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
LADIES ACHIEVING ELECTRICITY ACCESS: The Not-so-Small Business by aisi September 9, 2022 written by aisi https://thenextier.com/wp-content/uploads/2022/09/Olayemi-Arowolo.mp3 On this episode of the LADIES podcast, our guest is Olayemi Arowolo, Head Mini-grids (Nigeria), Husk Power Systems. She joins us to discuss the not-so-small business of improving electricity access for women in SMEs. September 9, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The Launch of Nigeria’s Energy Transition Plan by aisi August 24, 2022 written by aisi Professor Yemi Osinbajo is to launch Nigeria’s energy transition plan today, 24th August, by 14:00 WAT. The increasing detrimental effect of fossil fuels on the environment led to countries updating their climate action goals at the 26th United Nations Conference of Parties (COP26) in Scotland. Nigeria was not left out as President Muhammadu Buhari pledged that the country would attain a net zero emissions rate by 2060. For this, organisations, agencies and stakeholders have eagerly awaited the launch of Nigeria’s energy transition plan. The use of fossil fuels to generate energy has adverse disadvantages. Among these, the effect of fossil fuels on the climate is of great concern to the global community. When fossil fuels such as coal and crude oil are burnt for energy, they emit greenhouse gases such as carbon dioxide and methane. These greenhouse gases largely contribute to global warming, leading to deforestation, rising sea levels, food scarcity, and changing climates. Despite Africa contributing approximately 3 per cent (%) to the global emissions rate, the region is the most vulnerable to the effect of greenhouse gases. Furthermore, the continent’s energy poverty which inhibits socio-economic growth drives this vulnerability. According to the International Energy Agency (IEA), the Corona Virus (COVID-19) pandemic worsened Africa’s energy security. The agency stated that 25 million more people are without access to electricity than before the pandemic, with most of them in Nigeria. Nigeria’s huge energy access deficit encourages citizens to generate energy through alternative sources such as generators, firewood, or coal. These alternative energy sources release greenhouse gases that are harmful to the environment. However, the launch of Nigeria’s energy transition plan aims to reduce energy poverty and improve the country’s energy mix to become cleaner and more sustainable. Some of the objectives of the energy transition plan include: To attain carbon neutrality and end energy poverty to drive economic growth.To raise awareness of the need for intra-continental data-driven transition plans to ensure a clean and just African energy transition.To attract investors by laying-out projects that align with the transition goals and create viable market opportunities.To improve the productive use of energy by increasing access to funding for solar energy companies from the Universal Energy Facility. Today, the virtual launch of Nigeria’s energy transition plan by the federal government hopes to showcase the routes and actions that will be taken to ensure the country meets its climate action goals. Click HERE to register to attend the launch. August 24, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Exploring the Adoption of Solar Energy Projects in Nigeria by aisi August 16, 2022 written by aisi According to the latest World Bank data, 44.6 per cent (%) of Nigerians still lack access to electricity. This reason, alongside the global move towards climate action, means the country must ensure an increase in the development of clean energy projects. However, the country’s huge solar energy potential has led to energy industry stakeholders exploring the adoption of solar energy projects. The 2022 edition of Tracking SDG 7: The Energy Progress Report shows that out of the over 200 million people in Nigeria, 92 million lack access to electricity. To close the access deficit over the years, the federal government has collaborated with development agencies and other international organisations to explore the adoption of solar energy projects in the country. For example, the Nigerian government launched the Nigeria Electrification Project (NEP) in 2019. The project, which was funded by the World Bank ($350 million), the Africa Growing Together Fund ($50 million) and the African Development Bank ($150 million), aimed to improve electrification through solar power. So far, the project has successfully connected 3.8 million Nigerians. Also, the event of the Corona Virus (COVID-19) pandemic brought the need for more renewable energy deployments in the country. To explore the adoption of solar energy solutions, the federal government introduced the Solar Power Naija (SPN) project as part of its COVID-19 recovery strategy. The SPN initiative is worth $619 million and aims to install solar home systems for 5 million households across the country. Furthermore, the Central Bank of Nigeria (CBN) introduced the solar intervention fund to encourage off-grid solutions developers. The fund which aimed to cushion the pandemic’s effects, provides developers the opportunity to obtain loans of up to ₦500 million. Through these initiatives and more, there has been a recent slow and steady increase in the adoption of solar energy projects in Nigeria. However, the scaling of these energy projects must be accompanied by supporting frameworks. For example, the Renewable Energy Master Plan (REMP) 2005 conceptualises Nigeria’s renewable energy goals and attempts to find factors that determine the achievement of these goals. Also, there is the National Renewable Energy Efficiency Policy 2013. This policy was developed by the Federal Ministry of Power (FMoP) to enable energy efficiency and overcome challenges affecting the deployment of renewable energy in the country. However, many challenges still exist when exploring the adoption of solar energy projects in Nigeria, one of which is access to finance. Development agencies and the government create funding initiatives such as international and local grants and partnerships to ease finance sourcing for developers. Although, there is another way the federal government can support the scaling of solar projects in the country, reducing the cost of production for developers. Developers have to import solar panels and other renewable energy equipment that are unavailable domestically. However, the CBN’s restriction on foreign exchange at official rates for goods and services, which is cheaper for importers, does not cover solar panels. Developers are charged foreign exchange for solar equipment at the official CBN rates, increasing the cost of the products and affecting affordability. The federal government could approve a complete tax waiver for renewable energy equipment to support the industry. This would enable growth and healthy competition in the country’s renewable energy space. Solar energy is a dominant alternative energy source in Nigeria because of the country’s abundance of sunshine. Although adoption of the energy source is increasing, more can still be done in terms of frameworks and investment funding. With these adequately implemented, solar energy could be the key to closing the country’s electricity deficit gap and meeting its climate action goals. August 16, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Accelerating Access to Off-grid Financing in Nigeria by aisi August 10, 2022 written by aisi The electricity access deficit in Nigeria is a huge contributor to the poor development witnessed across the various sectors of the country’s economy. This deficit is majorly caused by the cost of connecting communities with low energy demand to the grid and the already existing poor grid infrastructure. This situation presents renewables as the most sustainable and affordable means of closing the deficit gap. However, with the development of off-grid projects in the country majorly challenged by funding, what assurances are there for accelerating access to off-grid financing in Nigeria? Over the years, the federal government has implemented numerous initiatives to boost the adoption of off-grid energy sources in the country. The Rural Electrification Agency (REA) is the federal government’s implementing agency to ensure the electrification of the country’s unserved communities. The REA’s dedication to encouraging the development of off-grid projects has led to the deployment of mini-grids and solar home systems under the agency’s programmes. These programmes which provide grant funding to off-grid solutions providers include the Nigeria Electrification Project (NEP), the Rural Electrification Fund (REF) and the Energising Economies Initiative (EEI). For example, the NEP aims to increase private sector investment in off-grid deployments in the country. The programme is funded by the World Bank ($350 million) and the African Development Bank (AfDB) ($200 million). So far, the NEP has successfully connected 3.8 million Nigerians. However, the onset of the Corona Virus (COVID-19) pandemic urgently highlighted the need for increased off-grid deployment. This translated into a demand for more efforts to accelerate access to off-grid financing in the country. This need was critical to bridge the energy access deficit and support the ailing healthcare industry. Therefore, as part of its COVID-19 recovery strategy, the federal government introduced the Nigerian Economic Sustainability Plan (NESP). The plan worth $5.9 billion (₦2.3 trillion) was approved in June 2020. Among the key projects of the NESP is the Solar Power Naija (SPN) initiative. The $619 million commitment aims to install solar home systems for 5 million households in unserved communities across the country. Earlier this year, the Nigeria Sovereign Investment Authority (NSIA) provided $24 million in funding for the SPN programme. Despite these interventions, the off-grid sub-sector in Nigeria still faces numerous challenges, including access to finance. According to a Power Africa Nigeria Power Sector Program (PA-NPSP) report, unlocking financing for off-grid projects remains challenging. To address this, local financing from commercial banks would be advantageous in scaling off-grid project development. This would protect developers from foreign exchange risks. The Central Bank of Nigeria (CBN) can introduce de-risking measures such as the credit facility provision under the SPN to encourage commercial banks. The already existing initiatives in the Nigerian power sector have come a long way in boosting off-grid solutions deployment in the country. However, a lot more policies and incentives directed at accelerating access to off-grid financing in Nigeria would improve electricity access for citizens and boost the economy. August 10, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch NERC’s PPA Order: Achievable or not? by aisi June 28, 2022 written by aisi Today, the electricity supply in Nigeria continues to worsen, and stakeholders in the Nigerian Electricity Supply Industry (NESI) have their own opinions on ways to improve the situation. The most recent of these ways is the Nigeria Electricity Regulatory Commission’s (NERC) move to activate a new Power Purchase Agreement (PPA). However, there are concerns about whether NERC’s PPA order is achievable or not. According to the letter sent to one of the Generation Companies (GenCos) by the NERC secretary, Ada Ozoemena, the PPA is expected to be activated today between the Nigerian Bulk Trading Plc. (NBET) and the GenCos. The Power Purchase Agreement conditions GenCos to produce a minimum of 5,000 MW (5 GW) to improve the country’s electricity supply situation. However, Generation Companies have come up with reasons why the order would not be achievable. GenCos have stated that to produce 5,000 MW, firstly, gas supply must be guaranteed. Gas availability has for long been a hindrance to electricity production in Nigeria. According to the National Control Centre, post-privatisation, the thermal GenCos have only gotten about 13 per cent of the 28,000 MW of gas equivalent required for electricity generation. Despite the federal government’s (FG) attempt to address the gas supply challenge to GenCos, it is still a huge factor contributing to the poor generation capacity. And this is a factor in determining whether NERC’s PPA order is achievable. GenCos have also mentioned that they are still owed about 1.64 trillion nairas from the previous agreement. They stated that discrepancies in the previous agreement led to the federal government paying 701 billion nairas to the gas suppliers, but the rest is on their account. Again, it was further agreed under clause 13.4.1 of the Agreement that: ‘for each billing period during the delivery term, seller shall invoice buyer for the capacity payment, energy payment, take or pay payment, and start-up cost payable to seller for such billing period upon receipt of the final settlement statement from the market operator following the applicable billing period.’ The payment shown in such invoice as due to seller shall be paid by buyer on or before the 15th business day following the day the invoice is delivered to sector whether buyer disputes the invoiced amount. Despite the GenCos’ claims, the NBET insists that payment was made to the generators when due. She stated: To put in context, NBET makes payment to GenCos as and when due, and has never defaulted on any payment cycle till date. Furthermore, the percentage payment made to GenCos has continually been on the increase, with the N701.9 billion PAF payment, which ensured a minimum of 80 per cent of GenCos invoices for 2018 and 2019, as well as the second PAF of N600 billion that ensured an average of 95 per cent payment of GenCos invoices for 2020. Also, with the current Power Sector Recovery Operation (PSRO) programme that caters for tariff shortfall, GenCos have continued to receive over 90 per cent payment of their generating invoices for the 2021 payment cycle. To determine if NERC’s PPA order is achievable or not, firstly, strategic efforts must be made to ensure gas availability for power-generating companies. Also, all parties should be involved in drafting agreements to encourage mutual clarity on outstanding debts. Finally, if GenCos succeed in producing 5,000 MW of electricity, will the NESI’s current infrastructure be able to accept this capacity? June 28, 2022 1 comment 0 FacebookTwitterPinterestEmail
LADIES Nigeria’s Clean Cooking Future by aisi June 8, 2022 written by aisi Gender inclusion is crucial for attaining an equitable energy transition. Therefore, there should be intentional efforts to include women in the global transition to clean energy, especially in Africa, where women are already underrepresented. This podcast episode – Nigeria’s Clean Cooking Future – explores an issue which disproportionately affects Nigerian women; access to clean cooking. According to the World Bank, firewood and other polluting fuels for cooking account for approximately two per cent of global emissions. These fuels also pose significant health risks as they cause respiratory illnesses and deaths among women and children. Safiya Aliyu, General Manager, SOSAI Renewable Energies Company, joins me to discuss the current challenges of clean cooking in Nigeria and possible solutions. She also talks about SOSAI’s plans to scale up clean cooking in the country. June 8, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Nuclear Power: Key to European Energy Security? by aisi June 6, 2022 written by aisi The diversification of energy sources has become pertinent to the global community in addressing climate change. Today, each region seeks to find cleaner fuels such as nuclear and green hydrogen tailored to their available resources and economies. An example is the possibility of nuclear power as the key to European energy security. In 2019, 39 per cent of the energy consumed in Europe was provided by fossil fuels, with 26 per cent from nuclear power generation. However, unlike Africa, Europe has the capacity and finance to develop projects from clean energy generation options. Also, the continent currently faces enormous internal pressures, like the need to cut dependence on Russian natural gas. These pressures, alongside the necessity to reduce greenhouse gas emissions, have left the continent seeking to find clean, cost-effective ways to ensure energy security. For these reasons, nuclear power is one of the options being considered to replace fossil fuel energy generation. Nuclear power plants, although fairly expensive, can last from 30 to 60 years before they are decommissioned. Also, nuclear power plants are considered clean because they do not emit greenhouse gas emissions that are detrimental to the global climate. For this, France and other countries have announced plans to increase nuclear power generation to meet their emission reduction goals. However, are these points valid enough for nuclear power to be the key to European energy security? Despite the absence of greenhouse gas emissions from nuclear power plants, nuclear pollution is not completely non-existent. Nuclear explosions and the disposal mechanisms of radioactive waste from nuclear plants have been topics of concern among environmentalists. Usually, nuclear waste is packaged in canisters and then buried underwater, underground or in buildings. However, this process, coupled with the possibility of a nuclear plant explosion, does not eliminate the risk of radioactive contamination of land and marine environments. In the past, major disadvantages to adopting nuclear power generation were the cost and difficulty in developing the plants. However, technological breakthroughs have made for simpler nuclear reactor designs. For example, Small Modular Reactors (SMRs) can be built remotely before being deployed and generate up to 300MW. In Romania, the U.S Trade and Development Agency (USTDA) provided funding to support the integration of SMR technology into the country’s energy mix. Also, with support from the USTDA, Poland has begun front-end engineering and design studies to develop the country’s first ever nuclear power plant. The urgency to decommission as many fossil fuel plants as possible and the rapidly growing global population have demanded each continent find energy sources that are clean, affordable and sustainable. Being clean, lasting and cost-effective, perhaps nuclear power is the key to European energy security. June 6, 2022 0 comment 0 FacebookTwitterPinterestEmail
