Source: The Azerbaijan state news agency Azerbaijan And Congo Agree On Oil & Gas Refinery Projects, Economic Cooperation
Congolese President Denis Sassou-Nguesso has engaged in game-changing strategy, widening its search for a reliable partner ready to explore it oil reserves, undoubtedly after Russia’s delay in acting on its bilateral agreements.
In the past, Russia has not implemented oil and gas agreements it signed with Angola and Nigeria, such deals have never seen the bright sunlight.
Nigeria expected possible cooperation on oil exploration and the establishment of petrochemical plant from Russians.
There has been a long-dead silence after Gazprom, the Russian energy giant, signed an agreement with the Nigerian National Petroleum Corporation (NNPC) on the exploration and exploitation of gas reserves with a new joint venture company known as NiGaz Energy Company.
With Congo, Russia’s Vladimir Putin also held an official meeting with Sassou-Nguesso, in Novo-Ogaryovo near Moscow during which both leaders assertively agreed on strengthening economic cooperation.
Several packages of documents that were signed that year included intergovernmental agreements on cooperation in the peaceful use of nuclear energy and also on exploration of natural resources.
Russia’s Pipe Metallurgical Company (TMK) was awarded the sole contract for building a major oil pipeline, running more than 1,300 km from the port city of Pointe-Noire in the Republic of Congo to the border with Cameroon.
In an interview with TASS News Agency, Sassou-Nguesso underscored the fact that “Russia is an important country, a strategic partner that may play its role in the period when Africa is looking for cooperation in building a new world in the region, building infrastructure, new economic and security systems.
The African people want to develop their economy and to establish themselves on the global arena. Russia may hold a strategic position on this issue.”
Despite the praise given to Russia, the leadership of Congo has now shifted to Russia’s neighbour Azerbaijan, which is by description a transcontinental country located at the boundary of Eastern Europe and West Asia. As a former Soviet republic, it adopted a declaration of independence in October 1991.
Geographically, three physical features dominate Azerbaijan: the Caspian Sea, whose shoreline forms a natural boundary to the east; the Greater Caucasus mountain range to the north; and the extensive flatlands at the country’s center.
What is most import here is that two-thirds of Azerbaijan is rich in oil and natural gas resources. There are many pipelines in Azerbaijan.
The goal of the Southern Gas Corridor, which connects the giant Shah Deniz gas field in Azerbaijan to Europe, is to reduce European Union’s dependency on Russian gas.
After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank, and the Asian Development Bank.
These make its significant importance for business, to establish corporate relations. And particularly, in the 21st century, a new oil and gas boom helped improve the situation in Azerbaijan’s science and technology sectors. It is not by mistake that Congo has established relations here.
Azerbaijani President Ilham Aliyev held both tete-a-tete and expanded negotiations with Congolese President Denis Sassou Nguesso in early April 2024, a statement on the Azerbaijani leader’s website said.
The report monitored by this author, indicated that Azerbaijan and Congo signed a package of documents aimed at expanding bilateral cooperation following high-level negotiations in Baku, capital of Azerbaijan.
It therefore implies that the State Oil Company of Azerbaijan (SOCAR) and the National Oil Company of the Congo, by the signed agreement, both will jointly on specified conditions develop and expand Congolaise de Raffinage oil refinery.
Congolaise de Raffinage specializes in the processing of light oil, its website says. The refinery’s capacity is 1 million tonnes of oil per year. Production started in 1982.
Both will jointly pursue various projects by the protocol of intent signed between the Ministry of Ecology and Natural Resources of Azerbaijan and the Republic of Congo’s Ministry of Environment and Sustainable Development on cooperation in the field of the environment, sustainable management of natural resources and climate change.
Nearly 80% of the population still live in abject poverty despite the fact that the country boasts of huge resources. The Republic of Congo has become the fourth largest oil producer in the Gulf of Guinea, providing the country with a high degree of potential prosperity despite its internal ethnic conflicts and economic disparity.
It has large untapped mineral wealth, large untapped metal, gold, iron and phosphate deposits. In 2018, the Republic of the Congo joined the Organization of Petroleum Exporting Countries (OPEC).
Source: The Azerbaijan state news agency
Source: The Azerbaijan state news agency China Is Leading The Global Nuclear Power Build Out
China is currently constructing a total of 26 nuclear power units with a combined capacity of 30.3 gigawatts (GW), the highest in the world, according to a report by the China Nuclear Energy Association (CNEA) cited by local media.
Last year, China approved the development of five new nuclear power projects and began construction of five units, the report found.
Air pollution from coal-fired power plants is a major impetus for China to expand its nuclear generation fleet, according to the World Nuclear Association.
China Heavily Subsidized BYD to Expand Its EV Market Share
China is not giving up coal, but it is betting on nuclear, too, to meet its rising power demand with cleaner energy sources.
Many countries in the West, with the notable exception of Germany, have also recognized that nuclear power generation would help them achieve net-zero emission goals.
At the COP28 climate summit in Dubai at the end of last year, the United States and 21 other countries pledged to triple nuclear energy capacity by 2050, saying incorporating more nuclear power in their energy mix is critical for achieving their net zero goals in the coming decades.
The United States, alongside Britain, France, Canada, Sweden, South Korea, Ghana, and the United Arab Emirates (UAE), among others, signed the declaration at the COP28 climate summit.
China is not a signatory to that declaration, but it aims to develop more nuclear energy capacities to reduce emissions as its demand for electricity rises.
As of September 2023, China had 55 nuclear power units in operation with a combined installed capacity of 57 GW, and 24 units under construction with a total installed capacity of 27.8 GW, Xinhua quoted CNEA official Wang Binghua as saying. By 2060, that capacity is expected to jump to 400 GW, the official said.
China is also expected to approve six to eight nuclear power units each year “within the foreseeable future.”
Source: Oilprice.com
Tesla Will Lay Off 10% Of Staff As Demand For EV Cars Starts To Falter
Tesla shares dropped on Monday morning after the firm announced plans to lay off ‘more than 10 per cent’ of its global workforce as demands for its electric vehicles start to falter in a highly competitive market.
CEO Elon Musk sent a company-wide email over the weekend announcing the layoffs, tech publication Electrek reported on Monday.
Musk, in the internal memo, said the ‘difficult decision’ to reduce staff will ‘enable us to be lean, innovative and hungry for the next growth phase cycle’.
‘There is nothing I hate more, but it must be done,’ the billionaire said, as cited in the memo, before thanking ‘everyone who is departing Tesla for their hard work over the years’.
Tesla, which is set to report its quarterly earnings on April 13, reported a decline in vehicle deliveries in the first quarter, its first in nearly four years and also below market expectations.
The firm, in a press release, blamed its fall in deliveries on a drop in EV car demand, the arson attack at its factory near Berlin and supply-chain issues caused by the Red Sea conflict.
Rumors of a looming layoff had been spreading over the last few months after Tesla asked managers to identify critical team members, paused some stock rewards and canceled some employees’ annual reviews, according to the report.
Tesla, the world’s largest automaker by market value, had 140,473 employees globally as of December 2023, according to its latest annual report. The reported cuts will affect about 14,000 workers.
The firm is also expected to shorten Cybertruck production shifts at its Gigafactory in Texas despite Musk having recently insisted that Cybertruck is currently production constrained.
The move comes as automakers across the world tighten their belts amid a slower than expected uptake of EVs.
BP has cut over a tenth of the workforce in its electric vehicle charging business and pulled it out of several markets after a bet on rapid growth in commercial EV fleets didn’t pay off, company sources said on Monday.
However, China’s electric vehicle market is understood to be booming, with Musk just last year hailing the country’s carmakers as being ‘by far our toughest competition’.
‘I think the Chinese car companies are extremely competitive,’ he said in November, warning: ‘There’s a lot of people out there who think that the top 10 car companies are going to be Tesla followed by nine Chinese car companies. I think they might not be wrong.’
At the time, Musk hailed the Chinese work ethic as being ‘incredible’ and said the country was ‘super good at manufacturing’, The Street.com reported. He also said that Tesla considered ‘the Chinese league to be the most competitive’ and added that the firm does ‘very well in China because our China team is the best’. Elon Musk’s Email To Tesla Employees That Announced Looming Mass Layoffs Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle. I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye. For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there. Thanks, Elon Source: Natasha AndersonGhana: Opposition NDC Former Energy Ministers ‘Roast’ Gov’t For Rebranding Ameri Power Plant
Two former Ministers for Energy under the erstwhile National Democratic Congress (NDC) administration have vented their anger at the government for rebranding the controversial Ameri Power Plant procured at US$510 million in 2013 to shore up power generation to tackle the debilitating power crisis during that period.
Hon. Emmanuel Armah Kofi Buah, a former Minister for Energy and Petroleum, and Hon. John Abdulai Jinapor, former Deputy Power Minister, described the government’s rebranding of the Ameri Power Plant as Kumasi 1 Thermal Power Plant as shameful, a lack of integrity and an insult to the intelligence of Ghanaians.
The duo who accused the government of failing to manage the energy sector well said instead of the government acknowledging the foresight and proactive measures that was taken by the previous administration, the Akufo-Addo and Bawumia administration chose to discredit, vilify and undermine former President John Mahama’s initiatives for their own political gain at the time.
In a post on Facebook, Hon. Emmanuel Armah Kofi Buah wrote: “The Akufo-Addo-Bawumia government’s renaming spree is not limited to universities but now extends to the power sector.
“The rebranding of the Ameri Power Plant as the Kumasi 1Thermal Power Plant is not merely a superficial change but a cynical attempt to distort historical facts and mislead the public about the true origins of this critical infrastructure.
It is, however, important that the people of Ghana do not forget the history of the Ameri power plant.
“The Akufo-Addo-Bawumia government’s pattern of renaming projects initiated by previous administrations is a clear reflection of their lack of innovation and leadership in the energy sector.
“The once-thriving energy sector that was bequeathed to this government by President Mahama has regrettably been eroded under their watch. We are currently struggling with ‘dumsor’ due to the indebtedness made worse by this administration.
“The good people of Ghana deserve leaders who are committed to honesty, accountability and genuine progress, not hollow promises and superficial gestures,” parts of his post read.
On his part, Hon. John Abdulai Jinapor wrote: “The only thing the Akufo-Addo administration has done is to relocate the units to Kumasi in Ashanti. And as if this is not enough, they have gone a step further by deciding to recommission the same plants on 17th April 2024. Interestingly, this same plant was commissioned under President Mahama.
“This attempt to appropriate achievements of President Mahama and present them as that of this non-performing government will no longer be countenanced,” he said.
Last week, this portal reported that President Akufo-Addo would on Wednesday 17th April 2024 inaugurate the Ameri Power Plant which is currently located at Anwomaso near Kumasi in the Ashanti Region.
The 250MW power plant which is on a wheel and comprised 10 units with each producing 25MW was originally located at Aboadze in the Western Region, but relocated to Anwomaso to stabilise the national grid and ensure power supply reliability in the Ashanti Region.
The plant was procured from the UAE-based Africa & Middle East Resources Investment Group in 2015 by the erstwhile government, when the West African nation was experiencing an erratic power supply due to a shortfall in electricity generation.
The plant cost US$510 million and it was to be managed by its owners for five years and later transferred to the Government of Ghana under the Build Own Operate and Transfer (BOOT) agreement.
The Ameri deal was one of the number of power deals which generated public furor, with the then opposition, the New Patriotic Party, now in government, accusing the then administration of ripping the nation.
After negotiations between the current government and the Ameri Group, the latter waived over US$2 million of the cost of the plant.
In 2022, the plant was handed over to Ghana and VRA was assigned to manage it.
Source: https://energynewsafrica.com
Ghana: Ameri Power Plant To Be Reconnected On Grid Wednesday After Two Years Of Sitting Idle
Ghana’s power supply which, in recent times, has been erratic and sparked public criticisms of the government, is likely to improve in the coming days as the Volta River Authority (VRA) has finally completed the installation of the Ameri Power Plant at Anwomaso near Kumasi in the Ashanti Region.
The Plant is due for inauguration by President Akufo-Addo on Wednesday, 17th April 2024.
According to the Volta River Authority (VRA), six units which are about 150MW out of the total capacity of 250MW, have been installed and technically tested for inauguration by President Akufo-Addo.
The reconnection of the Ameri Power Plant to the national grid is to improve power supply and boost economic activities, especially in the Ashanti Region.
The relocation of the Ameri Power Plant to the Ashanti Region is aimed to ensure stability to the national grid and ensure power reliability in the Ashanti Region.
Ameri Power Plant which is on a wheel was procured from the UAE-based Africa & Middle East Resources Investment Group in 2015 by the erstwhile government, when the West African nation was experiencing an erratic power supply due to a shortfall in electricity generation.
The plant cost US$510 million and it was to be managed by its owners for five years and later transferred to the Government of Ghana under the Build Own Operate and Transfer (BOOT) agreement.
The Ameri deal was one of the number of power deals which generated public anger, with the then opposition, the New Patriotic Party, now in government, accusing the then administration of ripping the nation.
After negotiations between the current government and the Ameri Group, the latter waived over US$2 million of the cost of the plant.
In 2022, the plant was handed over to Ghana and VRA was assigned to manage the plant.
Source: https://energynewsafrica.com
Japan Loads The World’s Biggest Nuclear Reactor With Fuel
Japan’s Tokyo Electric Power Co. has loaded its biggest nuclear power plant, Kashiwazaki Kariwa, with fuel for the first time since the Fukushima disaster, Bloomberg has reported.
The move is part of a nuclear power return on the Japanese scene after the 2011 tragedy, which saw all nuclear reactors in the country turned off.
But the restart of the Kashiwasaki Kariwa, which is the biggest nuclear power generator in the world, is not yet guaranteed.
The plan has to get the go-ahead from the Niigata prefecture’s governor and this go-ahead is not guaranteed.
The 8.2 GW Kashiwasaki Kariwa plant was turned off in 2012 but that was not the only thing that happened to it.
Back in 2021, Tepco was banned from operating the plant by the Nuclear Regulation Authority, after safety protocol breaches were detected, among them failure to protect nuclear materials, according to a Reuters report from last December.
It was in December that the Japanese authorities lifted the operational ban, citing improvements in the treatment of safety issues at Kashiwasaki Kariwa.
Japan is bringing back nuclear power as a key energy source, looking to protect its energy security in the wake of the 2022 energy crisis that led to surging oil and gas prices.
The resource-poor country which needs to import about 90% of the energy it consumes, made a U-turn in its nuclear energy policy at the end of 2022, as its energy import bill soared amid the energy crisis and surging costs to import LNG at record-high prices.
The Japanese government confirmed in December 2022 a new policy for nuclear energy, which the country had mostly abandoned since the Fukushima disaster in 2011.
A panel of experts under the Japanese Ministry of Industry has also decided that Japan would allow the development of new nuclear reactors and allow available reactors to operate after the current limit of 60 years.
Source: Oilprice.com
Nigeria: Blackout In Nigeria As National Grid Collapses Again
Nigeria’s national electricity grid collapsed again on early hours of Monday, April 15,2024, thus throwing the entire West African country into a total blackout.
The grid collapsed around 2 am, according to data obtained from the country’s System Operator’s portal (niggrid.org).
The grid recorded an unprecedented zero Megawatts (MW) at the time and is currently generating a meagre 52.3MW around 7:10 am the same day.
The consequences of this blackout were felt nationwide, as electricity distribution companies (DisCos) struggled to cope with the sudden and prolonged outage.
This latest collapse marks the fifth grid disturbance in 2024, adding to challenges that have long plagued Nigeria’s power sector.
The Transmission Company of Nigeria (TCN) is yet to comment on the situation.
Checks by this portal indicate that power has been restored in some parts of the country.
Source: https://energynewsafrica.com
Ghana: GRIDCo Organises Maiden Electricity Market Conference
Ghana’s power transmission company, GRIDCo, has been tasked to collaborate with players in the power sector value chain to deliver reliable, affordable and stable electricity in the West African nation.
Deputy Minister for Energy, Hon. Herbert Krappa, made the call during a maiden Electricity Market Conference organised by GRIDCo at Akuse in the Greater Accra Region.
The conference which was held between the 4th and 5th of April 2024 brought together key stakeholders in the energy, petroleum, communication, banking and agricultural sectors, as well as USAID, to discuss major challenges, explore innovative solutions and chart the future direction for a sustainable wholesale electricity market in Ghana.
Hon. Krappa emphasised that the timing of the conference was very significant, coming off at a time of challenges in the power sector.
He advised that conversations about reforms should be held, bearing in mind the associated risks.
“The conference should focus on the roadmap for the implementation of the capacity market. On behalf of the Minister for Energy, I assure you of the Ministry’s support, as we work with GRIDCo to keep the lights on,” he said.
In his welcome address, Ambassador Kabral Blay Amihere, the Board Chairman of GRIDCo, indicated that being the first of its kind, the Market Conference formed part of the process to enable GRIDCo to fulfil Legislative Instrument (L.I.) 1937, mandating it to establish the Ghana Wholesale Electricity Market (GWEM).
In this regard, the Board and Management are committed to implementing this law.
He added, “The timing of the Conference is very peculiar given the recent power supply challenges.”
The Board Chairman was confident that the Conference would bring stakeholders to the point of taking definite actions to operationalise the Market.
Adding his voice to that of the Board Chairman to welcome participants, the Chief Executive of GRIDCo, Ing Ebenezer Kofi Essienyi, indicated that the power sector reforms are intended to deregulate the electricity sector to pave the way for private sector participation, ultimately improving reliability, operational efficiency, drive down cost and accelerate industrialisation for national development.
Unfortunately, the reforms that started in 1994 remained incomplete, and this situation has created many challenges for the power sector which includes the high cost of electricity, poor allocation of risks and a growing energy sector debt that continues to weigh on the national budget, he said.
Ing Essienyi was hopeful that the conference “would provide a platform for engaging and dispassionate discussions on the shared vision of activating an efficient framework to deliver competitively priced electricity to our cherished customers.”
The keynote speakers for the conference included Dr Sheila Addo, Director of Policy Coordination, National Petroleum Authority (NPA); Mr Edmund Fianko, Director of Engineering, National Communications Authority (NCA); Mr Kojo Siaw Ofori-Atta, Managing Director, SSESCO-a consulting firm; Mr Joesph Oko Lartey, CEO, Central Securities Depository (CSD); Mr Robert Dowuona-Owoo, Chief Operating Officer, Ghana Commodities Exchange and Mr Sydney Tetteh, Executive Vice President, Energy and Infrastructure, Stanbic Bank.
Source: https://energynewsafrica.com
South Africa: Eskom Outlines Measures For Reliable Power Supply During Winter
Eskom board chairperson, Mthethwa Nyathi, says they have put in place measures to ensure reliable power supply during winter.
“The good thing is that there is nothing really special that we needed to do more than what we have been doing which is to implement the planned maintenance that we have been implementing. If you look at it, now that we are entering winter, we will be reducing the planned maintenance, giving us additional capacity to be able to take care of the additional demand that we will be experiencing during winter.”
Meanwhile, the Minister of Electricity, Dr kgosientsho Ramokgopa expressed confidence that his ministry will no longer be needed by the end of the year.
Speaking at the NinetyOne Annual Infrastructure Forum last month, Ramokgopa said “For as long as I exist, you know that the problem exists. So I’m a personification of the problem if you know what I am saying. We are doing everything possible to address it.”
“I am more than confident that there will not be a need for this ministry by the end of this year.”
During a media briefing earlier this week on an update of the country’s Energy Action Plan, Ramokgopa attributed the current reduced levels of blackouts to Eskom’s increased planned maintenance and good management.
Ramokgopa added that electricity supply is currently higher than demand, saying that planned maintenance allows for the accelerated sourcing of spares.
Source: Sabcnews
ADNOC Considered Buying Oil Giant BP
Abu Dhabi National Oil Company (ADNOC) has recently weighed buying BP, but talks didn’t go far and ultimately the state firm of the United Arab Emirates decided not to pursue a takeover of the UK supermajor, sources with knowledge of the discussions have told Reuters.
ADNOC has recently held preliminary talks with BP and has contacted investment banks for advice on a potential takeover, according to two of Reuters’ sources.
The reported approach by ADNOC comes as the U.S. oil and gas industry is undergoing a major consolidation, with many multi-billion deals announced in America in recent months.
The mergers and acquisitions (M&A) wave hasn’t reached Europe yet, although analysts have said that BP could be a target of a potential takeover by a rival.
BP’s stock suffered early this decade when the company announced its net-zero strategy. In early 2023, investors cheered BP’s reversal of some goals and its commitment to invest more in resilient oil and gas projects than previously planned and pump more hydrocarbons for longer to meet the world’s needs.
BP said in February 2023 it would be producing more oil and gas for longer and increase investment into oil and gas projects by an average of up to $1 billion a year until 2030.
For the European majors, the focus “is to narrow and even close the structural valuation gap to their premium-rated US peers,” Wood Mackenzie’s analysts said in the wake of the Exxon and Chevron announcements of mega all-stock mergers.
In ADNOC’s pursuit of a takeover target, BP was one of the companies the UAE firm has looked at, one of Reuters’ sources said.
There were some direct talks between ADNOC and BP but “It didn’t go far,” the source told Reuters.
BP and ADNOC have been partnering on projects for more than five decades. The most recent collaboration was the creation of a natural gas joint venture in Egypt.
Source: Oilprice.com
Secret Meeting Between Venezuela And The U.S. As Oil Sanctions Loom
U.S. and Venezuelan government officials met secretly this week ahead of the expiry of oil sanction relief next week.
The meeting, in Mexico City, discussed the possibility of reforms in Venezuela, Bloomberg reported citing unnamed sources, with a focus on elections.
The United States granted a six-month oil sanction waiver to Caracas last year after the two sides discussed election reforms that would have given Venezuela’s opposition a chance in the upcoming vote in July.
However, just months later, the Maduro government effectively banned the opposition’s leader, Maria Corina Machado, from running for office, prompting threats from Washington that the sanctions would snap back.
Following the sanction waiver last October, Venezuela had planned to expand its oil production from below 800,000 bpd to over 1 million bpd. The prospects of that happening have dimmed since then as the threat of the return of sanctions hung over PDVSA’s head. Analysts have also forecast a higher risk of domestic fuel shortages if the sanctions snap back on April 18.
The easing of the sanctions helped Venezuela boost its oil export revenues, with expectations for this year at $20 billion, according to Reuters estimates from January, versus a total of $12 billion in oil revenues for last year. If the sanctions are reimposed, however, the outlook will change drastically.
Bloomberg cited one Venezuela-based analyst as estimating the potential losses at $2 billion for this year alone. Another said that the lifting of the sanctions for six months has boosted the country’s oil revenues by an additional $740 million.
The return of sanctions will also affect the U.S. as it would put an end to heavy crude imports from Venezuela. These started flowing to Gulf Coast refineries once again after the sanction suspension entered into effect in October. The suspension expires on April 18.
Source: Oilprice.com
Nigeria: FG To Move All Electricity Consumers To Band ‘A’ In 3 Years — Minister Adelabu
The Minister of Power, Adebayo Adelabu, has disclosed the Federal Government’s plan to convert the entire power sector into a single band from the current six, in the next three years.
Speaking during a weekly briefing organised by the Ministry of Information in Abuja, the minister said the recent electricity tariff hike was the first step in government’s plan to completely remove subsidy payment.
According to Mr Adelabu, the federal government has spent about N2.9 trillion on electricity subsidy, adding that the government was still subsidising 85 per cent of electricity supply in the country despite increase in tariff for Band A customers.
He said the government was not ready to aggravate the sufferings by refusing to adopt 100 per cent withdrawal of subsidy on electricity.
“This tariff review is in conformity with our policy thrust of maintaining a subsidised pricing regime in the short-run or the short-term with a transition plan to achieve a full cost reflective tariff for over a period of, let us say three years.
“It is because of government sensitivity to the pains of our people that will not make us migrate fully into a cost-reflective tariff or to remove subsidy 100 per cent in the power sector like it was done in oil and gas sector.
“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from the subsidy regime to a full cost-reflective regime and we must start with some customers.
“This is more like a pilot (scheme) for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power, those enjoying 20 hours of light should be the ones to get tariff added,” he pointed out.
Mr Adelabu argued that anybody that goes into any business intends to first recover cost, then if possible, make some profit, explaining that the moment a business cannot cover costs, the sustainability of such business is doubtful and will be run aground.
He observed that if the federal government was to pay the about N3 trillion subsidy for this year, it would be more than 10 per cent of the national budget for 2024.
“The power sector is just a single sector out of so many sectors that government has to attend to. We have works, we have housing, we have education, we have health, we have defence and so on that are all competing for this meagre revenue from the government.
“So it will be very insensitive on our part to force or compel government to continue to subsidise at that rate of almost N3 trillion for the power sector alone.
“We just have to be realistic and considerate. We also must ensure that the regulators are independent and there is consequence management,” he stressed.
With a little above 12 million registered electricity customers nationwide, Mr Adelabu said the recent increase would only affect about 1.5 million customers.
The remaining 10.5 million customers, he said, would continue to enjoy government subsidy at about almost 70 per cent, until it is gradually phased out.
He emphasised that if the DisCos are able to comply with the service level agreement, which is 20 hours for Band ‘A’ at the minimum, it is still far cheaper than the alternative source of diesel and petrol generators.
“You will agree with me that the average cost of generating a kilowatt hour of power today, using diesel and petrol generator is not less than N450 to N500 because of the capital investment of purchasing the generator, the daily operational fuelling of the generator and the intermittent servicing of these generators.
“The cost is not less than N500. So, if we are putting the tariff at N225, I believe it is more than 50 per cent cheaper than running alternative power sources,” Mr Adelabu said.
Source: https://energynewsafrica.com
Kenya Power Electricity Losses Rise Above Allowed Limit
Kenya Power continues to make electricity losses above the limit set by the Energy and Petroleum Regulatory Authority (EPRA).
The increasing system losses arising from illegal connections and inefficient transmission systems are expected to eat into the utility’s revenues.
Kenya Power made system losses of 25% in December last year; in the last 6 months of 2023, these losses averaged at 23.2%, despite the company’s goal to cut the losses to at least 20.93%.
EPRA allows Kenya Power to pass on to consumers 18.5% of these losses; this translates to billions of shillings every year.
“‘In terms of what is specific to transmission, the losses are somewhere between 4.5 to 5%. Then now the balance is distribution and commercial,” said Kenya Power CEO Dr. Eng. Joseph Siror.
System losses emanate from technical and commercial losses. Technical losses are those occasioned by an inefficient or dilapidated distribution infrastructure.
Commercial losses arise from power theft. Kenya Power says it is taking steps to reduce the losses.
“Efficiency of the system is one of the key areas that has been quite a challenge for the business. We’ve actually studied this and seen that quite a bit of this is actually due to the technical dynamics of the system,” said Stephen Vikiru, General Manger of Finance, Kenya Power,
“But we are working to see how we can specifically isolate areas that are high loss generating, and see the interventions that can be put into that to reduce the system losses.”
These losses are occurring at a time when EPRA has increased retail tariffs by about 20% to bolster Kenya Power’s revenue, to facilitate the overhaul of its aging infrastructure.
Source: Citizen
U.S. Power Plant Proposals Surge By 90% As Electricity Demand Rises
Proposals for new power generation capacity in the United States have increased by an impressive 90% over the last three years, as reported, in anticipation of a surge in demand for electricity.
Notably, some 80% of the proposed capacity is solar plus batteries, with only 3% of proposed power plants running on natural gas or coal. The total proposed capacity stands at close to 2,600 GW, according to the data, which comes from the Lawrence Berkeley National Laboratory.
This does not mean, of course, that all of this proposed capacity will end up getting built. In fact, historical data suggests that only a fifth of all proposed projects do get completed. At the same time, demand for electricity in the country is set for a significant increase, driven by data center proliferation and the incorporation of artificial intelligence and more and more software applications.
Reuters reported earlier this week that U.S. power utilities were revising their demand estimates radically from only a few months ago. The report said that nine out of the top power suppliers in the country had raised their capital expenditure plans and demand projections.
“The truth of the matter is these things (data centers) are pigs when it comes to energy use, and now they’re the size of an elephant,” Eric Woodell, founder of software service provider Amerruss, told Reuters.
Woodell then said in a LinkedIn post on the Reuters report that “The gap between power production and demand will continue to grow, leading to shortages (brownouts or blackouts) happening more frequently. These events will test your data center infrastructure, whether you like it or not, whether you own or lease.”
The planned electrification of the transport sector will also help—if it materializes, that is. The EV push has slowed down recently and whether it would pick up again or not is an open question for the time being. Yet the surge in electricity demand from the IT sector may well be enough to prompt more capacity additions than normal.
Source: Oilprice.com