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
Connecting The Dots Unlocking Wind Potential for Sustainable Energy Growth in Africa by admin September 11, 2023 Published by admin This week, the Connecting the Dots podcast features Wangari Muchiri, Director of Africa WindPower, Global Wind Energy Council (GWEC). She joins Emeka Okpukpara to discuss how Wind Energy can be harnessed for sustainable energy growth in Africa. This conversation unravels the possibilities wind energy holds for Africa and how its adoption can address energy deficits, propelling sustainable energy growth in Nigeria and the continent. September 11, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Exploring Wind Energy Adoption in Africa by Doose Iortyom January 17, 2023 Published by Doose Iortyom According to research commissioned by the International Finance Corporation (IFC) in 2022, Africa’s wind energy can supply its electricity demand 250 times over. However, progress in harnessing power from wind energy on the continent has been limited. So far, only three African countries, Egypt, Morocco and South Africa, have installed more than one gigawatt (GW) of wind energy capacity. Exploring wind energy adoption in Africa is crucial and will contribute to reducing the consequences of climate change and energy deficits. The effects of climate change are evident in the increased frequency of extreme weather conditions such as droughts and floods. These effects severely impact food security, water resources, health and access to energy. The United Nations estimated that these effects would worsen in the coming years. As a result, there is a need for African countries to diversify their energy mixes with renewables like wind energy. Wind as an alternative energy source provides benefits, including the absence of harmful emissions that fuel climate change. In addition, it is one of the most cost-effective resources among different renewable energy technologies. According to Global Wind Energy Council (GWEC), the technical wind resource potential on the African continent alone is over 59,000 GW. This number is more than three times the continent’s current installed power capacity. Hence, if successfully achieved, exploring wind energy adoption in Africa would benefit the continent in improving electricity access for its population. Nigeria, in particular, has a significant wind energy potential of around 10 GW. Egypt was the first country in Africa to integrate wind energy into its electricity mix. A thorough wind atlas for Egypt’s Gulf of Suez coast, released in 2003, showed that the area has an excellent wind regime with wind speeds of 10 m/s. Leveraging on this, Egypt has remained at the forefront of wind energy adoption in Africa. The country’s first wind farm was commissioned in 2010, and since then, it has been actively working to increase its wind energy capacity. Currently, Egypt has installed a wind capacity of around 1.5 GW. At the 2022 COP27, Egypt signed an agreement with the United Arab Emirates to build one of the world’s largest wind farms for $11 billion. The 10 GW wind farm is expected to offset about 9 per cent of Egypt’s carbon dioxide emissions. All these efforts push the country closer to achieving its target of producing 42% of its electricity from renewable energy sources by 2030 Another African country that is actively developing wind energy is Ethiopia. The country has set a target of increasing generating capacity by 25,000MW from renewable energy sources by 2030, and wind energy is expected to play a significant role in meeting this target. Ethiopia has already commissioned its first wind farm, the Adama Wind Farm, which has a capacity of 153 MW. Over the years, the technologies for harnessing wind energy have been explored in northern Nigeria, like Sokoto, Kano, Bauchi and Plateau states. However, these efforts have been unsuccessful due to a lack of financing, security issues and non-existent policies. Taking a page from Egypt and Ethiopia, Nigeria can learn the importance of setting ambitious targets for exploring wind energy adoption by actively working to achieve them through developing policies that support the development of wind energy projects. Additionally, creating an enabling environment for the private sector to invest in wind energy projects would be incredibly beneficial. Wind energy is a promising renewable energy source that has the potential to play a significant role in resolving the erratic and epileptic state of power in Africa whilst addressing climate change concerns. With high wind resources and ambitious targets, Nigeria can work to develop its wind energy sector and become a leader in this emerging market. January 17, 2023 0 comments 0 FacebookTwitterPinterestEmail
