Power Punch COP 28 FOCUS: Beyond the Pledges by doose December 19, 2023 written by doose 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 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Electricity Act 2023: The Future of State Electricity Markets by doose November 30, 2023 written by doose 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 comment 0 FacebookTwitterPinterestEmail
Power Punch Advancing E-mobility in Nigeria: Overcoming the Hurdles by doose November 27, 2023 written by doose 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 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots On Becoming the First Profitable Mini-Grid in Africa by doose October 12, 2023 written by doose This week, we have Olu Aruike, Country Director for Husk Power Systems in Nigeria, as our guest. Husk Power Systems achieved a historic milestone in January 2023 by becoming Africa’s first profitable mini-grid company, with Nigeria at the forefront. In this episode, Olu discusses this remarkable achievement and how Husk actively contributes to Nigeria’s energy transition. This conversation also burrows into how mini-grids can be leveraged to catalyze economic productivity in Nigeria. October 12, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Implementing the Electricity Act 2023 by doose September 14, 2023 written by doose The Nigerian power sector has witnessed several attempts by succeeding governments to achieve stability. The most recent attempt is President Bola Ahmed Tinubu’s enactment of the Electricity Act 2023 (EA). The EA marks a crucial step in establishing a comprehensive legal framework for Nigeria’s power industry. Fundamentally, the EA establishes a thorough legal and institutional framework for the Nigerian power industry in electricity generation, transmission, system operation, distribution, supply, trading, and consumer protection. Before this, there was the 1999 attempt by the newly elected democratic government to rehabilitate the Nigerian power sector. This rehabilitation resulted in enacting the Electric Power Sector Reform (EPSRA) Act of 2005, which the new EA repeals. The EPSRA birthed the statutory basis for the privatization of the power sector. A key step in this plan was the setup of the Power Holding Company of Nigeria (PHCN), subsequently unbundled into eighteen successor companies in 2013. Although PHCN was created to address the electricity deficit in the country, electricity access in Nigeria remained one of the lowest in Africa and the world. Some of the challenges of the EPSRA included poor operational performance, a lack of foreign investment, the absence of a long-term power development strategy, no attention to renewable energy exploitation and the inadequate implementation of reforms. These are some challenges the EA is set to address if properly implemented. The EA highlights significant provisions, including cooperation between regulatory commissions, state electricity markets, legal consequences for electricity-related offences, emphasis on clean and sustainable energy, clear regulatory power division, and establishment of an Integrated National Electricity Policy. The efficacy of every legislation lies mainly in its implementation. The ambitious provisions in the Act aim to establish an ideal electricity market in Nigeria. Nevertheless, it can disrupt the Nigerian Electricity Supply Industry (NESI) if ineffective. Therefore, capacity building and education are needed at varying levels of the electricity value chain to ensure success. The creation of state electricity markets will need to be structured cohesively to attract investments. The concern around the technical and financial ability of the various state regulators that will be created needs to be addressed to regulate these markets properly. The daunting question is: Will there be enough resources to do this in the short and medium term? These are some of the dimensions that states need to consider. The reforms in the EA are unlikely to be successful unless there is clarity on what the provisions of the EA are intended to achieve. Such clarity is needed to identify, for example, how the states exercise their powers, how existing national entities and citizens should adapt and respond, what the dangers are, how they should be mitigated, and what obligations. The highlights above spell out a need to close all gaps that hinder the seamless implementation of this Act to avoid misinterpretation, the risk of overregulation, and potential conflicts between the objectives of the Act. Finally, the importance of stakeholder engagement in Implementing the Electricity Act 2023 cannot be overstated. Relevant bodies must convene key actors together, address the existing challenges, and plan the implementation of the provisions of the Act. These actions should also include conducting knowledge-sharing sessions with countries like the United States and India, which have similar jurisdictions and multi-tier regulatory oversight on the energy sector. The EA, like every other legislation, is not perfect. However, The Act is a stride towards achieving a well-functioning power sector that meets the needs of consumers and promotes sustainable growth. September 14, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Developing Nigeria’s Carbon Credit Market by doose August 22, 2023 written by doose A carbon credit is a permit that allows a country, organization or individual to produce a certain amount of carbon emissions. These credits can be traded if the total allowance is not used. Furthermore, it refers to a tradable unit representing one metric ton of carbon dioxide emissions that were either avoided or sequestered from a project. Carbon credit projects encompass forestry, waste-to-energy, renewable projects, afforestation, etcetera. When an individual or a company buys a carbon credit, usually from the government, they gain permission to emit the equivalent ton authorized legally. The carbon market is divided into two fragments: compliance and voluntary. The former is created from regulatory requirements, whilst voluntary markets allow private companies and individuals to purchase carbon credits voluntarily. Globally, carbon credits are gaining traction as a viable response to curtail growing emissions. The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), sponsored by the Institute of International Finance (IIF), estimates that demand for carbon credits could increase by 15 or more by 2030 and up to 100 by 2050. Reports by the World Bank also indicate that more than two-thirds of countries plan to use carbon markets to meet their Nationally Determined Contributions. (NDCs) Countries such as Chile, Ghana, Jordan, Singapore and Vanuatu are already developing digital infrastructure to support their participation in international carbon markets. The advent of industrialization has sprung up several industries and businesses. Most of these businesses and industries contribute heavily to generating C02 Emissions. The World Bank reveals that industries contribute over one-third of direct and indirect global greenhouse gas (GHG) emissions. To control these emissions, the 2015 Paris Agreement had 200 countries endorse the global goal of limiting the rise in average temperatures to 2.0 degrees Celsius above preindustrial levels, and ideally 1.5 degrees. Due to implementing these requirements, businesses and countries are under immense pressure to lower their carbon impact. For some companies, the cost of adopting carbon-reductive technologies can be expensive. For specific industries, the practicality of eliminating fossil fuels is limited. Hence, purchasing carbon credits allows companies to address emissions they cannot eliminate. Additionally, studies have proven that one of the most effective and efficient ways to reduce carbon emissions is to price carbon. This model provides the needed motivation for people to decarbonize. Developing Nigeria’s carbon market holds substantial benefits for the country. According to the African Carbon Markets Initiative’s (ACMI) projections, the West African country can produce up to 30 million carbon credits annually by 2030, which at US$20 per credit would earn Nigeria more than US$500 million annually. These statistics underscore how carbon markets are an incredible opportunity to unlock billions for the climate finance needed to attain Nigeria’s Energy Transition Plan. (ETP) Other benefits include promoting sustainable growth, stimulating economic development and mitigating climate change. Despite this array of opportunities, Nigeria’s exploration of this potential remains low. Nonetheless, Nigeria’s strides towards enhancing its carbon market are noteworthy. In February, Nigeria’s National Council on Climate Change confirmed it was formulating national carbon tax policy plans. This policy gives rights to the government to set a price for emitters to pay for each ton of carbon emissions, consequently generating revenue for the economy whilst aligning the country to its net-zero commitments. Although Nigeria’s emissions are modest, its fast-growing economies, bold development ambitions, and rapidly growing population signify a heightened energy demand in the coming decades. Therefore, developing the Nigerian carbon credit market is critical in ensuring that the continent’s development trajectory aligns with a just energy transition. However, existing policies should be in place. Capacity barriers must be broken to guide businesses and industries on this pathway. In addition, establishing an enabling framework that encourages growth is essential to guarantee a healthy and vibrant carbon market. August 22, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Stories of Impact on the Nigeria Electrification Project by doose August 17, 2023 written by doose This episode of Connecting the Dots features Abba Aliyu, Head Project Management Unit (Nigeria Electrification Project) REA. He joins us to share insights on the positive outcomes and challenges from various projects implemented under the Nigeria Electrification Project (NEP). This conversation also delves into real-life accounts of communities and institutions that have experienced transformative changes and improvements through NEP initiatives. Ultimately, this episode reflects on the success and potential of the NEP in shaping Nigeria’s energy and economic landscape. August 17, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Beyond Electrification: Productive Use of Energy by doose August 7, 2023 written by doose Energy access is a crucial part of transforming the quality of our well-being. Stable electricity drives industrialization, innovation, and infrastructural development, attracting investment and economic growth and development. The essentiality of energy explains why the government and several development agencies continue to fund varying projects toward advancing energy access for all. However, beyond electrification projects, there is a need to ensure the sustainability of these projects. To sustain the viability and bankability of the projects, incorporating energy for productive usage into electrification programs is critical. The National Rural Electric Cooperative Association (NRECA) defines productive electricity use as “Any use of electricity that generates income for the user”. The productive use of energy (PUE) involves the application of energy in agricultural, commercial, and industrial activities for economic growth, local resilience, and self-reliance. For example, accelerating access through energy-efficient electric productive appliances and equipment such as grinding machines, solar cold storage, welding machines, and industrial sewing machines can empower communities. In Nigeria, electricity use among poorer households is mainly limited to low-power appliances, such as lightbulbs, radios and phone chargers. As the off-grid sector continues to grow and evolve beyond essential household lighting, utilities strive to stimulate additional demand. As a result, attention is drawn to using PUE systems to boost consumer energy demand. Electricity demand does not grow automatically when there is electrification. Many communities in the global south are poor and require further support to increase their income and productivity and, in turn, afford electricity. Therefore, ensuring that electrification programs directly influence livelihoods and revenue creation is critical for long-term sustainability. Increasing revenue can be accomplished through the productive use of energy. As the uptake of new lines rises due to electricity use during productive activities, value is created, and energy demand is ultimately enhanced. According to the Africa Development Bank, among the 420 million people in Africa between the ages of 15 and 35, 30% are unemployed. PUE systems use can be employed in income generation at various levels. When energy is employed efficiently in entrepreneurial endeavours, businesses are expanded, and as a result, more jobs are created, thus promoting local economic development. Increased income levels lead to improved financial stability, empowering individuals to afford the energy they consume. In 2022, NERC revealed in their Q4 report that DisCos had failed to meet their ATC &C loss targets. As more people become gainfully employed through the adoption of PUE systems or programs, they are better positioned to pay for electricity, and in turn, the DisCos are better off. Productive energy utilization holds enormous potential. As such, championing more programs like the Nigerian Electrification Program (NEP) with a core objective of increasing the productive use of energy in rural areas is crucial. However, numerous challenges must be resolved. For example, a lack of awareness around productive energy use can derail its adoption. Hence, closing the knowledge gaps through awareness creation on PUE opportunities is a much-needed action. Additionally, limited access to cash and technology can hinder the deployment of energy-driven businesses. Governments and organizations can support energy-related entrepreneurial endeavours by creating financing mechanisms via financial incentives, grants, and subsidies, making them accessible to low-income individuals and communities. As Africa gears toward universal energy access by 2030, enhancing energy affordability through productive energy consumption is a transformational strategy to strengthen communities and promote sustainable economic progress. We can remove obstacles and give people the power to determine their futures by considering energy as a resource that is both a consumable and a catalyst for success. Governments, energy companies, and other stakeholders can work together to create a world where energy is available, affordable, and beneficial to everyone while ensuring environmental stewardship. August 7, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots The Impact of Bilateral Contracts on Underserved Customers by doose August 1, 2023 written by doose On this episode of Connecting the Dots, our guest is Olajumoke Delano, Head of Regulatory and Government Regulations, Abuja Electricity Distribution Company. She joins us to discuss and enlighten us on the Impact bilateral contracts will have on underserved customers. This episode provides insight into what provisions should be in place for lower band-level customers to promote energy access and realise goal 2030. August 1, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Adopting a Circular Economy for Economic Growth and Sustainability in Nigeria by doose July 19, 2023 written by doose The United Nations Conference on Trade and Development (UNCTAD) defines a circular economy as an economic model focusing on closing material loops through repair, reuse, recycling, refurbishment and remanufacturing of end-of-life products. Estimates suggest that only 8.6% of the world’s economy is circular. Countries like the Netherlands are leading the pack in adopting circularity as an economic style. The Dutch government has an ambitious project to become a country 100% based on a circular economy by 2050. Other countries of note are Japan, China and Chile. Nigeria faces enormous socio-economic challenges. Recent statistics by the World Bank state that 4 in 10 Nigerians live below the poverty line. Nigeria’s National Bureau of Statistics, in 2022, showed that 133 million Nigerians are multi-dimensional poor. This statistic reflects Nigeria’s economic state and further reiterates the need to explore untapped opportunities with the potential to lift Nigeria out of poverty. Over the years, the circular economy has gained prominence, given its potential to offer helpful solutions to pressing environmental and economic challenges. This concept is no silver bullet but is a viable alternative to solving Nigeria’s economic and sustainability challenges. It is also essential to note the global concern about climate change and its adverse environmental and health effects. Since waste is a core contributor to carbon emissions, adopting a circular economy in Nigeria is crucial for managing waste, checking carbon emissions and creating a sustainable economic system. This assertion is supported by a European Environmental Agency report which states that transforming to a circular economy can reduce carbon emissions. Despite the wealth creation potential and sustainable circular economy methods, Nigeria still wallows in the grimes of a linear economy. This linear economic model is centred around a “take-make-dispose approach, where products are used and disposed of to waste sites. The United Nations predicts India, China, and Nigeria will house half the world’s population by 2050. It is no doubt a large population equals humongous amounts of waste. Exploring circular economy principles in critical sectors of the Nigerian economy, such as agriculture, energy, and manufacturing, principally contribute to reducing waste and air pollution and decreasing carbon emissions. For instance, Fossil fuel generator components can be reused or recycled in the energy sector, particularly in renewable energy systems. The energy sector’s circularity opens secondary markets for the refurbishment and trading of used components. Thus creating sustainable businesses and local jobs that address Nigeria’s unemployment problems. Waste can be transformed into bio-products such as fertilizers, energy generation materials and compounds in the agricultural sector. Converting agricultural waste into new products introduces the principles of reuse, repair, and recycling. As a result, local economies can generate an additional income stream and, in the long term, reduce environmental damage. Likewise, in manufacturing, implementing practices like product life extension, eco-friendly packaging, and green recycling can curtail waste generation and create economic opportunities. Efforts are in motion towards achieving a circular economy in Nigeria. Recent efforts include the establishment of Nigeria’s Circular Economy Working Group. (NCEWG) The main objective of this working group is to support the inclusive green growth of the Nigerian economy. However, many more coherent policies, incentives, meaningful action, awareness and innovation are required. Transitioning to a circular economy is just as crucial for Nigeria. Due to the dwindling revenue, the country’s growing energy needs and the geostrategic importance of responding to climate change, this transition could offer solutions. July 19, 2023 0 comment 0 FacebookTwitterPinterestEmail