Deliver Energy Before The ‘Just Transition’ (Article)
In Africa, with a young demographic, a plethora of socioeconomic development requirements and energy poverty, amongst other pressing issues, meeting the population’s minimum energy requirements is crucial and existential.
These critical issues must be reconciled when mapping Africa’s development path and addressed before the drive to achieve Net Zero emissions.
With geopolitical tensions rising and growing pressures to eliminate hydrocarbons from the energy mix, the continent’s primary concern should be securing energy availability and affordability for its people. Currently, it is estimated that 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and, ultimately, job creation.
Therefore, the continent must focus on securing energy access from every source despite geopolitical tensions and increasing pressure to eliminate hydrocarbons. This natural resource is currently abundant but largely underdeveloped, a situation that applies to every country on the continent.
Balancing Decarbonisation and Energy Security
While decarbonisation is a critical global urgency, it should not be pursued at the expense of energy security, national security or economic stability. This is especially true for Africa, which, despite housing one-fifth of the world’s population, is responsible for less than 3% of global carbon emissions.
The continent also grapples with extreme energy poverty, with the International Energy Agency (IEA) reporting that 43% of its population lacks access to electricity despite significant untapped hydrocarbon resources. Balancing these two priorities and the need for molecules and electrons with the growth of the continent and its young population is a complex but necessary task.
Compared with the ageing demographics of developed regions, Africa’s youthful population is poised to drive a significant increase in energy demand in the coming years. This growth is not just necessary but also a source of hope, as it will accommodate the aspirations of its young populace. Therefore, it is unjust to expect Africa to forego developing its natural energy resources to mitigate environmental damage caused by 250 years of industrialisation by the Global North. This expectation leaves a whole generation behind and underscores the need for global equity in addressing climate change.
Ensuring a Just Transition
A truly equitable energy transition is not just a necessity but a moral imperative that meets the needs of all countries, necessitating extensive collaboration. It is crucial to strike a balance between traditional and renewable energy sources while considering the growth of Africa’s youthful population. While the continent recognises the necessity of decarbonisation, it also recognises that this cannot be achieved at the expense of its population’s development.
Africa’s unique energy needs must allow it to set its own energy transition pace. The first step is access to primary energy, clean cooking, and clean water – a just transition is both an obligation and a fundamental human right.
According to the UN Sustainable Development Goal 7, ensuring affordable, reliable, sustainable, and modern energy for all is crucial. It is estimated that urban homes should have 100kWh of energy for basic access, which is insufficient to operate a refrigerator. Hence, there are calls to set the modern energy minimum closer to 1,000kWh.
Discussing a just transition for those lacking basic energy access is futile. To reach that starting point, energy demand must rise. However, the current surge in global energy demand driven by Big Tech’s AI integration highlights the injustice of insisting that Africa leave its hydrocarbons in the ground for Net Zero despite having no energy access.
Minimum energy requirements for human development must also come from affordable, reliable, and lower-carbon power. While the move to renewables is noble and necessary, another vital energy transition is the move from no energy to “some energy.” The developing world asks that everyone have access to the same amount of energy required to power a refrigerator, which is not too much to ask.
Collaborative Efforts for a Just Transition
In conclusion, achieving a just energy transition while ensuring energy security and affordability for all necessitates historic levels of collaboration and partnerships.
Traditional energy companies must work with emerging clean-energy firms, and the Global North must align its energy transition demands with the Global South’s primary energy needs.
A truly just transition requires countries at different development stages to collaborate on understanding and addressing each other’s needs. International events such as the forthcoming Africa Oil Week (AOW) in Cape Town in October provide a platform for these critical dialogues so all stakeholders can navigate the path to net zero while ensuring energy security and affordability for all.
Celebrating its 30th year, AOW: Investing In African Energy, running from October 7 to 10 at the Cape Town International Conference Centre, will highlight opportunities across the energy transition value chain for the continent by the continent. The conference will focus on responsible exploration and production, gas monetisation, and future fuels. It will connect industry leaders, shape policy, and catalyse investment.
Source: Lamé Verre
Fellow of the Energy Institute | Member of the Global Future Council on Energy Transition at The World Economic Forum
Ghana: GNPC’s Operational Headquarters In Takoradi Will Create Numerous Job Opportunities – Says Akufo-Addo
The Ghana National Petroleum Corporation (GNPC) on Thursday, August 1, commissioned its $25 million state-of-the-art operational headquarters in Takoradi in the Western Region of Ghana.
GNPC has been operating from Tema in the Greater Accra Region, where its headquarters is located.
However, during the 2016 electioneering compaign, the presidential candidate of the New Patriotic Party (NPP), Nana Addo Dankwa Akufo -Addo, now President of Ghana, promised to relocate the operational headquarters of the corporation to the Western Region to reflect the region as the host of oil and gas resources of the country.
In fulfilment of this promise, President Akufo-Addo, in August 2020, cut the sod to begin the construction of the building.
In a post on Facebook on Thursday, August 1, 2024, after commissioning the facility, President Akufo-Addo wrote: “This state-of-the-art facility is not just a building; it represents the fulfilment of a promise I made during the 2016 elections to decentralise development and ensure that the benefits of our natural resources are felt by the communities that contribute so much to our nation’s wealth.”
He continued, “This headquarters is strategically positioned to enhance GNPC’s operational efficiency and serve as a catalyst for economic growth in the Western Region.
“The establishment of this facility will create numerous job opportunities and stimulate local businesses, contributing to the overall prosperity of the region,” he said.
“It also underscores our commitment to building a robust oil and gas sector that drives technological innovation, skills development, and sustainable economic growth.”
He expressed gratitude to all who played a part in bringing this project to fruition, from local leaders and contractors to the hard-working people of the Western Region.
“As we move forward, let us remain dedicated to managing our resources sustainably and promoting local content in the oil and gas industry.
“Together, we can harness the full potential of our natural resources for the benefit of all Ghanaians,” he concluded.
Source: https://energynewsafrica.com
Uganda: TotalEnergies Acquires Major Stake In Uganda’s Bujagali Dam
French energy giant TotalEnergies announced on Tuesday the expansion of its renewables portfolio with new deals in Africa.
The energy company bought 100% of SN Power, a subsidiary of Norwegian renewable energy company Scatec, the company said in a statement.
SN Power, in partnership with Norfund and British International Investment (BII), holds a 51% stake in renewable hydropower projects across Africa.
Upon completion of the deal, TotalEnergies will gain a 28.3% stake in Uganda’s operational Bujagali hydropower plant.
Electricity demand
With a capacity of 250 megawatts, the Bujagali hydropower plant covers more than 25% of the country’s peak electricity demand.
The company will also acquire minority stakes in two projects under development in Rwanda and Malawi, with a capacity of 260 megawatts and 360 megawatts, respectively.
Commenting on the deal, Patrick Pouyanne, chairman and CEO of TotalEnergies, said that this acquisition aligns with the company’s commitment to Africa’s energy transition, aiming to bring electricity to millions through renewable hydropower projects.
“In particular, we are delighted to be able to become a player in hydropower in Uganda, a country where we are also developing a major oil project,” Pouyanne said as carried by the Monitor.
To date, TotalEnergies has interests in a number of hydropower projects with a gross capacity of 3.7 gigawatts worldwide.
Source: https://energynewsafrica.com
Nigeria: AfDB Group Approves $500M Loan For Nigeria To Boost Electricity Access
The Board of Directors of the African Development Bank Group has approved a loan of $500 million to the Federal Republic of Nigeria, to finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP)
EGET-SP, is a new program aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
The loan will help close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan(link is external).
The Nigerian government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralizing the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector.
The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewable.
It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
The Economic Governance and Energy Transition Support Program will also support the implementation of these policies, helping deliver much-needed upgrades of Nigeria’s electricity infrastructure, and fast-tracking the country’s efforts to transition millions of households and businesses to cleaner and renewable sources of energy.
The Bank Group’s $500m support to the Federal Government of Nigeria is the latest in a series of initiatives aimed at supporting the country’s economic growth, poverty reduction, and climate action efforts.
The Economic Governance and Energy Transition Support Program (EGET-SP) is in line with the Bank Group’s new Ten-Year Strategy 2024-2033, its High 5s priorities, and the New Deal on Energy for Africa which seeks to achieve universal access to modern energy by 2030.
As of July 2024, the African Development Bank Group’s active portfolio in Nigeria is valued at about $4.4 billion.
Source: https://energynewsafrica.com
Russia To Extend Ban On Gasoline Exports
Moscow has announced it will extend its ban on gasoline exports from August to October, in a bid to offset the growth in domestic demand in spring and summer.
“In order to avoid any problems in these months, there will be no lifting of the gasoline export ban in August.
It was also a fundamental decision for September-October that exports will be limited in order to be insured,” Russian Deputy Energy Minister Pavel Sorokin was quoted by the TASS news agency as saying.
Earlier, Bloomberg reported that Russia’s four-week average seaborne oil exports fell to 3.11 million barrels a day as of July 14, down by almost 600,000 barrels or 17% from their recent peak in April.
Russia’s seaborne crude shipments have declined to the lowest since January, thanks to a rebound of domestic refining rates to a six-month high.
China and India are likely to feel the export cuts most keenly since they buy more than 80% Russian seaborne crude sales.
However, the barrels that have been taken off the market represent a small fraction of their total crude purchases, meaning Chinese and Indian buyers could easily replace them with crude from other markets.
“The sharp drop in July isn’t a one-off event,” Viktor Kurilov, senior oil markets analyst at consultant Rystad Energy A/S, has told Bloomberg.
Rystad Energy has predicted that Russia’s seaborne crude flows will remain capped at around 2.7 million barrels a day in July and August but rebound slightly to 2.9 million barrels a day in September when Russian refineries are expected to begin their traditional autumn maintenance.
That’s a big drop from exports of 3.6 million to 3.7 million barrels per day recorded in April and May as repeated Ukrainian drone attacks disrupted domestic refining.
“The levels seen in April or May are not to be repeated in 2024, barring large-scale drone attacks that would debilitate even more refineries than the spring strikes,” Viktor Katona, lead crude analyst at intelligence firm Kpler, told Bloomberg.
Source: Oilprice.com
Ghana: Ghana Gas Announces Shutdown Of Its Gas Facilities For Maintenance Works
Ghana’s national gas aggregator, Ghana Gas, has announced that it will shut down its Gas Processing Plant and Offshore Gas Export Facilities in the Western Region effective tomorrow, August 1, to 17th August 2024.
The shutdown is to enable critical safety and essential maintenance works to enhance the plant’s operational efficiency and uninterrupted gas supply.
This was contained in a statement issued by the company on Wednesday, July 31, 2024.
The company said during this period, Lean Gas from Sankofa OTCP field would be available for delivery at the Takoradi Distribution Station (TDS).
“Ghana Gas deeply regrets any inconveniences that the shutdown may cause but assures the public that there will be uninterrupted power supply during the shutdown period,” it said.
Earlier this month energynewsafrica.com got the hint that Ghana Gas would shut down the plant for mandatory maintenance works.
Sources indicated that the government had made alternative arrangements to ensure that there was adequate fuel supply to power generation companies (GenCos) to enable them to continue to generate power.
Source: https://energynewsafrica.com
Ghana: Petrol Tanker Accident Kills One Person, Two Others Severely Injured
One person died and two others were severely injured after a deadly accident involving a fully loaded 54,000-liter petrol tanker, two Mazda Demios and a Hyundai truck at the Asiakwa junction on the Bunso-Accra Highway.
The incident happened on Monday, July 29, 2024, at about 15:00 GMT and the timely intervention by the personnel of the Ghana National Fire Service prevented the tanker from exploding.
It is not clear what caused the accident but the GNFS wrote on its Facebook wall that the collision caused extensive fire damage, with the detached bulk tank of the DAF tanker with registration number GC 1054-11 and one Mazda Demio with registration number GW 3254-13 completely burnt.
Another Mazda Demio with registration number CR 1182-19, the Hyundai truck with registration number WR 4108-13, and the cowl of the DAF tanker were partially damaged.
The Bunso Fire Station of the Ghana National Fire Service, led by ADO I Samuel Doe, upon receiving information about the incident, quickly responded, arriving at the scene at 1530 hours.
Kyebi and Anyinam fire appliances were also dispatched to support the firefighting efforts.
“The blaze was contained within 35 minutes and fully extinguished in an hour and fifteen minutes,” the post said.
Source: https://energynewsafrica.com
Zambia: Zesco Launches Net Metering Programme To Boost Renewable Energy Adoption
Zambia’s power utility company, ZESCO Limited, has announced the commencement of the Net Metering Programme effective Thursday, August 1, 2024.
The company announced this in a press statement on Wednesday, July 31, 2024.
The implementation of the Net Metering Programme is in line with the Electricity (Net Metering) Regulations, 2024, and “it is designed to promote the adoption of renewable energy sources among our customers, allowing them to generate their electricity and feed any excess power back into the grid.”
Net metering is a system that allows prosumers (consumers who also produce electricity) to generate their power (limited to the contracted/declared demand with ZESCO) from renewable energy sources such as solar.
Any excess electricity generated can be fed back into the ZESCO grid, effectively allowing consumers to offset their electricity bills.
Not only will this system promote the use of renewable energy but also enhance energy security and sustainability in Zambia.
Benefits of Net Metering
Cost Savings: Generate your electricity and receive credits for excess power.
Environmental Impact: Reduce greenhouse gas emissions by using renewable energy
Energy Independence: Decrease reliance on traditional power sources.
Economic Growth: Create jobs in renewable energy installation and maintenance
Transfer of Net Metering Accounts
When there is a change of ownership on a property with a renewable energy system, the net metering account will be closed.
The new owner must apply for a standard electricity account and can then opt to apply for a net metering account.
Technical Specifications
To ensure high-quality supply, prospective consumers should have Grid-Tied Inverters. For a complete list of recommended equipment or technical specifications, visit the ZESCO website.
ZESCO encouraged customers to join this innovative programme to save on electricity costs and contribute to a sustainable future for Zambia.
Source: https://energynewsafrica.com
UK Raises Wind And Solar Power Budget By 50%
The UK’s government raised the amount of money to offer wind power developers in the next auction by 50% to 1.5 billion pounds, which is equal to around $2 billion.
The move follows calls from the wind power industry that they need higher guaranteed prices for their electricity in order to invest in more capacity.
The industry has been plagued by higher material costs and higher borrowing costs as well, because of higher interest rates.
The Labour government’s biggest bet is on offshore wind—it is allocating over two-thirds of the total renewables budget this year to that segment, or 1.1 billion pounds ($1.4 billion).
The remainder would be spent on onshore wind and solar, and on emerging technology such as tidal power and floating offshore wind.
Earlier this month, the chairman of RWE’s UK operations told the FT that Keir Starmer’s government needed to boost its budget for wind power significantly if it wanted to hit its own capacity installation target.
“We would urge them to increase the budget significantly and ensure they’re getting all the advice of all the relevant experts to work out how to do that,” Tom Glover said, warning that if the government failed to do that, it risked falling short by more than half of planned additions.
With the bigger budget, the government will be able to subsidize more wind and solar projects, possibly moving closer to hitting its capacity targets as part of its transition pledges during the pre-election campaign.
“This will restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect billpayers, and become a clean energy superpower,” Energy Secretary Ed Miliband said, as quoted by Reuters.
Germany had a very similar subsidy system for wind and solar until recently.
Because of increasingly frequent negative electricity prices resulting from excess wind and solar generation, the government in Berlin decided to stop paying the minimum guaranteed price for these generators whenever prices swung below zero.
Source: Oilprice.com
Nigeria: Dangote Refinery To Buy Nigerian Crude Oil In Naira
Nigeria has approved the sale of crude oil to Dangote Refinery and other local refineries in naira instead of dollars.
This was disclosed by the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, after the Federal Executive Council (FEC) meeting last Monday.
The FIRS boss said refined products of the refineries would be sold to marketers for local consumption.
In a statement issued on the development, Bayo Onanuga, Special Adviser to the President on Information and Strategy, said, “To ensure the stability of the pump price of refined fuel and the Dollar-Naira exchange rate, the Federal Executive Council, today, adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.
“Dangote Refinery, at the moment, requires 15 cargoes of crude for $13.5 billion yearly. NNPC has committed to supply four.
“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot. The exchange rate will be fixed for the duration of this transaction.
“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited.
“The game-changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.”
Source: https://energynewsafrica.com
Egypt: Energy Ministry Signs $340M Investment Deals To Boost Oil & Gas Production
Egyptian Ministry of Petroleum and Mineral Resources has signed investment deals totalling US$340 million with three oil and gas firms to boost oil and gas production.
The three agreements were signed with Shell Egypt, Petronus Gas and Cheiron Energy.
The deals, designed to enhance the North African nation’s oil and gas production in the Mediterranean and Gulf of Suez, were signed on Sunday, according to US media reports.
Egypt’s Petroleum Minister, Karim Badawi, met with senior executives from Shell Egypt, Petronus Gas and Cheiron Energy to finalise two agreements.
The first agreement signed was an approximate $222m investment deal with Shell Egypt and Malaysia’s oil and gas giant, Petronas.
The investment is a part of the tenth phase of the West Delta Deep Mining Project.
The deal includes the drilling of three wells and the establishment of marine facilities, all of which are expected to increase oil and gas production and recoverable reserves.
A second $120m deal with Cheiron Energy was finalised on Sunday.
The deal includes the drilling of nine new wells including three new huge exploration wells.
The investment is expected to eventually increase oil and gas production in the Gulf of Suez from 21,000 barrels per day (bpd) to 26,000bpd.
Badawi has been vocal about his plans to increase the overall production of oil and gas in the country.
The Minister has prioritised a focus on research and exploration to expand oil reserves, increase production capacity and develop the necessary infrastructure to reduce production costs.
The investment is to help expand on new and existing oil reserves–through advanced technologies–to increase production and improve the economic viability of Egypt’s oil and gas industry.
Source: https://energynewsafrica.com
Ghana: LMI Holdings To Name Dawa Solar Park After Ing Norbert Anku
LMI Holdings, a private firm that is into the development of industrial parks in the Republic of Ghana, has announced to honour its first Managing Director, Ing Norbert Cormla Djampos Anku, by naming its solar park at Dawa after him.
The park shall be called the Ing Norbert Anku Solar Park.
The Ing Norbert Anku Solar Park will be a 1000-megawatt peak solar plant at the company’s industrial park at Dawa, near Ada in the Greater Accra Region, by 2030.
The Managing Director of LMI Holdings who disclosed this said the company had secured a 2,300-acre land bank at Dawa for the project.
“I am happy to announce that the IFC approved in December 2023 a USD110 million facility for LMI Holdings to develop an additional 150 megawatts of solar energy in Dawa. Work has already begun in earnest,” he said.
The company intends to invest over USD1 billion into the local economy by expanding its renewable energy program over the next six years.
Source: https://energynewsafrica.com
Ghana: BOST Marine Assets Receives Oil And Gas Project Of The Year Award
The Bulk Energy Storage and Transportation Company (BOST) has received the ‘Oil and Gas Company of the Year Award’ at the recent National Project Management Conference & Project Management Excellence Awards ( NPMC & PMEA 2024) at the Rock City Hotel in the Eastern Region.
The award was in recognition of the significant contributions of the revamped marine assets of the company to the economic development of the West African nation.
The theme: ‘Sustainable Project Management Futures: Crafting a Resilient and Inclusive World’, brought together project management professionals to review performance and set new standards for future project management in the country.
BOST Marine Assets plays a crucial role in the supply of petroleum products to northern Ghana.
Source: https://energynewsafrica.com
South Africa: Eskom Blames Illegal Connections For Load Reduction In Rural Limpopo
Several rural communities in Limpopo have accused Eskom of wrongfully implementing load reduction in their areas.
Residents of Ga-Mathabatha Village, near Lebowakgomo, have been experiencing power interruptions for three weeks.
The power utility has implemented load reduction across affected areas due to illegal connections.
Some residents who spoke to SABCnews said they rely on firewood during outages.
According to them, there are no illegal connections where they live.
“We suspect that what is causing Eskom to implement load reduction could be cable theft, some of the criminals in our area steal cables, especially at homes that are abandoned. Actually, the whole issue of electricity started around June.
On the 6th of June until today. So, it has affected us because initially when children have to go to school they normally wash at around seven ‘o’ clock and the people that are working because that is the time they have to wash.”
Eskom spokesperson for Limpopo, Matshidiso Phaladi, says the main cause of load reduction in some areas is illegal connections.
Phaladi says a number of areas, including Botlokwa, parts of Thohoyandou, Zebediela and Burgersfort, have been affected.
“The continued pressures on our transformers and mini substations due to illegal connections and electricity theft, makes it necessary for us to implement load reduction so that we avoid equipment damage. And also ensure security of supply for our customers.
“We are having 75 feeders in the province that are overloaded due to illegal connections.”
Disgruntled communities in Limpopo slam load reduction
Source: https://energynewsafrica.com


