Power Punch Ways to Enable a People-Centred Clean Energy Transition by aisi January 25, 2023 written by aisi The global community has been concerned about achieving a clean energy transition for the past few years. This international action can be attributed to the effects of climate change on the environment, well-being and economies of populations. However, nations of the world must find ways to enable a people-centred clean energy transition. According to the Transnational Institute (TNI), the global energy transition is broadly divided into two sides based on how it is approached. These sides are the corporate energy transition and the people-centred energy transition. The main objectives of the corporate energy transition are to reduce the emission of greenhouse gases (GHG) and garner geopolitical support in the face of public concern about climate change. The ultimate goal of the corporate energy transition, however, is to slowly preserve international relationships, increase wealth, maintain power and, hence, inequality. The prominent followers of the corporate energy transition include multinational corporations, states, institutions and organisations. On the other hand, a people-centred energy transition is more individual-focused. This form of energy transition provides individuals with essential opportunities while also enabling the navigation of the effects of climate change. According to an International Energy Agency (IEA) report, a people-centred energy transition means eradicating energy poverty while including considerations for employment, inclusion, equity, affordability, access and sustainable economic development. With each country developing their decarbonisation strategies, identifying ways to enable a people-centred clean energy transition holds many benefits. These benefits vary depending on the region. According to the Rocky Mountain Institute, the benefits of a people-centred energy transition for the global South include job creation, a just transition and joint innovation. According to a 2017 Political Economy Research Institute paper, for each $1 million dollar spent, 7.5 full-time jobs in renewable energy are created. On the other hand, fossil fuels accounted for only 2.6 full-time jobs. In addition, a 2020 review of fiscal recovery packages identified five policies linked to rural development in low- and middle-income countries. These policies involved natural capital, clean infrastructure, building efficiency, clean energy research and education. According to the International Renewable Energy Agency (IRENA), Nigeria’s Solar Naija Project will create 250,000 jobs through the electrification of 5 million households. Also, Ethiopia’s use of clean energy in food production can create 190,000 jobs. A people-centred clean energy transition also encourages climate justice for marginalised populations and inclusion among countries. The inclusion of job training programmes in projects promotes equity. Through these actions, the conversation graduates from how many jobs are created to what groups within populations can access these jobs. The adoption of clean energy projects also encourages capacity building and joint innovation through the regionalisation of skills and the development of local value chains. For example, the hydrocarbon sector in Nigeria requires more capital than the labour-intensive clean energy sector. With the development of clean energy projects, issues like supply constraints and human resource deficits can be corrected through collaboration and the adoption of local value chains. The benefits will be tremendous if the global community can find ways to enable a people-centred clean energy transition, according to their respective economies. With the first step being ending energy poverty across nations, a people-centred energy transition will support social and economic development and improve the overall quality of life. January 25, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Energy and Health by aisi January 18, 2023 written by aisi Over the years, energy consumption has proven to affect other aspects of life in the global community, one of which is health. Currently, 81 per cent of the energy systems worldwide still depend on fossil fuels despite the numerous consequences. This article will explore the relationship between the quality of energy and health. The United Nations’ third Sustainable Development Goal (SDG3) is to ensure healthy lives and promote well-being for all at all ages. Some of the goal’s 2030 targets include substantially reducing the number of deaths and illnesses from hazardous chemicals and air and ending preventable deaths of newborns and children under the age of five. However, what role does energy play in global ambitions for good health and well-being? As earlier stated, most of the global community still depends on burning fossil fuels as a source of energy. However, this activity leads to effects such as air pollution and the release of greenhouse gases (GHG), which directly affect human health and contribute to climate change through global warming. In developing countries particularly, dirty fuels such as coal, firewood and kerosene are quite prominent in households. These fuels are often used for cooking, heating and running petty businesses. According to a 2022 World Health Organisation (WHO) factsheet, about 2.4 billion people use open fires and stoves fuelled by coal, wood and kerosene, leading to a significant amount of household air pollution. This practice is more common in rural areas, especially regions not connected to national grid networks. However, using such fuels for energy generation is known to significantly affect the health of these populations, especially women and children, since they are usually responsible for household chores. Globally, household air pollution is a major contributor to the increasing cases of diseases, such as stroke, chronic obstructive pulmonary disease (COPD), and lung cancer, among others. The WHO has reported that in 2020, household air pollution was responsible for about 3.2 million deaths globally, with 237,000 being children under the age of five. However, the effects of using fossil fuels to generate energy are not restricted to households alone. According to the same WHO factsheet, the effects of ambient and household air pollution are responsible for 6.7 million deaths annually. The relationship between energy and health can also be explored in the provisions for healthcare facilities. According to a United Nations (UN) report, one-eighth of the global population is served by health facilities that lack a reliable electricity supply. The report added that more than one in 10 South Asia and Sub-Saharan African healthcare facilities lack electricity access. Furthermore, the healthcare centres in rural areas are much worse in terms of energy access when compared to centres in urban areas. According to the International Fund for Agricultural Development (IFAD), two out of three people living in extreme poverty dwell in rural areas, which is about 400 million people. This estimates that 67 per cent of the global population living in extreme poverty reside in rural areas. With these areas hardly ever connected to grid electricity, alternative energy sources may not efficiently run institutions like healthcare facilities. In addition, these alternative energy sources also contribute to worsening the well-being of these populations. There is a direct relationship between energy and health at household, commercial and industrial levels. With the varying effects of burning fossil fuels on the health and well-being of populations, the global community must make a conscious effort towards developing clean and sustainable energy projects. In addition, according to the UN report, the clean electrification of healthcare facilities must be considered an utmost development priority. With increasing technological advancement in renewable energy, decentralised energy solutions can now provide clean, reliable and cost-effective power for household and utility-scale use. When readily implemented by countries, these clean energy solutions will help the global community to achieve SDG3 and create sustainable economies. January 18, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The Need for Improved Climate Change Literacy by aisi January 13, 2023 written by aisi Globally, climate change has affected individuals, communities and nations in various harmful ways. A result of these numerous effects has been the move towards climate action by world leaders, organisations and development agencies. However, climate change literacy among populations must be considered for this movement to be effectively implemented. For Nigeria to develop and implement policies and initiatives that support global climate action goals, there is a need for improved climate change literacy. According to the United Nations (UN), climate change is the long-term shifts in temperatures and weather patterns that may occur naturally through variations in the solar cycle. However, since the 1800s, anthropogenic activities have significantly contributed to climate change. Some of these activities, primarily burning fossil fuels, lead to releasing greenhouse gases (GHG) into the atmosphere. These greenhouse gases, such as carbon dioxide and methane, trap heat and cause global warming, leading to flooding, droughts, famine, etc. The aforementioned effects of climate change are evident in the world today. According to the UN, global surface temperature has increased faster since 1970 than in any other 50-year period in the last 2000 years. In addition, temperatures are expected to rise by as much as 4.4℃ by the end of the century. Although global, the effects of climate change tend to affect the most vulnerable populations more than others. Most of these populations are found in the global south. According to the Observer Research Foundation (ORF), about 80 per cent of the world’s population lives in Sub-Saharan Africa, South Asia and Southeast Asia, where farming households are disproportionately poor. Hence, situations such as flooding and drought lead to displacements and affect livelihoods and general well-being. Being in Sub-Saharan Africa, Nigeria is not exempt from these climate change effects. However, for the country’s climate action efforts to be successful, there is a need for improved climate change literacy. According to the United Nations Office for Disaster Risk Reduction (UNDRR), Africa has an average national climate change literacy rate of 37 per cent. This is a significantly low value compared to continents like Europe and North America, where average national climate change literacy rates are estimated to be over 80 per cent. Although, in African countries, more considerable variations exist at sub-national levels, with the average range between the highest and lowest rates being about 33 per cent. In Nigeria, the climate change literacy rate ranges from 5 per cent in Kano to 71 per cent in Kwara. Also, climate change literacy in the country is determined by factors such as education and poverty. Gender, which is a major determinant of who gets access to education in some parts of the country, plays a huge role in climate change awareness. In Africa, at the country level, it is estimated that climate change literacy rates are 12.8 per cent lower for women than men. There is a considerable need for improved climate change literacy in Nigeria, especially as the country aims to meet its decarbonisation goals and implement its Energy Transition Plan (ETP). In addition, climate change literacy will help boost education, urbanisation, gender equality and sustainable economic development. Furthermore, improved climate change awareness will help the country contribute its quota to global climate action efforts while helping low-income communities and marginalised groups become less vulnerable to the effects of climate change. Enlightenment is the bedrock of any global action. As such, efforts towards climate action by any country should not be restricted to the development of initiatives without the populace’s basic understanding of why these policies should be implemented. With the global community, especially vulnerable populations, currently experiencing the effects of climate change, individuals must understand how climate action can help through improved climate change literacy. January 13, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Strategies to Enable a Low-carbon Transition in Africa by aisi December 6, 2022 written by aisi The use of fossil fuel energy sources has been identified as a major contributor to the emission of greenhouse gases (GHG) worldwide. For this reason, the global community has encouraged countries to have a climate action plan to scale up a transition to cleaner energy sources. This global climate action also pressures carbon-reliant countries to develop strategies to enable a low-carbon transition. For most carbon-reliant African countries, transitioning to cleaner energy sources may not be a priority, and why should it be, some may ask? According to a CDP Africa report, the continent accounts for 3.8 per cent of global greenhouse gas emissions. This is the smallest share from any region. However, despite the relatively low emissions rate, the region, which is home to the poorest countries, is the most susceptible to the effects of climate change. According to the Global Climate Risk Index 2021, despite the poorest countries contributing the least to greenhouse gas emissions, they are impacted the most by climate change due to already-existing global inequalities. However, if the continent is to enable a low-carbon transition, a lot of existing challenges must be overcome. One of the most pertinent of these challenges is getting access to funding. As already established, most of the world’s poorest countries are in Africa. Hence, the development of clean energy sources on the continent would require a lot of funding investment by the international community. Nigeria, for instance, launched its Energy Transition Plan (ETP) in August 2022. The ETP is a decarbonisation framework focusing on five of the nation’s sectors, namely: power, transport, cooking, oil and gas, and industry. However, the government has stated that to implement the plan up to 2060, the country would need a total of $1.9 trillion in investments. Although there are currently in-country programmes and projects worth $23 billion, Nigeria still needs a lot of funding if it is to implement its ETP successfully. Also, African countries can implement policy strategies to enable the development of clean energy projects. For example, in Nicaragua, there are tax exemptions from Import Custom Duties (DAI), Value Added Tax (VAT) and Income Tax (IR) on clean energy projects. National policies like these would incentivise investors and developers to scale up the development of renewable energy projects on the continent. Despite the fact that Africa contributes meagrely to global greenhouse gas emissions, the continent is in a disadvantageous position to the effects of climate change. This is because Africa’s socio-economic condition widens the consequences of climate change which come in the form of flooding, droughts, and heat waves, among others. However, for the continent to implement strategies that enable a low-carbon transition, it needs policy developments and adequate funding from both local and international spaces. December 6, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Podcast Prospects for Sub-franchising in the DisCos: What Next? by aisi November 29, 2022 written by aisi The growing urbanisation in the country requires distribution companies (DisCos) to improve power supply to be able to service end-user customers. This episode of the Nextier Power Podcast features Abigail Botsha, the Head of Marketing and Business Development at GVE Projects Limited. Ms. Botsha joins us to explore some of the prospects for sub-franchising in the DisCos DisCos. November 29, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch COP27 Focus: Enabling Climate Justice for Women Through NDCs by aisi November 24, 2022 written by aisi In order to achieve a sustainable transition to cleaner energy sources, the global community has had to develop Nationally Determined Contributions (NDCs). However, climate justice must be put at the forefront for the transition to be successful. Therefore, one of the objectives of the United Nations 27th Climate Change Conference of Parties (COP27) was finding ways in enabling climate justice for women through NDCs. According to a United Nations International Children’s Emergency Fund (UNICEF) Climate Justice Roundtable held in February, climate justice means understanding that not everyone has contributed to climate change in the same way and having a people-centred approach to climate action. Yale Climate Connections defined climate justice as a term that acknowledges climate change having different social, economic, public health and other impacts on underprivileged populations. These marginalised populations often bear most of the consequences of climate change in sickness, poverty, malnutrition, insecurity, and flooding, among others. One significant group among the marginalised population adversely affected by climate change is women. According to UN Women, women and girls are impacted more by the climate change crisis. However, one of the objectives of the global call for climate action through clean energy development is for the transition to be just. But how can this be achieved? How can countries make efforts in enabling climate justice for women through NDCs? Women, especially in rural areas, are majorly responsible for daily household activities. Some of these activities include sourcing energy for cooking, heating, and clean drinking water. For example, according to Energypedia, women and girls in Nigeria and Sierra Leone spend approximately five hours each day collecting fuels like firewood and coal to cook and carry out other chores. The global energy access deficit further compounds the consequences of climate change on women in terms of security and health. Firstly, crime and sexual violence against women who have to find alternative energy sources are enabled by the improper electrification of public spaces. Also, these women are at more risk of being exploited for the resources they desperately need. Secondly, healthwise, the emissions from energy sources like firewood and coal are detrimental to well-being. According to the World Bank, these polluting fuels cause respiratory diseases and even deaths totalling about 4 million every year. As such, countries have become more conscious of enabling climate justice for women through their NDCs. The NDCs are each country’s plans and strategies, mandated by the Paris Agreement, to reduce national emissions and adapt to the impacts of climate change. Hence, an NDC cannot be deemed inclusive if it lacks provisions that address the challenges of underprivileged populations or marginalised groups. For this reason, countries have updated their NDCs to include climate justice provisions. Conversations from a panel session at COP27 themed Enhancing Climate Action Through Rights-based, Gender-responsive and Integrated Approaches in the Context of the Climate Crisis revealed that 95% of climate action-conscious countries have gender considerations in their NDCs. However, a lot must be done to enable climate justice for women through NDCs. For example, more commitments are needed in designing and costing specific climate justice programmes. Also, the localisation of funding for gender inclusion projects is essential. Climate justice advocacy for marginalised groups is critical to achieving an equitable energy transition. Although the NDCs are an excellent step to reaching a sustainable and just energy future, guidelines with clear expectations of integration, tracking, and reporting climate justice provisions must be monitored. November 24, 2022 0 comment 0 FacebookTwitterPinterestEmail
LADIES Energising Education to Brighten the Future by aisi November 18, 2022 written by aisi One of the most important ways of securing and building a favourable future for any nation is investing in the education of the youths. However, energy access and the lack of it plays a huge role in the educational sector. This week’s guest is Funmi Jones, the component lead of Phase 3 of the Energising Education Programme (EEP) under the Nigeria Electrification Project (NEP). Ms Jones highlights the objectives of the EEP and the programme’s provisions to scale up gender inclusion. November 18, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Energy and Poverty by aisi November 4, 2022 written by aisi According to Development Initiatives, living in poverty means lacking the resources required to meet basic needs, which can be social, economic, nutritional, cultural or multidimensional. Today, the global community faces poverty at different stages, which can only be eradicated through development. However, for development to occur, one of the most important factors is access to reliable and sustainable energy. This, therefore, directly creates a link between the availability of energy and poverty. Living in poverty holds a lot of disadvantages at the individual, societal and economic levels. With people living in poverty being vulnerable, some of these challenges include food insecurity, increased mortality and poor educational attainment. According to the International Fund for Agricultural Development (IFAD), about 600 million people still live in extreme poverty; that is, they live on less than $1.90 a day. The main objective of Sustainable Development Goal 1 (SDG1) is to end poverty in all its forms. However, this can hardly be achieved with the global energy access deficit especially affecting rural communities. According to the World Health Organisation (WHO), over 700 million people around the world still lack access to electricity. Most of these people live in rural communities that may be too far for grid extensions, or the inhabitants of these communities do not have sources of income to pay for energy. According to the IFAD, two out of three people living in extreme poverty reside in rural areas. This estimates a total of 400 million people, 67 per cent of the global population in extreme poverty. These statistics further imply that individuals living in these conditions barely have access to employment, healthcare services and other basic needs. However, all of these conditions can be improved on with access to energy and further concretise the link between energy and poverty. Coupled with the fact that the global energy industry is transitioning to be more sustainable, off-grid energy solutions would effectively energise underserved and unserved areas that national grids cannot service. Today, around the world, solutions developers provide customers with flexible payment options that allow them to pay for energy conveniently. Also, developers and industry stakeholders at different levels have begun to collaborate to create productive use of energy programmes to electrify communities while also creating employment and enabling income generation. An example of a productive use of energy programme is the Power Africa-Nigeria Power Sector Programme’s Productive Use Solar Irrigation Systems in Nigeria. Another example is the Africa Energy Programme by the Rocky Mountain Institute (RMI), which aims to enable the productive use of energy tied to local economic development. The key to eradicating poverty in all its forms is enabling individual growth, which would ripple into economic development. However, for this to be possible, there must be access to sustainable energy for businesses, healthcare, agriculture, education and other primary industries to thrive. Therefore, the relationship between access to energy and poverty is quite significant if the global community ever plans to achieve the targets of SDG1. November 4, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Energy and Food Security by aisi October 5, 2022 written by aisi For humans to thrive and contribute to their communities, they must be able to access basic needs. Psychologist Abraham Maslow classified basic human needs as food, water, shelter and sleep. According to Maslow’s paper, Theory of Human Motivation, consciousness is almost completely pre-empted by hunger. However, in the world today, hunger is still an issue, especially in underdeveloped countries. As part of addressing this challenge, the link between energy and food security must be explored. Access to affordable, reliable, sustainable and modern energy for all is required to achieve most, if not all, the other Sustainable Development Goals (SDGs). SDG2 aims to end hunger, achieve food security, improve nutrition and promote sustainable agriculture. However, ending hunger depends on food availability, access, utilisation and stability, which all rely on energy access. The link between energy and food security can be seen across the different stages of food production, from agriculture to processing to storage. In agriculture, energy is used to manufacture fertilisers and pesticides, operate irrigation systems and even operate farm equipment such as tractors. This means that a lack of energy to power these types of equipment would result in food unavailability. Also, to enable access to harvested food, the food must first be processed and then transported, which also requires energy. In no particular order, processing can broadly be broken into cleaning, cooking, cooling, extraction, baking, pureeing, brewing, pasteurising, boiling and drying. Electricity makes up about 50% of the energy used in processing foods such as meat, fish, vegetables, fruits and edible oils. Approximately 14% of the food produced worldwide is lost annually between harvest and the retail market. A major contributor to this is the lack of adequate food storage systems. Apart from causing food insecurity, food loss affects the producers, leading to a 15% reduction in income, while also contributing as the world’s third-largest emitter of CO2. Improving storage systems, especially in developing countries, will go a long way in reducing food lost to waste globally. This is because refrigerating food requires reliable energy, and most developing countries, especially in Africa, have a high rate of energy poverty. In order to address this, alternate energy sources must be employed by agricultural communities that lack grid connection, especially in Sub-Saharan Africa and Asia. These alternate energy sources could be in the form of hydro or solar-powered mini-grids to enable agricultural productivity and income generation. In addition, developing and employing cooling systems for harvested and processed food would go a long way in reducing the percentage of food lost. This translates into more available food to both local and international consumers. In Nigeria, the estimated food waste percentage is 40% of all food produced, according to the World Bank. ColdHubs are solar-powered walk-in cold rooms developed and operated in Nigeria by ColdHubs Ltd. These cold rooms are for rent and installed in rural farms and markets that are unserved or underserved by grid lines. The cold rooms extend the shelf life of perishable foods such as fruits and vegetables for about 21 days. This technology reduces food wastage and improves the income generated by farmers on their produce. The link between energy and food security is key to achieving the targets of SDG2. These targets include ending hunger, ending all forms of malnutrition and improving agricultural productivity by 2030. In addition, reliable, affordable and sustainable energy used productively to produce food will also improve the development of clean energy projects globally, which would also help countries meet their climate action goals. October 5, 2022 0 comment 0 FacebookTwitterPinterestEmail
Our Work Action Plan to Address the Contractual Challenges in On-grid Electricity Generation – A Nextier Intervention by aisi September 29, 2022 written by aisi Nigeria, one of Africa’s three largest gas producers, has endured several decades of challenges in its power sector despite its large gas reserves, the huge outlay of funds and unprecedented reforms in the sector. Very recently, however, the populace has reported improvements in public power supply via the grid. Nextier Power was commissioned to assist in determining factors responsible for the shortfalls at the electricity generation level, particularly relating to the contractual instruments that underpinned power generation in Nigeria. Enforced agreements (involving gas suppliers, power producers and the bulk trader) and literature on power generation in Nigeria were thoroughly reviewed to make practical findings extant legislation. In addition, some government policies and comments from regulators were also helpful in making viable recommendations for adoption. A primary challenge identified by the Nextier consulting team was the non-activation of industry agreements due to the non-fulfilment of the conditions precedent, particularly the provision of payment security. Apart from the non-activation of the agreements, other issues identified were gas pricing, demand and supply imbalance and insufficient negotiations of terms of the relevant contracts. Apart from identifying the challenges, the team made recommendations, including partially activating some of the contracts. Historically, power sector contracts were not activated and performed only on reasonable endeavours, which woefully failed in real terms. On July 1st, the regulator partially activated some of the contracts, leading to improved availability of power supply on the grid. Another recommendation by Nextier was the improvement of infrastructure, and we believe that the Siemens projects and the various transmission-distribution interface projects will address this recommendation. Nextier also provided advice around the fourteen (14) utility-scale solar photovoltaic (PV) projects, seemingly in abeyance. Nextier recommended that the Independent Power Projects can novate the agreements with Nigeria’s bulk trader to credible distribution companies or even consider reducing the capacity for the generation sub-sector to capture power for selected communities. While this is not complete yet, various conversations could yield to the success or financial close of one or more of the 14 projects, which will be herculean given the moribund status. Despite the generation sub-sector’s challenges, the collaboration between stakeholders has led to improvements in the power sector. Some of the recommendations highlighted above, and many more, have been implemented by the relevant MDAs. Nextier believes that the continuous efforts at fixing the sub-sectors would yield optimal improvements in power supply to homes, businesses and industries. September 29, 2022 0 comment 0 FacebookTwitterPinterestEmail