Chief Executive Officers of Hydropower generation companies across the globe who participated in a meeting convened by the International Hydropower Association (IHA) to discuss how hydropower can contribute to global recovery efforts are of the view that an economic stimulus packages involving investment in sustainable hydropower among other renewables will be essential to Covid-19 recovery efforts.
Eddie Rich, International Hydropower Association’s CEO, and eleven hydropower CEOs and top executives from IHA’s membership, presented a united message on the need for sustainable hydropower as part of the energy mix for a green recovery.
The General Manager for Yalong River Hydropower Development Company, China Mr. WU Shiyong, said, “Increasing hydropower investment will support the economic revival in China. It is expected that we will start construction of a project involving investment of around USD20bn in the second half of this year. In other parts of the world there is a need for increased investment in hydropower to recover from the crisis.”
Contributing to the discussion Irene Cañas who is CEO of Instituto Costarricense de Electricidad, Costa Rica, said, “I believe that in the recovery from Covid-19 we should be sure to do it in a sustainable way and thinking not just of electricity but also of water. These two needs are very important in the world right now.”
“We hope the IHA and IEA can support hydropower sustainable development and help in setting up national energy policies so that we have tax incentives, green bonds, and fast-track approval by the authorities; and also potentially look at internationalising the renewable energy certificate initiative,” James Ung Sing Kwong, CEO, SEB Power, Malaysia said.
On his part, Gil Maranhao Neto, Chief Strategy, Communications & CSR Officer of ENGIE Brasil, Brazil noted that a good measure done by the Brazilian gov’t was the declaration of suspension of financing and debt service payments for projects being done by the federal bank for up to six months. This could be followed by other countries.”
Neto added: “Brazil is not building any hydropower at this time. Getting even basic engineering design and environmental studies required for the licensing takes between two to three years. We should urgently resume the preparation of projects.”
“One of the main concerns is the low cost of electricity around the world; it will be very difficult to finance hydropower projects. We see that sustainable hydropower projects are competing with wind and solar for example with green subsidies. It’s important to find ways to get the right long-term market conditions to support hydropower development,” Hörður Arnarson, CEO, Landsvirkjun, Iceland.
“This technology of hydro has proven you can run it during a pandemic situation so if you look through the lens of future modernisation, how do we pandemic-proof our hydro plants? How do you minimise the impacts?” Herbie Johnson, General Manager, Southern Company, US.
“It is important to focus on maintaining the existing capacity of the hydropower fleet through refurbishment activities. We would also like the IEA to support a long-term framework for the future,” Hilde Bakken, Executive Vice President, Statkraft, Norway.
Anton-Louis Olivier, CEO of REH Group, based in South Africa, said: “With the growing emphasis and prevalence of solar and lower cost but intermittent resources, we should not neglect the need for hydro to create the base on which these lower-cost technologies can also enter into the market.
“My message to the IEA in dealing with the international financial sector and multilaterals guiding the future of the energy sector in Africa is to remember that hydro, large and small, can still play a significant role in the continent, and can contribute to a growing and decarbonised power sector.”
Yves Marie Giraud, Director of EDF-Hydro, France, said hydropower was the best way and the only way to store energy in large quantities and over long periods, but markets should be designed better to reflect this.
“Usually, we do not have the appropriate market design nor the mechanisms to support storage in general, and pumped storage plants in particular.”
This, view was echoed by Stephen Davy, CEO of Hydro Tasmania, Australia, who said: “Pumped hydropower investment is the easiest and most straightforward way to maximise solar and wind generation in the energy system. In Australia, we are promoting the market measures required to properly value storage and flexibility.”
The Executive Director of IEA, Dr Birol acknowledged the points made by the hydropower CEOs, including about the importance of storage, modernising plants, and keeping long-term policy support; as well as the multiple non-energy benefits of hydropower, such as flood and drought control, irrigation and climate resilience.
As well as feeding into this week’s IEA World Energy Outlook special report, the discussion will be considered for the IEA’s Clean Energy Transitions Summit on 9 July 2020. Dr Birol pledged to take the feedback from the meeting to the government ministers and policymakers attending the Summit.
Roger Gill, IHA President, said the meeting was very timely for the hydropower sector to outline the measures needed to spur sustainable hydropower and support the recovery, particularly relating to incentivising storage and modernisation projects.
The OPEC+ technical committee that met on Wednesday did not make any additional recommendations for further cuts in oil production.
Rather, it focused on members, who are failing to adhere to the current agreement,
Another purpose of the meeting was to review the impact of the cut.OPEC’s second-largest producer, Iraq, is also historically the least compliant member of OPEC+.
Nevertheless, even Iraq has made significant cuts in its crude oil exports this time around.
Exports from Iraq fell by 300,000 barrels per day (bpd), or by 8 percent, in the first two weeks of June compared to May.
These figures suggest that Iraq is continuing to improve on its compliance with the record production cuts, thanks in part to some sound strong-arming from Russia and Saudi Arabia, who refused to sign onto another month of high-level production cuts unless the laggard members do their part.
But coming closer to the agreed-upon cuts in June is two months too late—for a two-month pact.
According to the OPEC+ sources, Iraq, along with Kazakhstan, is expected to present at today’s JMMC meeting their plans for how they will make up for the extra barrels they produced in May and so far in June.
The group will likely expect the laggard members to make up for their overproduction, barrel for barrel, in July and August.
OPEC+’s compliance was 87% in May.
The OPEC+ cuts of 9.7 million barrels per day have had a modest positive effect on oil prices so far, not least because the amount of crude oil in storage around the world is still rather excessive. And there are growing fears, including within the oil industry, that some of that lost demand is not coming back anytime soon.
The Uganda oil and gas market is undergoing a rapid transformation over the recent past.
The country offers a strong growth outlook with significant new investment opportunities in the medium to long-term future. In particular, domestic and foreign companies planning to expand their operations in the Uganda midstream and downstream oil and gas industry will witness new opportunities.
Amidst the series of latest market developments, OGAnalysis – the leading oil and gas research and consulting company published a comprehensive guide for strategy formulation and business development decision-makers interested in Uganda oil and gas.
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The study presents short term and long term trends shaping the future of Uganda oil and gas markets. The report also presents reliable forecasts for the production and consumption of Uganda crude oil, natural gas, motor gasoline, diesel, Fuel oil, LPG along with Primary energy demand, economic growth, and population. Further, the plant-by-plant capacity outlook of refining (CDU, coking, FCC, HCC), oil and chemicals storage terminals, LNG liquefaction terminals/regasification terminals are provided to 2023.
The analytical report details all major operational, planned and proposed oil and gas projects in Uganda. In addition, investment opportunities in the country’s oil and gas sector are detailed. The study evaluates the country’s energy infrastructure, market conditions, investment potential and competitive landscape of oil and gas upstream, LNG, storage, and downstream refining markets.
To assess the real prospects and restraints of expanding or operating in the Uganda oil and gas market are identified through detailed SWOT Analysis. Further, the country’s oil and gas market is benchmarked against its peer markets in the region. It also highlights Uganda’s market potential and project feasibility. In-depth data on exploration blocks, refineries, storage and LNG terminals along with required capital investments (CAPEX), status, planned commencement dates, companies and organizations involved in planned projects are detailed.
The report also analyzes three leading oil and gas companies operating in the Uganda oil and gas value chain. Business operations, SWOT Analysis and financial performance of these three companies are included in the research. All recent developments in the industry and their impact on Uganda oil and gas market and companies are included in the study.
The report scope includes-
• The outlook of Supply and Demand of Oil, Gas, LPG, Gasoline, Fuel Oil, Diesel, LNG, Primary Energy Demand, GDP, and Population to 2028
• The outlook of project wise, company wise and country wise capacity of Refining (CDU, Coking, Fluid Catalytic Cracking, Hydrocracking), LNG (Liquefaction, Regasification), Storage to 2023
• Analysis across Uganda oil and gas value chain- oil and gas fields, blocks, oil, products, chemicals storage, underground gas storage, refineries, LNG, and others
• Strategic analysis review comprising SWOT Analysis, comparison with peer markets, drivers and restraints
• Identifying potential investment projects with current status, owners, construction developments of planned refineries, new units, expansions and upgrades, exploration blocks on offer, LNG terminals, new storage facilities
• Field wise production, 2012- 2019, exploration blocks on offer, bidding round information is included
• Market structure and market share of leading five companies in each of the oil and gas segments are provided
• Business profiles of three leading companies including their business operations, SWOT and financial details
• Recent industry deals and news in Uganda oil and gas market
Source:www.energynewsafrica.com/marketresearch.com
Global oil demand will rebound next year as the world emerges from the Coronavirus pandemic, but recovering to pre-crisis levels may take a couple of years, the International Energy Agency (IEA) has predicted.
Fuel use around the world will remain 2.5% lower next year than in 2019, largely because of the “the dire situation of the aviation sector,” the Paris-based agency said in its first detailed assessment of 2021.
The projections add to a fragile outlook for the oil industry, coming a day after BP Plc wrote off billions in assets on concern over long-term demand. Still, the report contains some good news for producers.
The first half of this year is “ending on a more optimistic note” because demand losses during lockdowns to curb the spread of coronavirus were not as severe as expected, it said. Output cuts by OPEC+ and shutdowns in the U.S. should put the market into deficit in 2021, depleting the massive 1.5 billion-barrel surge in inventories seen so far this year.
Falling Short
Oil prices were trading above $40 a barrel in London on Tuesday, double the levels seen in late April, as economic activity resumes and the Organization of Petroleum Exporting Countries and its allies slash supply.
The IEA — which advises most major economies on energy policy — bolstered its demand estimate for the second quarter by 2.1 million barrels a day, tempering some of the massive drop. Lifestyle changes such as working remotely will not trigger a long-term leveling off in fuel use, said Fatih Birol, the agency’s executive director.
Nonetheless, world crude consumption is still on course for a record contraction of 8.1 million barrels a day this year.
While it will climb by 5.7 million barrels a day next year, the average of 97.4 million a day will remain 2.4 million barrels a day below 2019 levels. Demand may not return to 100 million barrels a day until 2023, Neil Atkinson, the IEA’s head of oil markets and industry, said in a webinar after the release of the report.
For now at least, the physical oil market is tightening.
Stockpiles are on track to diminish rapidly over the next six months, and — in theory — decrease during each quarter of 2021, according to the agency’s forecasts.
OPEC+ made a “strong start” to its latest round of output curbs last month, delivering 89% of its pledge to cut 9.7 million barrels a day, the IEA said. Earlier this month, the alliance agreed to press on with the strategy, and members that have not yet implemented their share vowed to make up for it.
Next year, global demand is on track to exceed supply, with the projected recovery in oil production to be less than a third of the increase in fuel use, at 1.7 million barrels a day.
That could change however, if the OPEC+ coalition is tempted to revive output as consumption rebounds or if rising prices reinvigorate American shale drillers, the IEA cautioned.
Source:www.energynewsafrica.com
Ghana’s strategic oil company, Bulk Oil Storage and Transportation (BOST) Company Limited has commenced repair works on its Buipe-Bolga pipelines.
The 270km pipeline, which was used to transport fuel to the northern part of the West Africa nation, as well as neighbouring Burkina Faso, had been out of use for many years because of its poor state.
The company had been struggling to repair the pipeline due to lack of funds.
However, sources within BOST indicate that repair works on the Buipe-Bolga pipeline commenced this week.
A video sighted by energynewsafrica.com, shows engineers and personnel from the Ghana National Fire Service working on the pipeline.
The Government of Ghana, on June 1, this year, announced a GHp3 increment in BOST Margin and by this, the company expects to generate about GHC10 million monthly.
Managing Director of BOST, Edwin Provencal, has expressed his commitment to ensuring that the company is run efficiently to become a dividend paying entity.
Ghana’s quest to join the nuclear power producing countries in the world is on course, energynewsafrica.com can report.
The West African nation is hoping to generate about one gigawatt of power from nuclear to add to the country’s energy mix.
The project is expected to commence in 2024 and completed in 2030. The country has, so far, successfully completed the first phase of the three phases required by the International Atomic Energy Agency (IAEA) before the development of a national infrastructure for nuclear power.
Ghana has been given the greenlight to move to the second phase after having successfully completed the first phase.
The second phase involves developing the institutions, building expertise/capabilities, liaising with stakeholders, developing regulatory framework, electrical grid studies/upgrade as well as procurement site preparation and contracting.
To this end, officials of the sector ministry, last Friday, held a meeting with the Minister for Environment, Science, Technology and Innovation, as well as other stakeholders to discuss the second phase of the project.
Speaking in an exclusive interview with energynewsafrica.com, Coordinator of the Ghana Nuclear Power Programme (NPP), Dr Robert B. M. Sogbadji said the government had already identified four sites for the project but declined to disclose their exact locations.
“When IAEA gives us the nod for the phase two, like they had given us in the phase one, then, we go to phase three, where we construct the power plant. We are expecting that this phase three will also end by 2030 when we will connect the nuclear power plant to the grids to integrate into our energy to diversify our energy mix.”
According to him, this purpose is to diversify the country’s fuel supply mix so that it would enhance the amount of renewable energy resources Ghana needs as a clean base load to be able use variable energy resources as well.
Touching on the cost of the project, Dr Sogbadji explained that for a 1,000MW to 1,200 MW installed capacity of nuclear, the price ranges from $4 billion to $6 billion, however, they are having quotations from 700 MW, which was around $2 billion from the other countries, so they would take best decision to procure the one that would be more economically benefit to Ghana.
He was of the view that, though nuclear programme is involving, once Ghana reaches the end of phase three, it would become a beacon of Africa and “it is going to improve on our industry in diverse ways, in our construction of robotics, healthcare and even water supply.”
Click on the video below to listen to Dr Robert Sogbadji:
The Government of Ghana has rejected the appointment of Tullow Ghana’s new Managing Director, Wissam Al Monthiry.
Wissam Al Monthiry was appointed in the middle of May to replace Kweku Andoh Awotwi who is due for retirement on June 30.
However, speaking on an Accra-based Asaase Radio, Ghana’s Energy Minister, John-Peter Amewu revealed that the government, through his Ministry, had sent a strong worded letter to the company objecting to the appointment of a non-Ghanaian.
“As a country, we’re not going to accept that appointment. Unfortunately that person is sitting in London,” the Minister said.
According to the Minister, Tullow’s action defeats the government’s localisation agenda, stating that the government frowns on that action.
He said the government would ensure that the appointment of Wissam Al Monthiry is reversed.
“We will make sure that a Ghanaian is appointed, “he iterated.
Source:www.energynewsafrica.com
In the second week of December last year, one issue that emerged at the energy sector front, particularly the downstream sector in Ghana and was discussed in the media was the increment of Bulk Oil Storage and Transportation (BOST) Company Limited’s Margin.
The government, through the downstream regulator, National Petroleum Authority (NPA), announced a one hundred percent increment of BOST Margin from three pesewas per litre or some cumulative 10,200,000.00 to six pesewas per litre or some cumulative 20,400,000.00 from consumers based on current conservation estimation of 340m litres of fuel consumed monthly. The Unified Petroleum Fund was increased by 4.7 percent or GHc1 (one pesewa) from 21 pesewas per litre to 22 pesewas per litre or some 3,420,000.00 cumulatively.
However, the increment in BOST Margin did not sit well with some interest groups especially a consumer advocacy group-Chamber of Petroleum Consumers, Ghana (COPEC).
The position of COPEC Ghana, which was championed in the media by Duncan Amoah, was that the increment was going to cause more hardships on petroleum consumers hence the need to withdraw the increment.
In an interview with Accra-based Citi FM, Mr Duncan Amoah wondered why BOST should even be given a margin when private depots that operate in the country do not get any margin from commercial drivers (trotro) as well as taxi drivers. He simply wanted the BOST margin to be scrapped. After few days of pressure on NPA and for that matter the Akufo-Addo administration, the regulator announced to the consuming public that the increment had been reversed. By that news, the Duncan Amoah-led COPEC was excited about the government’s decision.
My understanding was that BOST would have raked in GHS10 million on a monthly basis if the government had stayed the increment. The company would have generated, at least, GHc50 million by the end of May if the increment had remained.
I’m sure BOST would have utilised this amount wisely and even gone ahead to borrow to start rehabilitation of some of its pipelines and storage tanks that are in deplorable state because of lack of funds.In an interview with Business & Financial Times (B&FT), prior to the increment of the Margin, Managing Director of BOST, Edwin Obodai Provencal noted that the BOST Margin of GHc0.3 pesewas was implemented in 2011 but it was not adjusted even though parliament had ratified that it should be increased to GHS0.6 pesewas in 2017.
Michael Creg Afful, the Author
Meanwhile, the company needs more revenues to bring in more products, build infrastructure and trade among others.
Mr. Provencal expressed, among other things, that he is dedicated to transforming BOST into a dividend paying organisation, but he was of the view that to be able to do that, it requires heavy investment in infrastructure and to generate the needed revenue that requires that the BOST Margin be increased.
“Our vision is to be the best in storage and transport in terms of revenue market share, which means that we should have the best storage and transportation infrastructure to transport the products throughout the country,” he said.
In his estimation, it was going to require an investment of about US$ 150 million to be able to turn the fortunes of BOST.Then at a media engagement on 27 December, 2020, it was revealed that BOST had 51 storage tanks, but said 30% representing 15 tanks are out of service.
This sad state of BOST recently, caught the attention of the Executive Director of Institute for Energy Security (IES) Nana Amoasi III, also known as Paa Kwasi Anamua Sakyi, wrote a piece about the State of BOST’s pipelines.
In his article titled, ‘BOST Abandons Pipeline Infrastructure At The Expense Of The State’ the author cited a report by the U.S. Association of Oil Pipelines (AOPL), which showed that 16.2 billion barrels (nearly 680 billion gallons) of petroleum products delivered through pipelines in 2014 in the United States, reached their destination safely by an amazing 99.999 percent.
Sadly, same could not be said when it comes to using Bulk Road Vehicles. According to the article, a study by the Manhattan Institute compared the safety of road, rail and pipeline hydrocarbon transportation and found that transporting oil by roadway had the highest rate of incidents with 19.95 per billion ton miles per year. This was followed by rail with 2.08 per billion ton miles. Oil pipelines were found to be the safest with 0.58 serious incidents per billion ton miles.
Aside its safety records, pipelines have the advantages of being able to handle large volumes, having good continuity with 24-hour uninterrupted transportation, being unaffected by weather conditions in the transportation process, and having a low unit freight transportation cost (Wang et al, 2019). This means the use of Bulk Road Vehicles (BRVs) for the transportation of fuel, which is done currently is not the best option. But how can BOST make use of pipelines when its pipelines have been down for years?
The current infrastructural state of BOST, needs a serious attention. If BOST were in a healthy state, it could have taken advantage of the recent dramatic fall in the crude oil prices to as low as U.S $17 per barrel in April, 22. 2020 and stored some products. Despite the strong opposition to the BOST Margin increment, Managing Director of the company, Edwin Obodai Provencal did not give up on his quest to ensure that the Margin was increased to give the company a new life. Fortunately for him, Cabinet gave a second thought to his request and approved the increment effective June 1.
The MD and his team are now happy but the Minority in Ghana’s Parliament especially Ranking Member of Mines and Energy Committee, is unhappy about the action of the government. To Adams Mutawakilu, the increment of BOST Margin is wrongfully timed. He couldn’t fathom why the government would be asking Ghanaians to pay more for fuel at the time COVID-19 is having psychological, mental and economic impact on Ghanaians.
Inasmuch as this argument is sound, the question that begs answer is when will it be appropriate to increase the BOST Margin?
We have been told that it was way back in 2011 when Parliament okayed the increment of the BOST Margin. Unfortunately, that was not done for almost nine years, even though there had been increases in goods and services over the past nine years.
At this point, what we need is not a reversal of the government decision, but rather demand value for. We should see the Edwin Provençal-led management of BOST giving us value by utilising monies which would be generated from the Margin judiciously and wisely. We want to see the dysfunctional pipelines repaired. We want to see restoration of fuel transportation through pipelines not by BRVs. We want to see rehabilitation of the storage tanks that have been down for years.
There are some Ghanaians who perceive BOST as a cash cow for political parties especially in election year. If this is true, we want to see an end to that. We want a BOST that is able to keep strategic stock for between three to six months. We want to see a dividend paying BOST as the MD has promised to deliver. Once BOST becomes efficient and serves Ghanaians whose taxes are used to pay the workers, I’m sure we will not have a reason to protest any future increase in BOST Margin.
I want to conclude this article with a quote from Luke 12:48 which says, “But the one who does not know and does things deserving punishment will be beaten with few blows. From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.” We therefore expect BOST to give us much.
Written By Michael Creg Afful.
Email: [email protected]
The African Energy Chamber (AEC), a chamber of networks, transactions, and partnerships at the forefront of Africa’s growing energy industries, has urged member countries of the African Petroleum Producers Organization (APPO) to take action and support the oil sector at its meeting this week.
A statement issued by the Chamber Monday pleaded with the APPO members to consider implementing its Commonsense Energy Agenda and Guidelines for the Movement and Safety of Oil Workers.
The first includes key measures for a short and medium-term recovery of the sector while the latter includes immediate actions and initiatives that could ensure that the year is not entirely lost for oil and gas operations in Africa.
According to the African Energy Chamber, swift action and safe movement of oil workers can ensure that oil and gas operations continue safely with minimized impact on exploration and production.
Also, the Chamber called on the APPO to take the necessary actions and measures to safeguard the interest of the industry, its investments, and its jobs.
As stated within the Chamber’s Commonsense Energy Agenda, an adjustment of work programs is a major step that producing countries should be taking immediately. This will give explorers and producers the space to breathe and plan for a strong recovery in 2021.
Nj Ayuk, executive chairman of the African Energy Chamber, said: “Unless African countries engage with operators and investors and let them readjust their work programs, the only solution left for companies will be to declare force majeure or suspend any activity on their block.
“Work programs adjustments is a major demand of the industry at the moment and key responsibilities need to be waived so exploratory and development drilling can only be deferred and not suspended or cancelled”.
This is the second time in the last few months that the Chamber urged some sort of association of oil-producing countries to reach a deal benefiting the oil industry.
Source:www.energynewsafrica.com
Africa Oil & Power (AOP) in collaboration with the African Energy Chamber, will organize the first Gabon Oil & Power 2021 conference on March 15-16 in Libreville.
The event will be the prime energy investment platform for one of Africa’s most established oil and gas markets and will provide the venue to showcase oil, gas and power investment opportunities in the post-COVID-19 recovery period.
While Gabon is capitalizing on the success of its new and improved Petroleum Code –which has attracted the interest of a myriad of international exploration and production companies and has seen several new production sharing agreements signed in its 2020 bid round – Gabon Oil & Power 2021 is the ideal platform for policymakers, investors and deal makers to network and discuss the future of the industry.
The growing interest in renewable power generation solutions and Gabon’s continued stewardship of the environment will be showcased during high-level panel discussions, while economic diversification, empowerment of women through the global Equalby30 initiative, and local content policies will also be highlighted at the event.
“Gabon’s recent changes to its oil and gas legal framework, combined with its proven history of oil success and offering of new opportunities in offshore acreage makes it one of the most appealing oil markets on the continent right now. Gabon Oil & Power 2021 will be the vehicle through which those investment opportunities will be better showcased to all relevant stakeholders in the industry,” João Gaspar Marques, Director at Africa Oil & Power said.
Gabon Oil & Power 2021 is one of a series of country-specific and industry-wide conferences organized by AOP throughout the continent, including events in Angola, South Africa, Equatorial Guinea, South Sudan, Senegal, Mozambique and Nigeria. AOP will work with all actors in the Gabonese oil, gas and power sectors, from government officials to private sector players, to define opportunities and help new and existing investors find success in the market.
Source:www.energynewsafrica.com
The prices of diesel and petrol on the local market are expected to witness a marginally increase at the pumps from Tuesday 16th June, 2020.
This, is according to the energy Think Tank, Institute for Energy Security (IES).
Prices of petrol and diesel went up during the 1st window pricing about two weeks ago, but IES is of the view that the prices of the commodity could go up further giving the current market conditions.
According to the IES, the expected increment has become possible due to the increase in the price of Brent crude by 16.19%, plus the 15.35% and 15.79% increment in the prices of petrol and diesel respectively, as well as slight depreciation of the cedi to the dollar.
“Brent crude moved above the US$35 per barrel during the last pricing window on June 1st, 2020 and is going for about US$43 on the international market. The cedi also depreciated by about 0.18% to the dollar in the last review period, trading at an average price of US$5.72 to the US dollar,” IES said in a statement signed by Research & Policy Analyst Raymond Nuworkpor.
2ND PRICING WINDOW JUNE
The Angolan Government has said it remains ever more committed to the diversification of the country’s economy away from oil revenue dependence.
According to H.E Joao Baptista Borges, Angola’s Minister of Energy and Water, the government is prepared to invest around USD 500 million over the next two years in solar energy projects in the country as part of a strategy to increase clean energy generation, and bring electricity to the entire country.
The Minister disclosed this in Addis Ababa during the recent 3rd African Business Forum, promoted by the United Nations Economic Commission for Africa (UNECA),
Additionally, Angola expects to implement a USD 400 million two-phase project in the clean energy segment, funded by the World Bank and the French Development Agency (AFD).
The project aims at improving the distribution of electricity in four key provinces. The Project also expects to reform the structure of public companies in the sector with the aim of increasing access to affordable Energy for Angola’s underserved populations.
On May 29, the government started a public consultation to determine the environmental impact of the project.
The Angolan state oil company, Sonangol, and Italian major Eni signed in June 2019 an agreement that created Solenova Ltd.
The purpose of this jointly-controlled company is to assess and develop renewable energy opportunities in Angola. ENI and the Angolan Government also agreed to jointly develop the 50MW Caraculo Solar Plant in Angola´s south western province of Namibe.
In the coming months, according to the Minister of Energy and Water, another 300MW of solar energy will be installed in the country, equivalent to a third of the capacity of the Cambambe hydroelectric plant (one of the main power structures in Angola), which, according to Minister João Baptista Borges, shows the government’s commitment to renewable energy, especially whenever generation costs are competitive.
“We see many projects in the pipeline in Angola, in addition to those that are already ongoing. This is a testament that the government is serious about boosting industrialisation with the help of affordable energy. I believe these investments will pay off in the coming years and for generations to come,”Verner Ayukegba, Senior Vice President of the African Energy Chamber said.
According to him, Angola even has the potential of becoming a future exporter of energy into the region.
The existence of all major International Oil Companies (IOCs) is an added advantage to Angola as these companies seek to increase their non-carbon footprint by investing in clean energy projects. While Eni seems to be leading the way in Angola with its solar initiatives, others are set to follow.
French oil company Total for instance has initiated negotiations with the Angolan government, and an agreement is anticipated on other clean energy generation projects soon.
The minister also revealed that the country is already working with Africa50, a pan-African infrastructure investment platform created to promote infrastructure investments across Africa.
Business Opportunities in the power sector are expected to increase given that 50% of the Angolan population still does not have reliable access to electricity.
According to Minister João Baptista Borges, the Angolan Electricity Sector Development Plan and the Energy Security Plan point to the construction of a capacity of about 600 MW of solar energy in the country by 2022, with the installation of about 30,000 individual photovoltaic energy production systems, in line with the country´s National Development Plan 2018-2022. In order to achieve this goal, the minister notably stressed that the government will open up the sector to competition from the private sector, both national and international.
Source:www.energynewsafrica.com
Women in Nuclear South Africa (WiNSA) have welcomed the move by the Department of Mineral Resources and Energy (DMRE) to issue the Request for Information (RFI) for the South African nuclear new build programme.
A statement released by DMRE on Monday noted that the RFI, a stand-alone information-gathering exercise does not commit to any competitive tender.
This follows the approval of the Integrated Resource Plan (IRP) in October 2019.The IRP provides a blueprint for South Africa’s envisaged energy mix.
Decision 8 of the IRP 2019 suggests that government should immediately commence with small-scale nuclear build programme to the extent of 2,500MW by 2030, at a pace, scale and cost affordable to the country “because it is a no-regret option in the long term”.
The plan also provides for the extension of the design life of the existing Koeberg Nuclear Power Station beyond 2024, when it reaches the end of its 40-year life, which will be subject to regulatory approvals
Commenting on the release of RFI, Nomathemba Radebe, WINSA President said: “Gender equality is one of South Africa’s Sustainable Development Goals. WiNSA sees the expansion of the nuclear industry as a great opportunity for women in nuclear research, industry entrepreneurs, and collaboration between the private sector, academia as well as the public sector. South Africa needs to invest in infrastructure for security of energy supply and for economic growth.”
According to WiNSA, nuclear energy is still the most viable option in order to stimulate the economy, despite public sentiment often being negative.
“Therefore, it remains crucial that a factual public awareness campaign gains greater momentum. Moreover, South Africa is amongst the top three largest producers of Nuclear Radioisotopes globally from the SAFARI-1 research reactor operated by Necsa, WiNSA noted.
Currently, the Koeberg Nuclear Power Station hosts the only operational Nuclear Power Reactors on the African continent, with a capacity of 1,800MW baseload power to stabilise the Western Cape grid at one of the lowest costs of production.
For over 30 years, Koeberg has contributed towards both the Western Cape and South African economy through job creation, infrastructure development, community development and transformation.
“As WiNSA, it is important that we become the nuclear ambassadors of this country and the African continent in general. There is a great need, as a collective, to educate our people so that they can understand and appreciate
the technology. The future of women in this sector is promising,” Radebe said.
Source:www.energynewsafrica.com
Managing Director of BOST, Edwin Provencal, has expressed his commitment to ensuring that the company is run efficiently to become a dividend paying entity.
• Investment: While renewable energy is growing cheaper, offering huge potential to stimulate the global economy, investment in renewables is equally presenting itself as stable, cost-effective and attractive; offering consistent and predictable returns.
Matthew DiLallo a Senior Energy and Materials Specialist with The Motley Fool, sees many companies benefiting from the expected growth of the renewable energy industry in the coming years. He presented Brookfield Renewable Partners, Clearway Energy, and NextEra Energy (all trading on the New York Stock Exchange) as three companies that stands out relative to others in the industry.
Matthew described all the three companies as routine outperformers. While Brookfield Renewable Partners has generated market-crushing total returns since its inception. It has also beaten the market year to date as well as over the past one, three, and five-year periods. Clearway Energy is also described as having the wind at its back these days. It estimates its cash-flow to soar 22 percent this year, powered by several acquisitions last year. Like Brookfield Renewable, electric utility NextEra Energy’s performance trend appears likely to continue in the coming years. The company expects that its earnings will grow by at least 6-8 percent per annum through 2022. Meanwhile, it anticipates that it can increase its 2.2 percent yielding dividend by at least a 10 percent annual pace during that time-frame.
The consumption, cost, and investment data presented in the comprehensive study from the International Renewable Energy Agency (IRENA), the Energy Information Administration (EIA), the MotleyFool among others, goes to show how decisively the tables have turned in favour of renewables.
A Road Map to 2050
According to the 2019 edition of IRENA’s, Global energy transformation: A roadmap to 2050, aside the pairing electrification with renewables getting cheaper than fossil fuel-based alternatives, it is lowering local air pollution and increasing health benefits; resulting in positive socio-economic benefits and presenting it as a key enabler to build a connected and digitalized economy and society. It suggests that electrification when paired with renewables, goes hand-in-hand with energy efficiency, resulting in lower overall energy demand.
In the estimation of IRENA, by 2050 electricity could become the central energy carrier, growing from a 20 percent share of final consumption to an almost 50 percent share, and as a result, gross electricity consumption would more than double. Renewable power will be able to provide the bulk of global power demand (86%) driven by over 1 billion electric vehicles, increased use of electricity for heat and the emergence of renewable hydrogen. Overall, renewable energy would supply two-thirds of final energy.
2ND PRICING WINDOW JUNE
