Shell will cut 200 positions within its low-carbon solutions unit in 2024, a spokesperson confirmed on Wednesday.
The company will switch some of the jobs in question to other divisions within Shell’s more than 90,000 employee workforce, and an additional 130 roles will be put “under review” throughout 2024, said the spokesperson.
The decision to downsize follows Shell’s failure to secure a grant from the $7 billion of federal funding to develop hydrogen energy, which was distributed earlier this month.
The job cuts are a part of a broader overhaul by Shell CEO Wael Sawan, who took the helm in January, bullish on the company’s ability to decarbonize, despite the fact that its bottom line still relies on its oil and gas output.
The decision to downsize also follows Shell’s failure to secure a grant from the $7 billion of federal funding to develop hydrogen energy, which was distributed earlier this month.
Shell had applied for the funding with a hydrogen hub in Louisiana but was ultimately not on the list of seven hubs that received a grant this round. The company said it is still waiting for a formal explanation from the Department of Energy on why its Louisiana hub was not selected.
In the meantime, according to the spokesperson, Shell is planning $10 billion to $15 billion of low-carbon energy investment over the next two years, which will include biofuels, hydrogen, carbon capture and electric vehicle charging. Last July, the company announced its investment in the creation of one of Europe’s largest hydrogen energy plants.
In June, the company announced it would maintain its levels of oil production through 2030 to boost investor confidence as its renewables sagged.
“We will invest in the models that work — those with the highest returns that play to our strengths,” Sawan said at the time, six months into the role.
Shell, along with many major oil companies, has come under fire for its role in perpetuating climate change. It has been sued in the past for its failure to keep up with the climate goals outlined in the Paris Agreement. The company is also currently among the oil giants California is suing for allegedly deceiving the public about the realities of climate change.
The question of how big oil companies such as Shell can fit into a clean energy future is existential for its business. Competitors such as Exxon Mobil and Chevron recently doubled down on their commitments to fossil fuels with two major oil acquisitions.
Source: CNBC
South Africa’s power utility company, Eskom has announced a suspension of load shedding until Sunday evening.
This decision comes as a respite for residents and businesses that have been grappling with power outages due to insufficient generation capacity.
The decision to temporarily suspend load shedding is a result of Eskom’s progress in restoring its generating units and relieving the strain on the grid.
“Due to sufficient generation capacity, including emergency reserves, expected units to be returned to service as well as anticipated lower demand into the weekend, load shedding will remain suspended until 16:00 on Sunday,” it said.
Eskom also noted on Wednesday (25 October) that if South Africans want the suspensions to continue, the group said that energy users need to keep demand in check.
“Eskom appeals to the members of the public to reduce demand at 17h00 to 21h00 by switching off geysers and pool pumps to ease pressure on the power system and continue suspending load-shedding,” it said.
Eskom further noted that it would continue to monitor the power system and publish the week-ahead outlook on Sunday.
Eskom spokesperson Daphne Mokwena said the utility will keep the public informed if there are any changes to the load shedding status.
Load shedding is a preventive measure implemented by Eskom to avert a total collapse of the electricity system when demand exceeds supply. This involves scheduled power outages in certain areas for a specific duration, usually lasting a few hours.
The recent suspension of load shedding follows Eskom’s announcement of a significant improvement in its generating capacity.
The company has been diligently addressing maintenance issues, repairing breakdowns, and bringing additional generating units online to enhance the power supply.
Despite these efforts, South Africa’s power sector continues to face challenges such as aging infrastructure, financial constraints, and mismanagement, leading to frequent.
Source: https://energynewsafrica.com
Gas supply shortage to power plants in the Tema enclave in the Republic of Ghana has resulted in a 550MW drop in electricity generation.
This has forced the power distribution company, the Electricity Company of Ghana (ECG) to put parts of the West African nation in darkness.
Although a statement issued by the Corporate Communications Unit of GRIDCo confirmed limited gas supply to the Tema enclave, thus, leading to a 550MW drop in generation, it did not reveal where the gas supply shortage is coming from.
Ghana takes gas delivery from Nigeria to complement domestic gas from Atuabo and Sankofa Gye Nyame field, operated by Eni to fuel power plants in the West and East.
Checks by energynewsafrica.com within the energy sector revealed that gas delivery from Nigeria has been very low in recent times because of low pressure.
With regards to domestic gas from Atuabo and Jubilee, energynewsafrica.com’s checks revealed that WAPCo has suspended gas transportation to East because GNPC, on whose behalf it transports the gas has failed to settle its outstanding debts.
It is unclear how much WAPCo is owed.
It would be recalled that WAPCo suspended gas transportation in July over $13 million debt owed.
The company resumed gas transportation after GNPC and ECG raised about $6.5m to settle part of the debt.
Meanwhile, the grid operator, GRIDCo, has apologised to Ghanaians over the power outage which has inconvenienced them.
“The inconvenience caused is deeply regretted,” GRIDCo said in a statement.
Source: https://energynewsafrica.com
The Board of the Green Climate Fund (GCF), world’s largest dedicated climate fund has approved the allocation of USD 50m in equity to REPP 2, a new debt fund providing an opportunity to invest in Sub-Saharan Africa’s fast-growing renewable energy market.
Climate and impact fund manager Camco is developing REPP 2 as a USD 250m fund designed to deliver significant climate, economic and gender impacts while ensuring sustainable returns for investors.
Latest research shows that approximately 590m people in Sub-Saharan Africa do not have access to electricity, with the International Energy Agency claiming USD 22bn is needed annually to deliver reliable energy access across the continent by 2030 to meet SDG7.
At the same time, Africa is facing increasing climate hazards and countries require as estimated USD 2.8tn by 2030 to implement their Nationally Determined Contributions under the Paris Agreement.
REPP 2 has been structured as a paradigm-shifting blended finance facility leveraging public, private and commercial funding to invest in small-scale and decentralised renewable energy projects in Sub-Saharan African countries.
Through its private sector approach, and a strong focus on supporting communities vulnerable to climate change, it is projected that over REPP 2’s lifetime the fund will:
make 35-40 investments that support the development of decentralised renewable energy and strengthen the resilience of national grid infrastructure to promote economic development in Sub-Saharan Africa, particularly in Least Developed Countries
provide 7.7m people with new or improved access to clean, reliable and affordable power across Africa, increasing economic opportunities and access to productive use of energy activities
mitigate 12.7m tonnes of carbon dioxide equivalent in greenhouse gas emissions over projects’ lifetime
invest USD 70m in projects aligned with 2X’s gender lens investing criteria, and
mobilise USD 786m in third-party funding for green growth in target countries.
With its blended finance structure, REPP 2 represents an evolutionary step from the USD 120m REPP facility, which was fully funded by the UK’s Foreign, Commonwealth and Development Office (FCDO).
Today’s announcement comes after the REPP Board signed an indicative term sheet for a junior equity investment of up to USD 50m from REPP into REPP 2. The combined junior equity investments of up to USD 100m from the GCF and REPP are designed to protect capital, and to generate an appropriate level of returns to REPP 2’s commercial investors.
Ben Hugues, Investment Director at Camco, said: “REPP 2 builds on the successes and lessons from REPP to provide a new fund that will offer significant commercial investment into Africa’s renewable energy sector, underpinning the continent’s green growth potential. Drawing on Camco’s 30-year track record in renewable energy investing, REPP 2 is projected to deliver sustainable financial returns and multiple developmental, social and environmental benefits.
“We are naturally delighted at the prospect of working with the Green Climate Fund on this new venture.”
Peter Coveliers, REPP Board member and one of the founders of the REPP initiative, said: “Blended finance is instrumental in attracting private sector funds to support a clean energy transition and green growth in Africa.
“By building on the many strengths of REPP and by adopting a well-designed blended finance structure, REPP 2 has the potential to unlock significant additional investment capital to fund climate-related projects on the continent. It’s truly exciting to be part of supporting REPP 2 as it builds upon REPP’s impressive legacy of achievements.”
Access to financing has become more complicated for oil refiners as banks are increasingly looking to reduce their exposure to fossil fuel projects, according to refining executives.
“If you have the word ‘refinery’ anywhere in your title, you’re not going to get finance,” Alwyn Bowden, chief executive officer of Malaysia’s Pengerang Energy Complex, said at an industry conference, as quoted by Bloomberg.
Banks are also increasingly demanding emission-cutting targets from the oil refiners seeking financing, Bowden noted.
Some banks in Europe have already started to reduce funding to oil and gas projects as part of their own climate targets.
The most drastic measure yet was taken earlier this year by France’s biggest bank, BNP Paribas, which said in May that it would no longer provide any financing for developing new oil and gas fields regardless of the financing methods.
The bank also pledged to reduce its financing for oil exploration and production by 80% by 2030 as part of its energy transition goals.
Climate change is the single largest motivation of investment institutions to decide to exclude companies from their portfolios, a newly launched ‘exclusion tracker’ showed earlier this month.
Pension funds and other institutional investors in Europe have excluded some major oil and gas companies from their portfolios, while some European banks have scaled back financing for fossil fuel projects.
Moreover, banks across Europe may have to include environmental and social risks in their capital requirements and risk management under new recommendations by the European Banking Authority (EBA).
“Environmental and social risks are changing the risk profile for the banking sector and are expected to become more prominent over time,” the authority said in a recent report.
“They affect traditional categories of financial risks, such as credit, market and operational risks. Hence, environmental and social factors may affect both the risks faced by individual institutions and the financial stability of the entire financial system.”
Source: Oilprice.com
The Deputy Chief Executive of the National Petroleum Authority, Ghana’s petroleum downstream regulator, Mrs. Linda Boamah Asante, has called on African governments to initiate policies and programmes to make Liquefied Petroleum Gas (LPG) affordable and accessible to women.
This, she said, would help to reduce the hazards women are exposed to from using biomass (wood fuel and charcoal) to cook.
“All government agencies and institutions should have the plan to make sure that LPG is available to women because in Africa especially in rural areas, it is the women who do the cooking so they are the ones mostly affected by emissions from biomass,” Mrs. Linda Boamah Asante said while contributing to the discussion on the topic ‘LPG: An Integral Component of Energy Access for All’ at the just ended African Energy Week in Cape Town, South Africa.
The discussion, which was moderated by Dr Baah Nuakoh, General Manager for Strategy and Investment, Ghana National Petroleum Corporation (GNPC), also had Damilola Owalaboi, CEO of Selai Gas, Philippe Hoeblich, Co-founder PayGas, Mfano Nkutha, COO, Strategic Fuel Fund and Nicholas Mignot, Chief Financial Officer, Sahara Energy International.
Mrs. Linda Boamah told the gathering that LPG is safe, clear and reliable and urged African nations to put in place regulations to increase the consumption of LPG.
Sharing Ghana’s story on LPG, Mrs. Asante told the gathering that Ghana had in place a National LPG Policy to achieve 50 per cent penetration by 2030.
Touching on the specific steps being taken to achieve this goal, Mrs Asante said the Ministry of Energy, through NPA, has rolled out the Cylinder Recirculation Model to make LPG accessible to all, especially women.
Under the CRM programme, Mrs. Linda Boamah Asante explained that the value chain is such that there is an LPG bottling plant.
“There is an LPG bottling plant, where empty cylinders will be filled and transported to cylinder exchange points.
“Consumers would then go there and exchange their empty cylinders for filled cylinders based on the quantity of LPG they want to buy.
“There is also a retail shop that would have about 20 filled cylinders where consumers can go and exchange their empty cylinders for filled cylinders.
The programme was rolled out on September 1, 2023, in the Greater Accra and Ashanti Regions of Ghana.
The NPA is yet to determine when the remaining fourteen regions will roll out,” she explained.
Responding to a question on whether the NPA is educating consumers on the safe use of LPG, Mrs. Asante mentioned that the NPA has been doing a lot of sensitisation across the country.
She said the Consumer Services Unit and Gas Department have been visiting schools, churches, mosques and markets to sensitise them on the safe use of LPG.
“We have been sensitising consumers. When we visit the schools and markets, we encourage women to use LPG because it’s reliable, clean, safe and more convenient. It has fewer health hazards as compared to woodfuel,” she said.
She added that the Authority would be launching Consumer Week in Takoradi in the West Region in November to intensify sensitization on safe use of LPG.
In her concluding remarks, Mrs. Linda Boamah Asante stated that the Cylinder Recirculation model programme has come to stay, stressing that LPG is the way to go for Ghana.
Source: https://energynewsafrica.com
Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh, has charged regulators in the country’s upstream petroleum industry to be vigilant and patriotic to enable the government to realize its vision of promoting Ghanaian participation in the industry.
According to Minister Prempeh, the purpose of passing Petroleum (Local Content &Local Participation Regulations, 2013; L.I 2204) was to ensure that Ghanaians benefit more from the exploitation of the country’s natural resources.
“If you don’t show spine, you will be abused, so people who work in the regulatory space must be holier than holy and patriotic,” Dr Matthew Opoku Prempeh said while delivering a speech at the launching of the 2023 Local Content Conference and Exhibition slated for November in Takoradi, the capital of the Western Region.
In May 2019, Tullow, which is the lead operator of Ghana’s Jubilee Field, said it had awarded Gh¢10 billion contracts to indigenous companies and joint ventures.
Many people are of the view that Ghana has not benefited much from its oil resources since 2010 when the country started commercial oil production.
Data shared by Dr Theo Acheampong, a Ghanaian Petroleum Economist, in 2021, showed that oil production from the three oil fields namely; Jubilee, TEN, and Sankofa Gye Nyame(SGN) was about 453.89 million barrels since 2010.
Out of the figure, 452.02 barrels were lifted by all the partners, and proceeds from the sale of oil were US$31.62 billion.
Sadly, Ghana’s share stood at $6.55 billion, representing 17.74 percent.
To ensure that more Ghanaians benefit from the oil resources, Dr Matthew Opoku Prempeh said under his administration, the upstream sector had seen an amendment to L.I. 2204 with the passage of the Petroleum (Local Content and Local Participation) (Amendment) Regulations, 2021; L.I. 2435.
“L.I. 2435 was passed on 17th January 2022. L.I. 2435 is the first amendment to L.I. 2204 and occurred under my watch,” he said.
The Minister added that the regulation had opened up collaborations between indigenous Ghanaian companies (IGCs) and foreign entities that desire to undertake various scopes of contracts in servicing the exploration and production (E&P) spectrum in the country.
“Whereas L.I. 2204 essentially provided for joint venture partnerships as the main mode of collaboration between IGCs and foreign companies to undertake petroleum activities—oilfield services in Ghana, L.I. 2435 has added a strategic alliance and channel partnership,” he said.
On his part, the Chief Executive Officer of the Petroleum Commission, Egbert Faibille Jnr, said the conference was organised in fulfillment of L.I 2204 which enjoined the Commission in Regulation 40 “to leave the comfort of its offices and take the local content agenda to town.
Mr. Egbert Faibille Jnr., Chief Executive Officer of Petroleum Commission, Ghana.
“The commission shall ensure that public education activities are undertaken to sensitise contractors, subcontractors, allied entities, the public and industry stakeholders about the local content philosophy and to ensure the implementation of the regulations,” Mr Faibille said.
He explained that although this year’s conference was the eighth since its inception, it had been heralded by a launch to show that the country had handled local content in the upstream petroleum sector by operation of the law.
Mr Faibille said the support the country had received from its international partners in the implementation of the local content regulations confirmed the government’s policy of providing a level playing field for all investors.
“The country’s local content regulations are a vehicle for partnering investors to develop local capacities for mutual benefits to investors and the citizenry,” Mr Faibille Jnr added.
The First Deputy Speaker of Parliament, Joseph Osei-Owusu, urged players in the industry to leave the low-hanging fruits for citizens to also benefit.
“When the people are trained by the oil companies, they can take advantage because it’s not proper that after years of discovering oil, there is still a skillset gap.
“If after 15 years you have not trained us, then it is your problem,” Mr Osei-Owusu said.
Source: https://energynewsafrica.com
Nigeria’s President Bola Ahmed Tinubu has approved the appointment of Dr. Abdullahi Mustapha to serve as the new Director-General and Chief Executive Officer of the Energy Commission of Nigeria.
Dr. Mustapha has served for over a decade in the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, with significant experience in the Energy and Space Technology sectors.
He recently obtained his doctorate degree in Mechanical Engineering with a focus on renewable energy, followed by a postdoctoral fellowship as a research associate in the School of Engineering at the prestigious University of Manchester.
A statement issued by the presidential spokesman, Ajuri Ngelale said President Tinubu expects the new ECN CEO to make a positive impact on his administration’s intensive push to diversify the nation’s energy sources in a synergized fashion across the government toward the ultimate aim of industrializing every part of the country with every citizen emancipated from the shackles of energy poverty.
Source: https://energynewsafrica.com
Nigeria’s Rural Electrification Agency (REA) has announced plans to provide support to 250,000 households with initiatives such as electric mobility, mini-grids, and home systems.
The Director of Promotion and Outreach (PIO), Malam Mutari Ibrahim revealed this in a statement last Sunday.
“In response to subsidy removal, REA is implementing interventions to develop electric mobility, mini-grids, distribute home systems, deploy streetlights, potentially supporting up to 250,000 households in the coming year,” he said.
Ibrahim said that the agency had equally deployed more than 1,650 kilometres (KM) of solar streetlights, improving power, security, and economic growth in rural areas.
According to him, REA has accomplished 1,403 projects within the capital budget, providing solar streetlights, mini-grid projects, standalone home systems, and grid extension works.
“Through various programmes, including the Energizing Education Programme. Energizing Agriculture Programme beyond COVID-19, and Economic Clusters, REA delivered more than 65 Mega Watts (MW) of power across Nigeria’s six geo-political zones.
“The agency has delivered more than 500MW of power, electrified numerous communities, created 500,000 new jobs, and attracted over two billion dollars in investments in the renewable energy sector over the past decade.
”In advancing these achievements, we have established partnerships with the World Bank, the African Development Bank, and the Global Alliance for People and Planet (GEAPP),” he said.
Ibrahim further noted that REA is working in collaboration with other stakeholders to accomplish the feat of providing accessible electricity to homes in rural communities.
According to him, this strategic partnership enables the agency to achieve its objective of powering homes and small businesses across the country.
“Other partnerships secured are with Rocky Mountain Institute (RMI), Japan International Cooperation Agency (JICA), Sustainable Energy for ALL (SE4ALL), Agence Française de Développement (AFD), and the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF),” he said.
He said that the agency also secured partnerships with the European Union, the United Nations Industrial Development Organisation (UNIDO), the Global Environment Facility (GEF), and the United States Agency for International Development (USAID).
“Others are the United Nations Development Programme (UNDP) and the Korean Institute of Advancement of Technology (KIAT)”.
Ibrahim said that from 2020 to date, REA has provided power to more than 7.5 million people, including 1.5 million households, delivering 130 Mini-Grid Projects, including 1.3 million standalone home systems.
According to him, most recently, the Nigeria Electrification Project (NEP), and REA negotiated and secured the advance approval of a 750-million-dollar facility with the World Bank.
The aim he said was to expand renewable and rural electrification initiatives, providing additional resources to Nigeria during a challenging period.
”In 2022, as part of the National Poverty Reduction and Growth Strategy (NPRGS) Programme, REA secured an additional four billion in capital injection grants.
”To provide clean power standalone home systems to more than 50,000 locations, including rural homes, micro-businesses, schools, and faith-based institutions,” he added.
A High Court judgment naming lawyers involved in an arbitration award under which Nigeria was ordered to pay a sum equal to its entire federal budget is to be sent to legal regulators, a judge ordered today.
Granting an application to overturn the $11bn award to oil and gas company P&ID on the grounds that it was ‘obtained by fraud’, the Honourable Mr Justice Robin Knowles said the case ‘sadly brought together a combination of examples of what some individuals will do for money’.
The 140-page judgment follows an eight-week hearing earlier this year in which the government of Nigeria argued that it should not be required to honour the award.
Giving judgment in Federal Republic of Nigeria v Process & Industrial Development Ltd today, the judge said that Nigeria succeeded on its challenge under section 68 of the Arbitration Act 1996, though not all of its allegations were accepted.
In an endnote, the judge lambasted individuals who were ‘driven by greed and prepared to use corruption; giving no thought to what their enrichment would mean in terms of harm for others’.
The judge said he would refer a copy of his judgment to the Solicitors Regulation Authority and Bar Standards Board in relation to the conduct of solicitor Seamus Andrew and barrister Trevor Burke KC over the handling of documents which came into P&ID’s hands during the arbitration proceedings.
‘As legal professionals Mr Andrew and Mr Burke KC appreciated that [Nigeria’s internal legal documents] included documents that were privileged, ‘ the judge said. He rejected as ‘untrue’ Andrew’s oral evidence that the documents were shared as part of settlement discussions. ‘Mr Andrew and Mr Burke KC knew that P&ID and they were not entitled to see these documents. Their decision not to put a stop to it, at least by informing Nigeria or immediately returning the documents they knew were received, was indefensible,’ the judge said.
‘The reason Mr. Andrew and Mr. Burke KC behaved in this way was because of the money they hoped to make,’ the judge continued. Andrew may have had a claim for up to £3bn in the event of P&ID’s success while Burke may have had a claim for up to £850m, he said. ‘I trust that these two regulators of the legal profession in England & Wales will consider the professional consequences of the conduct of Mr. Burke KC and Mr. Andrew in relation to Nigeria’s internal legal documents.’
Knowles also said that he hoped the case would spark debate about the conduct of arbitration. ‘The facts and circumstances of this case, which are remarkable but very real, provide an opportunity to consider whether the arbitration process, which is of outstanding importance and value in the world, needs further attention where the value involved is so large and where a state is involved.
‘The present case shows that having a tribunal of the greatest experience and expertise is not enough. Without reflection, then a case such as the present could happen again, and not reach the court.’
In statements Seamus Andrew and Trevor Burke KC denied wrongdoing. Andrew said ‘I do not accept the criticism in the judgment concerning Nigeria’s internal legal documents. I believe I acted in accordance with my professional duties, and I am confident that my conduct will in due course be vindicated by my regulator.
‘I appeared voluntarily before the High Court as a witness and did my best to answer the questions asked of me carefully and accurately, as the judge observed. I shall not be making any further comment at this time in relation to today’s judgment.’
Burke said: ‘I do not accept the criticism that have been made of me in relation to Nigeria’s internal legal documents. I gave my evidence in the English proceedings in good faith and to the best of my ability.
‘I am confident that my conduct will be exonerated by my professional body with whom I shall cooperate fully.’
Source: lawgazette.co.uk
Gaso Fuel Station at Ogome, a suburb of Somanya in the Eastern Region of the Republic Ghana, was, on Monday, attacked by four gunmen including a woman.
The gunmen took away an unspecified cash from the station and also robbed a mobile money vendor near the station of Gh¢28,000, a report by citinewsroom said.
The gunmen fired multiple shots when they were fleeing the robbery scene and in the process, wounded the pump attendant and two others who are said to be in critical condition.
Eyewitnesses said the gunmen carried out their operation within eight minutes.
Commenting on the incident, the Municipal Chief Executive for Yilo Krobo, Eric Tetteh, who described the incident as unfortunate, indicated that the Municipal Security Council would conduct an emergency meeting with the Eastern Regional Police Commander, DCOP Twumasi Ankra, on the possible way forward.
Source: https://energynewsafrica.com
By: Dr Christoph Kapp
Harnessing The Wind
The Swiss renewable energy company NEK Umwelttechnik AG (NEK) has been in existence and developing wind farms in Ghana since 1998 through its Accra branch NEK (Ghana) Ltd.
NEK is carrying out several wind energy projects in locations in the Greater Accra Region of Ghana between Tema and Ada, consisting of 6 large-scale wind parks which are ready for construction.
The total capacity to be installed is approximately 1,300 MW. These will produce per year about 3,400 GWh of clean, sustainable, home-made, never ending, and cheap electricity for the Ghanaian population and the industrial sector and contribute with a yearly average production capacity of 450 MW to the electricity supply of the country.
However, the development of these projects was temporarily halted as a result of the moratorium which the Government put in place in 2017 for the issuance of any new licences by the Energy Commission. This moratorium was lifted in April 2023, what it means is that EC licences for these wind projects will now be issued.
Energy Crisis Tinderbox
Warning from different entities and institutions have repeatedly indicated that without quick and adequate measures put in place, Ghana will face severe electricity generation and supply deficits in the very near future.
The Electricity Supply Plan 2022 states that already in 2023, additional generation capacities of several 100 MW would be required to avoid a power crisis.
The Centre for Socioeconomic Studies (CSS) has also released a report in June 2023 that says that even if with the planned power projects called Bridge Power II, AKSA II and the Pwalugu Hydro Project, which are scheduled to have a combined potential generation capacity of 465 MW, Ghana will still have a generation deficit of at least 467 MW in 2025 and 916 MW in 2026.
There are however still some doubts, that all these three projects will come online in the next few years, which would increase the assumed power gap in Ghana to more than 1,000 MW in the very near future. The World Bank has also advised Ghana to quickly implement an emergency action plan to avert a power crisis.
Having in mind that new fossil power plants require at least five to eight years from the planning start to Commercial Operation Date (COD) and that it is unlikely that fossil plants can even be financed in the future, such plants can obviously not be used to close the opening power gap. In summary, Ghana requires more than 1,700 MW of additional installed electrical capacity before 2026.
One possibility to tackle the opening power gap is to bring NEK’s 6 wind energy projects online which are ready to be constructed. If the decision to do so is taken in 2023, then these projects can come online by late 2025 / beginning 2026. Should the decision be postponed, then this will affect the start of their operation.
Ghana’s National Determined Contributions (NDC’s)
The Government of Ghana intends to implement its committed NDC’s, fulfil the COP26, COP27 and Sharm El-Sheik’s obligations and to move towards net zero emissions.
Ghana also wants to reach at least a 10% penetration of renewable energies in the energy mix of the country by 2030. The National Energy Transition Framework 2022 explains that Ghana intends to install in the country up to 21 GW (21,000 MW) of new renewable energy.
Ghana’s President Nana Akufo-Addo unveils the Ghana Energy Transition and Investment Plan during an event in New York City on the 21st of September 2023.
Just recently, Ghana’s President Nana Akufo-Addo launched the country’s new Energy Transition and Investment Plan during a Global Africa Business Initiative event in New York in late September 2023. Also, in there it is stated that the growth in generation in Ghana requires a substantial growth in new electricity capacity, dominated by wind and solar power.
The document also expresses that the installed power capacity in Ghana will grow from actually around 5.5 GW to approximately 38 GW in 2040 and to 64 GW in 2045.
This means that up to 2040, more than 7 times the today’s installed capacity will be needed, while up to 2045, it increases to around 11 times. Where shall this urgently required power come from?
Investments in fossil power plants will in the future most likely no longer be financeable and therefore they are no option for the country already in the short term. The only solution, which will also be completely in line with Ghana’s NDC’s obligations, is to switch from outdated, very expensive, climate damaging and unsecure fossil plants towards net zero emissions. This can be achieved by quickly developing and implementing large scale renewable energy power plants such as solar and wind. NEK has the capacity to do so, and by operating renewable energy plants in Ghana, the urgently required diversification of the energy sector can quickly start. Such a diversification will also contribute to lower “dumsor”, which is affecting the population and the industry sector of Ghana again more and more.
The Idea of a Renewable Energy Platform in Ghana
NEK together with its partners is in the process to create in Ghana a new renewable energy platform, on which all renewable generation resources from NEK’s wind farms and from other interested producers of clean energy will be implemented and operated.
This does happen without impacting on public sector borrowings or IMF imposed restrictions. This new platform will have several equity partners, lenders, and investors – large and well-known international power funds, investors and institutions will be amongst them. But also selected Ghanaian Stakeholders and institutions from the energy sector shall be integrated into this platform. Respective negotiations are ongoing.
The platform will act as a “captive” industrial power generator by selling clean, never ending and cheap capacity and electricity directly to large industrial off takers or State-owned entities.
Only last September, the United Arab Emirates pledged USD 4.5 billion to support African nations accelerate clean energy projects. It would be a unique chance for Ghana to tap this vessel.
Green Energy, Green Hydrogen and E-Mobility
Green energy from NEK’s wind farms for example can provide the cheapest generation costs for electricity in Ghana.
While fossil power plants produce for approximately 15 US Cents per kWh, NEK’s wind farms will produce for less than 9 US Cents per kWh as per today. The end user tariffs in Ghana for power generation with the existing fossil power plants are subject to PURC price adjustments.
In the future, these will for sure increase due to the rising gas and oil prices worldwide. However, the end-user tariff for electricity produced by the wind parks under the renewable energy platform will not be subjected to these price adjustments. It will be constant for the 20 year’s operation phase of a wind park but with a marginal upwards potential of approximately only 5 – 15%. This also would be a strong reason for Ghana to switch now to renewables.
In addition to green energy, Ghana also needs to develop a “Green Hydrogen” and an “E-Mobility” policy.
The Government must indicate key strategies and relevant road maps for the development of the “energy carrier” in the future. It must be recalled that both green hydrogen and electric vehicles, only can be run on 100% renewables, otherwise, they cannot be called green. A strong political signal will trigger huge investments from abroad in the energy sector of Ghana and business activities relating to these future markets.
The key for doing so is the implementation of renewable energy projects. By doing so, Ghana will in the future have the chance to become a net exporter of renewable energy through the West African Power Pool (WAPP) lines to the neighbouring countries.
Uninterrupted Power Supply
The need for guaranteed uninterrupted power supply for industries in the view of the “One District, One Factory Policy” and the African Continent Free Trade Area on the one side and the ECOWAS goal to have by 2030 at least 48% of renewables in its electrical network on the other side are forcing the implementation of renewable energies in the country.
Wind power plants have a short implementation and realisation time, so that projects can become operational within 12 – 18 months after their construction start. This advantage must also be seen in the Government’s policy of trying to achieve 100% electricity coverage by 2025 throughout the country.
If the Government wants to fulfil its promises as soon as possible, immediate actions are therefore required: It is imperative that the implementation of large-scale renewable energy projects starts right now.
By doing so, Ghana also becomes less dependent on expensive gas and oil imports. This comes along with the creation of a large number of new jobs, socio-economic benefits, economic growth, infrastructure developments and generally a commitment also to fight climate change. NEK’s wind energy pipeline and the envisaged renewable energy platform can offer the Government of Ghana the key for obtaining the above-mentioned sustainable development goals.
The VALCO modernisation and expansion plans
The Volta Aluminium Company Limited (VALCO) has announced it needs some USD 600 million capital to revamp its operations and therefore is searching for a strategic partner.
The goal is to reposition VALCO in a way that retrofitting will transform it from a loss-making entity into a best-in-class, profit-making and shareholder value-maximising entity, thus become the ultra-modern and best smelter in Africa.
With the projection of the building of 4 operating bauxite mines and 2 refineries under the IAI Masterplan as well as the revival of the downstream sector, the modernisation and expansion of the VALCO smelter is timely, thus creating a new VALCO with much more significance than ever before.
However, such plans require a lot of additional electricity, which at least for the time being is not available in Ghana. It is estimated that at the end of the retrofitting and extension program, VALCO will require more than 1,000 MW of installed electrical power. “Where do we take this from?”
This question has been one of the reasons why NEK has started the development of 2 large scale offshore wind farm projects in the Gulf of Guinea.
It is planned that these modern and according to highest international standards developed projects will have an installed capacity of approximately 2,500 MW and will generate yearly more than 7,000 GWh of clean and reliable power.
These offshore wind farms do not require any fuel, NLG, gas, oil or other fossil, outdated energy sources – the “fuel” is the wind and the sun, which is never ending and is coming to Ghana for free.
This will also allow VALCO to produce in the future green aluminium, which will be standard worldwide in the years to come. Therefore, it is beneficial for VALCO to switch from fossil power sources to renewables as this would attract more potential strategic partners.
No Financial Obligations for Ghana
NEK does bring along together with its partners the whole financing package for these projects and the renewable energy platform. A financial obligation for the Republic of Ghana does not exist.
It also is not required that Ghana issues any sovereign guarantee or similar, the whole investment for the implementation of these projects, which will be in the size of several billion USD, will come from abroad and will put absolutely no burden onto Ghana.
Lets’ move, the time is more than overdue.
The writer is the CEO of NEK Umwelttechnik AG, a Swiss-based energy company.
Energy News Africa’s Editor, Michael Creg Afful, who was in Cape Town to cover the African Energy Week 2023, interviewed Kiril Komarov, First Deputy Director-General for Development and International Business, Rosatom, on powering Africa using nuclear energy.
Below is the full interview:Question: What are the plans for African-Russian cooperation in the field of nuclear energy?Answer: Africa is undoubtedly the future, a continent marked by a swiftly growing population, flourishing economies, and rapid advancement. Various countries consistently announce ambitious plans and hopeful visions for Africa, particularly in the energy sector. However, not all of these envisioned plans materialize.
Rosatom stands out as one of the few entities actively actualizing these aspirations. We are at the forefront of executing one of the pivotal energy projects in Africa: the El-Dabaa Nuclear Power Plant (NPP), Africa’s premier and most advanced nuclear power facility, constructed in collaboration with our Egyptian partners along Egypt’s Mediterranean coast. Central to the project are the Russian-designed VVER-1200 reactors, embodying the pinnacle of Generation 3+ technology.
The substantial phase of construction commenced last year, marked by the pouring of the “first concrete” into the foundation of the inaugural power unit. Progress has been steadfast, with the simultaneous construction of three power units underway. Recently, in August, we acquired a license to construct Unit 4, intending to initiate its major construction phase by year’s end with the pouring of the first concrete.
Alongside these developments, the workforce at the site is expected to burgeon to 16,000 individuals by the conclusion of this year. We anticipate that this endeavour will ascend to become the globe’s most substantial nuclear construction project.
Rosatom also possesses significant mining assets in Namibia and Tanzania.
With collective Russian investments in all African projects surpassing 27 billion US dollars – a level of commitment that is unparalleled.
Africa has always been a significant partner for Russia, and in the field of nuclear energy, this partnership holds immense potential. Our future cooperation plans with African nations are multifaceted and strategically designed to unlock mutual benefits. Firstly, we aim to assist in the development and expansion of nuclear infrastructure in various African countries, providing access to reliable and low-carbon electricity, vital for sustainable economic growth. Secondly, we are focused on enhancing skills and knowledge transfer, which includes education and training programs for African professionals in the nuclear sector.
Moreover, Rosatom is keen on promoting non-power applications of nuclear technologies that offer vast benefits in sectors such as medicine, agriculture, and water management. We believe that these collaborations will not only foster technological advancement but also contribute to improving the quality of life in Africa.
We’re seeing more and more African nations showing interest. And there’s a number of nations in Africa that have done a great deal of work to get down the path towards nuclear. And when I say that, I mean, they’re following the International Atomic Energy Agency’s key milestone approach. Countries like Ghana, Nigeria, Rwanda, they’re doing great things in terms of getting to where they need to be as a nation to safely implement a nuclear program.
Question: Does project implementation affect the development of nuclear power expertise in the countries? What benefits do they receive?Answer: Rosatom is deeply committed to fostering the growth and nurturing the potential of Africa’s nuclear industry, placing a significant emphasis on capacity building and technology transfer. Our strategy revolves around creating a technological ecosystem that not only propels advancements in the nuclear sector but also profoundly empowers local talents and communities.
Education is a cornerstone of our initiatives. Proudly, we’ve facilitated nuclear programs in Russia where over 2,000 African students are currently acquiring essential knowledge and skills, preparing them as the next wave of nuclear professionals to lead the industry in their home countries.
Our approach to technology transfer is anchored in values of transparency and community acceptance. We dedicate ourselves to ensuring that nuclear projects are executed with clear communication and engagement with communities, aiming for informed and participatory development processes that uphold safety and respect for local environments.
Additionally, we emphasize the importance of infrastructure development and localization in our collaborations with African partners. We strive to incorporate local industries and communities into the broader supply chain, aiming to boost economic resilience, sustainability, and autonomous growth. Our efforts go beyond the mere construction of nuclear facilities; they contribute fundamentally to the building of robust economies and enriched societies.
Construction and operation of two-unit NPPs provide jobs for more than 10,000 people in the area of nuclear infrastructure and create more than 3,000 new jobs to work at NPP. Each US dollar invested in a NPP construction project (recalculated in the local currency) brings, on average, US $4,3 to GDP to the host country and, on average, US $1.4 to the host country’s budget as taxes.
Rosatom envisions a relationship with Africa that is rooted in mutual growth, technological progression, and sustainable success. Through our holistic strategy, we aim to plant the seeds of enduring development and shared prosperity in the African nuclear landscape.
Question: How does Rosatom intend to adapt its nuclear solutions considering Africa’s diverse technological readiness and regulatory landscapes? Answer: It’s essential to underscore that our strategies are meticulously curated, centered on the individualized needs and objectives of each client and region within Africa. Through thorough consultations, we aim to gain profound insights into the unique challenges and aspirations of each area, enabling the precise tailoring of our nuclear solutions. Acknowledging the rich diversity across the African continent – in terms of technological preparedness, regulatory norms, and specific energy necessities – is at the heart of our approach. We prioritize flexibility and adaptability, ensuring that our offerings are not only responsive but also exceed the distinct expectations of each region. For areas with well-established infrastructures and heightened energy demands, our premier offerings like large-scale Nuclear Power Plants (NPPs) remain a formidable choice. They promise a consistent, powerful, and enduring energy provision, essential for sustained economic upliftment and industrial evolution.
Our innovative Floating Nuclear Power Plants (FNPPs) epitomize adaptability, offering a remarkable solution especially suited to isolated areas and islands where traditional large-scale facilities may not be viable. FNPPs herald a synergy of adaptability and reach, ensuring that varied regions can benefit from dependable and eco-friendly energy sources.
Africa has a vast and diverse coastline that stretches along both the Atlantic and Indian Oceans. The total length of Africa’s coastline is approximately 30,500 kilometres. Our floating SMR solutions epitomize our dedication to providing tailor-made energy solutions for Africa. A unique advantage of Rosatom’s optimized floating nuclear power plants lies in their mobility, enabling power generation to be strategically located along the coastline, close to Africa’s major ports and easily increased as more power is required. This breakthrough innovation now presents the opportunity to efficiently wheel power from the nearest port to the end user, minimising transmission losses and enhancing the reliability of electricity supply to this highly industrialised and populous region. By leveraging this capability, Africa can mitigate the challenges associated with power cuts and address the escalating demand for electricity.
Additionally, Small Modular Reactors (SMRs) hold a vital place in our diverse arsenal of solutions. With their inherent adaptability, SMRs are perfectly suited for regions with moderate energy needs or restricted grid capabilities. Their modularity allows for seamless integration into various energy landscapes, accommodating the distinct demands and capacities of diverse areas.
In conclusion, Rosatom’s dedication to Africa is illuminated through innovative, adaptable, and client orientated energy solutions. With a multifaceted portfolio, our mission is to empower the continent with sustainable, customized energy strategies meticulously aligned with regional needs and potentials.
Question: I’ve noticed media reports concerning a meeting with Ghana’s minister to deliberate on the Nuclear Power Plant (NPP) and Floating Nuclear Power Plant (FNPP). Could you provide more details about the discussions and the subsequent steps planned?Answer: Yes, that is right. We have submitted our proposal in the Request for Financial Proposals (RFFI) for Nuclear Power Plant.
But one local project is not limiting the country. We are advocating for the introduction of the FNPP fleet to booster local industries and further nuclear development in the country. Regardless of the outcome of these procedural steps, it appears that Ghana is on a promising trajectory to become a significant player in the nuclear sector imminently, and we are highly enthusiastic about this prospective.
The Republic of Congo is expected to join Liquefied Natural Gas (LNG) exporting countries by December this year to earn foreign exchange.
This will be the first time in the history of the Central African nation, Minister for Hydrocarbons, H.E Bruno Jean-Richard Itoua has revealed.
“I am pleased to announce that by December 2023, Congo will export its first LNG,” he said while addressing participants at the just-ended African Energy Week 2023 in Cape Town, South Africa.
Congo has natural gas reserves of about 284 billion cubic meters as of 2021.
The Central African nation has embarked on economic diversification by placing a greater emphasis on gas and launching large-scale electrification projects.
Minister Itoua said natural gas would also be vital for the country’s mining industry and petrochemical sector and for energizing the country’s special economic zones.
He said Congo would continue exploiting its hydrocarbons, noting that oil and gas forms the cornerstone of the country’s development.
He said revenue from oil constitutes a pivotal portion of our revenues.
According to Minister Itoua, halting their production would jeopardize their stability and that of many other nations.
“Our exploration initiatives range from onshore oil deposits to the most profound marine depths.
“We are also in the process of awarding new permits and adopting a renewed approach in managing our oil assets.”
Minister Itoua said this strategy aims to welcome new players, suited to manage mature activities requiring a more streamlined and resilient organizational structure.
Touching on the energy transition, Minister Itoua noted that “the energy challenge we face is monumental,” but added that “with determination, innovation and collaboration, we can mold an energy future that benefits our people, our economies and our planet.”
Source: https://energynewsafrica.com
“Consumers would then go there and exchange their empty cylinders for filled cylinders based on the quantity of LPG they want to buy.
“There is also a retail shop that would have about 20 filled cylinders where consumers can go and exchange their empty cylinders for filled cylinders.
The programme was rolled out on September 1, 2023, in the Greater Accra and Ashanti Regions of Ghana.
The NPA is yet to determine when the remaining fourteen regions will roll out,” she explained.
Responding to a question on whether the NPA is educating consumers on the safe use of LPG, Mrs. Asante mentioned that the NPA has been doing a lot of sensitisation across the country.
She said the Consumer Services Unit and Gas Department have been visiting schools, churches, mosques and markets to sensitise them on the safe use of LPG.
“We have been sensitising consumers. When we visit the schools and markets, we encourage women to use LPG because it’s reliable, clean, safe and more convenient. It has fewer health hazards as compared to woodfuel,” she said.
She added that the Authority would be launching Consumer Week in Takoradi in the West Region in November to intensify sensitization on safe use of LPG.
In her concluding remarks, Mrs. Linda Boamah Asante stated that the Cylinder Recirculation model programme has come to stay, stressing that LPG is the way to go for Ghana.
Source: https://energynewsafrica.com 
