The Government of Ghana has hinted of plans to investigate the award of US$164 million judgment debt to Ghana Power Generation Company (GPGC) by a commercial court in London.
The West African nation signed a Power Purchase Agreement (PPA) with GPGC during the previous administration led by His Excellency John Dramani Mahama to procure 107MW of power.
The PPA was, however, terminated by the current administration following recommendations by a committee constituted by the Energy Ministry to review all the power purchase agreements signed by the previous administration.
This development did not settle well GPGC which, consequently, filed a suit at the Arbitral Tribunal in London to challenge the government’s decision.
The Arbitrator, upon hearing the argument put forward by GPGC and the Government of Ghana, awarded GPGC a total of US$ 134,348,661 in respect of its Early Termination Payment claim.
This judgment debt has become a subject of media discussion with many Ghanaians raising concerns about it.
Commenting on the development on an Accra-based Joy FM, Ghana’s Attorney, Mr Godfred Yeboah Dame gave hint of his intention to lodge a formal complaint with the Criminal Investigations Department (CID) of the Ghana Police Service to investigate the circumstances leading to the award of judgment debt against the Government of Ghana.
“I, on account of all of this, am going to write a formal complaint requesting an enquiry by the CID into the conduct of the public officers who acted in the manner which resulted in the signing of an agreement which resulted in financial loss to the state.
“I think that first and foremost, the entry into the agreement itself was wrong. There was no justification because their own committee determined that the agreement was going to result in excessive power.”
Source: www.energynewsafrica.com
AMEA Power, a subsidiary of UAE-based Al Nowais Investments (ANI), has commissioned its 50MW solar photovoltaic (PV) plant in Blitta, Togo, marking the country’s first utility-scale renewable energy project developed by an Independent Power Producer (IPP), and one of the largest solar PV IPP plants in West Africa.
Officially named Sheikh Mohamed Bin Zayed, after His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, the PV plant has been delivered in record time, with just 18 months between the signing of the Power Purchase Agreement (PPA) and commencement of commercial operations.
His Excellency Faure Gnassingbé, President of Togo, and AMEA Power’s Chairman, Hussain Al Nowais, attended an inauguration ceremony today [22nd June 2021] at the power plant site. Other high-profile attendees included the Prime Minister of Togo, Victoire Tomegah Dogbé; Minister Delegate to the President of the Republic, in charge of Energy and Mines in Togo, Mila Aziable; Director of Compagnie Energie Electrique du Togo (CEET), Laré Santiégou; Senior Advisor to the President of Togo, Shegun Adjadi Bakari; President of the West African Development Bank, Serge Ekué; and the Deputy Director General of the Abu Dhabi Fund for Development (ADFD), Khalifa Al Qubaisi.
The power plant will be operated for 25 years by AMEA Togo Solar, saving more than 1 million tonnes of CO2 emissions over the course of its life. The plant is instrumental in supporting Togo’s ambitious US$8 billion 2018 – 2022 National Development Plan (NDP), which aims to achieve universal access to electricity by 2030 and to increase the share of renewables in the energy mix to 50%.
Hussain Al Nowais, Chairman of AMEA Power, commented: “We are delighted to launch the Sheikh Mohamed Bin Zayed PV plant and extend our congratulations to all those involved. Togo was an obvious choice for AMEA Power’s first operational power plant in Africa, with it being an important trade hub in West Africa, along with the government’s progressive regulatory framework for renewable energy projects, which was key in ensuring the completion of the project in a fast, efficient, and responsible manner. This is an incredibly exciting time for AMEA Power, and we are on track to becoming one of the fastest-growing renewable energy IPPs, with several additional projects set to achieve financial close in 2021.”
Mila Aziable, Minister Delegate to the President of the Republic, in charge of Energy and Mines in Togo, commented: “The development of the Sheikh Mohamed Bin Zayed PV plant is an excellent example of a successful Public-Private Partnership in Africa, with AMEA Power utilising Togo’s committed implementation unit and favourable investment climate to pre-fund a large-scale renewable energy project on balance sheet. We are delighted to have worked with a team of such highly-skilled professionals with demonstrated know-how in the energy sector.”
The project was supported with concessional loans from the West African Development Bank (BOAD) and the Abu Dhabi Fund for Development (ADFD). It was pre-funded on balance sheet, and then refinanced, a unique model for a large-scale IPP project in Africa. This is indicative of the level of project certainty created by the NDP’s regulatory framework, which provided AMEA Power with the necessary level of assurance and comfort to embark on the project’s execution well in advance of the financing being arranged.
Community Impact
The construction of the power plant helped to create local employment opportunities, with 80% of plant workers hailing directly from Togo.
AMEA Power also invested directly in community initiatives in Blitta, which positively impacted more than 100,000 people, by constructing (and providing equipment for) one new clinic and three new school buildings; renovating four schools; providing school supplies for 1,400 students; and installing a water pump at a local primary school. AMEA Power will provide electrification via solar power to the schools and clinic.
Moreover, AMEA Power’s internship programme brought 36 engineering students from various technical institutions in Togo to the Sheikh Mohamed Bin Zayed PV plant, preparing them for employment by giving them the opportunity to apply their theoretical knowledge and develop their practical skills in renewable energies.
In response to COVID-19, AMEA Power distributed essential food and hygiene products to 8,500 families in nine countries across Africa, including 1,100 families in Togo. AMEA Power also distributed food and hygiene products to a further 8,000 families during Ramadan this year, which reached 1,100 families in Togo.
Source: www.energynewsafrica.com
Residents in parts of Accra, capital of Ghana, will from Monday, 28th June to 19th July, 2021, experience interruptions in power supply which is expected to last for twenty-two days.
The power supply interruption will occur between 6pm and 12 midnight.
In a statement issued by Ghana’s Southern power distribution, ECG, it said the interruption in power supply has become necessary to facilitate the work of contractors as part of the project to improve power supply reliability and system voltages.
According to the statement, the exercise would result to the load to the Trasaccco Bulk Supply Point (BSP) being managed to enable the construction of towers at the Volta, East Accra and Achimota substations and also to complete the stringing and commissioning of a new double circuit 161kV Volta-Achimota Transmission line.
“This exercise will lead to a shortfall in transmission of power to Accra during the peak load hours,” the statement said.
Some of the areas to be affected are Adjiriganor, American House, Lister Hospital, Palm Wine Junction, La Beach Hotel, Greda Estates, Sidalco, Teshie Maamli and VRA flat.
“While calling on customers to bear the inconvenience with us, we pledge our commitment to completing the project on time,” the statement said.
Source: www.energynewsafrica.com
By Dean Foreman And NJ Ayuk
Throughout the 2021 economic recovery, API’s data have demonstrated the intertwined relationship between the nation’s recovering economy and affordable, reliable energy. Leading economic indicators have continued to rise, and along with them, so has oil demand – even as global oil drilling and investment have fallen.
According to the IMF and Bloomberg consensus of economic forecasters, global real GDP growth could average 4.8% in 2021 compared with 2020: its strongest expansion since 1976, when the price of Brent crude oil was just over $50 per barrel, adjusted for price inflation. Recent oil prices have been closer to $70 per barrel, and the key question now, is whether we have the energy to support such strong growth.
In that context, actions by the Biden administration that negatively impact or could impact oil and natural gas production appear detached from the critical need for secure, accessible energy:
• Suspension of oil drilling leases (https://n.pr/3wIBO9u) in the Arctic National Wildlife Refuge (ANWR).
• Paused (https://reut.rs/3vK3byO) new oil and natural gas leases on U.S. federal lands.
• Canceling (https://on.wsj.com/3xCSEH6) the Keystone XL pipeline.
• Red line (https://on.wsj.com/3iWwQBT) discriminatory proposed tax hikes on energy companies, singling them out from every other sector of the economy for higher taxes.
Limiting access to oil and natural gas reserves, canceling pipelines and neglecting energy infrastructure and targeting the energy industry for higher taxes – hampering investment and reinvestment – are all moves that should make us question where the energy we rely on every day is going to come from under this administration.
Energy makes economies – ours and the world’s – go. This linkage manifested as a massive energy surplus during the depths of the 2020 COVID-19 recession, and we’ve recently seen buoyancy in a positive direction as oil demand rebounded along with the economy, as we discussed here (https://bit.ly/3gLsif7).
Among wealthy economies like the U.S., restricting oil and natural gas production could adversely impact consumers but would not necessarily derail economic growth so long as imports remained affordable.
For many emerging economies, however, energy policies averse to fossil fuels are a direct assault on their development and potentially, have a negative impact on the lives of billions of people in the process.
Under the Paris climate agreement (https://bit.ly/3vNUX8K), many emerging economies signed on due to promises of financial assistance, technology transfers and capacity building. Having said that, the International Energy Agency (IEA) has now laid out a Net Zero by 2050 (https://bit.ly/3vO4egV) scenario calling for no – that is, zero – investment in fossil fuel supply projects starting today. Under this scenario, there would not even be natural gas-related investments, which have been the driving force for lowering power sector emissions over the past decade.
Yet, at the same time, IEA’s Oil Market Report (OMR) (https://bit.ly/2Uod3RN) for May 2021 candidly noted that “under the current OPEC+ production scenario, supplies won’t rise fast enough to keep pace with the expected demand recovery.”
For the past two quarters, we’ve continually said that oil demand was recovering in tandem with the economy; that U.S. and global oil demand earlier this year had already neared its pre-COVID levels; and, without more drilling and investment expected, economic growth and recovery could be a recipe for an oil shortage, as we detailed here (https://bit.ly/3h4uQoX).
If we weren’t emphatic before now, let’s be amply clear that the world needs energy, and our collective prosperity depends on it. Among affluent nations, the restrictions on oil and natural gas could spur upward pressure on prices and, consequently, headwinds to economic growth and prosperity that could disproportionately affect vulnerable households and their ability to make ends meet.
Energy requires investment, but recent investment levels raise alarms. In the first quarter of 2021, publicly listed natural gas and oil companies across the industry value chain collectively invested $38 billion, which was the lowest on record for any quarter since 2008 including the Great Financial Crisis.
Meanwhile, the U.S. queue of energy infrastructure projects under construction basically fell by half over the past year – to $174 billion currently from $344 billion one year ago, per API estimates. This says that, as some projects have been completed and others delayed or canceled, the flow of new multi-billion-dollar energy projects has frozen, which in turn means that many oil and natural gas projects that take years to build won’t be there when we need them.
It’s actually a global problem as worldwide energy investment and oil drilling have fallen to historic lows. Even in the Middle East and North Africa (MENA) region, where oil can be developed relatively rapidly and economically, energy investments committed between now and 2025 have fallen and lost share in relation to investments in other forms of energy per APICORP (www.APICORP.org).
For Africa and other emerging economies, a lack of energy could impair human and economic development. In fact, a dearth of investment coupled with a divestment campaign against oil and natural gas could be worse than the energy limitations imposed on Apartheid South Africa, denying them the ability to develop their own resources.
Moreover, the geopolitical balance that abundant energy supported – and the U.S. ostensibly values – will shift tectonically. Africa as a continent will be left at the mercies of China. The prospect of Beijing becoming the main source of outside financing for African oil, gas, and gas-to-power projects troubles many in the continent. African nations do not have to shy away from cooperation with China, they are sovereign nations. However, having multiple alternatives is key to drive more market and good governance reforms that the continent could use to advance its development.
Africa needs and should have a range of partners to work with, rather than fall into a pattern of not having to look further than satisfying China’s requirements. China has a less-than-stellar track record on environmental protection, despite being a signatory to the Paris climate accord, and it will be leading Africa.
Particularly for Africa and other emerging economies, which are broadly expected to shoulder the majority of global economic growth for decades to come, the policies that drive economics and energy are intertwined and foundational. We already see indications of an energy shortfall as the global economy recovers – and the Biden administration’s policies could exacerbate the situation and put energy security at risk, at home and abroad.
To move towards identification of emerging risks and provide a more forward-looking view, the focus on smart power technologies, cost-effective solutions, and the global drive towards a decentralized, decarbonized, and secure energy supply that addresses climate change and stimulates economic growth would be necessary steps to consider in the sector.
Dean Foreman, Ph.D., is a Chief Economist at API – American Petroleum Institute and NJ Ayuk, Executive Chairman of the African Energy Chamber
Ghana’s President, H.E Nana Akufo-Addo has confirmed the appointment of the former Minister for Zongo and Inner City Development, Dr Mustapha Hamid, as the new Chief Executive Officer of the National Petroleum Authority (NPA).
His appointment takes effect from July 1, 2021.
The news was communicated in a letter dated 17th June, 2021.
Prior to this, cousin of President Akufo-Addo Gabby Asare Otchere-Darko had hailed Dr Mustapha Hamid on social media as an honest person.
“To put it mildly, he is one of the most principled and honest human beings I have ever known in my life. A sacred trait I pray will guide and guard him for the rest of his life.
“Hamid is the kind of person when he takes campaign money, based on a budget, and he ends up spending less than that to do the same job, he brings back the change!
“I’ve known Hamid for over two decades now. He is admirably religious, disciplined but liberal. It is this personality quirk that allows him to get on well with people. But, he resents cheats and those he considers disloyal,” Gabby Asare Otchere Darko wrote on his Facebook when Mustapha Hamid celebrated his 50th birthday last week.
It would be recalled that energynewsafrica.com reported that Dr Mustapha Hamid had been appointed as the new CEO of NPA.
At a meeting at the Energy Ministry recently, he reportedly wrote his name as the incoming CEO.
The country’s downstream petroleum regulator, NPA, in a flyer sighted by energynewsafrica.com, confirmed the appointment of Dr Mustapha Hamid and congratulated him.
Source: energynewsafrica.com
Ghana’s second largest state power generation company, Bui Power Authority, has won five awards at this year’s HESS Awards night held in Accra, capital of Ghana.
The BPA won four awards while the Chief Executive Officer of the Authority, Mr. Fred Oware won the HESS CEO of the year award.
The awards BPA won are HESS Company of the YEAR, HESS Team of the Year, HESS Manager of the year and BEST Company in Employee Health Well-Being Initiative.
The HESS award is designed to identify, publicly recognise and celebrate outstanding companies for exceptional performance and innovations focused on occupational health, the environment and employee and stakeholder safety and security.
This year’s HESS Awards was on the theme: ‘Recognising outstanding achievements and celebrating business excellence and innovation focused on occupational health, safety, security and environment’.
Commenting on the awards in an interview with energynewsafrica.com via the telephone, Chief Executive Officer of Bui Power Authority, Mr Fred Oware noted that the awards were well deserved “because there are a number of things that we’re always doing to ensure the safety of the plant, workers and entire community to make sure that at the end of the day, we leave the plant in a safe environment.”
Continuing, Mr Oware said every year, the Authority engages medical doctors from the Korle-Bu Teaching Hospital to take head office staff through health screening exercises while doctors from the Wenchi Methodist Church Hospital are engaged to do same for the staff at the plant site at Bui and the entire community.
Touching on other measures they adopted which he believed contributed to BPA’s chances of winning the awards, Mr Oware explained that “when the Covid-19 started, we imposed travelling ban on all the staff. Those who were at the plant site couldn’t leave and those who were outside couldn’t come in. From that time till date, we have supplied all the staff and their dependents, as well as the communities around the dam site, essential vitamins to boost their immune system to make sure that even if anybody had the virus, the effects would be lessened.”
Mr Oware said the Authority also increased its medical counseling to staff by educating them on how they could prevent contracting Covid-19 virus and what they could do in case they contracted the virus.
He said they extended this to the members of the communities around the dam and also supplied them with alcohol–based hand sanitizers and soaps to enable them observe the covid-19 safety protocols.
According to Mr Oware, BPA also set up a Standing Committee for disease control which monitors Covid-19 situation in the country and other diseases and passed on the information to the staff.
Mr Fred Oware, CEO of Bui Power Authority (BPA)
“Every day since the start of Covid-19, we put information on disease control and everything we can pick from anywhere,” he said.
Apart from the efforts the BPA made in protecting the workers and the residents around the dam site, Mr Oware said management also improved on their maintenance culture by making sure that the Bui reservoir, equipment of the plant and its systems were properly maintained to avoid breakdown.
He believed those steps the Authority took caught the attention of the HESS Awards organisers and nominated BPA after doing their independent assessment of the measures put in place.
He commended the staff of BPA for supporting management in all the steps they initiated and adhering to the Covid-19 safety protocols management put in place for their safety.
“As a leader, I’m grateful to my staff for their contribution, having been through this whole thing and taking instructions and following whatever we said we were going to do and did not expose anyone to danger.
“My staff has done really well and I’m grateful to them. I thank them most sincerely and I want them to know that I appreciate them,” he said.
Source: www.energynewsafrica.com
Nuclear power is an indispensable part of the Biden administration’s plan to reduce carbon dioxide emissions by 52 percent over the next ten years, Energy Secretary Jennifer Granholm said at the annual general meeting of the American Nuclear Society.
“President Biden is absolutely committed to getting this country powered by clean energy, using every single clean energy tool available,” Secretary Granholm said, as quoted by World Nuclear News, adding that “Carbon-free nuclear power is an absolutely critical part of our decarbonisation equation.”
Nuclear power has a very low carbon footprint, but a bad rap has kept it outside the emissions-cutting spotlight.
There have been calls from the industry to include nuclear power in energy transition plans as experts argued that these plans will fail without nuclear.
Still, acceptance of this fact has been slow in coming for politicians, which makes Granholm’s statement a rare glimmer of hope for the nuclear industry.
Nuclear power in the U.S. has been increasingly going out of favor not just because of reputational problems but because of the abundance of cheap natural gas, which has compromised the competitiveness of many nuclear plants and has led to canceled plans for more capacity. This may change now with the Biden administration’s ambitious climate agenda.
The first step, Secretary Granholm said, is to preserve the existing nuclear capacity of the country, which generates a fifth of the total U.S. power output.
“DOE already works across the nuclear sector, which includes some of you. We work with you and we work with you on projects to reduce the operating costs and increase revenues from the nuclear fleet, and with this budget we’ve put USD175 million into these modernization efforts,” she said.
“A lot of it is going into developing and deploying new and improved fuels to enhance performance and to reduce costs. And we’re going to keep doing everything that we can to encourage our partners in the states to keep their reactors online.”
At the same time, the administration is looking into new nuclear power technology and has earmarked some $700 million for tapping their “huge potential”.
Source: Oilprice.com
The Africa Renewable Energy Fund II has achieved its first close at €125 million, following a joint investment of €17.5 million from The Sustainable Energy Fund for Africa and the Climate Technology Fund through the African Development Bank.
AREF II, a successor to the original Fund, is a 10-year closed-ended renewable energy Private Equity Fund with a $300 million target capitalization.
The Africa Renewable Energy Fund II, managed by Berkeley Energy, invests in early-stage renewable energy projects, thereby not only de-risking the most uncertain phase of power projects, but also promoting increased green baseload in Africa’s generation mix.
The Sustainable Energy Fund for Africa and the Climate Technology Fund will each contribute roughly €8.7 million to mobilize private-sector investment into Africa’s renewable energy sector.
The Sustainable Energy Fund for Africa will also contribute financing to the AREF II Project Support Facility, which funds technical assistance and early-stage project support to improve bankability.
Other investors include the U.K’s CDC Group, Italy’s CDP, the Netherlands Development Finance Company (FMO) and SwedFund.
“We are proud to be associated with Berkeley Energy and other like-minded investors, and look forward to AREF’s continued success and leadership in promoting sustainable power development on the continent,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.
In 2012, the African Development Bank selected Berkeley Energy, a seasoned fund manager of clean energy projects in global emerging markets to set up AREF. AREF II has a sharper strategic focus than its predecessor on “green baseload” projects that will deliver firm and dispatchable power to African power systems through hydro, solar, wind and battery storage technologies.
Luka Buljan, Berkeley Energy’s Managing Director, said: “We are very excited to have reached this milestone with strong support from our backers. The catalytic tranche from the Sustainable Energy Fund for Africa and the Climate Technology Fund will assist in mobilising private institutional investors up to full fund size of €300 million. We now look forward to concluding the fundraising and delivering projects that will provide clean, reliable and affordable energy across African markets.”
“AREF is intertwined with the Sustainable Energy Fund for Africa’s history and success, and we have worked closely over the last decade to create precedents in difficult markets and challenging technologies. We look forward to continued collaboration to accelerate the energy transition in Africa,” said Joao Duarte Cunha, Manager for Renewable Energy Initiatives at the African Development Bank and Coordinator of the Sustainable Energy Fund for Africa.
The Government of Ghana has paid about US$937.5 million to independent power producers (IPPs) in the West African nation as excess capacity charges in the last four years.
The country’s Finance Minister, Ken Ofori-Atta who appeared before the country’s Parliament last Thursday to answer questions on payments to IPPs, told the lawmakers that the payments were made to three companies.
These were AKSA, which received US$347.2 million; Karpowership, which was paid US$359 million and Cenpower, which received US$231.3 million.
The present government of the West African nation has been lamenting over huge amount of money it pays on capacity charges due to a ‘take or pay’ agreement the then administration signed with the IPPs.
The Director General of Ghana Atomic Energy Commission, Prof Benjamin Jabez Botwe Nyarko has indicated that Ghana has been applying nuclear technology for peaceful applications and wondered how some people would have erroneous perception that the Commission may be into the manufacture of atomic bomb.
According to him, the Commission was set up to champion the enormous benefits that can be derived from the atom and this has been the focus of the commission since its establishment.
He said Ghana has committed to the peaceful applications of nuclear technology by signing on to international conventions and treaties that empowers international bodies such as the International Atomic Energy Agency to inspect and monitor every activity of the Commission.
“You cannot engage in non-peaceful applications of nuclear technology in a secret way. You will be found out no matter where you’re doing the thing, so, atomic activities are not a secret activity,” he said during an exclusive interview with energynewsafrica.com.
“We have subscribed to Non-Proliferation Treaty (NPT) that we will not do anything apart from peaceful uses of nuclear applications,” he added.
The Ghana Atomic Energy Commission was established by an Act of Parliament, Act 204 of 1963, as the sole Agency in Ghana responsible for all matters relating to peaceful uses of atomic energy.
The Act 204 was amended in 1993 by PNDC Law 308 mainly to enable it to create other institutes under the Commission. This amendment resulted in the creation of two other institutes in addition to the National Nuclear Research Institute (NNRI), formerly Kwame Nkrumah Nuclear Research Institute (KNNRI), namely: the Radiation Protection Institute, and the Biotechnology and Nuclear Agriculture Research Institute (BNARI).
The founding Act 204 of 1963 has been superseded by Act 588 of 2000 to make provision for GAEC to undertake commercialisation of its research and development results. Currently, the commission has seven technical institutes engaged in various aspects of peaceful applications of nuclear technology.
Source:www.energynewsafrica.com
Petrosol, an indigenous Ghanaian oil marketing company, has paid a whopping GHS568 million as petroleum taxes.
This covers six years’ period between 2014 and 2020.
The Chief Executive Officer of Petrosol, Michael Bozumbil revealed this last Friday.
“We will continue to be a good corporate citizen. What we need from the state is your support so we can do more,” he said.
Petrosol has received triple ISO certification, thus, making it the first indigenous OMC to receive three certification.
The company received ISO 9001: 2015 for Quality Management System, ISO14001:2015 for Environmental Management System and ISO 45001: 2018 for Occupational Health & Safety Management System.
“This means that PETROSOL has internationally accepted systems and processes in place for procuring, storing, distributing and marketing fuel and lubricants that enable you, our cherished customers and consumers, receive clean fuel in full quantity and in safe and environmentally sustainable manner,” Mr. Bozumbil said.
Source:www.energynewsafrica.com
A federal judge in Louisiana blocked the Biden administration’s pause on oil and gas leasing on U.S. public lands and waters.
U.S. President Joe Biden signed an executive order in January to indefinitely halt new oil and gas leasing in federal lands and waters. This came only days after Biden temporarily halted leasing in the same areas.
The move was part of a sweeping plan to rein in fossil-fuel extraction and combat the effects of climate change.
This halt was heavily criticised by both the oil industry and producing states, as well as industry associations like the International Association of GeoChemistry, Independent Petroleum Association of America, and the American Petroleum Institute.
The review of the future federal oil leasing program by the Biden administration started in late March and will be completed in the coming days.
Fourteen states filed lawsuits to counter Biden’s decision.
Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Okahoma, Texas, Utah, and West Virginia filed one lawsuit in federal court in Louisiana.
The lawsuits allege the administration’s leasing pause violates the Mineral Leasing Act that requires quarterly lease sales.
The fourteenth state – Wyoming – filed its lawsuit in federal court in that state.
The Louisiana court ruled in favour of the thirteen states. According to Reuters, the judge’s decision, which applies to onshore and offshore leasing nationwide, will remain in effect pending the final resolution of the case or orders from higher courts, according to a court document.
Reuters said that, in the ruling, Judge Terry Doughty of the U.S. District Court for the Western District of Louisiana said the states had met the requirements to establish that they would suffer injury from the pause on new oil and gas leases with ‘millions and possibly billions of dollars at stake’. Doughty also stated that the states had a ‘substantial likelihood of success’ with their lawsuit.
The Louisiana Attorney General Jeff Landry called it ‘a victory not only for the rule of law but also for the thousands of workers who produce affordable energy for Americans’.
It is worth noting the political side of this as the states which joined Louisiana’s lawsuit were all states with Republican attorneys general. Biden, of course, is a Democrat.
The Interior Department said it would comply with the ruling but did not say when auctions might resume while the API urged the administration ‘to move expeditiously to follow the court’s order and lift the federal leasing pause’.
Source: offshoreenergytoday.com
Nigeria borrowed a total of N1.3 trillion (US$3,170,731,590.00) since 2017 to ensure that generation companies and gas suppliers received adequate funds to continue generating electricity.
A local newspaper, The Punch quoted a report by World Bank titled ‘Resilience Through Reforms’ as saying.
The World Bank said Nigeria’s power sector will cost the Federal Government an additional N3.08 trillion through 2023 if current performance levels and low tariffs persist.
“To ensure that Gencos and gas suppliers receive enough payments to continue generating electricity, since 2017, the FGN has borrowed a total of N1.3tn ($4.2bn).
“In 2019, total FGN support reached N524bn ($1.7bn), 0.4 percent of GDP – higher than the N428bn budget for health and just 20 percent less than the N650bn budgeted for education.”
The Bank noted that even though all the six generation companies and eleven distribution companies have been privatised, the Federal Government, through the Nigerian Bulk Electricity Trading Company, buys electricity from the GENCOs and independent power producers before reselling to the Discos.
According to the Bank, government through the Nigeria Electricity Regulatory Commission regulates tariff in the sector instead of allowing market forces to determine it.
It added that the transmission company of Nigeria was still strictly government-owned.
Nigerians pay less than the cost of production for electricity, the report said, adding that this resulted in revenue shortfall.
From 2015 through to 2019, the FG paid N1.68tn as cumulative tariff shortfall, it said, adding that because of foreign exchange depreciation and rising domestic inflation, tariff shortfalls had also been on the rise.
The bank said, “Every Nigerian who receives electricity from a Disco pays less for electricity than the cost of supplying it.
“However, 80 percent of the spending on tariff shortfalls benefits the richest 40 percent of the population; only eight percent benefits the bottom 40 percent, and of this, less than two percent benefits the poorest 20 per cent.
“Significant resources spent on funding tariff shortfalls disproportionately benefit the relatively wealthy who have access to the grid and use more electricity so that ultimately, a big chunk of government’s support goes to those who do not really need help with paying bills.”
The Bank said that 43 per cent of the population i.e. 85 million people lacked access to grid electricity, making Nigeria the nation with the world’s largest energy access deficit.
Source: www.energynewsafrica.com
Source: www.energynewsafrica.com
“I’ve known Hamid for over two decades now. He is admirably religious, disciplined but liberal. It is this personality quirk that allows him to get on well with people. But, he resents cheats and those he considers disloyal,” Gabby Asare Otchere Darko wrote on his Facebook when Mustapha Hamid celebrated his 50th birthday last week.
It would be recalled that energynewsafrica.com reported that Dr Mustapha Hamid had been appointed as the new CEO of NPA.
At a meeting at the Energy Ministry recently, he reportedly wrote his name as the incoming CEO.
The country’s downstream petroleum regulator, NPA, in a flyer sighted by energynewsafrica.com, confirmed the appointment of Dr Mustapha Hamid and congratulated him.
Source: energynewsafrica.com
