IEA Launches Tool To Track Financing Costs For Energy Projects
The International Energy Agency and several partners have launched a new tool to track financing costs for energy projects around the world to identify and address risks that impede vital investment flows to emerging and developing economies.
The Cost of Capital Observatory was developed by the IEA, together with the World Economic Forum, ETH Zurich and Imperial College London. It will be hosted on the IEA’s website and regularly updated with new data, analysis and features. The IEA website will also host an interactive Cost of Capital Dashboard to dig into data for selected countries.
A Critical Lever To Attract Capital
Despite having two-thirds of the global population, emerging and developing economies, excluding China, account for less than one-fifth of global investment in clean energy. One of the key barriers is the high cost of capital, reflecting some real and perceived risks about investment in these economies.
Bringing down the cost of capital is a critical lever to attract funds, especially private capital. Policymakers use this information to ensure that investments are remunerated in a fair manner, especially when it comes to sectors or projects that need any kind of government support.
However, there is a lack of transparency about the cost of capital, making it harder for investors to price risk and for policymakers to act. The new Observatory has been established to fill this gap.
“A high cost of capital is a roadblock for investors and the data provided by our Observatory is essential to understand how this roadblock can be dismantled,’’ said IEA Executive Director Dr. Fatih Birol.
“This will allow more capital to flow to clean energy, where it is urgently needed to tackle today’s energy crisis and reach sustainable development goals.”
Financing Costs Still A Deterrent
Bringing down the cost of capital would make a huge difference to the overall costs of energy transitions. According to new IEA estimates, reducing financing costs by 2 percentage points would bring down the investment needed to reach net-zero emissions in emerging and developing economies by a cumulative $16 trillion over the period to 2050.
The IEA estimates that global clean energy investment will increase by more than 10% in 2022 to reach a total of $1.4 trillion, but this is due almost entirely to advanced economies and China. Meanwhile, despite some bright spots, clean energy spending in emerging and developing economies outside China remains at 2015 levels.
Many countries find themselves in a trap, with underdeveloped financial markets deterring investment and a lack of projects preventing the establishment of reliable pricing benchmarks.
IEA analysis, based on surveys of investors and experts in different countries, has shown that the cost of capital for a utility-scale solar PV plant in 2021 was between two and three times higher in key emerging economies than in advanced economies and China. As a result, financing costs accounted for around half of the total levelised costs of a solar PV plant, notably higher than the 25% to 30% seen in advanced economies and China.
Climate Campaigner Accuses UK Of Giving ‘Two Fingers Up’ To Climate With New Oil And Gas Licenses
Climate campaigners have condemned the United Kingdom for its decision to open up a new licensing round for oil and gas fields in the North Sea, saying the decision signifies the Conservative government’s blatant disregard for the climate emergency and warnings against fossil fuel exploration from energy experts and scientists.
Claiming new oil and gas drilling will not undermine the country’s stated plan to cut its carbon emissions to net-zero by 2050, the North Sea Transition Authority (NSTA) said it will issue up to 100 licenses for nearly 900 exploration areas, including several that are known to contain hydrocarbons.
In response to Climate Minister Graham Stuart’s claim that the plan is “actually good for the environment” because using fossil fuels in the North Sea negates the need for foreign gas, Friends of the Earth (FOE) Scotland accused the government of “sticking two fingers up to climate scientists and energy experts.”
“By encouraging greedy fossil fuel companies to keep looking for more fossil fuels, the U.K. government is denying the reality of the climate emergency,” said Freya Aitchison, an oil and gas campaigner for the group.
“Instead of new fossil fuels, we urgently need a transition to an energy system powered by renewables, and a mass rollout of energy efficiency measures to reduce energy demand.”
“With the cost-of-living skyrocketing due to the volatile prices of oil and gas, it’s obvious that our current energy system is completely unfit for purpose, serving only to make oil company bosses and shareholders richer while everyone else loses out,” she added.
Russia’s invasion of Ukraine has sent energy prices soaring for households across Europe, but the climate action campaign Paid to Pollute warned that licensing oil and gas fields in the North Sea will do nothing to alleviate the cost of living crisis.
The plan is moving forward “under the pretext of energy security,” a campaigner for the group said in a video posted to social media, “but another North Sea licensing round won’t deliver U.K. energy security.”
“The North Sea is an aging and oil-heavy basin,” he continued. “The bald truth? The U.K. has burned most of its gas. Any new gas that is found won’t be produced for years and years.” As the U.K. Committee on Climate Change said earlier this year, it takes an average of about 28 years for oil and gas production to begin from the time an exploration license is issued. U.K. Green Party co-leader Adrian Ramsay called the news of the latest licensing round “deeply distressing.”? BREAKING: The UK Government has announced a new licensing round for North Sea oil and gas.
— Paid to Pollute (@PaidToPollute) October 7, 2022
This won't bring down #EnergyBills or increase #EnergySecurity – so why are they doing it?
Watch ? pic.twitter.com/NyDvWsseBP
“The government’s claim that burning ever more fossil fuels from the North Sea will help the U.K. meet its international obligations to become net-zero by 2050 has no connection to reality,” Ramsay said on social media. The new licenses are being offered nearly a year after grassroots campaigners were credited with pressuring Shell Oil to pull out of a plan to drill in the proposed Cambo oil field in the North Sea off the coast of Scotland’s Shetland Islands. FOE Scotland called on Scottish First Minister Nicola Sturgeon, who opposed the Cambo proposal, to stand up to the NSTA’s “reckless plans to expand fossil fuels in the North Sea.” “These announcements risk locking us into a climate-destroying energy system for decades to come,” said Aitchison, “entrenching reliance on this volatile industry in places like Aberdeen,and leaving people all across Scotland exposed to rocketing energy bills.”Deeply distressing to see news of new round of oil & gas exploration.
— Adrian Ramsay (@AdrianRamsay) October 7, 2022
The Govt’s claim that burning ever more fossil fuels will help UK meet its obligations to become net zero has no connection to reality – we truly have stepped through the Looking Glasshttps://t.co/pCscUqT2kV
UK Defies Climate Warnings With New Oil And Gas Licenses
The UK has opened a new licensing round for companies to explore for oil and gas in the North Sea.
Nearly 900 locations are being offered for exploration, with as many as 100 licences set to be awarded.
The decision is at odds with international climate scientists who say fossil fuel projects should be closed down, not expanded.
They say there can be no new projects if there is to be a chance of keeping global temperature rises under 1.5C.
Both the Intergovernmental Panel on Climate Change (IPCC), the global body for climate science and the International Energy Agency (IEA) have expressed such a view.
Business Secretary Jacob Rees-Mogg says the new exploration will boost energy security and support skilled jobs.
And supporters of new exploration insist it is compatible with the government’s legal commitment to reach net zero greenhouse gas emissions by 2050.
They say the North Sea fossil fuel will replace imported fuel and so have a lower carbon footprint in production and transportation.
Licenses are being made available for 898 sectors of the North Sea – known as blocks.
“Putin’s illegal invasion of Ukraine means it is now more important than ever that we make the most of sovereign energy resources,” Mr. Rees-Mogg said in a statement.
The licensing process will be fast-tracked in parts of the North Sea that are near existing infrastructure and so have the potential to be developed quickly, according to the North Sea Transition Authority.
It says the average time between discovery and first production is close to five years, but that gap is shrinking.
Both campaigners and the oil industry agree that the reserves will not be large enough to have a significant impact on the prices consumers pay for energy in the UK.
“This government’s energy policy benefits fossil fuel companies and no-one else,” said Philip Evans, energy transition campaigner for Greenpeace UK.
“New oil and gas licences won’t lower energy bills for struggling families this winter or any winter soon nor provide energy security in the medium term,” he added.
North Sea oil and gas production peaked about 20 years ago and since then the UK has gone from producing more oil and gas than it needs, to importing it from other countries.
Offshore Energies UK, which represents the oil and gas industry say there could be as much as 15 billion barrels of oil left in the North Sea. It says that new fields will be less polluting than their predecessors and, in a statement, said there would be an environmental “bonus”.
The decision to launch a licensing round follows the publication of the government’s “Climate Compatibility Checkpoint“, which “aims to ensure” the new exploration aligns with the UK’s climate objectives.
The checkpoint criteria covers emissions from oil and gas production and how those emissions compare internationally but take no account of the carbon dioxide emitted when the oil and gas are burnt.
Source: BBC
Africa Oil Week: APPO Head Supports OPEC Production Cut
The Secretary-General of the African Petroleum Producers Organisation, (APPO) Dr. Omar Farouk Ibrahim, has thrown his weight behind the recent decision by OPEC to cut production by around 2%.
“It is a decision well taken. I believe it is the right thing to do to save the industry and also to ensure that there is stability for today and tomorrow,” Dr. Omar Farouk Ibrahim said on the sidelines of Africa Oil Week, currently ongoing in Cape Town, South Africa
The decision by OPEC, which includes major oil producers Russia and Saudi Arabia, as well as African countries and APPO members Nigeria, Algeria, Angola, Congo and Libya, saw the price of Brent crude oil rise 1,5% to more than $93 a barrel.
“Every country has a responsibility to protect the interests of their citizens and if by reducing production, they see it as serving their best interests, so be it. When developed countries make decisions, they don’t sit and think [about] how it is going to affect developing countries. The interest of their citizens is paramount.”
The decision by OPEC (The Organisation of Oil Producing Countries) was made following the 33rd OPEC and non-OPEC ministerial meeting on 5 October. In a statement, the organisation said it would “reduce overall production by 2 mb/d, starting from November 2022.
It said the adjustment was being made “in light of the uncertainty that surrounds the global economy and oil market outlooks, and the need to enhance the long-term guidance for the oil market.”
The move comes in the context of a global economic downturn, the war in Ukraine, and the recent G7 cap on the price of Russian oil exports, as part of a new sanctions package against Moscow.
Dr. Ibrahim’s comments reflect a growing assertiveness among African oil producers that the region has the right to chart its own energy course.
Africa Oil Week, being held in Cape Town, South Africa this week has seen the continent speaking with one voice on the defining energy challenge of our time: that Africa will determine how best to balance its own development with sustainability.
Keynote speakers, government representatives, analysts, industry leaders and panellists have all said that the hardships of energy poverty are every bit as dangerous as the risks of climate change. In this context, Africa is best equipped to determine how it can meet its climate commitments while giving its people access to the energy required to deliver a better future for its people.
“We must all remember that more than half of our continent’s people do not have access to modern energy – specifically electricity,” said H.E. Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy for the African Union Commission, official Africa Oil Week partners.
“Africa’s low levels of access to modern energy mean that Africa will have to utilize all forms of its abundant energy resources to meet its energy needs.”
Abou-Zaid said the AU was guided by Africa Agenda 2063, a development blueprint that calls for universal access to affordable and reliable energy for both production and household use in Africa.
The AU recently adopted the African Common Position on Energy Access and Just Transition, which charts Africa’s development pathways to accelerate universal energy access and transition without compromising its development imperatives.
Rashid Ali Abdallah, Executive Director for the AU’s Africa Energy Commission (AFREC) said Africa’s energy transition was about the continent transitioning from “no energy to energy, to fill the gap of energy access”.
“Decarbonisation or aiming to reach zero emissions by 2050 is not fit for the African context,” he said. “Perhaps it’s fit for other regions of the world. For that reason, as Africa, we need to push development and exploration in the oil and gas market.”
The AU estimates that more than 600 million Africans live without electricity, while 900 million lack access to clean cooking facilities. The African Common Position encourages striking a balance between ensuring access to electricity for socio-economic growth and smoothly transitioning to an energy system based on renewable energy sources.
Paul Sinclair, VP of Energy & Director of Government Relations, Africa Oil Week and Green Energy Africa said, “we are delighted to have partnered with the AU this week to ensure we drive regional oil and gas markets in an Afrocentric energy transition.
Source: Africa Oil Week
Ghana: Petrosol CEO Lauds NPA Boss For Enforcing Petroleum Downstream Regulations
The Chief Executive Officer of Petrosol Ghana Ltd, Michael Bozumbil, has commended Dr. Mustapha Abdul-Hamid, the Chief Executive of the National Petroleum Authority (NPA), for the bold steps he has taken to sanitise the downstream petroleum industry by enforcing the industry regulations for a level playing field.
He has, therefore, encouraged him to continue on that path and pledged the support of the leadership of Petrosol.
Mr. Bozumbil said this when he recently led some members of the senior leadership team of Petrosol to pay a courtesy call on Dr. Abdul-Hamid at his office in Accra, Ghana’s capital.
He said the visit was to commend him for the major steps he has taken and the measures he is putting in place to sanitise the industry.
He informed Dr. Abdul-Hamid that Petrosol places a high priority on regulatory compliance and the accurate payment of taxes and levies to the state.
On regulatory compliance, Mr. Bozumbil indicated that not only does Petrosol comply with NPA’s regulations but has also gone a step further to subject its operations to international audit, leading to the company receiving triple-International Organisation for Standardisation (ISO) certifications for quality, occupational health and safety and environment.
Regarding the payment of tax obligations, Mr Bozumbil informed Dr. Abdul-Hamid that Petrosol dutifully pays its taxes, indicating that the Commissioner-General of the Ghana Revenue Authority recently wrote to Petrosol to congratulate them for their tax compliance.
On his part, Dr. Abdul-Hamid was full of praise for PETROSOL for being a compliant company and urged them to maintain that record.
He expressed his appreciation for the visit and the show of support for the measures he and his team are putting in place to ensure a level playing field.
He said he would continue to enforce the rules fairly and hoped operators in the industry would comply.
Petrosol is a leading privately owned Ghanaian oil marketing company operating several fuel stations across the country.
Source: https://energynewsafrica.com
Major Opportunities In African Gas-Africa Oil Week Hears
As the energy industry decarbonises its operations, natural gas is becoming an ever more important part of the energy mix – opening up a range of opportunities for the African gas industry.
“Sometimes, oil is even seen as a by-product of gas,” remarked Luca Vignati, upstream director of global energy company Eni, speaking during Africa Oil Week (AOW), taking place at the Cape Town International Convention Centre, from October 3-7.
Vignati gave the example of Eni’s Baleine project in Cote d’Ivoire, which holds an estimated 2.5 billion barrels of oil, and a far larger 93.4 billion cubic metres of gas.
Vignati said another decarbonisation strategy was to structure projects to include major carbon-offset initiatives.
He said Eni was operating Baleine as the first net-zero Scope 1 & 2 emissions development in Africa.
The project includes carbon offsetting certified by the international VERRA standard. Under the project, Eni will distribute 100,000 improved cooked stoves, targeting more than 300,000 people. The aim is to replace traditional wood-based cooking devices, reducing pressure on forest resources.
During another presentation at AOW, McKinsey associate partner Oliver Onyekweli pointed out that Africa was one of the few regions in the world likely to see growing energy demand over the coming decades. However, he said businesses hoping to be part of this coming energy boom, must look to decarbonise their production.
“Decarbonising is becoming like a licence to operate,” said Onyekweli. He said an effective way for African oil producers to decarbonise was through expanding into natural gas, while renewable energy offered an opportunity to open up new revenue streams, and secure energy access for the continent’s people.
Recent natural-gas discoveries leave Africa well positioned to take advantage of the trend towards decarbonisation.
The Brulpadda and Luiperd discoveries off South Africa’s southern Cape coast, for instance, have been hailed as potential “game changers”. Luiperd is estimated to contain 2.1 trillion cubic feet (tcf) of gas and 112 million barrels of condensate, while Brulpadda is estimated to hold 1.3tcf and 80 million barrels of gas and condensate.
With increasing pressure to decarbonise, it is also becoming more difficult to secure finance for African hydrocarbons projects.
“The main constraint to growth in the energy sector in future will not be in the area of human resources or deal flow, but in access to capital,” said Paul McDade, CEO of Afentra, an African energy independent.
Other independent energy businesses agreed that gas projects were easier to finance.
“American and European banks seem to have a greater willingness to finance gas projects,” said Thomas Kolanski of oil-and-gas independent BW Energy. “We’re shifting our focus in that direction. Gas is cleaner, it reduces global carbon footprint and everybody’s always on our side.”
Source: Africa Oil Week
Ghana: Our System Has Improved, Power App Is Now Working—ECG
The Managing Director of Electricity Company, Samuel Dubik Masubir Mahama says the company has improved its network following the technical challenges with its prepaid meter system which made it impossible for customers to purchase credit onto their meters.
According to him, all the meters on their network and the Power App are currently working, which means, customers can now purchase credit on their meters.
He added that all third-party vendors have also come online and urged customers who may have challenges at their regular third-party vendor to go to a different one to purchase their credit.
Addressing a press conference in Accra, Thursday, Mr. Samuel Mahama said except for a few areas in Kumasi which are still improving gradually, all other operational areas are working well.
He said his outfit received help from the cyber security office, national security and external consultants in resolving the anomaly with the company’s prepayment system.
Mr. Samuel Mahama apologised to Ghanaians for their poor service delivery in the last few days.
He said his outfit has put in place measures in place to serve customers better.
“We have put things in place to make us big and better,” he said.
Source: https://energynewsafrica.com
Ghana: Petrosol Commended For Tax Compliance; Pays Gh¢476 Million In Taxes
Petrosol Ghana Ltd, one of the leading privately-owned indigenous Oil Marketing Companies (OMCs) in the Republic of Ghana, has been congratulated by the Commissioner-General of the Ghana Revenue Authority (GRA) for its tax compliance.
In a letter signed by Dr. Ammishaddai Owusu-Amoah, the Commissioner-General of the GRA and addressed to the Managing Director of Petrosol, he indicated that the Revenue Assurance, Compliance and Enforcement (RACE) committee of the Ministry of Finance, in collaboration with the Ghana Revenue Authority (GRA), the National Petroleum Authority (NPA) and the Association of Oil Marketing Companies (AOMC), conducted a reconciliation exercise to confirm petroleum taxes paid by Oil Marketing Companies (OMCs) over the period, January 2015 to July 2020.
After the exercise, Dr. Owusu-Ansah indicated in his letter that the GRA could certify that Petrosol is not indebted to the GRA in respect of petroleum taxes and levies as it has dutifully paid all the taxes and levies amounting to about GHS476 million.
The Commissioner-General, therefore, expressed his satisfaction by urging PETROSOL “to continue to play your roles as corporate citizens. Accept our congratulations on your compliance.”
The Managing Director of Petrosol, Michael Bozumbil expressed his delight about the news, indicating that it would serve as a morale booster for him and his team to continue on the path of ethical practices.
He said notwithstanding the challenges in the industry and the economy as a whole, he and his team have resolved to continue to do what is right to contribute to government revenue and economic development.
He, therefore, expressed his hope that the state and its agencies would also support Petrosol to grow and do more for the state.
Petrosol is a triple-ISO-certified OMC that has won several awards for its commitment to industry best practices and ethical conduct. It operates several fuel stations across the country and also supplies bulk consumers of petroleum products.
Source: https://energynewsafrica.com
Ghana: PURC’s Directive Was Unfair, Unfortunate—ECG MD
Ghana’s southern electricity distribution company, ECG, has described as unfair a directive by the Public Utilities Regulatory Commission (PURC), Ghana’s economic regulator for electricity and water.
The power distribution company encountered a technical challenge with its prepaid meter system over almost a week, thereby, making it difficult for customers to purchase credit on their meters.
Many who had no alternative means of power were forced to sleep in darkness.
The PURC, which is the regulator, on Tuesday 4th October 2022, directed ECG to compensate all affected customers within one week from 1st to 7th October 2022.
However, addressing a press conference in Accra, the capital of Ghana on Thursday, the Managing Director of ECG, Samuel Dubik Masubir Mahama described the action of PURC as very unfair.
“It is quite unfair for PURC to put out the letter without sitting with us to know exactly what happened,” he fumed.
Despite the ECG’s unhappiness with the procedure by PURC, the MD said the company would compensate customers who could prove that they were impacted by the failure of their prepayment meter system.
He urged customers who were affected to use the appropriate channel by going to the PURC and lodge complaints.
“We will look into our system and whatever the meters tell us, we will do,” Mr Samuel Mahama assured customers.
Source: https://energynewsafrica.com
Africa Oil Week:Towards A Sustainable Development Of Africa’s Upstream Market…A Tullow Oil Perspective(Article)
Global energy leaders have gathered in the heart of Cape Town, South Africa, at the much-anticipated 2022 Africa Oil Week Conference to discuss various topics in the energy sector.
The Africa Oil Week is the largest annual gathering of energy experts and leaders on the African continent, where critical discussions are held leading to major policy and industry reforms. Over the last few years, the Africa Oil Week has seen major policy discussions that has impacted both national and private energy companies in areas such as energy transition, corporate governance, and regulatory compliance, among others.
Thus, starting from last Monday, 3rd to 7th October 2022, energy leaders are looking to reach renewed commitments and formulate a blueprint for the progress of Africa’s energy sector.
Of utmost importance will be the subject of the future of fossil fuels, which is carefully captured in the conference agenda titled: ‘Upstream African Market in 2022 and Beyond: Outlook for E&P on the Continent’. It is expected that this conversation will stimulate debate into the prospects of the upstream industry in light of recent global developments and projected trends.
For Tullow, the focus on Africa is not new. As an independent oil and gas exploration and development company focused on Africa, Tullow has taken the lead in highlighting the potential of Africa in the upstream sector. Tullow’s exploratory feat commenced in Africa with notable success and further development into a robust production company largely based in Africa. Therefore, the outlook of the African upstream sector is one that sits at the heart of its operations and for which its Chief Executive, Rahul Dhir will be looking to share some remarkable thoughts.
Given the global discussions about energy transition, one can only expect that the conversations surrounding the future of the upstream sector will be nothing shy of incorporating the continent’s readiness for the energy transition. In a few weeks the world will gather for COP27 for which so much more will be expected of the energy giants in driving global climate change discussions, especially as it relates to the continent. While many energy majors are pulling out of prospective economies, Tullow has taken the huge step of highlighting the prospects inherent in the continent, and the possibility of pursuing sustainable oil and gas development to support the growth economies within the region. Its bold energy transition plans; which include the reduction of its scope 1 and 2 emissions through improved efficiency on its assets and the pursuit of carbon offsetting measures, demonstrates a company ready to develop and produce oil in a sustainable way. That gives hope to a continent that still needs, to a large extent, dependence on the oil and gas sector for growth.
Of course, the lessons learnt from Tullow’s operations in West Africa, will come in handy in the panel on Spearheading the Way for Development on the Continent. Particularly, Tullow’s success in its Ghana operations, presents much more than the standard blueprint for market penetration and its related nuances, to exceptional success in managing complex stakeholder engagement, challenging and transformational operations and recording industry level achievements as the pioneer commercial oil producer.
But even so, beyond its Ghana operations, Tullow’s interest in E&P in Cote d’Ivoire and Gabon are equally reflective of the agility required to be successful in various markets across the region. What more could be an exemplary performance, than the ability to navigate complex, multi-faceted markets with success? This is definitely why Tullow’s gains in its West Africa operations stands, at the minimum, as a use case for industry learnings.
Current and changing global trends in workforce management points to the need for companies to adopt new ways of working. The workforce of the future is therefore a prominent topic for discussion at this year’s Africa Oil Week. Here, industry experts will be looking at the requisite skillset, infrastructure, culture, and tools needed to retain the dynamic workforce of the future.
The world is fast moving towards agile workplace and lessons from the covid-19 pandemic have showed the feasibility of such transition. Tullow has been a pacesetter when it comes to agile working, having introduced, and executed flexible working long before the covid-19 pandemic. There will certainly be lots of lessons to learn from other companies on the way forward. Tullow Ghana’s Deputy Managing Director, Cynthia Lumor will lead a panel discussion on the topic with a goal to:
- Review the changing trends in the workforce of the future – analysing the evolution of the workplace, its people, the culture, and the philosophies underpinning these evolutions and
- Unearthing the requirements for building resilient organisations and what will constitute distinction in the future of work
Ghana: VRA Sees Turnaround As It Books Gh¢112Million Profit In 2021
Ghana’s largest state power generation company, Volta River Authority (VRA), has recorded a profit of Gh112.76 million ($10,847,512) in 2021, making it the second time the company recorded gains in six years.
In 2020, the power producer recorded a net profit of Gh¢156 million ($15,007,200.00).
Board Chairman of VRA, Kofi Tutu Agyare, who revealed this at VRA stakeholder’s engagement in Accra, attributed the achievements to the company’s Financial Recovery Programme (FRP) and a Sustainability Plan.
He noted that despite challenges posed by the COVID-19 pandemic and other difficulties in the energy sector, these initiatives along with cost-reduction measures, technology and an aggressive export strategy, as well as the effective leadership of the board and the management team coupled with the commitment of staff, have significantly ensured the strong position VRA finds itself in.
The stakeholders commended VRA for the significant turnaround in its operations, noting that efforts of the board, the Chief Executive, management and staff in transforming the company, are rare in the public sector.
“A state institution moving from a negative to positive deserves a standing ovation. VRA, you have done very well! You deserve applause,” Samuel Atta Akyea, Chairman of the Parliamentary Select Committee on Mines and Energy, said as quoted by Business & Financial Times (B&FT).
In a bid to diversify and expand its operations, the Authority increased its energy generation footprints with the coming on-stream of the 13MWp Kaleo Solar PV Power Plant and 6.5MWp Solar PV plant in the Upper West Region.
By 2025, VRA hopes to increase its renewable footprint to 200MW.
Among the renewable projects soon to be rolled out are included a 60MW Bongo Solar Power project in the Upper East Region and a 75MW Wind Power Project at Anloga in the Volta Region.
Source: https://energynewsafrica.com
Ghana: Africa’s Energy Sector Needs Massive Investments -Says VRA CEO
The Chief Executive Officer of the Volta River Authority (VRA), Ing Emmanuel Antwi-Darkwa, has called on governments in Africa, business leaders and foreign investors who want to take advantage of the opportunities in Africa to invest massively in the continent’s energy sector.
According to him, access to energy remains a major developmental challenge in Africa and, therefore, underscored the need for greater commitment to making the energy sector effective and efficient since power is the heartbeat of every nation’s development.
Data from World Bank shows that over 600 million people in Africa still lack access to energy.
“Improving access to energy sustainably will not only lead to the development of the African continent but will also ensure the increased quality of educational outcomes, improved health, lower, mortality rate and reduce unemployment and potential decrease in rural-urban migration,” Ing Emmanuel Antwi-Darkwa stated in a speech read for him by Dr. Stella Agyenim Boateng, his Special Advisor, at the just ended Africa Energy Conference in Accra, Ghana.
Ing Antwi-Darkwa stressed the need for the continent leaders to pay particular attention to the emerging mix of technologies that will be needed to address energy scarcity in the sub-region.
“As a matter of urgency, we must start harnessing both renewable and non-renewable energy sources and other technologies including natural gas,” he said.
The maiden Africa Energy Conference was organised by Business & Financial Times (B&FT) under the theme: ‘Africa’s Energy Future -Achieving An All Round Competitiveness And Sustainability To Support The Continent’s Development Ambitions.’
It brought together experts and industry players to proffer solutions on how governments and the private sector can access financing to bridge the sector’s infrastructure gap, and achieve lower emissions and energy transition targets in line with the United Nations Sustainable Development Goals.
Touching on the above theme, Ing Emmanuel Antwi-Darkwa said efforts to promote energy sustainability should result in energy diversification.
“In recent times, energy sustainability has taken on several meanings and dimensions. However, in our VRA context, energy sustainability means to us the diversification of our power generation portfolio to take advantage of available and sustainable sources of energy, especially in the renewable energy space; namely hydro, thermal, solar, nuclear and wind,” he said.
To achieve this, Ing Antwi-Darkwa said VRA, the country’s largest power producer, initiated a programme that ensures a significant improvement of its operations by including serious business acumen in its power generation, delivery process and customer service.
Aside from this, he said the state-owned company has also revolutionised the fundamental structures of its business through digitalisation, creativity and innovation, business sustainability and a work culture pivoted on the mantra of public sector delivery with a private sector mindset.
Source: https://energynewsafrica.com
Nigeria: Group Demands Revocation Of Licences Of Discos
Two civil society groups in the Republic of Nigeria have asked the Buhari administration to revoke the licenses of Electricity Distribution Companies in the West African nation.
The two CSOs—Human Rights Liberty Access and Peace Defenders Foundation and the Campaign for Democracy, South East zone—said in a statement on Monday, 3rd October 2022 that the inefficiency of the electricity providers showed that the privatisation of that sector by the administration of former President Goodluck Jonathan was a “huge hoax and scam.”
They expressed shock that the All Progressives Congress-led by President Muhammadu Buhari, still allowed the fraudulent scam to continue nearly eight years after they took over the reins of power.
The group lamented that there is nothing electricity distribution companies provide for Nigeria except to exploit and extort Nigerians by charging crazy exorbitant bills and manipulating the prepaid billing systems.
They accused the DISCOs of introducing fast reading meters by replacing the old ones, while they have bluntly refused to meter those people who are still in estimated billings so that they can continue to exploit them.
They lamented that in the face of all these high charges, the services are abysmally and criminally poor as they refuse to supply power to the consumers even when there is an avalanche of power in the grid.
The rights group, however, noted that consumers have continued to bear the brunt of replacing packed-up transformers, and damaged parts and pay for the services rendered by staff or agents of DISCOs under duress and exploitation.
It said, “In the face of all these, the services are still abysmally poor. There is load shading everywhere and sometimes, there would be no light for several days, weeks and months due to minor faults, especially in Figge Onitsha, Onitsha, Iowa and Okpoko in Ogbaru LGA, Awada and Omogba in Idemili LGA, 33 among other areas.
“DISCOs have become conduit pipe and an avenue through which consumers are being exploited by the privileged few who bought over the companies from the Federal Government in the name of privatisation through estimated and crazy bills without providing light.
“For those using prepaid meters, the DISCOs have installed fast-reading meters that make power consumption for the customers very expensive and exploitative. In addition to the inbuilt system, they made the meters enter into what they call tamper code.”
The groups specifically accused the Enugu Electricity Distribution Company of corruptive distribution of power and load shading in some commercial and residential areas in the South East.
It also called for the immediate overhaul of the power system in Nigeria and the removal of feeder managers, managers, distribution managers, sectional heads and others involved in contributing to the poor power supply in the entire South-East.
“We called on the Federal Government to develop other sources of generating power such as solar as well as allow companies, organisations and individuals who can generate their power to do so and distribute without facing unnecessary bottleneck from the system.
“Unfortunately, the current administration has not demonstrated enough political will to improve the power supply in the country.
“They have not done anything to improve power in the country. They cannot even compel the DISCOs to carry out the Federal Government metering programme. And that is why estimated billing system persists as the major source of exploiting consumers,” the groups added.
Source: https://energynewsafrica.com
Nigeria: NNPC Declares N674bn Profit After Tax For 2021
The Nigerian National Petroleum Company (NNPC) Limited has declared a profit after tax of N674 billion(Equivalent of $1,556,940,000) for the financial year 2021.
Group Chief Executive Officer (GCEO) of NNPC Limited, Engr. Mele Kyari, who made the announcement via the verified Twitter handle of the company on Tuesday, said the development followed the approval of the 2021 audited financial statements by the Board of the oil company.
He added that the NNPC Limited has progressed to a new performance level from N287bn profit in 2020 to N674bn profit after tax in 2021, moving higher by 134.8% year on year profit growth.
Kyari also said the profit was driven squarely by upstream activities including oil and gas and power.
“We have recorded significant improvement in our financial performance over the past three (3) years, turning up the curve, from losses to profits.”
He also noted that the profit could have been more if not for the crude oil theft with the industry losing about 200,000 barrels per day to the menace.
Kyari said Nigeria had the capacity to do 2.4 million barrels per day but due to the issues which resulted in shut down of pipelines, the daily production is just around 1.2m bpd.
“The performance would have been greater if the operations in the year under review were free from incessant vandalism, crude oil and products theft among others.”
The Group Financial position recorded an increase in Total Assets from N15.86trillion in 2020 to N16.27triillion in 2021, while Total Liabilities decreased by 8.3% from N14.68trillion in 2020 to N13,46 trillion in 2021.
Shareholders fund position grew to N2.81trillion represent 144% Year-on-Year.
Source: https://energynewsafrica.com