Africa Oil Week 2020 Rescheduled To 1-5 February 2021.

The organisers of the Africa Oil Week, the continent’s leading oil and gas sector event, has rescheduled this year’s programme to February next year due to the coronavirus pandemic. This year’s programme was to be held in Cape Town, South Africa, from November 2 to 6. “After discussions with our partners in South Africa and key stakeholders in the oil and gas community, we have made a collective decision to reschedule Africa Oil Week 2020 to 1-5 February 2021,” the organisers said. “This decision was taken in consideration of the continuing global impact of COVID-19, international travel restrictions and with the wellbeing of our speakers, delegates, sponsors and exhibitors top of mind. We believe that rescheduling the show to early 2021 will enable us to deliver another strong edition drawing the oil and gas community together and provide a platform for the industry to meet, reconnect and set the agenda for 2021.” The organisers explained that “the show will be held in accordance with latest health & safety and government’s guidance and will take place alongside our sister event Investing in African Mining Indaba. “In the meantime, we are delighted to announce the launch of AOW Virtual, which will take place 7-8 October 2020.” This strategic event would feature free insightful content streamed online, including pioneering insights from the industry’s heavyweights, multi-stakeholder strategic conversations, an opportunity for delegates joining them at the Africa Oil Week in February 2021 to connect virtually, and more. “We want to enable the oil and gas industry to come together and help shape the roadmap for an industry response to current challenges,” the organisers said.

Ghana: Crude Revenue Drops 5% Despite 15% Increase In Production For 2019

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Although crude production in 2019 went up 15 per cent from 62,135,435.07 barrels in 2018 to 71,439,585 barrels, revenue accrued to Ghana’s Petroleum Holding Fund (PHF) however dropped by some 5 per cent within the same period. According to Business & Financial Times (B&FT), the revenue went down to US$925million in 2019 from US$977million in 2018 from Royalties, Carried and Participating Interest (CAPI), Corporate Income Taxes (CIT), Surface Rentals, and income earned – representing a 5 per cent drop, according to the Public Interest and Accountability Committee (PIAC) 2019 annual report. “The rebound of crude prices that had been experienced in 2018 was reversed in 2019. The average achieved price by Ghana National Petroleum Corporation (GNPC) on behalf of the Ghana Group – US$68.487/bbl in 2018 for all three producing fields – reduced to US$63.496/bbl, which was also below government’s 2019 estimated benchmark price of US$66.670/bbl.” The drop in revenue despite the increased production was due to lower prices. While government had benchmarked crude to sell at US$66.670/bbl last year, the average achieved price by the country was US$63.496/bbl. The report attributed the decline in revenue, to the drop in prices during the period. “The average achieved price by GNPC on behalf of the Ghana Group for all three producing fields – Jubilee, TEN and the Sankofa Gye-Nyame (SGN) – at US$63.496/bbl was lower than both the 2018 average (US$68.487/bbl) and government’s 2019 estimated benchmark price (US$66.670/bbl),” the report added. Production of crude oil continues to be derived from three producing fields – Jubilee, TEN and the Sankofa Gye-Nyame (SGN) Fields. For the year 2019, a total of 71,439,585 barrels (bbls) were obtained from the three producing fields – exceeding the 2018 figure of 62,135,435.07 bbls by 15 percent. It also exceeded the benchmark crude oil output of 63.4 million bbls. The high-recorded volume is on account of increased production on the Jubilee and SGN Fields, with SGN witnessing the highest growth in volumes, followed by Jubilee. Of the total output, the Jubilee Field produced 31,915,377 bbls compared with a 2018 volume of 28,461,755 bbls; the TEN Field 22,319,137 bbls in comparison with 23,557,361 bbls in 2018; and the SGN Field, 17,205,070.85 bbls relative to 10,751,671 bbls in 2018. The high production was achieved despite challenges faced by the country’s largest producer, Tullow Ghana, after the firm was forced to cut down production last year.

Harmonizing West Africa’s Increased Electricity Generation With Climate Change Objectives (Article)

By: Nana Amoasi VII, IES The United Nation’s Department of Economic and Social Affairs estimate that there will be 1.3 billion more Africans by 2050. From 2017 to 2050, it is expected that half of the world’s population growth will be concentrated in just nine countries: India, Nigeria, Democratic Republic of the Congo, Pakistan, Ethiopia, the United Republic of Tanzania, the United States of America, Uganda and Indonesia (ordered by their expected contribution to total growth). Figures from the Institute for Security Studies (ISS) shows that Africa’s population is the fastest growing in the world and will account for nearly half of global population growth over the next two decades, with West Africa alone accounting for about 15 percent of the projected growth. Presently, West Africa’s population accounts for roughly 31 percent of Africa’s population. From today’s rough estimate of 400 million people, equivalent to 5.16 percent of total world population, it is expected to increase to almost 580 by 2035 (United Nation 2020, worldometer 2020). Growing populations according to the International Energy Agency (IEA) translates into rapid growth in energy demand for purposes of industrial production, cooling and mobility. It means that, as population grows, the demand for services such as transportation, healthcare, communication, education, housing and infrastructure will increase. Without electricity, economic transformation through improved productivity in manufacturing and services, technological innovations, and promotion of value-addition in resource-based economies would not be possible. Insufficient supply of energy will limit socio-economic activities, restrict economic growth, negatively impact living standards, aggravate poverty and inequality, and hamper government revenues (Ahali 2015; IEA 2014). It goes to suggest that the need for electricity is critical in every economy. Electricity Supply Challenges IEA’s analysis of Africa Energy Outlook 2019 shows that in Africa the number of people gaining access to electricity doubled from 9 million a year between 2000 and 2013 to 20 million people between 2014 and 2018, outpacing population growth. As a result, the number of people without electricity access which peaked at 610 million in 2013, declined slowly to roughly 595 million in 2018. However, the IEA suggests that sub-Saharan Africa’s electrification of 45 percent in 2018 is still very low compared to other parts of the world. The millions of people still without access to electricity in sub-Saharan Africa represents more than two-thirds of the global total. About half of the region’s population without electricity access can be found in Uganda, Nigeria, Democratic Republic of Congo, Tanzania, and Ethiopia. And of those without access to electric energy in sub-Saharan Africa, West Africa is reported to accounts for 30 percent, putting the average access rate across West Africa at 52 percent. The demand for electricity in Africa today is 700 terawatt-hours (TWh), with the North African economies and South Africa accounting for over 70 percent of the total. Yet it is the other sub-Saharan Africa countries that see the fastest growth to 2040, according to the IEA. West Africa’s inhabitants of close to 400 million consumes a little over 100 terawatt-hours of electricity per year. It is estimated that by 2030, that demand will be more than 200TW-hr, a fourfold increase from where demand was in 2015. But just like many other parts of the world, West Africa is grappling with daunting electricity supply challenges. The region’s power sector remain under-developed, requiring a huge expansion in its generation capacity and power grids. According to John Timmer a science editor with Ars Technica, large hydro facilities in West Africa produce about 20 percent of the region’s electricity at the moment. The remainder is mostly supplied by a combination of natural gas and oil-fired generating plants. The Climate Bit While countries across West Africa grapple with the challenges of rising electricity demand and unreliable supply of existing terawatt-hours, climate change impacts mostly caused by harmful gas from fossil fuel combustion, are posing serious impacts to human health and environment. Greenhouse gases (GHG) emitted from the burning of fossil fuels such as coal, petroleum and natural gas, are having a heavy impact on the region’s water resources, weather patterns, human health, food security et cetera, as evident in many African countries and the world as a whole world (Magadza CHD 2000, Droogers 2004). To deal with the challenges of climate change, a regional revolution is required to complement global efforts. The goal is to combat man-made climate change and its impacts, hence the adoption of the Paris Agreement by countries to work to reduce their GHG emissions and to transparently report those results. The Paris Agreement aims to strengthen the global response to the threat of climate change by keeping global temperature rise this century well below 2 degree Celsius (2°C) above pre-industrial levels, and to pursue efforts to limit the temperature increase even further to 1.5°C. The Paris Agreement on climate change, along with the 2030 agenda, including the sustainable development goals (SDGs), forms the most comprehensive blueprint to date for eliminating extreme poverty, reducing inequality, and protecting the planet, according to the United Nation (UN). Renewable energy resources are expected to play a leading role in meeting such global climate and sustainability imperatives. However, IEA’s analysis for 2019 Africa Energy Outlook (2020) suggest that to date, the continent with the richest solar resources in the world has installed only 5 gigawatts (GW) of solar photovoltaics (PV), less than 1 percent of the global total. Africa’s vast renewables resources and falling technology costs is expected to drive double-digit growth in deployment of utility-scale and distributed solar PV, and other renewables, across the continent. Aside increased global consumption, a 2019 data recently released by the International Renewable Energy Agency (IRENA) shows that newly installed renewable power capacity increasingly costs less than the cheapest power generation options based on fossil fuels. Additionally, existing hydro dams have been found to be able to act as virtual batteries for solar PV and wind electricity storage to deal with their unpredictable and variable nature, lessening the role of other storage technologies (Barasa, Bogdanov, Oyewu, and Breyer 2018). These recent feats renders renewables as the most preferable choice of fuels for power generation in a region where demand is growing. Solar-wind-water Strategy A new study has mapped the potential for solar-wind-water strategies for West Africa. The study, Smart Renewable Electricity Portfolio in West Africa, published in the scientific journal Nature Sustainability explores how hydropower plants can support solar and wind powers unpredictable and intermittent nature in a climate friendly manner. The lead author of the study Sebastian Sterl, energy and climate scientist at Vrije Universiteit Brussel and KU Leuven, proposes that countries in West Africa are represented with the opportunity to plan their electricity generation expansion in line with strategies that rely on modern, climate-friendly energy generation. According to Sterl, countries in Europe lack such an opportunity, with power supply in this region largely dependent on polluting power plants for many decades; a situation many countries now want to rid themselves of. The study published by Sterl and Brecha (2020), demonstrates that it will be particularly important to create a “West African Power Pool,” a regional interconnection of national power grids. By that, each West African country could contribute to a shared West African Power Pool for electricity supply, based on its own nationally available resources. The study found that West African countries do already collaborate on electricity exchanges, but mostly through bilateral contracts, while plans are underway to integrate the national power systems into a unified electricity market on a larger scale. The research suggests that cross-border electricity trade could make better use of hydropower, coupled with solar and wind. It identified countries with a tropical climate, such as Ghana and the Ivory Coast, which typically have a lot of potential for hydropower and quite high solar radiation, but hardly any wind. Drier and more desert-like countries, such as Senegal and Niger, though hardly have any opportunities for hydropower, receives more sunlight and more wind. The researchers found that the potential for reliable, clean power generation based on solar and wind power, supported by flexibly dispatched hydropower, increases by more than 30 percent when countries can share their potential regionally. The research concludes that all measures taken together would allow close to 60 percent of the current electricity demand in West Africa to be met with complementary renewable sources, of which roughly half would be solar and wind power and the other half hydropower, without the need for large-scale battery or other storage plants. The work shows how these efforts could be streamlined with the growth of renewable electricity sources. Similar efforts according to the research are underway in other parts of the world, such as the European Union, where cross-border cooperation is also expected to become more important to scale up renewable electricity generation. The study also finds that within a few years, the cost of solar and wind power generation in West Africa is also expected to drop to such an extent that the proposed solar-wind-water strategy will provide cheaper electricity than gas-fired power plants, which currently still account for more than half of all electricity supply in West Africa. The adoption of the solar-wind-water strategy therefore presents itself as a bonanza, a great opportunity to harmonize West Africa’s increased electricity generation with climate change objectives. Written by Paa Kwasi Anamua Sakyi (aka Nana Amoasi VII), Institute for Energy Security (IES) ©2019 Email: [email protected] The writer has over 23 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media and CNBC Africa

Ghana: Enclave Power Company Replies Steel, Cement Manufacturers

Enclave Power Company, a power distribution company in the Republic of Ghana, West Africa, has explained why it gave only 22 percent rebate to its customers instead of the 50 percent electricity tariff reduction announced by President Akufo-Addo for businesses. During his 6th address to the nation on the COVID-19 pandemic, the President of Ghana, Nana Akufo-Addo announced a relief on electricity to support individuals and businesses with full cover for bills of low-income consumers and 50 percent for consumers who fall outside that category. However, cement manufacturing companies and steel companies located within the Tema Free Zones enclave claimed they have been denied such support from the government, thus, seriously affecting their business. Addressing a press conference, Rev. Dr George Dawson-Amoah, Executive Secretary of the Chamber of Cement Manufacturers, Ghana, and who doubles as the Chairman of the Association of Ghana Industries Tema, described the situation and attitude of the energy supplier (Enclave Power Company) as unfortunate, and called on the government to, as a matter of urgency, intervene to salvage the situation. “This is absolutely an unfair trade practice, and it does not augur well for fair competition considering the fact that other cement players and steel companies outside the enclave are enjoying the 50 percent rebate under ECG. We have written to EPC to rectify the anomaly but till now, no practical resolution has been given to the affected parties.” But reacting to the claims by the Cement Manufacturers and Steel Companies, Managing Director of Enclave Power Company (EPC), Norbert Anku told energynewsafrica.com that following the announcement by the President, they had discussions with the Volta River Authority and GRIDCo to see the way forward. He continued that VRA agreed to wave 50 percent of the generation charges, but GRIDCo insisted on 100 percent distribution charges. Mr Anku said he wrote to the Ministry of Energy and Public Utilities Regulatory Commission (PURC) of the decisions by both VRA and GRIDCo, but they failed to act and rather directed them to the Ministry of Finance. He said, “When we realised that the Ministry was not giving us hope of the government paying for our customers as it did for customers of ECG and NEDCo, we wrote to our customers to inform them of the situation.” Interestingly, Mr Anku said none of them raised concern, neither did Dr Dawson-Amoah write to EPC on their behalf. Mr Anku, consequently, expressed shock at the conduct of Dr Dawson-Amoah. “I was surprised when I heard what Dr Dawson-Amoah said. His action doesn’t augur well at all,” Mr Anku explained.

Saudi Arabia Discusses Progress Of OPEC+ Deal With Nigeria

Saudi Arabia’s Crown Prince Mohammed and the president of Nigeria Muhammadu Buhari have reportedly discussed the progress of the OPEC+ oil production cut deal in a telephone conversation. Nigeria, along with Iraq, has been lagging in compliance with the production quotas set by OPEC+ in April, aiming to shave off some 9.7 million bpd in oil supply until the end of July. In fact, Iraq and Nigeria—especially Nigeria—were so bad at compliance that Saudi Arabia’s Energy Minister had to put his foot down at the last OPEC+ meeting and demand from them that they start cutting production more deeply to improve their compliance rates.
ExxonMobil Hints Of Major Job Cuts
Iraq and Nigeria’s non-compliance with the record OPEC+ cuts in May nearly wrecked the June meeting of the pact, ahead of which the two leaders of the group, Saudi Arabia and Russia, had insisted that there would be an extension by one month to the current level of cuts only if laggards in compliance ensured over-compliance going forward to compensate for flouting their quotas so far. Iraq and Nigeria had little choice but to cave, and undertook to deepen their production cuts not just in July but also in August and September, to compensate for their under compliance in May when the deep cuts began. For now, the agreement is to cut a total of 9.7 million bpd until the end of July. According to Russia’s Energy Minister, a further extension of the deep cuts would not be needed as the market would have begun to rebalance by the end of July. Yet another extension remains a possibility: the latest production data on OPEC, from Petro-Logistics, overall OPEC output was down by 1.25 million bpd in June from May but was still above the amount it was supposed to be producing per its agreement with Russia and the other non-OPEC states in OPEC+ Source:Oilprice.com

Ghana: ECG Tema Regional Manager Dead

The Tema Regional Manager of the Electricity Company of Ghana (ECG) Ing. Joseph Mensah Forson is reported dead. Ing. Forson is said to have been sick three days ago and was seeking medical attention at Raphal Medical Center at Community One, Tema, where he passed away Tuesday afternoon. It is unclear what caused his death. The sudden demise of Ing. Forson has been received with pain as staff of ECG in Tema are mourning over his death. Source:www.energynewsafrica.com

Nigeria: New Electricity Tariff Effective July 1

Electricity distribution companies in the Republic of Nigeria have announced that a new electricity tariff increase will be rolled-out with effect from 1 July, 2020. However, PREMIUM TIMES reported that the discos are accusing the Nigerian Electricity Regulatory Commission (NERC) of trying to dissociate itself from the electricity tariff increase. The discos said the increase in tariff and the commencement date were approved by the regulator, and was initially scheduled to commence on 1 April but was postponed. According to local media, the discos raised their concerns in a statement issued in Abuja at the weekend. “We are in a regulated sector. We cannot take [a] decision about a very critical aspect of the sector like tariff without a nod from the regulator (NERC),” the discos said. “However, what has happened in recent days is that our regulator is warning us not to mention their name or the Federal Government in any of our communication about the tariff increase with our customers. This is certainly very unfair.
Ghana: Gov’t Issues Strong Worded Letter To Tullow Objecting Appointment Of Wissam Al Monthiry As New MD
“Many stakeholders have expressed their concern at the unusual silence of our regulator, NERC on the upcoming increase and it looks like a unilateral decision by the discos.” Oduntan noted: “We will like to inform Nigerians that tariff review (upward or downwards) is the primary responsibility of NERC as our regulator.” He said that the discos were required to submit their proposals, adding that NERC had the final say According to Oduntan, the discos were surprised to receive a letter from NERC warning them not to mention their name or that of the federal government in any public communications on tariffs. “While it is our obligation to communicate the increase, it is also important for customers to know that it is following standard processes of tariff adjustments in the sector with approvals from NERC and the Federal Government. “As discos, we believe in the rule of law. We will only carry out lawful approval and instructions by our regulator. “The proposed increase and the timing of the increase in tariffs was done by NERC. It is their statutory responsibility. Discos alone cannot fix and approve electricity tariffs,” he said.

COVID-19: IEA Hosts Africa Ministerial Roundtable Tomorrow

The Covid-19 pandemic and global economic shocks are testing the resilience of the energy sector in countries across Africa. While the outlook remains uncertain, these shocks are certain to have major and varied implications for the development of the continent’s energy sector. Assessing the nascent impacts across the energy sector can help inform the policies and define the actions that will pave the way to economic recovery. The immediate impacts confronting policy-makers across the continent are varied. For some, the availability, security and reliability of power systems is putting at risk an effective response to the health crisis, underscoring once again the importance of universal energy access. Confinement policies and the consequent drop in energy demand is increasing pressure on power systems, calling into further question the financial health of state-owned utilities that were already under financial stress. And for others, the disruption to global oil and gas markets has delivered a sudden and sharp drop in export revenue streams. The resulting financial constraints mean that new investments may face delay or cancellations. These conditions of uncertainty create risks and competition for tightening finance, with potential security and sustainability challenges in the longer term. Setting priorities is vital to ensure action on much-needed energy sector investments, which can stimulate broader economic growth. Opportunities may also arise to rethink African countries’ future energy systems and market structures. In this challenging environment, governments will need to ensure that momentum towards SDG 7 is not lost while they are addressing significant immediate crises. It will be important to consider investment frameworks that help attract the necessary investment to the energy sector in times of need. Concerted action and international support can help countries respond to this crisis. The IEA’s Africa Energy Outlook analysis, published in 2019, has already shown what Africa’s energy future could look like. To sustain Africa’s economic transformation and deliver energy access for all, we have to ensure energy investments in Africa remain a priority. Views shared during this Africa Ministerial roundtable will feed into IEA’s enhanced work with African partners as well as the IEA Clean Energy Transitions Summit that will take place on 9 July 2020. • To take stock of the effects of Covid-19 and its economic reverberations across the energy sector in Africa; • To explore the vital role of energy investments to Africa’s economic recovery; • To share views on what actions can be taken to ensure that energy investments in Africa remain a priority, and clarify the role that the IEA can take to support these efforts. Key objectives Co-hosts • H.E. Mr. Mouhamadou Makthar Cissé, Minister of Petroleum and Energy, Senegal • Dr. Fatih Birol, Executive Director, International Energy Agency Keynote Speakers • H.E. Mr. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa • Ms. Amina J. Mohammed, Deputy Secretary-General, United Nations Speakers Governments • H.E. Mr. Dona Jean-Claude Houssou, Minister of Energy, Benin • H.E. Mr. Abdourahmane Cissé, Minister for Petroleum, Energy and Renewable Energy, Cote d’Ivoire • H.E. Mr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, Egypt • H.E. Mr. Frehiwot Woldehanna, State Minister for Energy, Ethiopia • Ms. Ditte Juul Jørgenson, Director-General for Energy, European Commission • H.E. Mr. Fafa Sanyang, Minister of Petroleum and Energy, Gambia • H.E. Mr. Andreas Feicht, State Secretary, Federal Ministry for Economic Affairs and Energy, Germany • H.E. Mr. John-Peter Amewu, Minister of Energy, Ghana • H.E. Ms. Alessandra Todde, Under Secretary of State of Economic Development, Italy • H.E. Mr. Claude Turmes, Minister for Energy and Spatial Planning, Luxembourg • H.E. Mr. Aziz Rabbah, Minister of Energy, Mines, and Sustainable Development, Morocco • Eng. Mr. Pascoal Alberto Bacela, National Director for Energy, Ministry of Energy and Mineral Resources, Mozambique • Hon. Mr. Tom Alweendo, Minister of Mines and Energy, Namibia • H.E. Ms. Kitty van der Heijden, Vice-Minister for International Cooperation, Netherlands • H.E. Mr. Goddy Jedy Agba, Minister of State for Power, Nigeria • Hon. Dr. Kandeh Yumkella, MP, Sierra Leone • Sir Simon MacDonald, Permanent Under-Secretary and Head of the Diplomatic Service, Foreign and Commonwealth Office, United Kingdom • Thomas (T.L.) Cubbage, Deputy Under-Secretary for Science, Department of Energy, United States • Hon. Francis R. Fannon, Assistant Secretary for the Bureau of Energy Resources, Department of State, United States International organizations and private sector • Mr. Bertrand Walckenaer, Deputy CEO, AFD • H.E. Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union • Mr. Claudio Descalzi, CEO, ENI • Mr. Abebe Aemro Selassie, Director of the Africa Department, IMF • Mr. Francesco La Camera, Director-General, IRENA • Mr. Hiroto Kamiishi, Deputy Director-General and Group Director for Energy and Mining, JICA • H.E. Mr. Mohammad Sanusi Barkindo, Secretary General, OPEC • Mr. Mark Carrato, Acting Coordinator, Power Africa • Ms. Damilola Ogunbiyi, CEO & UN SRSG for SEforALL • Dr. Vera Songwe, Under-Secretary-General of the United Nations, and Executive Secretary, United Nations Economic Commission for Africa (UNECA) • Ms. Frannie Leautier, Senior Partner, SouthBridge Group • Mr. Riccardo Puliti, Global Director, Head of the Energy and Extractive Industries Global Practice and Regional Director, Infrastructure for Africa, World Bank

Ghana: GTPCWU Petitions Energy Minister On behalf Of 70 Schlumberger Workers

The General Transport, Petroleum and Chemical Workers Union (GTPCWU), an umbrella body of oil and gas sector workers in the Republic of Ghana, has petitioned the country’s Ministry of Energy to intervene to address an unfair labour practice by the Management of Schlumberger against its members. In a three-paged document intercepted by energynewsafrica.com, GTPWU revealed that management of Schlumberger, an international oil and gas service provider operating in Ghana in, May, this year, issued letters to majority of workers to go home for 12 months without pay. “The local union entered into negotiations on the 13th and 14th of May, 2020, to determine a redundancy package to those workers to be affected by the exercise. Barely two hours after adjournment of the meeting on 14th May, 2020, management called a meeting of all employees and threatened that if they (Ghanaian emplyees) would not accept management’s offer of 2.5 month consolidated for every year of service, they would not to pay salaries henceforth. “On 15th May, 2020, just after close of work, a number of employees were issued with letters of suspension from employment taking effect from Monday, 18th May, 2020, to last for a period of 12 months despite the ongoing negotiations at the level of Standing Negotiating Committee.” The Union claimed in their petition that conditions attached to the suspension was that the affected workers would not be paid a dime for the twelve-month period and this, they maintained is unfair and, therefore, want the Minister’s intervention.

How Josh Kalisa’s One Africa Business Solution Ltd Is Addressing Energy Gaps In East, Central Africa Using Solar Products (Article)

It is very rare in our part of the world for individuals and companies that are doing well to keep silent over their achievements. It is common to see individuals and companies use traditional and social media to tell the public what they have achieved. However, that is not the case with Josh Kalisa, Managing Director of One Africa Business Solutions (Pty) Ltd, a South African-based social entrepreneurship company that is specialised in Renewable Energy solutions for the local communities with a focus on solar energy. Josh and his brother, Sammy, established One Africa in 2016 after an extensive research and studies on energy challenge in East Africa between 2014 and 2015. Despite initial funding challenges, Josh and Sammy never gave up on their dream, but rather continued to pursue their mission to improve the quality of life in rural and poor communities through manufacturing, supplying of solar products as well as building off-grid solar plants. Within the few years of the existence of One Africa, the company has made impact on thousands of lives in rural communities through their solar products in East and Central Africa. In spite of the tremendous achievements and impact his company is making, Josh has decided to be on the quiet side and not open One Africa to any media publicity until recently when he accepted an interview request from energynewsafrica.com. One Africa supplies solar lanterns in East Africa especially in Tanzania, Kenya, Rwanda and Eastern DRC. In 2017, the company signed a Memorandum of Understanding (MoU) with World Share Tanzania, a Korean Non-profit organisation that deals with supporting children and empowering women around the world. Since then, it has been supplying them solar lanterns. In 2018, One African won an award for being Solar Energy Implementation of the Year from Alleem Business Congress Awards, a UAE-based company.
Josh Kalisa (left) receiving an award from the Chairman of SEWA (Sharjah Electricity & Water Authority) and Alleem Knowledge Centre: H.E Dr Rashid Alleem.
In the same year, it signed an MoU with Alleem Research and Development. In 2019, it launched a new product (Nara solar backpack) for supporting students. One Africa is hoping to establish a solar factory in East Africa by 2025 to help them address many challenges on energy poverty and socio-economic issues. Below is an excerpt of an interview with Josh Kalisa via mail: What kind of solar products do you produce? One Africa has three types of solar lanterns namely (Nightlight (mushroom) Solar Candle, Solar Jar and Solar Top, power bank and solar cooking stoves. • Nightlight solar candle have life span of four to five years depending on how it used, it can light up between 6 to 7 hours once is full charged, it is a water resistant. • Solar jar and solar top are one of best selling products. They can be used for different purposes. They are waterproof. They can light up between ten to twelve hours once they are full charged. • Nara solar backpack is recycled bag made with PVC billboards, banners and other waste materials. This bag is has a transparent pocket which a solar top is placed in and can charge while a student is on the way to or from school and during studying hours at school. Products and value chain • Nara solar backpack is a waterproof school bag made from recyclable materials like PVC billboards, banners etc (which make them eco-friendly products). The bags are integrated with solar lanterns which can be charged during the day time when a child is on the way to or from school. These two helps the learners to carry their school books in safe environment and also at the same time charge the solar lantern which they will use later at night when they doing homework and studying. • The solar lanterns and bags are designed and made here in South Africa (Proudly South African products). The majority of people who are making these great products were not fortunate with formal education background mostly are (women and youth from townships and informal settlements) and they were unemployed but after soft skills trainings offered and equipping them with tools, today they have permanent job and they are contributing in South African economy. Another positive impact is that they can send their children to school and sustain their families. Who are the beneficiaries? Our primary beneficiaries are people who live in rural areas and poor communities which are not connected to electricity. We are focusing on students and small businesses. How is your company’s initiative addressing shortfall in electricity in beneficiary communities? To address the energy poverty in these areas, we decided to focus on education and small businesses. So we started Nuru Education Initiative (Nuru is Swahili word which means light) and, together with our partners mainly NGOs, we supply solar lanterns and Nara solar backpacks to schools that are located in rural areas and under-privileged communities so that they would be able to study and also do their homework at night more comfortably than using kerosene lamps or candles, which have a lot of health consequences. So far, we have received a number of great testimonies from students, parents and teachers, which is a great success and proof that when students are empowered, they can perform well at school and get excellent results. At the same time, we have been working closely with street vendors who are playing a huge role in most under-privileged communities where their businesses need lights because most of them work till late night especially in cities or towns. We identified their challenges quite easily, hence, they use kerosene lamps and, sometimes, the kerosene lamp can spill kerosene over their products like foods and other essential items and that affects their daily sales. Street vendors are happy to use solar lanterns over kerosene lamp because per day, a street vendor can use up to one litre of kerosene, which is roughly around $ 0.38 a day and $ 11.4 per month. If you compare it with one of our solar lantern which costs roughly $11.76 and can be used between two to three years with the capacity of lighting between 10 to 12 hours once it is fully charged, you can see there is huge financially benefit for them and most importantly for their health benefit too. So switching from fossil fuel to solar energy will change a lot in our communities.
Solar bags for school children
Is your company facing any challenge? One Africa, like any other companies we are facing challenges in different factors, I can mention few. • Rural and underprivileged households typically have unpredictable cash flows and may not be able to immediately pay for our products. • Mistrust of solar technology; there is general mistrust among rural and underprivileged households of solar technology. Several local shops and vendors have been selling cheap solar lanterns and solar panels home systems that are defunct within a year of purchase. This has caused general mistrust of the technology among rural and underprivileged communities. • Underestimating and devaluing made in Africa products (like our solar lanterns and bags) is something we encounter always to a point many would even dare to ask why we don’t buy Chinese products and bring them as cheap and sale. • Trade information and communication is very low and this make it hard to do business around the continent because it has became as norm that every products must come from China or elsewhere so we take this as huge challenge. • Lack of regulations to deal with counterfeit products which are available to the markets. • Lack of policies and information that clarify the incentives given to solar products, because some countries have different policies on customs, (VAT and Import duty). Some have exempted the VAT and import duties in order to promote clean energy, however some haven’t done that. Sometimes we are forced to pay the VAT and Import duties while the policies are in place but not applied by custom officials. • Logistics is another big challenge we are facing and this affects the prices and services. • We are still struggling to get financial support from local banks, this disadvantage us as local company to grow because we are in a competitive market which we share with big economies which are industrial countries that produce in mass what we are doing so when we can’t get financial support from our own banks, how will we stand the foreign companies that are coming with financial supports from their own countries and can easily get a quick support even our governments than us who are trying hard to manufacture and create jobs? What can African governments do to ensure that island communities without electricity have access to power? So far, African governments in recent years have invested in the energy sector especially by building hydropower plants and also promoting renewable energy. But a lot of work needs to be done to reach those in remote and isolated areas. We have seen many clean energy companies investing in Africa for the past ten years. However, African governments must improve partnership with private sector in the energy field by promoting Power Purchase Agreements (PPAs) with Independent Power Producers. We can attract many local and foreign investors to build off-grid electrification once the government is willing to buy the power. However, this can be achieved if there are friendly renewable energy policies that enable the spread of solar technologies to isolated communities and also political will and commitments to support these investments. This means, even local financial institutions like our banks will be able to engage with energy companies and set renewable energy loans so that we, as local companies, can take up loan for clean energy projects. This can be achieved when these institutions have guarantee that governments are going to buy electricity from the independent power producers. So partnership is very essential between all actors from public and private sector. The larger population of sub-Saharan Africa lives without electricity and we know once a village is connected to power, it changes rapidly economically and socially. We have seen this improvement even in our solar initiatives. I believe solar energy is very suitable to many African countries because we have a long period of sunny days, and all we need is to invest in the energy sector and at the same time moving quickly in manufacturing solar products here in Africa. If we have more producers in our continent, this will decrease the high cost of solar products compared to current costs. One Africa is currently engaging several partners and seeking capital investment for solar factory that we want to build in one of the East African countries based on market strategies for the entire region. So, we are still in talks and hoping the best for this project. We believe that manufacturing solar lanterns, panels and other solar products like batteries in Africa will bring a great benefit in energy sector and offer jobs to young men and women and add to the value chain. This means from manufacturing to end users, many people will be involved. We cannot continue with old habit of buying final products from overseas because it does not add up value to us and that is why solar energy is still perceived as an expensive energy alternative because all products are imported. Here, I can say that India is doing a lot to boost domestic solar cell and module manufacturing capacity. Why can’t Africa do that while we have young people from formal and informal sectors who can work in the factories? This will address the high unemployment rates that African youth are currently facing. Lastly, in 2018, the South African government, through Eskom, signed 27 independent renewable energy agreements with a combined investment value of 56 billion rands and capacity of 2,300 MW. We need to see more of these kind of partnerships in Africa. I strongly recommend all actors to work together if we want to see a huge change between now and 2030. We must work hard to achieve Affordable and Clean Energy as one of United Nations Sustainable Development Goals because if we have enough electricity, we have power to turn Africa into industrial hub that will boost our economies. The African Continental Free Trade Area will not benefit us if we don’t have products made within our continent. This means, African governments must give the energy sector the priority. Source: www.energynewsafrica.com

APICORP Issues A Benchmark US$750 Million 5-Year Bond

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has announced the issuance of a benchmark USD750 million dollar-denominated five-year bond in the RegS markets. The latest issuance, part of APICORP’s USD3 billion Global Medium-Term Note (GMTN) program, will bolster the corporation’s business operations. This also includes undertaking a countercyclical role in 2020 aimed at supporting the MENA energy sector in mitigating the impact resulting from the COVID-19 pandemic as well as oil price fluctuations. The issuance attracted robust and diverse investor demand, with more than USD1.1 billion in orders for the debt sale from over 40 investors of various types from within and outside the MENA region. The five-year note’s fixed cost of funding (1.46%) is the lowest in the history of APICORP. Moreover, the spread of 110bps is the lowest in the region compared to the sovereign, semi-sovereign and MDB peers’ US Dollar issuances that came to the market since the COVID-19 outbreak.
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APICORP is currently the only financial institution in the MENA region rated ‘AA’ by Fitch and ‘Aa2’ by Moody’s, both with stable outlook. Dr. Ahmed Ali Attiga, APICORP’s Chief Executive Officer, commented: “Despite challenging market conditions, the successful issuance of this benchmark US dollar bond, with this level of competitive pricing, reflects the confidence that global investors have in APICORP. We are appreciative that more than 50% of the investors for this issuance are central banks and official institutions, both from within and outside the region. We are also pleased with the number and profile of our investors spanning MENA, Asia, Europe and the Americas. As a trusted financial partner for supporting the sustainable development of the MENA region’s energy sector, this milestone is another step towards fulfilling our mandate and a testament to our position as a leading MDB.” Dr. Sherif Elsayed Ayoub, Chief Financial Officer of APICORP, said: “The remarkable achievements of this benchmark issuance, including the repricing of APICORP’s curve, attests to the effectiveness of our approach which is anchored by strong fundamentals with clear pricing and quantum objectives. Indeed, this issuance reinforces our strategic objective of meeting our operational ambitions by way of cost-effective financing that can add value to our partners and solidify APICORP’s profile as a high-grade issuer that is firmly within the sovereign, supranational and agency (SSA) space.” The Global Coordinators, Joint Lead Managers and Bookrunners included Citibank, Emirates NBD, Goldman Sachs International and Standard Chartered, whereas the billing and delivery agent was Standard Chartered. Furthermore, Allen & Overy served as the issuer’s counsel, while Clifford Chance served as the banks’ counsel. KPMG undertook the role of the auditor on the issuance.

Nigeria: Ikeja Electric Fixes 120,000 Households With Meter

Ikeja Electric, a power distribution company in the Republic of Nigeria has announced that it has metered 120,000 households between 2018 and June 2020. This, according to the company, is in line with its commitment to bridging the metering gap in Nigeria. The company’s head of corporate communications, Felix Ofulue, said in order to achieve the mandate of the Nigerian Electricity Regulatory Commission (NERC) to bridge the metering gap and reduce the incidence of estimated billing, the company has doubled its efforts to realise its objective of metering all its customers in the shortest possible time. “The company plans to meter another 400,000 customers over the next two years. Apart from eradicating estimated billing, Ikeja Electric’s metering programme has also provided jobs, directly and indirectly, for thousands of Lagosians and Nigerians in general, particularly during the lockdown,” Ofulue said. He said the metering of customers under the Meter Asset Provider (MAP) scheme is ongoing, despite logistical challenges emanating from the COVID-19 pandemic. The company has also metered Maximum Demand (MD) customers in the network and conducted periodic recertification of the meters in line with regulatory procedures. “In addition to consumer metering, Ikeja Electric has also metered all the 33kV /11kV feeders from the injection stations ensuring energy accountability across its delivery points. In addition, the local distribution transformers have also been metered up to 100% while the metering of newly installed transformers after completion of the project is ongoing,” he explained. Ofulue urged customers who are yet to apply for meters, to take advantage of the Meter Asset Provider (MAP) scheme and apply through map.ikejaelectric.com, using their Ikeja Electric’s account number on the bill to log into the portal and update their KYC (Know Your Customer) details. He noted that Ikeja Electric has set up a debt resolution panel in the Six Business Units to address complaints on outstanding bills and other related issues to ensure reconciliation while customers are processing the application for meters. With regard to payment for meters, Ikeja Electric spokesperson stressed that “customers must always pay into the designated bank account provided by the MAP and they must always include their Application Reference Number (ARN) when making these payments”. Ofulue also explained that with the upward review of meter prices by the Nigerian Electricity Regulatory Commission (NERC), the new price for Single Phase Meter is now N48, 263.37 while Three Phase Meter is now N89, 069.33. All prices are inclusive of VAT and became effective June 1, 2020. However, customers who have paid before 1 June 2020 under the MAP scheme, but yet to be metered should forward their payment evidence stating Account Name, Application Reference Number (ARN), and IE Account Number to [email protected] for prompt confirmation. Ofulue advised customers not to pay or give money to either Ikeja Electric staff or MAP for meter and installation. Rather, they should send an email to [email protected] or call the Nigerian IE Customer Care helplines 01-4883900, 01-7000250, 09087980825 for clarification on issues that are not clear.

India To End Federal Control Of Gas Prices, Lift LNG Transport Use

India will gradually end federal controls on gas pricing as it seeks to attract foreign investment and technology to lift local output, oil minister Dharmendra Pradhan revealed on Friday. India, which is a large emitter of greenhouse gases and has multiple gas pricing regimes, aims to raise the share of gas in its energy mix to 15 per cent by 2030, from 6.2 per cent. “This is an incentive we are giving to investors to come to India and take advantage of pricing and marketing freedom and produce more and invest more,” Pradhan said at the BNEF summit. To boost gas usage, India is expanding infrastructure including building new liquefied natural gas (LNG) import plants and connecting households with an expanding gas pipe network. New Delhi said recently that no authorisation was needed to set up LNG dispensing facilities for vehicles. India’s top gas importer Petronet LNG said on Friday it wants to partner with fuel and gas retailers on LNG stations along highways for long-haul trucks and buses.
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Petronet wants to set up 5 LNG stations in the fiscal year ending March 2021, and 300 by 2023. It eventually aims to have 1,000 LNG stations across India, it said on its website. Meanwhile, Indian Oil Corp, the country’s top refiner and fuel retailer, said this week it wants to start LNG retailing through its fuel pumps. GAIL (India) Ltd’s executive director Rajeev Mathur said his firm is looking for partners to set up LNG dispensing facilities. Mathur said India’s gas demand is expected to rise by 3 per cent-4 per cent between October 2020 and March 2021, after witnessing a huge fall in April-May due to a coronavirus lockdown. Imported LNG accounted for about half of India’s 60.8 billion cubic meters of gas consumption in the fiscal year to March 2019.

Covid-19: Let’s Pay Attention To Lessons Of The Pandemic To Make Africa Self-Reliant – Senyo Hosi

The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana, Senyo Hosi , is urging African leaders to pay close attention to the lessons from Covid-19 pandemic for the continent to be self-reliant. Mr. Hosi was speaking during a panel session on the theme “COVID-19: Pathways to Africa’s Economic Recovery and Growth – The place of policy response and private sector mobilization in Africa’s recovery efforts” at the virtual Africa Summit 2020. Hosi, who is also an economic policy analyst told the panel that the coronavirus pandemic has pushed the continent to look within to solve its problems. “Africa has a perfect opportunity under Covid-19 to reset its thinking and to trigger the paradigm shift that it has been waiting for. We’ve always said that Africa is going to be the next economic frontier, but the question is, a frontier for who? Is it going to be a frontier for ourselves? If Covid-19 hasn’t taught us anything at all, I think it should tell us the need for ourselves to be self-reliant on very key issues and basic things and to be a bit more futuristic in our thinking and our planning,” Hosi said. According to Africa Union, 359, 606 people in Africa have been infected with Coronavirus with 9,283 deaths and 172,974 recoveries as at Saturday, June 27, 2020.
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Many African countries have closed their borders in line with the imposition of lockdowns and other restriction measures to deal with the pandemic. Although this may have caused a strain on economic activities, the halt on importation meant the continent had to look within to fill the gap. In Ghana, indigenous companies took charge of the production of personal protective equipment such as facial masks, ventilators and alcohol-based sanitizers. This somewhat spurred economic activity. Senyo Hosi said it is no longer be acceptable for the continent to be dependent on foreign support while she [Africa] sits on arable lands and has a vibrant youth population. He believes the proper use of agriculture, human resource, education and value addition are the surest ways for the continent to recover from the pandemic and achieve economic development. Vice president of Liberia Jewel Howard-Taylor, a keynote speaker, maintained it was Africa’s job to keep its economies afloat during the pandemic but said it was more important not to miss the negative effect of Covid-19 on women and girls because of their significant roles. “There’s a lot of loss of income for women, there’s a loss of mobility (where to go to settle sexual reproductive health issues), there’s a loss of empowerment of women but most importantly there is an increase in sexual and gender-based violence across our world.” She called for the prioritization of empowering women and girls during this global crisis. The virtual Africa Summit 2020, organised by the Africa Leadership Magazine (ALM) had other speakers including Prime Minister for Eswatini H.E. Ambrose Dlamini, Secretary-General of the Commonwealth Patricia Scotland, Former Director of Communications of the African Development Bank Dr. Victor Oladokun and Member of the UK House of Lords and Prime Minister’s Envoy to Uganda and Rwanda Lord Dollar Popat.