s energy transition goals. This Nextier’s Pan-African series analyses the AEB’s objectives of concurrently funding fossil fuels and renewable energy and its implications for the global drive to phase out fossil fuels. The energy crisis that Africa is currently experiencing is no longer news, as over 600 million people in the continent lack access to power, and over 900 million lack clean cooking options. The AEB’s initial focus on financing energy projects, including oil and gas ventures, responds to this dire situation to fill the void left by global institutions shying away from fossil fuels due to climate change concerns. This approach offers a lifeline to resource-rich African nations struggling to develop their energy infrastructure. The bank’s potential to unlock these resources and stimulate economic growth is undeniable. However, is this fossil fuel focus aligned with Africa’s long-term energy goals? Questioning the Sustainability Path The AEB’s commitment to a “balanced energy mix” seems reasonable since it intends to address Africa’s social and economic components of sustainability. However, supporting fossil fuels alongside renewables generates conflict because it may not mesh well with the environmental pillar of sustainability. While fossil fuels can provide immediate energy security, they also contribute to climate change, directly contradicting Sustainable Development Goal 7 (SDG 7) and net-zero emission targets. The AEB’s success depends on its ability to negotiate Africa’s interest in achieving energy access with the global interest in energy transition. Will it favour short-term advantages from fossil fuels, slowing the shift to greener energy sources? Or can it serve as a catalyst, investing in renewables while sustainably using fossil fuels to close the present energy gap? The Need for Transparency and Scrutiny Each African member nation is expected to donate at least $83 million to raise about $1.5 billion. The Africa Energy Fund’s (AFE) founding members, Afreximbank and APPO, are expected to provide equivalent cash. The remaining $2 billion is anticipated to be raised from outside sources, perhaps even Middle Eastern sovereign wealth funds. Based on the above funding breakdown, the AEB’s funding structure also demands scrutiny. While African nations contributing signifies ownership, reliance on potential funding from Middle Eastern sovereign wealth funds, often heavily invested in fossil fuels, could influence priorities. Transparency regarding project selection and environmental impact assessments will be crucial to ensure accountability. The Path Forward: A Delicate Balancing Act The AEB presents both opportunities and challenges. To truly benefit Africa, it must strike a delicate balance.• Can it foster investment in renewables while supporting responsible fossil fuel resource utilisation?• Can it implement stringent environmental safeguards and prioritise clean energy development in the long run?• Can it promote regional cooperation and knowledge-sharing to accelerate the adoption of innovative energy solutions? The answers to these questions will determine whether the AEB becomes a catalyst for a just and sustainable energy transition in Africa or a bar. Conclusion Establishing the Africa Energy Bank may put Africa’s energy future under critical scrutiny by global leaders. Will it keep the continent stuck on a fossil fuel-based course, or can it be a bridge to a sustainable future? How well the AEB can innovate and adapt will determine the solution. Even when declared, a “balanced mix” is insufficient. In addition to prudent, time-bound fossil fuel consumption, the bank requires a clear plan that prioritises sustainable energy development. Hence, achieving SDG 7 and climate targets requires transparent project selection processes and environmental evaluations. AuthorOmata David OmakojiTechnical Associate – Nextier Power July 21, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus The Electricity Access Gap and its Implications for Human and Economic Wellbeing in Africa by David Omata June 15, 2024 Published by David Omata Clean and affordable electricity is central to modern human development. It provides the necessary infrastructure for health, education, and economic activities. In Africa, however, there remains a significant gap in electricity access, which has profound implications for human well-being and economic growth. This article explores the current state of electricity access in Africa, its impacts on human well-being, and the economic consequences of this gap while suggesting potential solutions to bridge this divide. Click here to download June 15, 2024 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Ethical Mining and Sustainable Solutions by Doose Iortyom June 14, 2024 Published by Doose Iortyom The global shift to green economies is creating a huge demand for minerals like lithium, copper, cobalt, and manganese. These minerals are essential for batteries, solar panels, and other green tech that underpin the transition from fossil fuels to renewables. However, poorly executed mining projects in fragile regions can exacerbate conflicts, risking the transition’s success at the expense of increased suffering and strife. As such, it is crucial to examine the broader implications of the green transition for local communities and critically assess if the sacrifices demanded are ethically acceptable at regional and global levels. This episode features Jabri Ibrahim, Africa Special Programmes Lead, UN, High-Level Climate Champions. He joins us to discuss responsible mining, energy transition and everything in between. June 14, 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
African Focus Analysing Wind Energy Projects in New York and Emerging Markets in Africa by David Omata May 17, 2024 Published by David Omata Recent cancellations of major offshore wind projects in New York have dealt a significant blow to the industry. The failure of major offshore wind projects in New York reflects a combination of technical, commercial, and regulatory challenges that have plagued similar ventures, especially in Africa. One significant factor contributing to the cancellation of these projects was the intricate technical and commercial complexities they encountered. Changes in project plans and material modifications introduced uncertainties during negotiations, making it challenging for involved parties to reach final agreements. This mirrors experiences seen in other regions where ambitious renewable energy projects have faltered due to unforeseen technical hurdles and shifting market dynamics. Similarly, the Lake Turkana Wind Power Project in Kenya, one of the largest wind farms in Africa, faced numerous challenges during its development, including delays due to financing issues, logistical challenges in transporting turbines to the remote site, and disputes over land rights with local communities. These challenges resulted in significant delays and cost overruns, highlighting the difficulties involved in large-scale renewable energy projects in Africa. Another critical issue that led to the downfall of the New York projects was the reliance on a complicated supply chain, particularly the unavailability of critical components such as turbines. The cancellation was linked to supply chain investments by General Electric (GE), emphasizing the vulnerability of wind power projects to disruptions in the supply chain. Although numerous initiatives have been aimed at developing local capacities in Africa for designing and constructing wind turbines, these efforts have not yet fully matured, presenting challenges in reducing the continent’s reliance on imported turbines, affecting the entire supply chain. Case studies such as the “Wind Atlas for South Africa (WASA)” project, which aimed to assess wind energy potential and build local expertise in wind resource assessment, demonstrate ongoing efforts to develop local African capacities. Despite such initiatives, many countries still face challenges in achieving self-sufficiency in wind turbine manufacturing. For example, the lack of advanced technical skills and infrastructure has hindered the growth of the local wind energy industry in countries like Nigeria and Kenya. Cost considerations also played a significant role in the failure of the New York projects. The decision not to proceed was influenced by the increased costs associated with using smaller turbines, which would have required more individual turbine locations and higher installation expenses. This economic challenge has been a recurring theme in renewable energy projects worldwide, where developers often grapple with balancing the need for technological advancements with cost-effectiveness. Egypt’s Renewable Energy Feed-in Tariff (FiT) faced challenges related to regulatory uncertainties, grid integration issues, and delays in project approvals, leading to a slower-than-expected uptake of wind power projects. Also, regulatory constraints contributed to the demise of the New York projects. Policies limiting rate increases for consumers constrained negotiations, making it difficult for developers to meet financial targets and secure viable agreements. Similar regulatory hurdles have hindered renewable energy projects in regions like South Africa, where conflicting policies or stringent regulations have impeded progress towards renewable energy targets. Despite the undeniable success of the REIPPPP (Renewable Energy Independent Power Producer Procurement Program), a commonly discussed drawback has been the significant transaction costs borne by participating bidders. These costs encompass all expenses incurred from bid development to the commercial operation date. While competitive tenders for renewable energy projects are generally more intricate and thus more costly for independent power producers (IPPs) than feed-in tariff programs, the REIPPPP placed exceptionally stringent demands on bidders. The cancellation of offshore wind projects in New York has further shown the challenges of renewable energy development and the importance of addressing various challenges holistically. If we learn from past experiences and collaborate effectively, regions can overcome barriers to renewable energy deployment and accelerate the transition towards a sustainable energy future. Omata David OmakojiTechnical Associate – Nextier PowerDomata@thenextier.com May 17, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Ghana’s Energy Transition Plan: Advancing Clean Cooking Solutions by David Omata March 22, 2024 Published by David Omata In September 2023, the government of Ghana unveiled its Energy Transition Plan (ETP) to achieve zero by 2060, marking a significant stride towards sustainable development. The ETP entails a substantial capital investment, estimated at a bare minimum of USD 550 billion by 2060, representing a USD 140 billion increase compared to business-as-usual (BAU) scenarios. Over 70% of these investments are earmarked for the power and transport sectors, primarily driving a comprehensive shift towards renewable energy sources and reducing carbon emissions. This ambitious initiative is projected to catalyze new economic activities within the energy sector, potentially creating up to 400,000 net new jobs by 2060. Ghana’s ETP outlines six key decarbonization technologies under the Orderly Transition Pathway. A significant portion, approximately 40%, of the required emissions reduction is expected to be achieved through transport electrification. These technologies include electrification and renewables, which involve displacing fossil fuel consumption with electricity sourced from solar, wind, geothermal, and possibly nuclear power, complemented by energy storage solutions. Carbon capture and storage technologies will also be deployed to capture CO2 emissions from industrial processes, while low carbon hydrogen will serve as a greener alternative for industrial and transportation needs. Battery electric mobility aims to replace internal combustion engines with electric batteries across various vehicle types. The plan also emphasizes the adoption of Clean Cooking Technologies to replace traditional biomass fuels with efficient electric biomass cookers and advocates for Negative-Emission Solutions like Bioenergy with Carbon Capture and Storage (BECCS) to mitigate carbon emissions effectively. Ghana is positioned to use this orderly transition pathway to embark on a sustainable path towards a low-carbon future, fostering economic growth while mitigating environmental impact. Advancing Clean Cooking Solutions Less than a year after adopting the ETP, Ghana has taken a significant step in embracing clean cooking solutions in collaboration with international partners and stakeholders to prioritize promoting clean cooking technologies. The recent authorization of the ‘Transformative Cookstove Activity in Rural Ghana’ is a testament to the country’s commitment to advancing clean cooking solutions. Through partnerships with organizations like ACT Group, Envirofit, and the KliK Foundation, Ghana aims to distribute improved cookstoves (ICS) to rural and peri-urban households, significantly reducing smoke and toxic emissions while cutting cooking fuel costs. According to the report by ACT, a leading global provider of market-based sustainability solutions, the authorization of this cookstove activity not only contributes to mitigating greenhouse gas emissions but also aligns with Ghana’s Sustainable Development Goals (SDGs). The proposed distribution of the 180,000 Improved Cookstoves (ICS) will improve the lives of 0.75 million Ghanaian citizens and create local job opportunities; the initiative addresses environmental and socio-economic challenges. Up to 10,000 deaths annually in Ghana are associated with air quality issues; the ICS technology mitigates this by decreasing smoke and toxic emissions in individual households by as much as 80%. Additionally, it trims cooking fuel costs by approximately 60%. Ghana’s readiness to achieve its energy transition plan, particularly in the clean cooking sector, is evident through several critical factors, as discussed below: • Policy Framework: Ghana has developed a comprehensive policy framework supporting clean cooking technologies through regulations, standards, and incentives; the government is promoting modern and low-carbon cooking solutions while addressing affordability and accessibility challenges. • International Cooperation: Ghana’s collaboration with international partners, including Switzerland, demonstrates its commitment to leveraging global expertise and resources to accelerate the adoption of clean cooking solutions. Bilateral agreements, such as the one signed at COP26, provide a legal framework for implementing greenhouse gas mitigation activities and ensuring environmental integrity. • Innovation and Monitoring: Ghana is embracing innovation and technology to enhance the effectiveness of its clean cooking initiatives. Digital monitoring and verification techniques, as exemplified by Envirofit’s state-of-the-art usage and performance monitoring strategy, ensure accountability and transparency in project implementation. • Community Engagement: Ghana recognizes the importance of community engagement and awareness in driving the adoption of clean cooking technologies. The government and its partners empower households to transition to cleaner and more sustainable cooking practices through targeted outreach programs, product demonstrations, and financial incentives. Conclusion Ghana has emerged as a frontrunner among its West African counterparts by taking this huge step to implement Improved Cookstoves (ICS) as part of its Energy Transition Plan to decarbonize the cooking sector. With this strategy, the nation is undoubtedly laying the groundwork for a more promising and sustainable future by meeting its citizens’ energy requirements while reducing environmental impact. AuthorOmata David OmakojiTechnical Associate – Nextier Power March 22, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Harnessing Tax Incentives to Accelerate E-mobility in Africa by David Omata March 8, 2024 Published by David Omata The transport sector remains a significant emitter of greenhouse gasses, responsible for approximately one-quarter of global emissions. Despite efforts to transition to cleaner energy sources, the fact sheet on climate change has shown that 95% of the world’s transport energy still relies on fossil fuels. The fact sheet also reveals that in 45% of countries, transport is the largest source of energy-related emissions; in others, it ranks as the second largest. The transport sector accounts for 57% of global oil demand and 28% of total energy consumption. In Africa, transport emissions are fast increasing from a low baseline. Between 2010 and 2019, Africa experienced a 27% increase in transport emissions, ranking second only to Asia (41%) according to the data from the SLOCAT partnership on sustainable low-carbon transport. The global target for a 60% share of battery-electric and plug-in hybrid vehicles by 2050 could save more than 60 billion tons of CO2 emissions. As the global transition towards electric vehicles (EVs) gains momentum, African nations must intensify their decarbonisation efforts in the transport sector through collective efforts against climate change to accelerate the adoption of EVs. This commitment is reflected in implementing policies centred on tax incentives and waivers to promote the uptake of electric vehicles across the continent. Overview of Countries’ E-mobility Tax Policies In a bold move towards sustainability, Ghana’s 2024 budget speech unveiled a series of tax incentives to promote the adoption of electric vehicles (EVs). These measures, including the waiver of import duties on electric vehicles for public transportation and incentives for registered EV assembly companies, mark a significant step towards reducing emissions and addressing traffic congestion issues in the country. The decision to waive import duties on electric vehicles for public transportation for eight years, coupled with similar incentives for locally assembled EVs, demonstrates Ghana’s commitment to fostering a greener transportation ecosystem. By extending the zero VAT rate on locally assembled vehicles, the government encourages domestic manufacturing and paves the way for sustainable mobility solutions. Ghana’s initiative reflects a broader trend across Africa, where several countries have taken steps to reduce or eliminate import duties and taxes on electric vehicles. From Tunisia to Kenya, Uganda, and other African countries, their governments recognise the importance of incentivising EV adoption to combat climate change and promote sustainable development. Tunisia’s 2023 financial act reduces customs tariffs on electric car charging equipment to 10% and lowers value-added tax to 7%. The Tunisian Ministry of Environment anticipates that these efforts will deploy 50,000 electric vehicles by 2025. According to the Ministry, this project is expected to dramatically reduce oil usage (5.9 million barrels) and fossil fuel imports by US$660 million between 2020 and 2030. These incentives indicate Tunisia’s commitment to sustainability and are consistent with broader efforts throughout Africa to promote environmentally friendly transportation options. The Kenyan government has unveiled plans to reduce excise duties on electric vehicles (EVs) from 20% to 10% to encourage the manufacturing of EVs within the country. Additionally, the Energy and Petroleum Regulatory Authority has implemented measures to regulate the price of charging stations nationwide. Lowering the taxes on EVs and regulating charging station prices will encourage investment in EV technology and infrastructure while addressing concerns about affordability and accessibility. Uganda’s 2023/2024 budget included several tax reforms, including eliminating import tariffs on electric vehicles (EVs) and hybrids, including electric motorbikes. This strategic initiative, as detailed in a paper by the Uganda Revenue Authority (URA), is based on encouraging the use of electric vehicles and reducing pollution. The tax breaks are intended to accelerate the transition to cleaner transportation choices, demonstrating a commitment to environmental sustainability and harmonising with global initiatives to promote greener practices in the car industry. According to Ethiopia’s current e-mobility policy, all-electric vehicles are now exempt from VAT, excise tax, and surtax. The only remaining tax is the customs tax, which has been reduced to 15% for fully assembled vehicles and 5% for semi-assembled ones. Completely knocked-down (CKD) vehicles assembled within Ethiopia are exempt from taxation. The Ministry of Transport and Logistics established charging stations in three locations within Addis Ababa before transferring the responsibility to the private sector. ConclusionAs Africa grapples with urbanisation, population expansion, and climate change challenges, the transition to electric cars appears as a critical potential for transformation.Africa can chart a course for a more sustainable and prosperous future through innovation and collaboration. The current development regarding tax incentives from several African countries is welcoming; however, it is critical to emphasise that increasing EV adoption necessitates comprehensive policies that promote equity for all and tax breaks. Supporting local entrepreneurs, increasing access to financing, and building technical expertise are critical activities for maximising the benefits of electric mobility throughout society. Tax incentives are essential for increasing electric car use in Africa, increasing the momentum toward greener transportation alternatives. With creative policies and strategic investments, Africa can lead a long-term mobility revolution to benefit current and future generations. We look forward to seeing these initiatives in Africa as we reach the net zero target. March 8, 2024 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Enhancing Energy Reliability through Storage Technologies by Doose Iortyom February 29, 2024 Published by Doose Iortyom The imperative for clean energy and concerns about the capacity and resilience of energy grids have heightened the interest in energy storage solutions. These technologies are pivotal in bridging the gap between intermittent renewable energy generation and consistent power supply. This episode features Julia Souder, Chief Executive Officer of Long Duration Energy Storage Council. She joins us to discuss emerging technologies in energy storage and how these technologies promote energy reliability and increase the efficiency of grids worldwide. The conversation also suggests policy recommendations for the Nigerian market. February 29, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Assessing the Levelized Cost of Energy for Solar PV Technology in Nigeria, Ghana and the Benin Republic by David Omata February 21, 2024 Published by David Omata In the quest for sustainable energy solutions, adopting renewable energy sources like solar photovoltaic (PV) technology has gained prominence globally. In West Africa, countries such as Nigeria, Ghana and the Benin Republic are increasingly looking towards solar PV as a viable option to diversify their energy mix and address pressing energy challenges. One critical metric in evaluating the economic viability of solar PV is the Levelized Cost of Energy (LCOE), which measures the lifetime cost of electricity generation per unit of energy produced. The Levelized Cost of Energy (LCOE) is a metric used to assess the lifetime cost of electricity generation from a particular energy source or technology, such as solar photovoltaic (PV) technology. It represents the average per-unit cost of electricity generated over a power plant or system’s lifetime, considering all relevant fees and financial considerations. LCOE = CAPEX +OPEXYIELD • CAPEX, or capital expenditure, is the initial investment, including the cost of components, labour and additional costs the solar system entails.• OPEX or operating expenditures include utilization, maintenance, taxes, etc.• Yield or energy production is the amount of energy the system harvests during its use. Analysts and investors can calculate the LCOE of solar PV technology by considering these factors and applying appropriate financial modelling techniques. The LCOE provides valuable insights into the economic viability and competitiveness of solar PV projects in various countries; it can also be used to compare energy generation costs with conventional energy sources such as fossil fuels and nuclear power. It helps policymakers, investors, and energy stakeholders make informed decisions regarding energy investments, project financing, and renewable energy deployment strategies. Various factors, including importation and production tax, solar irradiation levels, installation costs, financing mechanisms, policy frameworks, and local market conditions, influence the LCOE of solar PV technology in West African countries. Solar PV’s LCOE Assessment Nigeria, the largest economy in West Africa, possesses abundant solar resources, particularly in the northern regions. However, the high upfront costs of solar PV have hindered the widespread adoption it ought to. Despite these challenges, Nigeria’s LCOE for solar PV in Nigeria has been steadily declining due to technological advancements, economies of scale, and decreasing installation costs. The average LCOE in the Northern region is 0.395 $/kWh, whereas in the Southern part it is 0.453 $/kWh. This is unsurprising, given that the Northern part receives more solar irradiation than the South. With the most recent developments and supportive initiatives like the Bank of Industry’s six billion naira solar energy fund, Nigeria has the potential to significantly reduce its reliance on fossil fuels and harness its solar potential for sustainable energy development. Ghana, similarly, boasts favourable solar irradiation levels, especially in the northern regions. The Ghanaian government has implemented various initiatives to promote solar PV deployment, including net metering policies and feed-in tariffs. Currently, the LCOE for utility-scale solar PV technology in Ghana ranges from a minimum of about $0.04/kWh to a maximum of $0.15/kWh. It is yet to be entirely ascertained if the net metering and feed-in-tariffs have contributed to a declining trend in the LCOE of solar PV to make it more competitive than conventional energy sources. Also, challenges such as grid instability and limited access to financing options persist, necessitating further investment and policy support to unlock the full potential of solar energy in Ghana. Solar PV presents a compelling solution to energy access challenges in smaller economies like the Benin Republic, particularly in rural areas with limited grid connectivity. The country is growing interest in off-grid solar solutions, driven by declining costs of installations and innovative financing models such as pay-as-you-go systems. The LCOE for Benin Republic varies from 0.110 USD/kWh to 0.128 USD/kWh, with an average value of 0.120 USD/kWh. Conclusion and Recommendations Despite the progress in reducing the LCOE of solar PV across West Africa, several barriers remain to the general adoption of the technology. These include limited access to financing, inadequate infrastructure, regulatory uncertainties, and the intermittent nature of solar energy. Addressing these challenges will require coordinated efforts from governments, development partners, and the private sector to drive investment, enhance technical capacity, and create an enabling environment for solar PV deployment. The levelized energy cost for solar PV technology in Nigeria, Ghana and the Benin Republic reflects a promising trajectory towards affordable and sustainable electricity generation. Suppose these countries leverage their abundant solar resources and implement more supportive policies and investments; in that case, they can accelerate the transition towards a renewable energy future, improve energy access, and foster economic development. February 21, 2024 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Prospects of CNG as an Automotive Fuel In Nigeria by Doose Iortyom February 15, 2024 Published by Doose Iortyom Nigeria’s energy transition and the escalating transportation costs prompt a growing interest in using compressed Natural Gas for alternative fuelling. President Bola Ahmed Tinubu inaugurated the Presidential CNG Initiative (PCNGi) in August 2023 in response to these challenges. This initiative holds a visionary outlook, seeking to harness Nigeria’s abundant natural gas resources. In this episode, our guest is Michael Oluwagbemi, program manager/chief executive officer of the Presidential CNG Initiative. He joins the podcast to discuss the progress in adopting CNG as an alternative fuel and Nigeria’s preparedness for this transformative shift. February 15, 2024 0 comments 0 FacebookTwitterPinterestEmail
