Transition To Renewable Energy Is Not An European Solution, It Is In Africa’s Interest – IES AnalystsWhile the global search for a vaccine to conquer coronavirus lingers, many discussions fail to include a critical factor which enables most of the measures deployed to combat the disease to be effective. The availability of adequate, quality and reliable electric power is this critical factor. It is required to ensure that ‘lockdown’ directives are successful and to give people infected with the virus, a better chance to go through prescribed treatments and achieve recovery. It is Power that ensures that potable water flows through taps, to use for the regular hand-washing exercises needed to fight the disease. Health Facilities, Emergency Care Centres, factories that produce sanitizers and PPEs, etc, need sustainable electricity supply, while electricity in homes makes people comfortable enough to stay at home and curtail non-critical outdoor activities. Like oxygen, it is easy to forget the worth of electricity when it is available. The unavailability of quality and sustainable electricity breeds poverty, poses security threats and stunts economic growth. Indeed, global access to electricity is envisioned as critical for the World’s sustainable development and is underscored in SDG 7, among the United Nations’ 17 Sustainable Development Goals (SDGs). It is for these reasons that the Ghana Power Compact, signed between the Governments of Ghana and the United States, through its Agency the Millennium Challenge Corporation (MCC), is providing Ghana with funding of US$308 million for investments in her electricity distribution system, and thereby make it reliable and available for use, not only to propel economic growth but also to equip and make Ghana ready to meet challenges like those posed by the COVID-19 pandemic and other natural disasters. The five-year Compact Program, which became operational in September 2016, was developed at a time when Ghana suffered an unprecedented power availability crisis. Funds under the Compact Program are being disbursed across four key Projects to build infrastructure that will improve the quality and reliability of electricity supplied to homes, factories, businesses, markets, economic enclaves, institutions and health facilities among others. The major infrastructural interventions include the construction of two large Bulk Supply Points (BSP) at Kasoa and Pokuase, to forestall overloads at the distribution service points in ECG’s Southern Region and to meet the high projections for electricity demand in future. On completion, communities and towns in and around Kasoa and Pokuase will experience significant improvements in the adequacy, quality and reliability of supply, as well as reductions in power outages. The construction of two vital Primary Substations at Kanda and in the University of Ghana, Legon, all close to three critical health facilities – the 37 Military Hospital, the Greater Accra Regional Hospital, the new University of Ghana Teaching Hospital and the Noguchi Memorial Institute for Medical Research, a major testing Centre for COVID-19, will be helpful in meeting the power supply needs of these facilities. These are the frontline health facilities supporting the fight against this deadly pandemic as inputs into the resources needed in the effective management of Ghana’ health delivery infrastructure. These prioritized Projects also highlight the Compact’s objective of improving the quality of life in all the beneficiary communities and ensuring that power is always available at the beneficiary Institutions to allow all to have access to quality health care at all times. “The Compact’s flagship Projects, now under construction, will fill an infrastructure gap with assets that will contribute to the resolution of the perennial power supply challenges experienced by the beneficiary health facilities, enabling these critical facilitates to fulfil their full obligations as life-saving facilities”, said Martin Eson-Benjamin, Chief Executive Officer of the Millennium Development Authority (MiDA), the Accountable Entity for the implementation of the Power Compact Program. Besides, the provision of some vital power supply assets, the Power Compact’s Race to Retrofit Program, is also helping some public Institutions to reduce their energy costs by an estimated 30 per cent. The intervention is replacing high energy-consuming appliances such as refrigerators, air-conditioners, fans and lighting systems in these Institutions with energy-efficient types, at an estimated cost of US$3.0 million. The Korle-Bu Teaching Hospital, the Adabraka Polyclinic and the Ministry of Health are the primary beneficiaries of the Race to Retrofit Activities, together with three others, namely; the Ministry of Education, the Department of Urban Roads, the University of Ghana and the Ghana Education Service’s Head Office Building. Ms Esther Tetteh, Administrator for the Child Health Department at Korle-Bu, lauds the Compact’s intervention and confirms that most of their electrical appliances were obsolete, consequently the cost of maintaining them was high. The retrofitting initiative by MiDA would therefore significantly reduce the Department’s maintenance costs and their energy consumption. The intervention carried out in four blocks of Korle Bu, the nation’s premier hospital, will also reduce the Hospital’s electricity consumption, estimated at 2.8 million kilowatt/hour per year, by 40 per cent. Collectively, the three Health Institutions could save over GHS 2million of their annual energy costs. As Ghana makes progress in its fight against the COVID-19 pandemic, the importance of electricity in providing access to quality health care for Ghanaians cannot be overlooked. Through the Ghana Power Compact Program, it is expected that the investments now being made into the country’s power distribution infrastructure, shall result in a resilient and brighter Ghana. Source:Millennium Development Authority (MiDA)
Ghana Power Compact: Providing Vital Power Infrastructure To Meet Ghana’s Development Needs
Very few people across the world expected to begin the year 2020 locked up in their homes, and faced with restrictions on some of their social freedoms. While many heard the news about the soaring coronavirus infections in China in December 2019 and the early months of 2020, there was little expectation that the disease, named COVID-19 will turn out to be a pandemic.
Even prior to the time when the World Health Organization (WHO) had recognized more than 11 million confirmed cases and over 500,000 deaths in 216 countries as at July 6, lockdowns and restrictions on social activities, especially movements across borders had become a common global feature. Ghana was not an exception. Ghana’s confirmed case count reported by the Ghana Health Service as of July 6, 2020, shows over 20,000 infections, more than 14,000 recovered and 122 deaths.
As part of the measures to fight the spread of the COVID-19 disease, people all over the world have been strongly advised by the WHO and their Governments to observe certain protocols, including social distancing, washing their hands or cleaning them with alcohol-based sanitizers, and wearing face and nose masks. Additionally, the protocols advise on covering the mouth and nose when coughing or sneezing, self-isolating if one develops symptoms or is asymptomatic, while persons who contract the disease are quarantined and given emergency care.
Nigeria: Federal Gov’t Never Promised To Keep Fuel Price Permanently Low — Petroleum Minister
Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Sylva, has clarified the stance of the Federal Government concerning the deregulation of the downstream petroleum industry and the recent hike in price of petrol.
According to him, at no time did the Federal Government promised to keep the price of petrol permanently low.
The clarification follows concerns being raised by the Nigeria Labour Congress (NLC), the United Labour Congress (ULC), other labour bodies and trade unions over uncertainty in the deregulation policy.
The interest groups called on the government to immediately reverse the recent hike in the price of petrol.
However, in a statement issued in Abuja Thursday, Chief Timipre Sylva noted that after a thorough examination of the economics of subsidising Premium Motor Spirit (PMS), also known as petrol, for domestic consumption, the federal government concluded that it was unrealistic to continue with the burden of subsidizing PMS to the tune of trillions of Naira every year.
This, he said, becomes even more relevant, especially as subsidy was benefiting in large part, the rich, rather than poor and ordinary Nigerians.
He, however, maintained that the government was mindful of the likely impact PMS prices would have on Nigerians, adding that to alleviate this, the government was working very hard to roll out the auto-gas scheme, which would provide Nigerians with alternative sources of fuel and at a lower cost.
According to Sylva, when crude oil prices were down, government, through its regulatory functions ensured that the benefits of lower crude oil prices were enjoyed by Nigerians by ensuring that PMS price was lowered, adding that at that time, the government indicated that increasing crude oil prices would also reflect at the pumps.
He blamed fuel subsidy for the low refining capacity in the country, noting that subsidy made it impossible to attract the much-needed investments into the refining sector.
He said, “This is a necessary action taken by a responsible government in the overall interest of Nigerians. Indeed, one of the reasons we have been unable to attract the level of investments we desire into the refining sector has been the burden of fuel subsidy.
“We need to free up that investment space so that what happened in the banking sector, aviation sector and other sectors can happen in the midstream and downstream oil sector. “We can no longer avoid the inevitable and expect the impossible to continue. There was no time Government promised to reduce pump price and keep it permanently low.”
He called on Nigerians to ignore the antics of unscrupulous middlemen who would want status quo to remain at the expense of the generality of Nigerians.
He added that in addition to attracting investments and creating jobs and opportunities, the deregulation policy would free up trillions of naira to develop infrastructure instead of enriching a few.
He said, “Deregulation means that the Government will no longer continue to be the main supplier of petroleum products. But will encourage private sector to take over the role of supplier of Petroleum Products.
“This means also that market forces will henceforth determine the prices at the pump. In line with global best practices, Government will continue to play its traditional role of regulation; to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers; a regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates. “Petroleum products are refined from crude oil.Therefore the price of crude (the feedstock) for the refining process will affect the price of the refined product.”
Source: www.energynewsafrica.com
Tanzania: Total MD, Two Others Arrested In A Meeting
Total Tanzania’s Managing Director, Jean-Francois Schoepp, Puma Supply Manager, Adam Eliewinga, and Oryx’s representative, August Dominick were, last week, arrested by security forces in Tanzania and taken into custody for interrogation.
The arrest happened while the three were in a consultative meeting between oil marketers and the Energy and Water Regulatory Authority (Ewura) in Dar es Salaam.
The African Energy Chamber has expressed concern over the development and is calling for the respect of the rule of law in the East African nation.
Given how critical these times are and the ongoing economic crisis across the continent because of the Covid-19 pandemic, the Chamber is hoping for a quick and amicable resolution to such disagreements that are detrimental to Tanzanian citizens.
“We hope that any ongoing disagreement between oil marketers and the Tanzanian government will be quickly resolved so everyone can get back to business to provide services to Tanzanian consumers. The Chamber has repeatedly applauded Tanzania for its strike in discovering significant gas resources. With the right infrastructure, Tanzania’s natural resources could transform the country into an oasis of energy growth.
“We do not want to see such isolated incidents affect the attractiveness of the country for foreign investors and ultimately affect its energy independence and slow down jobs creation,” Nj Ayuk, Executive Chairman at the African Energy Chamber, said.
According to the Chamber, it is open to assisting all parties in reaching an amicable solution to ongoing disagreements and calls on all stakeholders to promote a stronger dialogue on ongoing matters of fuel supply across Tanzania.
Source:www.energynewsafrica.com
Sudan: First ‘Solar Lab’ To Provide Testing For Solar Technology Launched
Sudan has launched its first solar laboratory with the aim of providing testing and certification services for solar energy technology.
The lab’s core function is to ensure the quality and longevity of imported solar systems and support Sudan’s solar revolution.
Speaking at the opening ceremony Dr Omar Abdullah Ibrahim who is the director of planning and studies at SSMO indicated, “The opening of this facility constitutes a great leap forward in the renewable energy sector in Sudan.
“The establishment of the laboratory and the setting of standards for solar energy systems enables SSMO to ensure that imported solar systems conform to the approved technical and environmental standards,” he added.
With many of Sudan’s imported solar systems being refurbished, testing guarantees the quality, authenticity and reliability of these products, which will provide up to 20 years of renewable energy for Sudanese users.
The Solar Lab, funded by the Global Environment Facility (GEF), UNDP, SSMO and Ministry of Energy and Mining, will test and certify 20-30 imported solar panels, systems and solar-powered water pumps per day – with thousands already destined for Sudan’s agricultural sector.
The lab’s establishment follows the creation of national, globally-aligned solar technical standards by the SSMO, and will also support solar technology research and technical improvements.
“Sudan has an opportunity for a solar revolution, transforming agriculture, transport and many other sectors,” Selva Ramachandran, UNDP Sudan’s resident representative said.
“Solar energy can unlock economic potential, break reliance on petroleum products with their fuel and subsidy costs, create jobs, boost productivity and protect the environment. In Northern State, an agricultural solar power trial increased productivity and land use by almost 50%, while eliminating fuel costs, and crop loss due to limited fuel supply.”
Ramachandran continued: “Facing the socioeconomic impacts of COVID-19, we must build forward. Solar energy is one way to make that happen, and the Solar Lab is a crucial step.”
In addition to funding, SSMO and the Ministry have contributed a team of technical experts and engineers for the lab’s operation – supported with UNDP training – as well as land and equipment. Additional engineers from the University of Khartoum have been trained and will be involved in the lab’s operations.
SSMO is a Government of Sudan entity established to coordinate Sudan’s engagement with regional and international organisations, including the International Standards Organisation (ISO), SSMO operates 15 testing and certification laboratories across Sudan.
Adding solar technology expands SSMO’s mandate and expertise, ahead of the UNDP / Global Environmental Facility roll-out of 1,469 solar-powered water irrigation pumps to farms in Northern State by 2021.
The Solar Lab and Solar for Agriculture initiatives are part of UNDP Sudan’s broad efforts to drive solar and wind energy in agriculture, transport, housing, and infrastructure. Combined, UNDP Sudan aims to reduce climate impact and reliance on imported fossil fuels, generate livelihoods and increase Sudan’s economic potential.
Source:www.energynewsafrica.com
Ghana Sleeping On Renewable Energy Adoption (Article)
By: Beatrice Annangfio
“All across the world we are noticing growth. Technology growth is the driving principles that are developing renewable energy resources. But Ghana seems to be missing in the puzzle. Renewable energy is a fright to policy makers” – Nana Amoasi VII, IES Executive Director.
Across the world, access to energy is deemed as essential for the promotion of economic growth and reduction of poverty. Modernizing agriculture, increasing trade, empowering women, saving lives, improving transportation, expanding industries, and powering communications, all require abundant, reliable and cost-effective energy access (Sakyi, 2019). Africa, the second most-populated continent in the world, has substantial renewable energy resources, most of which are under-exploited (United Nations, 2020).
The United Nation (UN), opined that based on the limited initiatives that have been undertaken to date, renewable energy technologies (RETs) could contribute significantly to the development of the energy sector in major parts of Africa.
According to the body, renewable energy provide attractive environmentally sound technology options for Africa’s electricity industry. The technologies could offset a significant proportion of foreign exchange that is used for importing oil and fuel for electricity generation in most African countries.
This means that Africa, including Ghana, cannot and should not rule out the enormous benefits associated with renewable energy within the energy mix, having regard to the special circumstance of the necessities and capacity of the continent regarding demand for energy.
Ghana: Enclave Power Company Replies Steel, Cement ManufacturersAlthough, Ghana abounds with renewable energy resource potential, particularly biomass, solar and wind, and to a lesser extent small and mini-hydropower (IRENA, 2020), the bulk of this potential remain largely untapped, according to Ghana’s Ministry of Energy. The country’s National Energy Policy objective of using renewable energy for 10 percent of total energy production by 2020, which has recently been amended to 2030, was translated into the Generation Master Plan as 10 percent of the electricity generation mix. This focused exclusively on grid-connected applications, essentially 6 percent dispatchable and 4 percent variable renewable energy power. Investor interest in developing variable renewable energy power has increased at a time when thermal power generation is expensive and backup capacity in nearing zero. The time has therefore come for the Government of Ghana (GoG) to assess the grid conditions to accommodate variable renewable energy. This will further help establish technology-specific targets and related definite capacity additions, thereby increasing market confidence and competition. This may lead to reductions in power generation costs. The Senegal Example While Ghana fails to tap into its renewable energy potential, Senegal seems to have found the relevant steps to explore all possible and untapped potential in the country, and could be said to be leading in the quest to explore renewable energy as part of the energy mix. In February 2020, the first large scale wind farm in West Africa was inaugurated in Senegal. His Excellency (HE) Macky Sall, Head of State of Senegal, inaugurated the first part of the 158MW Taiba N’Diaye wind farm, which was developed by United Kingdom (UK) based company Lekela Power. During the opening procedure, Macky Sall is reported to have enthusiastically mentioned that this is only the first step in making Senegal a country which will in the future mostly rely on renewable energies, and making a strong commitment to extend as quickly as possible the Taiba wind farm. The project, once fully operational, will provide clean, cheap and reliable electricity for around 2 million people in Senegal. The government of Senegal has made the development of the power sector a key component of its plan to make the West African country an emerging economy by 2025. One of Senegal’s priorities for achieving this is increasing access to electricity, particularly in rural areas through wind power and solar photovoltaics (PVs); the conversion of light into electricity, according to the country’s 2018 energy policy. Ghana’s Case While the Lekela project developed throughout the past years was inaugurated, a similar development of Lekela in Ghana sits, waiting for the green light from Cabinet and Parliament to proceed. The 225 Megawatts (MW) wind farm at Ayitepa, which was developed by the Swiss company NEK Umwelttechnik AG for Lekela Power, is said to have procured all required permits and authorisations in order to be implemented and constructed. But despite all these attempts to explore our untapped potential in renewable energies, the Government of Ghana has not exuded the needed support for the project, and to make the country a renewable energy hub. Suffice it to say that, in its budget statement presented by the Finance Minister, Ken Ofori-Atta on March 02, 2017, in clause 468, indicated that Government will facilitate the development and implementation of the Ayitepa project. The implementation of this paper is yet to be made manifest outside the books. The said Ayitepa project could have been ready to be built by end of 2017 if Ghana had not gone to sleep on its renewable energy commitment. Costs According to the IRENA, more than 50 percent of the renewable capacity added in 2019 achieved lower electricity costs than new coal. Solar photovoltaics (PV) reveals the sharpest cost decline over 2010-2019 at 82 percent, followed by concentrating solar power (CSP) at 47 percent, onshore wind at 40 percent, and offshore wind at 29 percent. Also, electricity costs from utility-scale solar PV dropped 13 percent year-on-year, reaching nearly 7 cents (US$0.068) per kilowatt-hour (kWh) in 2019. Onshore and offshore wind both fell about 9 percent year-on-year, reaching US$0.053/kWh and US$0.115/kWh, respectively, for newly commissioned projects. There is overwhelming literature to support that renewable energy comes at a cheaper cost compared to fossil fuel. This is perhaps why Lekela even offered to Electricity Company of Ghana (ECG) a price of 8.9 US Cents per kWh for the sale of the wind electricity. But be that as it may, there has been no further commitment on the part of Government towards the implementation of this project. This means that the Ghanaians and local industries would still have to pay very high prices for their electricity because the Government concluded with Independent Power Producers (IPPs), who use gas or oil (fossil fuels) for their plants, offtake agreements for exorbitant high prices. While Senegal changes its old and outdated electrical generation plants to renewables, the Ghanaian Government is obviously sleeping. It continues to rely on old, expensive and outdated power plants, when the future will only belong to renewables. The success story of Senegal should be an indicator that clean energy is possible, feasible and a viable alternative in the energy mix. The Swiss project developer NEK has also other wind energy projects in Ghana under development, such as the 200MW Konikablo wind farm. This project is also ready for construction, awaiting few permits from government. Barring the lukewarm attitude of government, produced electricity from the project would have been ready to be fed unto the West Africa Power Pool (WAPP) for possible exports to surrounding countries for use. This means that aside being available for local consumption, surrounding countries stands to profit from this cheap and reliable electricity produced from Ghana. As it stands now, the Ghanaian population would have to wait even longer to get cheap and reliable electricity. It is therefore overdue that the Government changes its outdated, old fashioned attitude to support only polluting, expensive and unreliable power plants. Government’s Expected Role Maybe someone must tell Mr. President not to sleep any longer on this essential commodity which could provide abundant, reliable and cost-effective electricity access. He must wake up and provide the necessary approval so the country can proceed to implement renewable energies, otherwise, Ghana will lose its pre-dominant role in West Africa. The International Renewable Energy Agency (IRENA) has taken note of the acceptance of renewable by the local populace, and therefore calls on Government to facilitate the spread of renewable energy technologies. What is required of Government is an established set of end-user access facilitation options, which could include targeted subsidies and deferred payment schemes that could be pre-financed directly by service providers or through a microfinance institution. It also needs to establish sound business models for both stand-alone systems and mini-grids to increase the viability and sustainability of decentralised renewable energy projects, and provide access to electricity services in rural Ghana. It is hoped that this can be achieved by getting the Renewable Energy Fund (REF) up and running alongside other financing support mechanisms like group lending approaches and sustainable credit programmes for low-income operators and farmers. Researchers should be supported in designing prototypes for solar dryers that could be manufactured locally. The government is also to lead awareness-raising campaigns and communications strategies, improving end-user knowledge of the new opportunities and benefits of off-grid renewable energy systems. A critical look at the role of Government as espoused by the IRENA, proves that the government has a dominant role to play to make renewable energy as alternative source of energy within the energy mix. Therefore, the Government must show the same effort and commitment to renewable energy as they have shown for non-renewable energy sources over the years. It is imperative to say that if Government must meet its National Energy Policy objective of using renewable energy for 10 percent of total energy production by its new set target for 2030, then it ought to do more than what the country is currently experiencing. Written by Beatrice Annangfio, Institute for Energy Security (IES) ©2020 Email: [email protected] The writer is a Private Legal Practitioner working with the IES as an Analyst with the Policy and Sustainable Energy Transition Desk.
Ghana: GRIDCo Begins Mass COVID-19 Testing After A Staff Tested Positive
Ghana’s power transmission company, GRIDCo, will from today, Wednesday, July 8 begin a mass testing of its employees at the head office in Tema for the novel coronavirus after a staff of the company tested positive for the contagious disease.
According to GRIDCo, it was informed last Monday that a staff at its Tema office had tested positive for COVID-19.
The company’s Covid-19 Management team has, thus, started a comprehensive contact tracing process within the company and elsewhere in order to ensure appropriate measures are taken to protect lives of those likely to have met the infected person.
Nigeria: IBEDC Decries Vandalism Of 38 Transformers, Other Electrical Installations In Four MonthsIn line with this, a decision has been taken to undertake mass testing of all staff who have been to the Tema office enclave since Monday, June 15, 2020. “This will enable us to immediately identify, isolate and treat employees who may test positive. “The company urges all staff to continue to adhere to the Covid- 19 safety protocols,” the company said in a Memo to staff. Source:www.energynewsafrica.com
Ghana: GRIDCo To Undertake Mass COVID-19 Test After A Staff Tested Positive
Ghana’s power transmission company, GRIDCo, is carrying out a mass testing of its employees at head office in Tema for the novel coronavirus after a staff of the company tested positive for the contagious disease.
According to GRIDCo, it was informed on Monday that a staff at its Tema office had tested positive for COVID-19.
The company’s Covid-19 Management team has, thus, started a comprehensive contact tracing process within the Company and elsewhere in order to ensure that appropriate measures are taken to protect the lives of those likely to have met the infected person.
Ghana: GRIDCo Appoints Florence Nuamah Agyei As New Human Resource DirectorIn line with this, a decision has been taken to undertake mass testing of all staff who have been to the Tema office enclave since Monday June 15, 2020. The company has scheduled the mass testing to begin on Wednesday, July 8, 2020. “This will enable us to immediately identify, isolate and treat employees who may test positive. “The company urges all staff to continue to adhere to the Covid- 19 safety protocols,” the company said in a Memo to staff.
Mozambique: Eight Subcontractors On Total’s LNG Project Killed By Militants
Eight workers of a firm subcontracted by oil and gas giant, Total, to work on its $20-billion liquefied natural gas (LNG) project in Mozambique have been killed by gunmen.
Fenix Constructions Service, which is Total’s subcontractor announced the killing in a statement.
“On Saturday 27th June, a vehicle belonging to Fenix Construction, a company that operates in Palma, was attacked by five insurgents, approximately four kilometres north of Mocimboa da Praia in Cabo Delgado (province),” the company said.
Eight of the 14 people in the vehicle were killed, three survived and three others are still missing, according to the company.
Total is developing the Mozambique LNG project, whose final investment decision was taken in 2019.
The project is on track to deliver first LNG in 2024, the French oil and gas major says.
Total is the operator of the project which is also expected to generate revenue to help Mozambique’s economy.
Even though militant attacks continue in the country, Total is not giving up on the project nor are other companies.
In March this year, militants attacked a town in Mozambique close to large LNG projects under development, local police said. Unidentified militants occupied the city of Mocimboa da Praia, which is located 38 miles, or 60 kilometers, south of LNG projects being developed by major oil and gas companies, including ExxonMobil and Total.
Last year in February, militants attacked Anadarko’s LNG project in what was the first such attack on the local oil and gas industry.
Militant attacks are not discouraging operators from looking into opportunities in the LNG market in Mozambique. Japan, for example, is reportedly considering investing some $14 billion (1.5 trillion yen) in liquefied natural gas development in Mozambique, in partnership with the business.
Source:www.energynewsafrica.com
Transition To Renewable Energy Is Not An European Solution, It Is In Africa’s Interest – IES Analysts
The energy landscape’s transition to renewables is a global panacea for the high energy cost and sustainable development, and not a European solution.
Policy makers in Africa must as part of the exploitation of fossil fuels consider also the abundant renewable energy resources, freely at their disposal. Countries in the West and the oriental have gone ahead of Africans in the exploitation of these natural and greener resources because of the immense cost-savings it brings to their economy.
The inclusion of renewables in the continent’s energy mix is key in addressing not only energy supply need, but to replace costly fossil-fueled thermal power plants with more greener and cheaper types, with added advantage of domestic economic opportunities.
Recent reports from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) points to a declining solar and wind power costs, complementing the more mature bioenergy, geothermal and hydropower technologies; thanks to improved “technologies, economies of scale, increasingly competitive supply chains and growing developer experience.
Data from IRENA indicates that solar photovoltaic (PV) prices based on competitive procurement could average close to 4 cents (US$0.039) per kilowatt-hour for projects commissioned in 2021, down 42 percent compared to 2019, and more than one-fifth less than the cheapest fossil-fuel competitor like coal-fired plants.
Africans must accept that as renewable energy costs continue to fall, renewable power generation is increasingly becoming the default source of least cost new power generation. Renewable power generation technologies according to IRENA, are not just competing head-to-head with fossil fuel options without financial support. As a result they are undercutting fossil fuels in many cases by a substantial margin.
To achieve macro-economic stability, spur growth and move the continent of Africa beyond aid, reliable and affordable power supply has to increase significantly, while relevant power infrastructure is expanded. Researchers in the field of science have long established the energy-development nexus. That sustainable energy supply is a catalyst for sustainable development because it directly impact key indicators such as water supply, health, communication, education, food supply.
Africa petroleum handlers must not be seen to be against renewables, neither should anyone make unfounded claims against fossil fuels. Both sources of energy have a unique place in the global energy equation, and luckily Africans, they have both resources in abundance. While guarding against devaluation of their petroleum resource, Africa’s policy makers and petroleum handlers must not lose sight of adding value to the abundant wind and solar resources at their disposal; the green resources which the Europeans, the Asians and the Americas have less of, yet found them as the most clean, economical and sustainable energy option for power generation.
In fact, it is in the interest of Africans to use more of their abundant renewable energy resources to meet the continent’s energy requirement, instead of importing those huge volume of oil and fuels to power thermal plants. Maximizing Africa’s industrialization and for that matter job creation, is not dependent on the exploitation of its petroleum resources, but rather the availability of reliable and affordable power supply (which can easily be harnessed from its renewable energy resources) to meet the energy need of its growing population.
Eni To Take Up $4 Billion Impairment Hit Due To Lower Oil Price Outlook
Italian oil major Eni is expecting to report impairments of around 3.5 billion euros (cca. $3.96 billion) as a result of a lower outlook for energy prices.
Eni said on Monday that it was cutting its forecasts for oil and gas prices, both in the short and long term.
The company is assuming that the long-term price for Brent would stand at a long-term price $60 a barrel from 2023 onwards, down from a previous forecast of $70.
For the years 2020-2022, Brent prices are expected respectively at $40, 48, and 55 per barrel, compared to the previous assumptions of $45, 55, and 70 per barrel
Eni added that it was still working on its assessment of the impairments and that the estimate might vary by around 20 per cent, up or down.
Of the pre-tax impairment charges estimated at $3.16 billion, the Italian firm expects write-downs of about $2.26 billion related to its upstream assets and around $900 million in its refining operations. The estimate also includes devaluation of tax credits of around $790 million.
South Africa: Sasol Invests In Chemical And Energy Portfolios Instead Of OilThe amount of the estimated impairment losses are expected to be recorded in Eni’s consolidated results for the second-quarter 2020 due to be released on 30 July 2020. Eni added on Monday that the market developments linked to the spread of the COVID-19 pandemic made the robustness of the company’s strategic path and its long-term choices even more compelling. The distinctive element of this strategy is the fixed 2050 absolute emissions reduction target of 80 per cent covering all of the company’s products. This is well above the 70 per cent threshold indicated by the IEA in the Sustainable Development Scenario that tracks the reduction of emissions compatible with the Paris Agreement. Claudio Descalzi, Eni’s CEO, said: “We confirm our strategy to become a leader in the decarbonization process, notwithstanding the enduring impacts of the COVID-19 pandemic on the global economy and the company. “We are assessing how to speed up our plans. This ongoing evolution will allow the company to achieve a better-balanced portfolio, reducing the exposure to the volatility of hydrocarbon prices, while progressing towards our targets of sustainability and profitability. “Our changed long-term assumptions reached four months after the outbreak of the COVID-19 pandemic, reflect our current expectations about future prices and will be incorporated in our processes of capital allocation”.
Ghana: BOST Shuts Down Head Office After 46 Staff Tested Positive For Covid-19
Ghana’s strategic oil company, Bulk Oil Storage and Transportation Company Limited (BOST) has shut down its head office at Dzorwulu after 46 employees tested positive for the novel Coronavirus.
The company has, thus, asked all staff at the Dzorwulu office to work from home.
According to the company, all the 46 staff have been asked to also self-isolate with immediate effect.
It would be recalled that energynewsafrica.com reported that two staff of BOST had contracted the Covid-19 on July 2.
The cases were detected after mass testing of staff was conducted at the head office.
“The Bulk Oil Storage and Transportation Company Limited would like to announce for the information of the general public that it has closed down its head office at Dzorwulu in the Ayawaso West Municipality from Monday, 6th July, to Monday 13th July, 2020.
“This has become necessary due to a mass testing of staff carried out by the company at the head office in the wake of a staff of the IT Department testing positive for the virus. After the mass testing, a number of staff tested positive and arrangements are being made for their treatment,” a statement from the Corporate Communications Department of BOST said.
The statement said its head office would be fumigated to “ensure the safety of staff is not compromised when work resumes.”
The company has also given the assurance that the development would not “negatively impact the operations of the company since all staff have the needed facilities and enhancements to work from home within the period.”
BOST is the second institution in the West Africa nation’s oil sector where workers have tested positive for COVID-19.
The first was about 60 workers at the country’s jubilee fields testing positive for the disease. It followed two confirmed cases of Tullow Oil’s subcontractors.
Source:www.energynewsafrica.com
Ghana: COPEC Urges Gov’t To Provide Fuel Subsidies For Public Transport Operators
The Chamber of Petroleum Consumers (COPEC), a consumer advocacy group in the Republic of Ghana, is calling on the government to provide subsidies to public transport operators to cushion them against the impact of reduction in number of passengers due to the adherence of the Covid-19 social distancing protocol.
The Akufo-Addo-administration, as part of measures to curb the spread of the spread of the novel Coronavirus, directed public operators in Ghana to reduce the number of passengers.
Commercial drivers in the West African nation heeded to the President’s directive and have since enforced it.
Interestingly, the President later announced a GHc600 million incentive package to cushion small and medium scale enterprises (SMEs) due to the impact of the Covid-19.
Unfortunately, public transport drivers seem to have been given a raw deal as the government has not shown any sign of giving them relief.
The development, coupled with recent increment in fuel prices, has angered drivers with some taxis operating in Ashaiman and Tema, both towns in the Greater Accra Region, already increasing their fares.
Addressing a press conference in Kumasi on Sunday, July 5, 2020, National Concerned Drivers’ Association and True Drivers’ Union threatened to announce a 30 percent increment in fares to help their members recover from losses.
In a statement issued by the Executive Secretary of COPEC, Duncan Amoah complained about the negative effects the coronavirus has had on commercial drivers.
According to COPEC, the revenue made by drivers has decreased by between 25 percent to 40 percent in recent times.
“The social distancing, coupled with recent increases in fuel prices at the pumps by as much as over 16 percent due largely to international market price increases and the depreciation of the local currency, seems to have brought a lot of hardships on these public transport operators and other petroleum consumers across the country,” the statement read.
“The commercial and public transport operators further indicate there’s been a further increase in the cost of spare parts due to the cedi’s depreciation and as such, general increases in their input costs while their revenues have considerably dipped due to the enforcement of the social distancing directive,” it added.
In that regard, Mr Amoah insisted the government must put in mitigation measures aimed at helping the transport operators.
One of the ways he suggested to deal with the situation is the “introduction of a chit or coupon subsidy programme strictly for commercial transport operators.
“The Central Government can, per this, introduce a chit or a coupon system to be administered by
the various transport unions for their memberships such that the various fuel stations will be reimbursed the difference between the agreed subsidy or percentage reduction on the fuel purchases by these public transport operators,” the statement said.
He also recommended an upfront cash disbursement to the registered public transport operators or driver unions “to cushion their fuel purchases during this period of social distancing in the various buses and cars.”
COPEC says these measures, when put in place, will go a long way to ease the financial burden on the drivers and “will be a good incentive for them to continue adhering to the social distancing protocols while curtailing the harsh effects of these significant increases in transport fares on the general commuting public.”
Nigeria: NNPC’s Chief Operating Officer Roland Ewubare Resigns
The Nigerian National Petroleum Corporation’s Chief Operating Officer for Ventures and New Business Directorate Roland Ewubare has resigned.
A statement by Group General Manager, Group Public Affairs Division of the NNPC Dr. Kennie Obateru, which announced the resignation of Roland Ewubare, said President Muhammadu Buhari has accepted the former’s decision.
The statement said President Buhari also approved the retirement of the immediate past Chief Operating Officer, Corporate Services, Engr. Farouk Garba.
President Buhari thanked the two former COOs for their meritorious service to the corporation.
Meanwhile, President Buhari has appointed Engr. Adeyemi Adetunji to replace Roland Ewubare, as the new Chief Operating Officer for Ventures and New Business Directorate.
Until his appointment, Adetunji was Chief Operating Officer in charge of the NNPC’s upstream division.
The NNPC also redeployed and appointed five other senior management staff to critical positions within the corporation.
The statement explained that the new appointments and redeployments in the NNPC were part of ongoing efforts to strengthen and reposition the corporation for greater efficiency, transparency and profitability in line with the Next Level Agenda of President Muhammadu Buhari’s administration.
Giving a breakdown of the redeployments and appointments, the NNPC said in the statement that Mr. Adokiye Tombomieye, Group General Manager for Crude Oil Marketing Division (COMD) has been appointed as the new Chief Operating Officer (COO) in charge of Upstream while Mr. Mohammed Ahmed, Managing Director of the Nigerian Gas Marketing Company (NGMC) takes over as the new Chief Operating Officer for Corporate Services, the position formerly held by Engr. Farouk Garba Sa’id, who retired last week.
“The top-level staff movement also affected Sir. Billy Okoye who has been redeployed from the NNPC Downstream Company, NNPC Retail Limited, as Managing Director, to replace Mr. Tombomieye as the Group General Manager, Crude Oil Marketing Division while Mrs. Elizabeth Aliyuda, the General Manager, Sales and Marketing NNPC Retail Limited, takes over from Sir Okoye as Managing Director.
“Similarly, Mr. Usman Farouk, Executive Director Asset Management and Technical Services at the NGMC takes over from Mr. Ahmed as Managing Director.”
Commenting on the redeployments and appointments, Group Managing Director of the NNPC, Mallam Mele Kyari, said the new appointments would enable the corporation live up to the expectation of her shareholders, Nigerians, and give impetus to the ongoing restructuring within the Corporation. According to him, this was in line with the corporate vision of Transparency, Accountability & Performance Excellence (TAPE).
Ghana: 57 SMEs Benefit From Tullow & Invest In Africa Supplier Workshop
Oil and gas firm, Tullow Ghana and its partner in promoting direct support for SME businesses in Africa – Invest in Africa (IIA) have adopted virtual means to educate and train indigenous companies in its supply chain on how to mitigate the severe effect of the Coronavirus pandemic and share information on relief available post pandemic.
According to Bastiat Ghana, a liberal economy think tank, 92% of companies registered in Ghana are SMEs with 85% of SMEs offering employment in the manufacturing sector.
This data underscores the need to develop and empower SMEs as they contribute significantly to the Ghanaian economy.
For Tullow and other International Oil Companies, SMEs form a significant percentage of the supply chain.
Indigenous companies and Joint Venture companies with indigenous participation hold 83% of Tullow Ghana’s contracts.
On Tuesday 23rd June 2020, IIA and Tullow Ghana organised a virtual workshop for 57 SMEs who are members of IIA’s African Partner Pool (APP) focusing on “Business Recovery & Effective Tendering.”
As the COVID-19 pandemic persists, Tullow and IIA anticipate that SMEs will continue to experience unpredictable supply and demand for their business, diminished confidence from the financial markets, and a reduction of credit.
These concerns were addressed at the webinar to help SMEs access procurement opportunities, create awareness about the finance support available and assist them in successfully securing contracts as the nation reopens and companies gradually resume full operations.
Ghana: PIAC Tasks Parliament To Find The Whereabouts Of $1.5 Billion Petroleum Fund“Tullow believes that it is important for suppliers to have in place robust business continuity plans in order to mitigate supply chain risks that result from the impact of the Covid-19 pandemic. Suppliers need to have the tools to sustain their businesses and build resilience.The Business Recovery and Resilience Toolkit was therefore developed by IIA and partners including Tullow to provide support to SMEs. Tullow sees great value in collaborating with IIA on the delivery of this initiative.”- Otuko John-Teye, Contracts and Procurement Manager, Tullow Ghana Tullow has collaborated with IIA since 2014 to attract foreign direct investment into Africa, unleash the potential of the continent, and stimulate economic growth and prosperity. Since inception, Tullow has funded various IIA initiatives including the African Partner Pool (APP) and the Business Linkage Programme (BLP). The APP is an online marketplace that allows SMEs to promote the products and services they can deliver. This makes it easier for big companies to find the right local suppliers to work with. So far, the APP has over 1,700 suppliers registered, with 26 buyers using the platform to source their goods and services. The APP has seen a total of 333 tenders floated on the platform with a total value of $832million. APP registered suppliers have won 80 tenders with a total value of $154million. The APP provides SMEs the opportunity to receive tender alerts from Tullow and other partners, as well as access to training and finance. Source:www.energynewsafrica.com