Oil & Energy
VP Harps On Private Sector Participation In Energy Transition
More private sector participation in Nigeria’s transition to green energy is crucial as it would help the country achieve its objectives in the implementation of its Energy Transition Plan, according to Vice President Yemi Osinbajo.
Prof. Osinbajo stated this recently in Lagos while delivering the keynote address at the 60th Anniversary Dinner of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI).
Speaking on the topic: “Nigeria: Transitioning to Green Energy”, the Vice President highlighted the Energy Transition Plan as a comprehensive, data-driven and evidence-based plan, designed to deal with the twin crises of climate change and energy poverty.
“We anchored the plan on key objectives, including lifting 100 million people out of poverty in a decade, driving economic growth, bringing modern energy services to the full population and managing the expected long-term job loss in the oil sector due to global decarbonization.
“The Private sector, must up its participation in the transition to Green energy journey,” Prof. Osinbajo stated, adding that this includes “greater involvement in the crucial conversations about what an economically just transition to zero emissions should be”..
Buttressing the need for more private sector participation in the Energy Transition Plan implementation, the VP noted that the off-grid Solar space in Nigeria “is becoming one of the most exciting in the world.”
According to the Vice President, “we have programmes such as the Federal Government of Nigeria’s Solar Power Naija (under its Economic Sustainability Plan), the Nigerian Electrification Programme with the World Bank Group and the African Development Bank, and also the Rural Electrification Fund providing almost $1 billion in financing and subsidies to drive 10 million connections.
“We are also working on clear guidelines for on-grid Solar before COP-27 to initially provide the structure for the rollout of at least 1,000MW.”
Saying that the private sector should also get involved in climate finance, especially the voluntary carbon markets, among others, Prof. Osinbajo urged the OPTS to “take the lead in Solar to help drive improvements in our energy mix and also accelerate the transition to having “energy” companies, not just oil companies.
“We are particularly pleased with the good work that All-On and Konexa have been doing with funding from Shell (a key OPTS member).
“We also have NNPC partnering with the Rural Electrification Agency to rollout Solar Mini-grids and Solar Home Systems across the country,” he further said.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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