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
African Focus Reinvesting Fuel Subsidy Funds for Nigeria’s Energy Transition Plan by davidomata October 2, 2023 written by davidomata The discontinuation of fuel subsidies in Nigeria presents an opportunity to redirect significant financial resources towards the nation’s pressing energy transition goals. This policy paper outlines a comprehensive strategy for reinvesting the erstwhile subsidy funds into the Nigerian Energy Transition Plan. By examining successful case studies from other nations, this proposal offers concrete recommendations for maximizing the socio-economic benefits of this transition. Before the subsidy removal, Nigeria allocated an average of 400 billion naira monthly to fuel subsidies. Some funds can now be channelled towards the Nigerian Energy Transition Plan, which requires $17.7 billion annually to facilitate the transition to a more sustainable and diversified energy sector. Utilizing Subsidy Funds to Achieve Universal Energy Access, Net-zero Emissions, and Economic Growth Nigeria stands at a crucial juncture in its energy trajectory. The recent removal of fuel subsidies has unlocked a reservoir of financial resources that can be strategically deployed to shape a more sustainable and prosperous future. Reinvesting fuel subsidy funds for Nigeria’s energy transition plan promises to achieve three pivotal goals: universal energy access by 2030, net-zero emissions by 2060, and concurrently, driving industrialization, job creation, and economic growth. Universal Energy Access: Millions of Nigerians now lack reliable access to power, obstructing advancements in healthcare, education, and economic growth. Nigeria may increase access to energy by emphasizing investments in off-grid and mini-grid alternatives and enhancing the national grid’s infrastructure. This will change people’s lives and help companies and communities become self-sufficient and productive. Net-Zero Emissions: The urgency to combat climate change cannot be overstated. Committing to net-zero emissions by 2060 places Nigeria at the forefront of global efforts to curb environmental degradation. In this regard, reinvesting fuel subsidy funds for Nigeria’s energy transition plan can accelerate the transition to renewable energy sources, which produce negligible greenhouse gas emissions. Nigeria can substantially reduce its carbon footprint by incentivizing clean energy projects and establishing robust regulatory frameworks, safeguarding the environment for future generations. Industrialization, Job Creation, and Economic Growth: Industrialization is the bedrock of economic development in any country. Nigeria can unlock unprecedented economic potential by channelling subsidy resources towards fostering a conducive industry environment. Investments in renewable sectors and reliable and affordable power supply will stimulate manufacturing and production. This, in turn, translates into substantial job creation, particularly in local communities, providing livelihoods and driving economic prosperity. Key Recommendations Establish a Dedicated Energy Transition Fund: Establishing a dedicated Energy Transition Fund is a critical step in ensuring the effective allocation and management of resources for Nigeria’s ambitious energy transition goals. This fund would serve as a centralized financial vehicle designated for projects and initiatives related to renewable energy, energy efficiency, and sustainable technologies. By creating a dedicated fund, Nigeria can streamline investments, enhance transparency, and attract additional sources of financing. We may draw some lessons from Germany and France’s Energy transition initiatives. Germany’s Energiewende program, one of the most renowned energy transition initiatives globally, established a dedicated fund known as the “EEG Account” (Erneuerbare-Energien-Gesetz). This fund collects fees from electricity consumers and redistributes them to support renewable energy projects. It ensures a stable funding source for expanding renewable energy capacities and has played a pivotal role in Germany’s transition to a low-carbon energy system. France has set up the “Energy Transition for Green Growth Fund” (Fonds de transition énergétique pour la croissance verte) to support renewable energy, energy efficiency, and sustainable transportation projects. This fund provides grants, loans, and guarantees to projects that align with France’s energy transition objectives. Leverage Public-Private Partnerships (PPPs): Foster collaborations with private sector entities to co-finance and implement projects within the energy transition plan. Provide incentives such as tax breaks, concessions, and guarantees to attract private investment. Invest in Research and Development (R&D): Allocate a certain amount of funding to promoting R&D in renewable energy technology at Nigeria’s post-secondary institutions. This strategic investment will promote a localized culture of sustainable energy solutions by enabling academic and research groups to lead ground-breaking discoveries. Nigeria can develop a cadre of professionals capable of leading the country’s transition to renewable energy sources by investing resources in higher education institutions, placing Nigeria at the forefront of the world’s green energy revolution. This strategy creates a solid basis for long-term energy innovation and independence and improving technological capability. Prioritise Capacity Building and Workforce Development: Select bright young people from each Nigerian state and the Federal Capital Territory (FCT) to get specialized training in renewable energy technologies as part of a focused strategy to prioritize capacity building and workforce development. Resources will be devoted to on-the-job skill development, organized academic programmes, and vocational training under this programme. Nigeria will create a skilled workforce that embraces the idea of a sustainable energy future by investing in the development of this diverse cohort, guaranteeing fair representation and knowledge across regions. This strategy encourages national cohesion and regional empowerment to advance the energy transformation agenda and address the urgent demand for specialized skills. Monitor Progress and Adapt Strategies: Implement a robust monitoring and evaluation framework to track the impact of investments. Adjust strategies based on performance indicators, ensuring that resources are allocated efficiently. Conclusion Reinvesting fuel subsidy funds for Nigeria’s Energy Transition Plan is crucial to resilient and sustainable energy growth. By adopting lessons from successful overseas case studies, Nigeria may hasten the transition to a greener, more financially viable energy future. The policy paper’s suggestions offer a tactical road map for achieving these objectives. October 2, 2023 0 comment 0 FacebookTwitterPinterestEmail
