Energy Transition: NSIA Unveils $500m Renewable Investment Platform
The Nigeria Sovereign Investment Authority (NSIA) has launched a $500m Renewables Investment Platform for Limitless Energy (RIPLE). This initiative is dedicated to the development, investment, and operation of renewable energy projects across the entire value chain. NSIA is an independent investment institution, set up by an Act of parliament to manage funds in excess of budgeted hydrocarbon revenues. While RIPLE is another milestone initiative by NSIA in the climate sustainability asset class, having previously launched Carbon Vista with Vitol and the Construction Finance Warehouse Facility. With RIPLE, NSIA is positioned to expand energy access, enhance energy efficiency and ensure energy security. The launch of RIPLE is accompanied by the execution of a strategic partnership agreement that seeks to further redefine Nigeria’s energy landscape with the International Finance Corporation (IFC). The pilot for this initiative is located within the Tokarawa Industrial Hub in Kano State and it involves setting up a generation and distribution system to meet 70MW of unsuppressed energy demands of industrial activities, commercial enterprises, and residential customers in an areacovering about 9,000 connections. Commenting on the partnership, the Managing Director/CEO of NSIA Mr. Aminu Umar-Sadiq, said, “The collaboration between NSIA and the IFCis a clear demonstration of NSIA’s dedication to sustainable energy transition in Nigeria. As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives. We recognize the many opportunities it offers for innovation, growth, and economic transformation. “We are excited to partner with the International Finance Corporation to advance the transition to energy efficient solutions in Nigeria, an institution that shares our commitment to sustainable development,our focus is to empower the customers with a resilient and environmentally friendly energy solution that will optimize productivity and reduce carbon footprint ” said Program Manager, RIPLE, Mr. Yusuf Umar, Further speaking Regional Manager Africa, IFC Dan Croft, said, “Reliable electricity is crucial for improving quality of life, productivity, and economic growth in Nigeria. IFC is pleased to collaborate with our longstanding partner, NSIA, to develop and implement the first phase of this innovative energy solution which will reduce greenhouse gas emissions and reliance on fossil fuel. The energy solution will also deliver reliable power supply for commercial, residential as well as industrial use.”
NGO Bemoans Current Scale Of Mini-Grids In Nigeria
The Nigeria Team Leader of International Centre for Energy, Environment and Development (ICEED), Ewah Eleri has expressed concern over the current scale of mini-grids in Nigeria. Speaking at the just concluded high-level policy dialogue titled; Sustainability, Inclusiveness, and Governance of Mini-grids in Africa (SIGMA), Eleri pointed out that Nigeria requires at least one million five hundred new connections annually over the next decade to close the current electricity access gap. According to him, “To meet the scale of the electricity access challenge, Nigeria needs to grow its electricity supply by seven times the current available electricity. “In capacity terms, we need to expand our electricity supply to 42 gigawatts, almost ten times what is available today. A significant amount of this component must be represented by decentralized renewable energy options. “It is important that we scale up the ambition for mini-grids in Nigeria to help in closing the current electricity access gap”, he concluded. While presenting the key findings of the research project, Co-Investigator of the project in Nigeria and lecturer at the Centre for Petroleum, Energy Economics and Law at the University of Ibadan, Temilade Sesan, pointed out that Nigeria must re-evaluate the role of market forces and government in delivering electricity access through mini-grids. According to Sesan, “Today, the technical, financial and environmental sustainability of mini-grid development in Nigeria is questionable adding that it is also uncertain that the benefits from the increasing interest in mini-grids are spread evenly, especially as it affects women.”
FG Inaugurates Lagos P-CNGi Pilot Conversion Centres
The Federal Government has inaugurated a Compressed Natural Gas (CNG) vehicles pilot conversion centre in Lagos State, through the Presidential-CNG Initiative (P-CNGi). Mr Micheal Oluwagbemi, Chief Executive Officer of P-CNGi, while speaking at inauguration of the FEMADAC Station on Saturday, described the step as significant development. Oluwagbemi said the CNG centre would bring more environmentally sustainable and economically viable future for Nigeria. The facility is situated at KM 42, Lekki-Epe The P-CNGi Steering Committee has announced that seven CNG conversion centres have been established in the country. He said the initiative had also at the weekend handed over converted buses to State House in Abuja. Oluwagbemi said the event was immense significance for Nigerians and the global movement towards responsible energy choices. “Today, as we officially open the Lagos Conversion Centre, we go beyond the inauguration of a facility; we extend a hand to a greener, more sustainable, and affordable future. “We are not just changing how we fuel our vehicles; we are changing lives, one job at a time. “The commissioning of the first of Lagos P-CNGi Pilot Conversion Centres is historic, as it is the first of many such facilities planned under the P-CNGi initiative,” Oluwagbemi said. The engineer said that the initiative with the theme: “Energy Revolution: Powering Tomorrow, Today,” represented Nigeria’s commitment to transitioning to cleaner and more affordable energy solutions. The P-CNGi chief executive officer said that CEO said that the conversion centre was not only a symbol of Nigeria’s dedication to environmental responsibility, but also a beacon of hope for its citizens. He said that the initiative would create jobs and greener opportunities. “More than 1,000 of such centres are planned nationwide in the next few years, with 55,000 conversions planned under the Palliative Program that have kicked off, designed to reduce the cost of transportation, especially mass transit for poor Nigerians. “This works by collaborating with private sector is to expand the conversion centre network of Nigeria from seven to at least 70, while creating over 2,000 jobs converting vehicles from PMS to CNG Bifuel that runs cheaper, cleaner and better. “By embracing Compressed Natural Gas (CNG) technology, the initiative addresses the twin challenges of sustainability and fiscal responsibility, which have become integral in the modern world. “This initiative aligns with President Bola Tinubu’s commitment to easing the impact of fuel subsidy removal on Nigerians by reducing energy costs,” Oluwagbemi said. According to him, the conversion of vehicles to CNG is not just a transition to cleaner energy, it is a promise to generate employment opportunities and stimulate economic growth. The CEO said that the inauguration aligned with the overarching goal of P-CNGi to foster innovation in the energy sector, ultimately benefitting the people of Nigeria. He added: “In a world where environmental consciousness and responsible energy choices are paramount, P-CNGi’s efforts underscore Nigeria’s commitment to leading this global movement. “The initiatives programme director aptly noted, “Challenges will emerge, but with our unwavering commitment, innovative spirit, and collaborative efforts, we are poised to overcome them.”
Nigeria Lost $22.9bn To Gas Flares In 10 Years -NOSDRA
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is to part the Nigeria Upstream Regulatory Commission ( NUPRC) and Nigerian Oil Spill Detection and Response Agency (NOSDRA) to boost revenue generation through proper management of gas flares in line with global best practice. This is in a bid to arrest huge revenue losses recorded and enhance revenue generation into government coffers. According to RMAFC Public Relations Officer, Christian Nwachukwu, RMAFC Chairman Mohammed Bello Shehu disclosed this during an interactive forum with delegations from NUPRC and NOSDRA recently in Abuja. Bello noted that in view of the current government’s efforts to shore up the Nation’s revenue generation, the gas sector of the economy must be given adequate attention with NUPRC and NOSDRA as regulatory bodies in determining quality and quantities of gas production alongside adherence to environmental standards for host Communities. Responding, the Director of Economic Regulation and Strategic planning of NUPRC, Mr. Babajide Fashino noted that Nigeria is at the fore front of managing gas flares in line with global best practices for economic growth and sustainability. This is done with the introduction of a metering system and calibration of the meters for accurate records of gas management. According to Babajide, the introduction of such technologies has gone a long way in reducing gas flares gas flaring in Nigeria from 40 per cent to a mere 7 per cent. Earlier, the Director of ICT in NOSDRA, Mrs. Margaret Adeshida underscored the need for proper monetisation of gas flares in Nigeria, noting that Nigeria flared more than 4.2 billion standard cubic feet of gas leading to the country’s loss of more than $14.6 billion revenue between 2012 and 2021. This is in addition to $8.3 billion loss in penalty for the wastages. Mohammed Shehu therefore called on all the relevant stakeholders in the management of the gas economy including the revenue monitoring Committee of the present administration to salvage the Country by coming together to work out proper strategies to convert the gas flare to economic use for enhancing revenue generation into the Federation Account.
TCN celebrates 400 days of non-national grid collapse
The Transmission Company of Nigeria (TCN) says the national grid operated for 400 days without collapsing. According to a statement signed by the principal Manager of Public Affairs TCN, Ndidi Mbah, it showed that the country is on the path to achieving stability in the electricity sector. Nigeria’s electricity generation has been between 4,000 to 5,000 Mega-Watts despite investments in the power sector. Last year, it crashed from the 6,336.52 megawatts recorded in 2021 to 5,346.82MW. In 2022, the National Grid collapsed eight times, with the last record to be in September.
FG to leverage Nigerian Electricity Act to boost power supply –Adelabu
The new Minister of Power, Mr Adebayo Adelabu has assured that the federal government will empower Nigerians through stable and accessible power. The minister, who gave the assurance when he assumed office on Monday in Abuja stressed that every home, industry, school, and business will benefit from the government’s efforts. To achieve the feat, Adelabu said the ministry will leverage the Nigerian Electricity Act of 2023 to boost the power supply in the country. The Nigerian Electricity Act, 2023 provides a comprehensive legal and institutional framework for the operation of a fully privatized, cost and service-reflective tariff contract. The Act also provides a rule-based competitive electricity market in Nigeria and repeals the following Acts: Electric Power Sector Reform Act, 2005. According to the minister, the ministry will diligently provide optimal solutions for Nigeria’s power needs across the nation. He said the task was not merely a requirement, but an expectation from both the President and the Nigerian populace who had endured years of power challenges. “This responsibility weighs heavily upon us, and it is with conviction, divine guidance, and the support of President Tinubu, the National Assembly, government agencies, and Nigerians that I pledge my commitment to achieve success in the power sector. “Recognising that there are numerous deserving and qualified Nigerians for this role, I am truly humbled that the President has entrusted me with this vital task, as we collectively envision the growth and prosperity of our nation,” he said.
Developing nations need help to close $4trn energy gap, says UN
The UN Conference on Trade and Development (UNCTAD) has warned that a green future would remain out of reach if the world doesn’t help developing countries close a four-trillion-dollar gap in investment towards an energy transition. According to a new UNCTAD report, developing countries actually face a staggering four trillion dollar gap in sustainable development investments. The UNCTAD Secretary-General, Rebeca Grynspan, said that a significant increase in material support for renewable energy in developing countries was crucial for the world to reach its climate goals by 2030. While investment in renewables has nearly tripled since the adoption of the Paris Agreement almost eight years ago, poorer nations have been largely left out. Grynspan said more than 30 developing countries had not registered a single international investment in utility-size renewable energy generation since the landmark climate change treaty was adopted in 2015. According to UNCTAD, the amount of foreign direct investment in clean energy attracted by developing countries in 2022 stands at 544 billion dollars — well below needs. Some good news from the report is that energy companies among the top 100 multinationals have been increasingly turning toward renewables and divesting fossil fuel assets at about 15 billion dollars per year. However, the report shows an overall slower pace of investment in renewable energy in 2022, “as international project finance deals declined”. In developing countries, the largest gaps in Sustainable Development Goal (SDGs)-related investments were in energy, water and transport infrastructure, UNCTAD said. Foreign direct investment (FDI) is also on the decline, according to UNCTAD, as global flows fell by 22 per cent in 2022, to 1.3 trillion dollars, while in Least Developed Countries, the vast majority of which are in Africa, FDI inflows dropped by as much as 16 per cent. UNCTAD’s report says that the slowdown was driven by “overlapping crises”: the war in Ukraine, high food and energy prices and debt pressures. With these factors still in play during 2023, the agency said that it expects “downward pressure on global FDI” to continue this year. The report calls for series of policies and financing mechanisms to be put in place to help developing countries attract necessary investments. UNCTAD stressed the importance of debt relief for developing economies, to provide them with the fiscal space needed for clean energy spending and to help lower country risk ratings, a prerequisite for attracting private investment. The agency also recommended reducing the cost of capital for clean energy investment through partnerships between international investors, the public sector, and multilateral financial institutions – a measure that can reduce the spread of borrowing costs for energy investment projects in developing countries by up to 40 percent. Grynspan insisted that investment played a “huge part” in achieving the SDGs. She said they were simply “too big to fail”, calling them “the only game in town” which requires collective action and global solidarity.