Oil & Energy
Energy Transition Journey Must Be Credible Data Driven – NEITI
The Nigeria Extractive Industries Transparency Initiative (NEITI) said Nigeria’s energy transition journey must be driven and guided by credible information and data on the country’s energy security.
NEITI said Nigeria must not be allowed to be rushed into a hasty energy transition without a thorough analysis of its comparative advantage and implications, resources, economy and livelihoods of citizens.
Executive Secretary of the agency, Dr Orji Ogbonnaya Orji, said this at its National Stakeholders Dialogue on Energy Transition, Thursday, in Abuja.
Orji said NEITI had commenced work along with other partners to make Nigerians and stakeholders gain insight into the risks and opportunities associated with energy transition.
He said NEITI, working with the International Secretariat of the Extractive Industries Transparency Initiative (EITI), had commissioned a study to examine actual implications and impacts of energy transition on Nigeria’s oil and gas sector of the economy.
According to him, the report of this study will soon be published and will be widely disseminated to all the stakeholders present at the dialogue.
“As the world transits from the use of fossil fuel to cleaner and sustainable energy, transparency and accountability is critical to the process, including the reporting of emissions, disclosure of climate risks and overall governance of the energy industry.
“Nigeria must prepare to mainstream transparency and accountability mechanism into her energy transition agenda to avoid the pitfalls of her past and present energy sector,” he said.
Orji continued that Nigeria, being an oil and gas dependent country, was vulnerable to the risks and challenges of energy transition, adding that the global energy transition agenda was already reshaping the oil and gas landscape.
He said the outcome of the dialogue was expected to feed into the country’s transition plan and its implementation.
The West African Regional Manager, Natural Resources Governance Institute (NRGI) Anglophone, Ms Nafi Chinery, appreciated Nigeria’s desire for energy transition.
According to Chinery, the African continent’s average per capita electricity consumption sits at about 600 kilowatt hours per year, compared with the world average of about 3.200 kilowatt hours.
She said when compared the consumption with the European Union, U.S and China, it threw up many stark variations.
“The current global discussions around energy transition places a responsibility on Africa to develop robust plans that will aid the transition towards Net-Zero emissions.
“This will mitigate future impacts of climate change on the continent and reduce the costs of adaptation.
“Nigeria’s emphasis on gas as a transition fuel aligns with the thinking of most countries in sub-Saharan Africa, and the African Union Commission in the run up to COP27,” she said.
Also speaking, the Country Director, Budgit Foundation, an NGO, Mr Gabriel Okeowo, said transition to renewable energy would be a great potential for Nigeria and the continent at large.
He said the private sector would continue to support the Nigerian government to achieve its aims.
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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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