Power Punch Implications of the Looming Electricity Tariff Increase by doose June 30, 2023 written by doose Electricity tariffs are the rate at which electricity is sold to a consumer. These tariffs are determined by considering total production costs from generation plants to wholesale generation, transmission, distribution, metering and billing and finally to the consumer. Nigerian electricity tariffs are typically regulated by the government or The Nigerian Electricity Regulatory Commission (NERC) to ensure fairness, sustainability, and the financial viability of the power sector. Electricity is the bedrock of civilization, providing energy for our homes, businesses, and industries. However, the accessibility and affordability of electricity have always posed significant concerns for both consumers and policymakers. One of the critical factors influencing the electricity tariff set by utility companies is the electricity subsidy which the government pays to upset a part of this tariff costs making it affordable to its citizens. However, recently the government has expressed its inability to continue subsidizing electricity due to severe financial and revenue constraints. As a result, Distribution Companies (DisCos) have proposed a 40% electricity tariff increase from July 1, 2023. Other contributing factors to this proposed increase are the fuel subsidy removal and the unified exchange rate. The electricity tariff increase has become a subject of intense debate and discussion. Therefore, there is a need to outline the possible implications of this proposed tariff increase in varying sectors. Some of the impacts are as follows: Impact on Consumers: An increase in electricity rates directly affects the consumer’s pockets, as higher rates translate into increased monthly bills, especially with already skyrocketed bills from the fuel subsidy removal. According to the National Bureau of Statistics (NBS), 40.1% of Nigerians are classified as poor. As such, many households in Nigeria, especially those in rural areas, are low-income households with limited disposable income, and the burden of higher electricity costs can be particularly challenging. In addition, the increased financial strain on consumers’ income can lead to reduced discretionary expenses, affecting local businesses and the overall economy. Impact on Businesses: All businesses heavily rely on electricity to function optimally. This means that a spike in electricity tariffs directly impacts operational and production costs, reducing profitability and competitiveness. Energy-intensive industries, such as manufacturing, mining, and hospitality services, may experience significant challenges when tariffs spiral. Higher electricity costs may compel businesses to cut back on operations, reduce staff, or pass on the increased expenses to consumers through higher prices, ultimately impacting the purchasing power of the general population. Renewable Energy Adoption: Globally, countries are making efforts towards transitioning to cleaner energy sources to curtail the adverse effects of climate change on the planet and reduce dependence on fossil fuels. The tariff spike may cause people to seek alternative energy sources, thus promoting renewable adoption and providing the much-needed boost needed to help Nigeria realize its 2030 goals and the Energy Transition Plan. Attracting Investments: For the NESI, the increase in electricity tariff seems like a giant leap towards achieving cost-reflective tariffs. For several years the electricity value chain has suffered losses, with DisCos being unable to meet their financial obligations. Achieving cost-reflective tariffs instils confidence in the minds of investors and intending investors, and it demonstrates that investors can recoup profits from their investments. The electricity tariff increase will impact varying sectors and stakeholders negatively and positively. Therefore, these predicted impacts present a difficult task for policymakers to strike a balance between the requirement for a power sector that is financially sustainable with affordable energy. Given that the pains of fuel subsidy removal still linger, will the DisCos hold off on this impending increase or proceed? The coming days will tell. June 30, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Energy and Tourism by doose June 25, 2023 written by doose Nigeria is a country generously blessed with natural attractions and diverse landscapes. Yet, with this wealth of resources, the country’s tourism industry remains stunted for several reasons, including the epileptic power supply in the country. Hence, alternative energy sources can be pivotal in ensuring sustainable tourism. According to the World Travel and Tourism Council, Tourism is one of the world’s largest economic sectors, supporting one in 10 jobs (319 million) worldwide and generating 10.4% of the world GDP. As such, if well managed, tourism can catalyze national development. Tourism contributes 3.6% of Nigeria’s Gross Domestic Product (GDP), and experts predict that it can contribute more if adequately harnessed, displacing Nigeria’s mono-economy. The United States, Kenya, South Africa and Dubai have made significant returns for their governments by harnessing the potential of tourism in their country. In 2019, Nigeria ranked 129th out of 136 countries in the World Economic Forum’s (WEF) Travel and Tourism Competitiveness Index, far behind other African countries such as Mauritius, Seychelles, and Egypt, ranked 54th, 61st, and 65th, respectively. This statistic presents an urgent need to address energy access as a core challenge derailing the sector in Nigeria. The tourism and energy sectors are not mutually exclusive, so tourism cannot reach its peak without an improved power sector. The tourism industry is a sector that relies heavily on stable electricity to operate optimally. This is supported by statistics that state that energy is reportedly the second-largest spending category for a tourist business after employment. The tourist industry is also reported to contribute to global emissions significantly. Therefore, exploring alternative energies for sustainable tourism is crucial. In Nigeria, developing economically viable alternative energy sources, such as geothermal, solar, and wind power, can offer a sustainable and dependable energy supply for lodging facilities, vacation destinations, and other infrastructure involved in the travel and tourist industry. Traditional energy sources, such as fossil fuels, are sometimes expensive and subject to price volatility in Nigeria. Alternative energy sources are a more economical choice because of their scale. The modular nature of many renewable energy (RE) systems means they can be built or paid for as the energy demand grows, and embedded within the existing energy network, as opposed to large, centralized energy systems. For the tourism sector, increasing the reliability of power supplies and minimizing power outages can be a crucial element of customer satisfaction. Nigeria’s tourism potential extends beyond urban areas to rural communities with unique cultural heritage, landscapes, and wildlife. However, these regions often lack access to reliable electricity. Alternative energy solutions can power guest houses, community centres, and attractions, breeding rural tourism infrastructure and boosting local economies. Globally, there is a looming concern about how the activities of businesses and various sectors affect the environment. The tourism sector is reportedly some of the worst offenders in terms of carbon emissions. Hence, exploring renewable energy sources in this sector indicates the nation’s commitment to climate action. Furthermore, tourist destinations with clean energy technologies are more attractive to investors who are conscious of efforts to combat climate change. Furthermore, as customers become more aware of these impacts, demand for cleaner goods and services increases. Embracing alternative energy sources presents an opportunity for Nigeria’s tourism industry to be revived. Tourist sites such as the Mambilla Plateau in Taraba, Obudu Mountain Resort in Cross Rivers, and Yankari Games Reserves in Bauchi could be developed to world standards. Therefore, governments, businesses, and relevant stakeholders must respond through a range of actions, beginning with energy efficiency and continuing with investments in renewable energy. By leveraging alternative energy sources, Nigeria can resuscitate its tourism sector, attract investors, promote sustainability, and unlock economic growth. June 25, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Barriers to Clean Cooking Technology Adoption in Nigeria by doose June 13, 2023 written by doose Clean cooking technologies have shown great promise in curbing greenhouse emissions and as a pathway to enable Nigeria achieve its Energy Transition Plan. (ETP) However, their adoption in sub-Saharan countries like Nigeria remains low. The “Tracking SDG7 Energy Progress 2023” report predicts that 1.9 billion people will lack clean cooking by 2030, with most in Sub-Saharan Africa. Therefore, we must identify and overcome barriers to adopting these technologies. Nigeria is generously blessed with vast renewable resources, yet, most citizens still use unclean fuels for cooking, especially those in rural areas. According to the National Bureau of Statistics (NBS) survey, 68.3% of all Nigerian households still use solid biomass (firewood and charcoal) for cooking. Besides being highly inefficient, these traditional, open-fire cooking methods produce toxic particulates that cause household air pollution and contribute to an estimated 3.2 million deaths yearly. The main objective of Sustainable Development Goal 7 (SDG7) is to provide access to affordable, reliable, sustainable and modern energy for all. However, this can hardly be achieved unless we understand the limitations and challenges of adopting improved cooking to eliminate them. In Nigeria, the following are some barriers responsible for the low adoption rate of clean cooking technologies: Affordability: This is reportedly one of Nigeria’s most significant barriers to adopting and using clean cooking. According to the National Bureau of Statistics (NBS), 40.1% of Nigerians are classified as poor. As such, many households in Nigeria, especially those in rural areas, are low-income communities. Hence, they are more likely to adopt affordable traditional cooking fuels like charcoal and wood, despite the security and health risks these methods pose. Even if people understand the benefits of adopting clean cooking, affordability is a barrier. Hence, targeted subsidies and innovative financing models can help bridge the affordability gap. Awareness Creation: despite noteworthy actions in this area, there is a considerable need to intensify awareness, especially in rural areas. These people barely have access to conventional information channels like tv and social media, which could result in low awareness in these areas. Thus, there is a need for the government to invest in a lot of in-person and radio awareness, which is more effective in these areas, based on their current realities. Cultural Bottlenecks: This encompasses how people’s existing beliefs affect their willingness to adopt clean cooking technologies. Some people believe that cooking with firewood improves the taste and aroma of the food. In some cases, certain cultures believe that cooking is traditionally a way to keep their ancestry alive. These beliefs are ingrained in their system, and convincing them to adopt better methods is difficult. These people need to be educated on the risks and opportunities of clean cooking to convince them to adopt these methods. Supply Constraints: Supply constraints can hinder the adoption of clean cooking technologies by limiting their existence in certain Nigerian markets, leading to fewer options for consumers and a challenge to access these technologies. In a report by the International Center for Energy, Environment and Development (ICEED) on Expanding Demand for Clean-Cooking in Nigeria, several participants in the focus-group discussions had never even seen an improved cook stove in their local markets. Thus, the government needs to address these issues that cause supply constraints. Our environment and people, especially women and children, have suffered and continue to suffer the consequences of unclean cooking. Eradicating these barriers is vital to improving people’s lives, communities and achieving the ETP. Therefore, the government must intervene, and collaborate with relevant stakeholders and community leaders, to increase investments and actions towards dissolving these barriers. June 13, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Off-Grid Solar Solutions by doose June 5, 2023 written by doose In this week’s episode, our guest is Mr Patrick Tonui, Head of Policy and Regional Strategy GOGLA. He joins us to discuss Off-Grid Solar Solutions, and how these solutions can be leveraged, made affordable and accessible to all. He also highlights GOGLA’s work in accelerating the adoption of Solar solutions and closing the energy gaps that persist in Africa. June 5, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power PunchUncategorized Clean Cooking Technologies by doose May 30, 2023 written by doose The race to fulfil Nigeria’s ambitious plans to achieve Net-Zero by 2060 has created a responsibility for government to check and ensure that anthropogenic activities are reduced to the least possible amount. A pathway to achieving this is through the adoption of clean cooking technologies by households in Nigeria.Clean cooking refers to using purer fuels and energy-efficient modern stoves for domestic use. As of 2020, the share of the population with access to clean cooking technologies was 30.2 per cent, representing less than a quarter of the Nigerian population. Ensuring access to modern cooking solutions is vital to achieving Sustainable Development Goal 7 (SDG 7) and Nigeria’s Vision 3030 goals. Hence, there is a considerable need to accelerate clean cooking in Nigeria.Below are some examples of clean cooking technologies as approved by the world health organization:Liquefied Petroleum gas (LPG): LPG is a clean-burning fuel that produces fewer pollutants than traditional biomass fuels. LPG stoves provide a convenient and cleaner alternative for cooking e.g. Methane and butane.Biogas Systems: Biogas is a renewable energy solution produced by the breakdown of organic matter, such as food or animal waste, by anaerobic bacteria in an oxygen-free environment. Biogas systems capture the Methane produced during this process and use it as a cooking fuel.Improved cooking stoves: These are designed to burn fuel more efficiently, reducing fuel consumption and minimizing smoke emissions. They often have features like insulation, better combustion chambers, and chimneys to direct smoke outside the cooking area.Electric rice cookers: Electric stoves or induction cooktops are powered by electricity and offer a clean and efficient cooking option. However, their widespread adoption in Nigeria may be limited due to electricity access and affordability challenges.Ethanol stoves: Ethanol is produced from sugar plants or other biomass sources. An advantage of the technology is that ethanol provides a higher heat flux with no soot or smoke, and cooking can occur faster and pollution-freeIn developing countries like Nigeria, polluting fuels like wood and charcoal is mainly used for cooking, and the gases emitted from this activity contribute to increasing carbon emissions, which contribute to air pollution—resulting in a range of respiratory diseases like asthma and lung cancer. Statistics show that household air pollution causes more than 4 million deaths every year, mostly affecting women and children who bear the brunt of household activities.Another effect of using unclean fuels like wood and charcoal to cook is that it promotes deforestation, by cutting down of trees to make firewood, thereby, hindering progress towards climate action. Additionally, traditional cooking burdens women and children because they are primarily tasked with sourcing firewood used for traditional cooking. Also, the process can be time-consuming, limiting opportunities to pursue their personal or educational goals.Traditional cooking methods have proved inefficient and harmful to our health, economy and planet. Thus, the adoption of clean cooking technologies is crucial. It is commendable what organizations like the Clean Cooking Alliance and Sustainable Energy for All (SEforALL) are doing to accelerate clean cooking in Nigeria by providing grants and championing domestic policies towards clean cooking adoption. However, there is much work to be done.With the emergence of a new government in Nigeria, clean cooking can be adapted in several ways. This could be through providing clean cooking technologies at a subsidized and affordable rate, especially for people in local communities, providing support through incentivizing companies to produce clean cooking technologies and finally, creating awareness at all levels to educate the masses on clean cooking technologies and its benefits. May 30, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Energy and Politics: The Influence of Lobbying on Regulation by doose May 30, 2023 written by doose In this episode of Connecting the Dots, our guest is Dr Sam Amadi, Associate Professor and Director of the Abuja School of Social and Political Thought. He joins us to discuss the intersection between Energy and politics. He also highlights the influence of lobbying on policy and regulation and how lobbying can be fair, transparent and focused on the sector’s best interests and the nation’s common good. May 30, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The DotsUncategorized Achieving the Energy Transition Plan by doose May 22, 2023 written by doose On this episode of Connecting the Dots, our guest is Tengi George Ikoli, Senior Officer, Natural Resource Governance Institute. She joins us to discuss and share her perspective on the Energy Transition Plan. This episode dissects the laid-out frameworks, strategies and innovations to support and drive the success of this plan. May 22, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Actions Towards a Healthier Planet by doose May 8, 2023 written by doose Newton’s third law of motion states, “For every action, there is an equal and opposite reaction.” The actions of humans have ridiculed and diminished the planet over centuries. The consequences now affect us, evident through the deteriorating climate and other biological processes. Therefore, there is an urgency to shed more light on actions towards a healthier planet. Scientists worldwide on the intergovernmental panel on climate change have shared that climate models predict the Earth’s global average temperature will rise an additional 4° C (7.2° F) during the 21st Century if greenhouse gas levels continue to rise at present levels. In tackling climate change, several governments have come together under the Paris Agreement to commit to reducing greenhouse gas emissions (GHG). In addition, the United Nations has also called for climate action through its sustainable development goal Thirteen (13). Despite these efforts, the task is to turn these commitments into real and meaningful action, and achieving this will require the participation of every citizen. This is because our lifestyles have a profound impact on our planet. Statistics have shown that household consumption accounts for around two-thirds of global Greenhouse Gas (GHG) emissions which occur through the energy sources we use, the food we eat, the items we buy, our transportation choices, and our waste management methods, amongst others. Hence, we must seek ways to contribute to a healthier planet. The ways to reduce our carbon footprint are feasible but not immediate; however, they add up and make a significant impact in time. For example, reducing car dependency through cycling and walking contributes to reducing GHG emissions in the air. Likewise, opting for public transportation also contributes to plummeting the number of vehicles on the road and reducing the gases emitted and, consequently, air pollution. Planting trees to augment the high deforestation rate due to furniture, charcoal, and paper production is also a much-needed action in the fight against the planet’s depletion. Another way to contribute to a healthier planet is through proper waste management. Irresponsible waste management results in litter and affects our environment causing air and sea pollution. Despite waste being an inevitable byproduct of human life, it can be managed through recycling and reusing waste items that are not recyclable. For instance, plastics like water bottles can be transformed into other useful items, thereby reducing the waste that ends in landfills. Also, minimising energy usage by switching off lights and appliances not used around the home helps preserve energy and reduce footprints. Conversely, opting for cleaner energy sources, like solar, and adopting clean cooking solutions, like liquefied natural gas and biogas, has the potential to reduce emissions. Unfortunately, very few people in Nigeria know about climate change, its effects, and how they, as citizens, can contribute to reducing global carbon footprints. According to Statista, as of 2020, more than six (6) Nigerians out of ten (10) had never heard about climate change. These statistics highlight an awareness gap and a considerable need for everyone to lend their voices to these causes. Speaking up can be done by starting conversations around climate action on social media platforms or by enlightening those within our reach in meaningful climate discussions and actions towards reducing their carbon footprints. Finally, the Nigerian government should prioritise creating more awareness programs on actions towards combating climate change whilst providing enlightenment on those initiatives already in place to catalyse impact and buy-in, as people are better positioned to make sustainable and less harmful environmental choices when informed. May 8, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Exploring the Economic Benefits of Scaling Up Solar in Nigeria by doose May 2, 2023 written by doose For the first episode of the Connecting the Dots podcast series, our guest is Chibueze Ekeh, Chief Executive Officer of Ceesolar Energy Limited. He joins Emeka Okpukpara, Partner, Nextier Power, to discuss how scaling up solar in Nigeria can promote energy access and boost economic growth. May 2, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The Impacts of Insecurity in the Nigerian Energy Sector by doose April 28, 2023 written by doose Nigeria, known for its vast oil reserves, has the potential to become a leading player in the global energy market. However, the country’s energy sector has been severely impacted by its prevailing insecurity, impeding its development. Therefore, assessing the impacts of insecurity in the Nigerian energy sector to proffer solutions is crucial. The Institute for Peace and Economics, global terrorism index report, 2023, ranks Nigeria as the eighth most insecure country in the world. Proof of these statistics is the Boko Haram insurgents ravaging the country’s northern region, a high rate of kidnapping in other regions, the IPOB conflict in the east, the constant cases of robbery, and the constant herders and farmers clashes. Not forgetting the Niger Delta region, which house’s the oil and gas reserves, has been the epicenter of insecurity in Nigeria, with militant groups disrupting oil production and exportation, resulting in the loss of billions of dollars in revenue. Furthermore, insecurity has also impeded the growth of the renewable energy sector in Nigeria. Although Nigeria has significant potential for renewable energy development, with abundant solar radiation, wind resources, and hydropower potential, the insecurity situation in Nigeria has caused a decline in the development of these renewable energy sources. For example, in 2021, a France Engr working for Vergnet to build Nigeria’s first wind farm in Katsina State was kidnapped. As a result, many viable sites have been excluded from possible development to the high incidence of insecurity, particularly in the Northern parts of the country. Recently, newly installed solar panels in the FCT were vandalized. These incidences deter foreign and local investment as no one is willing to invest in a volatile and hostile environment. Another impact of insecurity in the Nigerian energy sector is increasing energy costs, forcing companies to invest in security measures to protect their facilities and personnel. These security costs are often passed on to consumers, resulting in high energy prices that limit access to energy for low-income households and small businesses. The high energy costs also discourage investors as they are concerned about the profitability of their investments in a high-cost environment. Additionally, reports show that several developers in Nigeria have recorded a revenue drop of up to 30 per cent, primarily because their sites being located in high-risk zones leads to delays in project development and the inability to close financial rounds at deployed sites In addressing the impacts of insecurity in the Nigerian energy sector, the government needs to take urgent measures to improve the security situation in the country. These measures include investing in security infrastructure, such as surveillance systems, drones, and security personnel, to protect energy facilities and personnel. Round-table discussions should be held between relevant stakeholders and all parties involved on providing meaningful assistance to energy developers facing challenges due to insecurity Finally, the government should strengthen law enforcement agencies to combat banditry, vandalism, kidnapping, and terrorism, which affect the energy sector and other sectors of the economy, while creating awareness programs that urge Nigerians to protect public facilities in place for their benefit. The impact of insecurity in the Nigerian energy sector is significant, with dire consequences. Hence, if Nigeria hopes to achieve its Net Zero commitments and attain energy access for all, insecurity in the country must be urgently contained. April 28, 2023 0 comment 0 FacebookTwitterPinterestEmail
