Discussions on the Federal Government Energy Transition Plan and its implication for Nigeria’s sustainable energy future have recently formed a vital component for arguments among stakeholders in the renewable energy sector, especially the body at the fore of championing the course, the Renewable Energy Association of Nigeria, OPEOLUWANI AKINTAYO writes
As Nigeria journeys towards the set target of attaining net zero, renewable energy experts recently gathered some responses from a survey which they said would further assist in strengthening advocacy efforts, expand renewable energy stakeholders participation, and provide guidance to decision-makers, especially the Energy Transition Office, to develop well-informed and actionable strategies in implementation and achieving the ETP targets set by the Federal Government for 2060.
During the exercise; participants made key observations on core issues to be addressed should Nigeria be serious about attainment of emission reductions, eradication of poverty, jobs creation, achieving increased access to reliable energy, addressing Nigeria’s net zero commitments and promoting a fair, just, inclusive and equitable energy transition.
The survey had come out with key observations that included: that the Nigeria Energy Transition Plan was initially created with a 2050 net-zero target. However, given the significant financial, social and technological requirements, the government concluded that a more realistic pathway to deep decarbonisation would occur in 2060.
Added to the above; the Nigeria ETP sets out a timeline (2023 – 2060) and seeks significant emissions’ reduction across 5 key sectors: Power, Cooking, Oil and Gas, Transport and Industry. Within the scope of the ETP, about 65 per cent of Nigeria’s emissions are affected.
According to the survey; Nigeria needs a total of $1.9trn to get to net zero by 2060. This translates to about $10bn annually. And that since the government cannot boast of such financial reserves, it is expected that a bulk of the funding for the transition to net zero will come from the private sector.
With respect to the above realities; the Energy Transition office said it is working with the Africa Renewable Energy Manufacturing Initiative by supporting the local manufacturing of solar panels, batteries and inverters to promote local content and foster an increase in the adoption of Renewable Energy solutions via reduced importation upfront purchase costs.
Besides emissions reduction, the ETP said it seeks to lift up to 100 million Nigerians out of poverty, create jobs and drive economic growth. It also said it created significant investment opportunities such as the establishment of industries related to solar energy, hydrogen and electric vehicles.
According to the submission; achieving Nigeria’s climate ambitions and energy needs requires strong partnerships and coalitions. Therefore, the Energy Transition office said it is supported by Sustainable Energy for All, the Rockefeller Foundation and the Global Energy Alliance for People and Planet.
From the survey results, there is broad recognition of the importance of the ETP, and stakeholders applause of the composition of its plans, ideas and strategies.
However, the ETP is being criticised for lack of stakeholder involvement. Experts have said it is expected that there would be more engagements and stakeholders involvement going forward.
Multiple stakeholders, including government and the private sector, are showing varying levels of commitment to the plan, indicating the need for continuous efforts to raise awareness and work towards policy actualisation.
Although the ETP aligns with global trends towards clean energy and net zero actualisation, its trend toward renewable energy adoption and the availability of raw materials are seen as favorable. However, there is a crucial need for clarity in implementation plans, the inclusion of stakeholders, and job creation opportunities.
President, the Renewable Energy Association of Nigeria, Segun Adaju told The PUNCH that while the implementation of the ETP is deemed feasible, stakeholders believe there is currently a lack of collaboration with industry players and thus; it requires more engagement and practicality.
Also, there are concerns about inadequate government policies supporting the ETP today.
Implementation strategies are yet to be seen, raising uncertainty that there is also lack of monitoring and evaluation. Stakeholders are calling for increased transparency and monitoring and evaluation on the ETP.
While commenting on the ETP, Adaju said although decarbonisation strategies are costly and detached from the reality of low-income populations, transition to renewables will save huge costs in the long run. He’s of the opinion that Nigeria’s heavy reliance on crude oil and other fossil fuels remains a concern but the Nigeria 2023 Electricity Act stands as a beacon of hope since it supports the decentralisation of power generation and allows states to now generate their own electricity.
Despite Adaju’s argument for the need to reduce focus on fossil fuels; President, the Nigerian Association of Petroleum Explorationists, Elliot Ibie is of the opinion that “fossil fuel would still be with us for a long-long time to come.
While speaking with The PUNCH on the sideline of a press conference announcing the 2023 annual international conference and exhibition themed ‘Repositioning the Oil & Gas Industry for Future Energy Dynamics,’ Ibie said although the Association is in support of the global future energy transition plan; it encourages gas as the transition fuel of the moment.
Taking a cursory look at the 2023 Electricity Act; the Nigerian Electricity Regulatory Commission has been given power to oversee the implementation of the Act.
Adaju argued that it is therefore important for the Energy Transition Office to collaborate with NERC on the provisions of the Electricity Act, to address the issues affecting the Renewable Energy sector while fulfilling the provisions of the Act.
During the stakeholders survey; there were questions and concerns as to who is really running or implementing the ETP at the moment. Stakeholders believe that there is a dearth of awareness and update in the ETP at the moment especially in terms of financing.
Stakeholders are of the opinion that it is development partners who had high involvement in the development of the ETP. There was also a low involvement of research institutions. Therefore, research and development around the ETP are highly important including extensive documentation on how the ETP will be successfully implemented.
“There is little to no youth participation in energy transition dialogues. There is a need for youth inclusion and awareness creation among youths for posterity. If the ETP must stand the test of time, then the Energy Transition Office should also look into youth development, capacity building and inclusion in the implementation of the ETP,” Managing Consultant at Energy Market and Rates Consultants, Nnadozie Ifeanyi-Nwaoha told The PUNCH.
According to him; there exists good amount of funds available in investments but there is a huge dearth of technical expertise in the Renewable Energy sector, for the deployment of mini-grids, solar home systems, and clean cooking solutions.
“The job opportunities and potential are massive but there is little expertise. Therefore, the Energy Transition office should also focus on capacity building. There should be action plans to start running and delivering on this,” he added.
Managing Director, Gennex Technology, Patric Ilo, said stakeholders, especially renewable energy developers and Standalone Solar Home Systems providers are greatly concerned about issues around product safety, standardisation and product proliferation.
“There is a synergy between peddlers of fake renewable energy components and consumers who want quick and affordable energy solutions as they compromise on quality in a bid to cut costs. This calls for increased enforcement on the use of only certified products in RE projects,” he said.
Stakeholders emphasised on the need for the Standard Organization of Nigeria to begin to operate in the RE sector as the National Agency for Food and Drug Administration and Control does in the health sector, to track down defaulters, confiscate their counterfeit components and bring them to book.
“A new and dedicated regulatory body could also be commissioned to address these issues,” he added.
REAN said it is willing to work with SON on driving the enforcement of standards in the RE sector.
The Director, New Energy at Seplat Energy, Effiong Okon, stressed that the government had critical roles to play in the development of the energy industry.
According to Okon, the development of Africa’s energy system offers major opportunities to stimulate the creation of decent jobs that require wide-ranging skills.
“The scale of the African energy opportunity is huge and it is right across the value chain, because the entire value chain must work from end to end to deliver energy to customers. But you can see potential problems if governments don’t create environments that allow success to flourish,” the Seplat Energy director said.
He urged governments to provide the right regulatory and pricing frameworks for energy investments to be attractive, ensure security and reliability of the essential infrastructure, and also ensure governance is strong at all levels, so that international partners have the confidence to invest or partner in other ways.
He added: “So, government should choose private sector partners wisely, based upon their competence to do the job properly and to budget. Thus, governments across Africa must look at the entire value chain and focus on enabling success in each of those areas and making sure they all come together so the system works from end to end.
“The scale of universal access to energy across Africa will take a huge amount of investment and much of this investment will be directed towards the private sector. So, this is the end game for Africa’s governments and companies in the energy sector. We need to deliver universal access to energy both for powering homes and for cooking.
“By doing so; we will achieve strong multiplier effects that will drive social and economic development and an improvement in living standards across the continent. This will make a huge difference to Africa. As we do this we need to be mindful of climate change and the need to transition to lower-carbon fuels like natural gas and renewables, and we have to achieve this transition without creating an environmental mess for our children to clear up,” he said.
