Mozambique: Eight Subcontractors On Total’s LNG Project Killed By Militants
Eight workers of a firm subcontracted by oil and gas giant, Total, to work on its $20-billion liquefied natural gas (LNG) project in Mozambique have been killed by gunmen.
Fenix Constructions Service, which is Total’s subcontractor announced the killing in a statement.
“On Saturday 27th June, a vehicle belonging to Fenix Construction, a company that operates in Palma, was attacked by five insurgents, approximately four kilometres north of Mocimboa da Praia in Cabo Delgado (province),” the company said.
Eight of the 14 people in the vehicle were killed, three survived and three others are still missing, according to the company.
Total is developing the Mozambique LNG project, whose final investment decision was taken in 2019.
The project is on track to deliver first LNG in 2024, the French oil and gas major says.
Total is the operator of the project which is also expected to generate revenue to help Mozambique’s economy.
Even though militant attacks continue in the country, Total is not giving up on the project nor are other companies.
In March this year, militants attacked a town in Mozambique close to large LNG projects under development, local police said. Unidentified militants occupied the city of Mocimboa da Praia, which is located 38 miles, or 60 kilometers, south of LNG projects being developed by major oil and gas companies, including ExxonMobil and Total.
Last year in February, militants attacked Anadarko’s LNG project in what was the first such attack on the local oil and gas industry.
Militant attacks are not discouraging operators from looking into opportunities in the LNG market in Mozambique. Japan, for example, is reportedly considering investing some $14 billion (1.5 trillion yen) in liquefied natural gas development in Mozambique, in partnership with the business.
Source:www.energynewsafrica.com
Transition To Renewable Energy Is Not An European Solution, It Is In Africa’s Interest – IES Analysts
The energy landscape’s transition to renewables is a global panacea for the high energy cost and sustainable development, and not a European solution.
Policy makers in Africa must as part of the exploitation of fossil fuels consider also the abundant renewable energy resources, freely at their disposal. Countries in the West and the oriental have gone ahead of Africans in the exploitation of these natural and greener resources because of the immense cost-savings it brings to their economy.
The inclusion of renewables in the continent’s energy mix is key in addressing not only energy supply need, but to replace costly fossil-fueled thermal power plants with more greener and cheaper types, with added advantage of domestic economic opportunities.
Recent reports from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) points to a declining solar and wind power costs, complementing the more mature bioenergy, geothermal and hydropower technologies; thanks to improved “technologies, economies of scale, increasingly competitive supply chains and growing developer experience.
Data from IRENA indicates that solar photovoltaic (PV) prices based on competitive procurement could average close to 4 cents (US$0.039) per kilowatt-hour for projects commissioned in 2021, down 42 percent compared to 2019, and more than one-fifth less than the cheapest fossil-fuel competitor like coal-fired plants.
Africans must accept that as renewable energy costs continue to fall, renewable power generation is increasingly becoming the default source of least cost new power generation. Renewable power generation technologies according to IRENA, are not just competing head-to-head with fossil fuel options without financial support. As a result they are undercutting fossil fuels in many cases by a substantial margin.
To achieve macro-economic stability, spur growth and move the continent of Africa beyond aid, reliable and affordable power supply has to increase significantly, while relevant power infrastructure is expanded. Researchers in the field of science have long established the energy-development nexus. That sustainable energy supply is a catalyst for sustainable development because it directly impact key indicators such as water supply, health, communication, education, food supply.
Africa petroleum handlers must not be seen to be against renewables, neither should anyone make unfounded claims against fossil fuels. Both sources of energy have a unique place in the global energy equation, and luckily Africans, they have both resources in abundance. While guarding against devaluation of their petroleum resource, Africa’s policy makers and petroleum handlers must not lose sight of adding value to the abundant wind and solar resources at their disposal; the green resources which the Europeans, the Asians and the Americas have less of, yet found them as the most clean, economical and sustainable energy option for power generation.
In fact, it is in the interest of Africans to use more of their abundant renewable energy resources to meet the continent’s energy requirement, instead of importing those huge volume of oil and fuels to power thermal plants. Maximizing Africa’s industrialization and for that matter job creation, is not dependent on the exploitation of its petroleum resources, but rather the availability of reliable and affordable power supply (which can easily be harnessed from its renewable energy resources) to meet the energy need of its growing population.
Eni To Take Up $4 Billion Impairment Hit Due To Lower Oil Price Outlook
Italian oil major Eni is expecting to report impairments of around 3.5 billion euros (cca. $3.96 billion) as a result of a lower outlook for energy prices.
Eni said on Monday that it was cutting its forecasts for oil and gas prices, both in the short and long term.
The company is assuming that the long-term price for Brent would stand at a long-term price $60 a barrel from 2023 onwards, down from a previous forecast of $70.
For the years 2020-2022, Brent prices are expected respectively at $40, 48, and 55 per barrel, compared to the previous assumptions of $45, 55, and 70 per barrel
Eni added that it was still working on its assessment of the impairments and that the estimate might vary by around 20 per cent, up or down.
Of the pre-tax impairment charges estimated at $3.16 billion, the Italian firm expects write-downs of about $2.26 billion related to its upstream assets and around $900 million in its refining operations. The estimate also includes devaluation of tax credits of around $790 million.
South Africa: Sasol Invests In Chemical And Energy Portfolios Instead Of OilThe amount of the estimated impairment losses are expected to be recorded in Eni’s consolidated results for the second-quarter 2020 due to be released on 30 July 2020. Eni added on Monday that the market developments linked to the spread of the COVID-19 pandemic made the robustness of the company’s strategic path and its long-term choices even more compelling. The distinctive element of this strategy is the fixed 2050 absolute emissions reduction target of 80 per cent covering all of the company’s products. This is well above the 70 per cent threshold indicated by the IEA in the Sustainable Development Scenario that tracks the reduction of emissions compatible with the Paris Agreement. Claudio Descalzi, Eni’s CEO, said: “We confirm our strategy to become a leader in the decarbonization process, notwithstanding the enduring impacts of the COVID-19 pandemic on the global economy and the company. “We are assessing how to speed up our plans. This ongoing evolution will allow the company to achieve a better-balanced portfolio, reducing the exposure to the volatility of hydrocarbon prices, while progressing towards our targets of sustainability and profitability. “Our changed long-term assumptions reached four months after the outbreak of the COVID-19 pandemic, reflect our current expectations about future prices and will be incorporated in our processes of capital allocation”.
Ghana: BOST Shuts Down Head Office After 46 Staff Tested Positive For Covid-19
Ghana’s strategic oil company, Bulk Oil Storage and Transportation Company Limited (BOST) has shut down its head office at Dzorwulu after 46 employees tested positive for the novel Coronavirus.
The company has, thus, asked all staff at the Dzorwulu office to work from home.
According to the company, all the 46 staff have been asked to also self-isolate with immediate effect.
It would be recalled that energynewsafrica.com reported that two staff of BOST had contracted the Covid-19 on July 2.
The cases were detected after mass testing of staff was conducted at the head office.
“The Bulk Oil Storage and Transportation Company Limited would like to announce for the information of the general public that it has closed down its head office at Dzorwulu in the Ayawaso West Municipality from Monday, 6th July, to Monday 13th July, 2020.
“This has become necessary due to a mass testing of staff carried out by the company at the head office in the wake of a staff of the IT Department testing positive for the virus. After the mass testing, a number of staff tested positive and arrangements are being made for their treatment,” a statement from the Corporate Communications Department of BOST said.
The statement said its head office would be fumigated to “ensure the safety of staff is not compromised when work resumes.”
The company has also given the assurance that the development would not “negatively impact the operations of the company since all staff have the needed facilities and enhancements to work from home within the period.”
BOST is the second institution in the West Africa nation’s oil sector where workers have tested positive for COVID-19.
The first was about 60 workers at the country’s jubilee fields testing positive for the disease. It followed two confirmed cases of Tullow Oil’s subcontractors.
Source:www.energynewsafrica.com
Ghana: COPEC Urges Gov’t To Provide Fuel Subsidies For Public Transport Operators
The Chamber of Petroleum Consumers (COPEC), a consumer advocacy group in the Republic of Ghana, is calling on the government to provide subsidies to public transport operators to cushion them against the impact of reduction in number of passengers due to the adherence of the Covid-19 social distancing protocol.
The Akufo-Addo-administration, as part of measures to curb the spread of the spread of the novel Coronavirus, directed public operators in Ghana to reduce the number of passengers.
Commercial drivers in the West African nation heeded to the President’s directive and have since enforced it.
Interestingly, the President later announced a GHc600 million incentive package to cushion small and medium scale enterprises (SMEs) due to the impact of the Covid-19.
Unfortunately, public transport drivers seem to have been given a raw deal as the government has not shown any sign of giving them relief.
The development, coupled with recent increment in fuel prices, has angered drivers with some taxis operating in Ashaiman and Tema, both towns in the Greater Accra Region, already increasing their fares.
Addressing a press conference in Kumasi on Sunday, July 5, 2020, National Concerned Drivers’ Association and True Drivers’ Union threatened to announce a 30 percent increment in fares to help their members recover from losses.
In a statement issued by the Executive Secretary of COPEC, Duncan Amoah complained about the negative effects the coronavirus has had on commercial drivers.
According to COPEC, the revenue made by drivers has decreased by between 25 percent to 40 percent in recent times.
“The social distancing, coupled with recent increases in fuel prices at the pumps by as much as over 16 percent due largely to international market price increases and the depreciation of the local currency, seems to have brought a lot of hardships on these public transport operators and other petroleum consumers across the country,” the statement read.
“The commercial and public transport operators further indicate there’s been a further increase in the cost of spare parts due to the cedi’s depreciation and as such, general increases in their input costs while their revenues have considerably dipped due to the enforcement of the social distancing directive,” it added.
In that regard, Mr Amoah insisted the government must put in mitigation measures aimed at helping the transport operators.
One of the ways he suggested to deal with the situation is the “introduction of a chit or coupon subsidy programme strictly for commercial transport operators.
“The Central Government can, per this, introduce a chit or a coupon system to be administered by
the various transport unions for their memberships such that the various fuel stations will be reimbursed the difference between the agreed subsidy or percentage reduction on the fuel purchases by these public transport operators,” the statement said.
He also recommended an upfront cash disbursement to the registered public transport operators or driver unions “to cushion their fuel purchases during this period of social distancing in the various buses and cars.”
COPEC says these measures, when put in place, will go a long way to ease the financial burden on the drivers and “will be a good incentive for them to continue adhering to the social distancing protocols while curtailing the harsh effects of these significant increases in transport fares on the general commuting public.”
Nigeria: NNPC’s Chief Operating Officer Roland Ewubare Resigns
The Nigerian National Petroleum Corporation’s Chief Operating Officer for Ventures and New Business Directorate Roland Ewubare has resigned.
A statement by Group General Manager, Group Public Affairs Division of the NNPC Dr. Kennie Obateru, which announced the resignation of Roland Ewubare, said President Muhammadu Buhari has accepted the former’s decision.
The statement said President Buhari also approved the retirement of the immediate past Chief Operating Officer, Corporate Services, Engr. Farouk Garba.
President Buhari thanked the two former COOs for their meritorious service to the corporation.
Meanwhile, President Buhari has appointed Engr. Adeyemi Adetunji to replace Roland Ewubare, as the new Chief Operating Officer for Ventures and New Business Directorate.
Until his appointment, Adetunji was Chief Operating Officer in charge of the NNPC’s upstream division.
The NNPC also redeployed and appointed five other senior management staff to critical positions within the corporation.
The statement explained that the new appointments and redeployments in the NNPC were part of ongoing efforts to strengthen and reposition the corporation for greater efficiency, transparency and profitability in line with the Next Level Agenda of President Muhammadu Buhari’s administration.
Giving a breakdown of the redeployments and appointments, the NNPC said in the statement that Mr. Adokiye Tombomieye, Group General Manager for Crude Oil Marketing Division (COMD) has been appointed as the new Chief Operating Officer (COO) in charge of Upstream while Mr. Mohammed Ahmed, Managing Director of the Nigerian Gas Marketing Company (NGMC) takes over as the new Chief Operating Officer for Corporate Services, the position formerly held by Engr. Farouk Garba Sa’id, who retired last week.
“The top-level staff movement also affected Sir. Billy Okoye who has been redeployed from the NNPC Downstream Company, NNPC Retail Limited, as Managing Director, to replace Mr. Tombomieye as the Group General Manager, Crude Oil Marketing Division while Mrs. Elizabeth Aliyuda, the General Manager, Sales and Marketing NNPC Retail Limited, takes over from Sir Okoye as Managing Director.
“Similarly, Mr. Usman Farouk, Executive Director Asset Management and Technical Services at the NGMC takes over from Mr. Ahmed as Managing Director.”
Commenting on the redeployments and appointments, Group Managing Director of the NNPC, Mallam Mele Kyari, said the new appointments would enable the corporation live up to the expectation of her shareholders, Nigerians, and give impetus to the ongoing restructuring within the Corporation. According to him, this was in line with the corporate vision of Transparency, Accountability & Performance Excellence (TAPE).
Ghana: 57 SMEs Benefit From Tullow & Invest In Africa Supplier Workshop
Oil and gas firm, Tullow Ghana and its partner in promoting direct support for SME businesses in Africa – Invest in Africa (IIA) have adopted virtual means to educate and train indigenous companies in its supply chain on how to mitigate the severe effect of the Coronavirus pandemic and share information on relief available post pandemic.
According to Bastiat Ghana, a liberal economy think tank, 92% of companies registered in Ghana are SMEs with 85% of SMEs offering employment in the manufacturing sector.
This data underscores the need to develop and empower SMEs as they contribute significantly to the Ghanaian economy.
For Tullow and other International Oil Companies, SMEs form a significant percentage of the supply chain.
Indigenous companies and Joint Venture companies with indigenous participation hold 83% of Tullow Ghana’s contracts.
On Tuesday 23rd June 2020, IIA and Tullow Ghana organised a virtual workshop for 57 SMEs who are members of IIA’s African Partner Pool (APP) focusing on “Business Recovery & Effective Tendering.”
As the COVID-19 pandemic persists, Tullow and IIA anticipate that SMEs will continue to experience unpredictable supply and demand for their business, diminished confidence from the financial markets, and a reduction of credit.
These concerns were addressed at the webinar to help SMEs access procurement opportunities, create awareness about the finance support available and assist them in successfully securing contracts as the nation reopens and companies gradually resume full operations.
Ghana: PIAC Tasks Parliament To Find The Whereabouts Of $1.5 Billion Petroleum Fund“Tullow believes that it is important for suppliers to have in place robust business continuity plans in order to mitigate supply chain risks that result from the impact of the Covid-19 pandemic. Suppliers need to have the tools to sustain their businesses and build resilience.The Business Recovery and Resilience Toolkit was therefore developed by IIA and partners including Tullow to provide support to SMEs. Tullow sees great value in collaborating with IIA on the delivery of this initiative.”- Otuko John-Teye, Contracts and Procurement Manager, Tullow Ghana Tullow has collaborated with IIA since 2014 to attract foreign direct investment into Africa, unleash the potential of the continent, and stimulate economic growth and prosperity. Since inception, Tullow has funded various IIA initiatives including the African Partner Pool (APP) and the Business Linkage Programme (BLP). The APP is an online marketplace that allows SMEs to promote the products and services they can deliver. This makes it easier for big companies to find the right local suppliers to work with. So far, the APP has over 1,700 suppliers registered, with 26 buyers using the platform to source their goods and services. The APP has seen a total of 333 tenders floated on the platform with a total value of $832million. APP registered suppliers have won 80 tenders with a total value of $154million. The APP provides SMEs the opportunity to receive tender alerts from Tullow and other partners, as well as access to training and finance. Source:www.energynewsafrica.com
ExxonMobil, Employees, Others Contribute $12.8 Million To Texas Colleges And Universities
More than 80 accredited colleges and universities in Texas, USA, are expected to benefit from an amount of $12.8million to be disbursed under the ExxonMobil Foundation Educational Matching Gift Program.
The amount is a contribution from ExxonMobil employees and retirees.
The contribution from employees and retirees amounted to nearly $4 million while the $8.8 million was from ExxonMobil Foundation.
The ExxonMobil Foundation program matches individual donations to accredited colleges and universities in the United States.
The American Indian College Fund, Hispanic Scholarship Fund and United Negro College Fund also receive donations as part of the matching gift program.
While the grants are unrestricted, colleges and universities are encouraged to designate a portion of the funds they receive to science, technology, engineering and math (STEM) programs supporting student engagement.
“Supporting education is a key priority for ExxonMobil, its employees and retirees,” Kevin Murphy, president of the ExxonMobil Foundation said.
“Our educational matching gift program provides critical resources to inspire today’s students to become tomorrow’s innovators and problem solvers.”
Nationally, more than 4,100 ExxonMobil employees and retirees contributed nearly $16 million to 790 institutions of higher education in 2019, and those contributions will be matched with more than $37 million in unrestricted grants from the ExxonMobil Foundation.
The ExxonMobil Foundation matches donations to eligible U.S. colleges and universities of up to $7,500 a year on a 2-to-1 basis for employees and on a 1-to-1 basis for retirees.
ExxonMobil and the ExxonMobil Foundation also support teacher training initiatives and programs that encourage students, particularly women and minorities, to consider careers in STEM areas.
Source:www.energynewsafrica.com
South Africa: Enaex, Sasol Conclude Explosives Joint Venture Deal
Sasol, a South Africa- based integrated chemicals and energy company and Enaex, a subsidiary of the Sigdo Koppers Group, have announced the start of operations in Southern Africa.
The new explosives joint venture Enaex Africa started operation effective July 1, 2020.
In 2017, Sasol commenced with a detailed asset review to ensure all assets in the company’s global portfolio deliver against stringent financial metrics and where aligned with the company’s growth strategy.
In line with this review, Sasol’s explosives business was identified as having substantial growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand.
In June 2019, after a robust evaluation process, Enaex S.A. was selected as Sasol’s preferred strategic partner to create a world-class explosives business on the African continent.
The new company will operate under the name of Enaex Africa. Enaex will be the majority shareholder and will take over management and operational control of the entity from 1 July 2020. Enaex in association with Sasol will comprise certain assets and associated activities spun off from the current explosives and rock fragmentation value chain of the base chemicals business of Sasol South Africa. This JV includes the associated business activities in both South Africa and other countries in Southern Africa.
“We are delighted to announce that on 1 July 2020, Enaex Africa in association with Sasol will officially start operating in South Africa and on the African Continent. Enaex is a Chilean company celebrating a 100 years of history and leadership in the explosives business in South America and together with Sasol will be a force to be reckoned in the Mining Industry,” President and CEO of Sasol Fleetwood Grobler said.
Founded in 1920 in Chile, Enaex brings to the Southern Africa industry a century’s experience in the global explosives market with their core business being Ammonium Nitrate production – Enaex is the third-largest industrial grade ammonium nitrate producer in the world – explosives production and blasting services.
Enaex is also one of the few explosives companies in the world that can produce and offer the entire spectrum of products and solutions to execute the blasting process. The company has subsidiaries in eleven countries, including Argentina, Peru, Brazil, Colombia, France, the US, Mexico and Australia, and exports to more than 40 countries all over the world.
Enaex, provides blasting services to some of the major mining companies in the world, such as Anglo American, BHP, Codelco, KGHM, Glencore, Vale, Yamana Gold and Teck Resources.
This deal is part of the strategic plan of Enaex to continue strengthening its international presence in the most important mining regions of the world.
Francisco Baudrand, CEO of Enaex Africa noted, “This is truly an incredible day for Enaex with a new venture on a new continent. This Joint Venture is a platform of growth for Enaex not only in Southern Africa, but also for us to become the leaders in explosives and blasting services for the Mining Industry on the African continent.
Meaningful participation for BBBEE has also been catered for in the shareholding structure in line with South Africa’s transformation agenda, which is fully supported by both Sasol and Enaex.
Source:www.energynewsafrica.com
Nigeria: NNPC Allays Fears Of Possible Fire On Dripping Lagos Pipeline
The Nigerian National Petroleum Corporation (NNPC) has called on members of the public to disregard media reports of a possible fire outbreak from a vandalized point on its pipeline at Aboru Canal in Alimosho Local Government Area of Lagos State.
According to the NNPC, there is no such hazard, as the line in question is offline for repairs and presently contains only water.
The Corporation, in a release by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, explained that the Atlas Cove – Mosimi stretch of the System 2B Pipeline was shut down on June 25, 2020, to enable comprehensive maintenance of some segments of the pipeline.
Nigeria: NNPC Raises Alarm Over Off-Spec Diesel In MarketThe NNPC said the repair work was on the last stage of completion which involves hydro testing – a process of pumping of water through the entire pipeline for integrity test and leak detection – to ascertain availability of the pipeline for pumping products. The corporation noted that following a report from the dedicated patrol team about a leakage at a point in the Aboru Canal, water pumping was suspended immediately at 09:27hrs to enable the maintenance team effect necessary repairs. The NNPC urged residents of the affected community to remain calm, as there is no possibility of a fire erupting from the leakage point.
Ghana: 30-Year-Old Man Electrocuted At Sakumono After Climbing Electric Pole
Information reaching energynewsafrica.com from Sakumono, a suburb of Tema, in the Republic of Ghana, indicates that a man believed to be in his thirties has been electrocuted.
The victim, whose name was only given as Kofi, was said to have been engaged by someone to rectify an electrical problem in the area when the incident occurred.
A resident of the area told Accra-based Adom FM that the incident occurred at an area called Chapel Square.
According to him, there was a power outage in the area following Saturday’s morning rain.
Ghana: Enclave Power Company Replies Steel, Cement ManufacturersHe said the victim climbed one of the ECG’s distribution poles in area to connect power for the customer who contracted him, only for ECG to restore power and, eventually, trapping Kofi on the grid pole. The lifeless body of the deceased is still hanging on the pole. According to eyewitness, officials of had ECG arrived at the scene but said they were waiting for the police before they would bring the lifeless body down.
European Travel Bans Are Counter-Productive And Hurting The Oil & Gas Sector –African Energy Chamber
The African Energy Chamber has expressed worry over the continuation of travel restrictions and suspension of visas and travel between Africa and Europe.
According to the Chamber, the development is heavily restraining the oil & gas industry’s recovery efforts.
The oil & gas sector relies on global value-chains and successful cooperation and movement of people, goods and services between foreign and local contractors.
The ongoing travel bans and restrictions of visa issuance are de facto; preventing many projects to move forward and to successfully contribute to the recovery of the continent.
Major international oil companies such as Total, BP, Shell, Eni, ExxonMobil, Chevron or Equinor and independents such as Kosmos Energy, BW Energy, Maurel & Prom or Tullow Oil that operate a major share of Africa’s daily oil and gas production are currently unable to operate fully and safely because of such travel restrictions.
Similarly, they directly impact the operations of the major international services and EPC companies supposed to work on major projects such as Saipem, TechnipFMC, Schlumberger or Halliburton.
“We cannot base our recovery narrative and hopes on the oil & gas sector and at the same time forbid the movement and travel of the workers and employees supposed to make that recovery happen,” declared Nj Ayuk, Executive Chairman, at the African Energy Chamber.
“We are urgently calling for pragmatism and the adoption of realistic measures that put workers’ safety and economic recovery at the center of public and travel policies priorities,” he added.
From West to Southern Africa, landmark energy projects worth billions of dollars have been delayed because of the ongoing pandemic of Covid-19 and its subsequent lockdowns and travel restrictions.
However, as economies gradually reopen, a new wave of travel restrictions, especially on the issuance of visas between Europe and Africa, is adding up to the list of challenges the industry faces to play its key role in the continent’s economic recovery.
“Such restrictions are threatening the efficient operations of global value-chains whose functioning is critical to enable Africa’s energy projects to move forward,” the Chamber argued.
Source:www.energynewsafrica.com
Nigeria : Pirates Kidnap 9 Nigerians From FPSO
Pirates attacked an oil production vessel off Nigeria in the early hours of Thursday and kidnapped nine Nigerian nationals, the ship’s owner BW Offshore said.
The Sendje Berge ship was undergoing maintenance when the attack happened, BW Offshore’s Chief Financial Officer Staale Andreassen told shipsandports.com.ng.
The Oslo-listed company said none of the people remaining on the vessel were injured.
“We are working now with the Nigerian authorities to get those nine people safely back,” Andreassen added.
The vessel, a floating production, storage and offloading vessel (FPSO) that can produce about 50,000 barrels per day, was working at the Okwori oilfield operated by Addax Petroleum, a part of China’s Sinopec Group.
A maritime security firm Dryad Global, citing unidentified reports, said the attack involved three boats and explosives, making it unusual.
Andreassen said he could not confirmed that a number of boats had been involved, but denied that explosives were used during the attack.
Our Journey To Electrify The Continent: Five Years Of The New Deal On Energy For Africa (Article)
By Dr. Kevin Kariuki
Five years into the African Development Bank’s ambitious New Deal on Energy for Africa (NDEA), the Bank’s investments are set to provide electricity access to around 13 million people and deliver about 55,000 km of distribution lines, and 6,700 km of transmission lines, of which 3,200 km are for regional interconnections.
The NDEA called for a substantial increase in investments to realize the Bank’s High 5 priority to “Light Up and Power Africa,” which aims to mobilize finance and expertise to expand access to reliable, sustainable energy for more than 200 million Africans through investments in power generation, inter-connections, transmission and distribution.
This effort is critical to unlocking Africa’s vast economic potential, enabling the growth of value-adding industries and services, and, most importantly, unleashing the ingenuity of the continent’s 1.3 billion people.
The strategy was grounded in the recognition that partnerships are central to its success.
In collaboration with African countries, the Bank’s interventions have ranged from setting up the right enabling policy environment, supporting utilities, to increasing the number of bankable energy projects. Additionally, the Bank is accelerating major regional projects and driving integration through the Program for Infrastructure Development in Africa, whilst also supporting bottom-of-the-pyramid energy access programs.
Priority was given to investments in low-carbon technologies, set to contribute to over 2 GW of additional generation capacity by harnessing the large, hydro, solar, geothermal and wind resources of the continent. Yet this is only the beginning, as much of the work to date has been centered on setting up the right frameworks to mobilize different partners and alternative forms of capital to tackle the various challenges in the sector at country, sub-regional and regional levels.
Indeed, mobilizing partnerships and rolling out countrywide energy transformation are continuous works in progress. In 2019, as testament to the Bank’s efforts in enhancing dialogue and consensus, the G5 Heads of State endorsed the Bank’s Desert to Power initiative, intended to build the world’s largest solar zone across the Sahel by adding up to 10 GW of solar generation capacity through public and private interventions.
The Yeleen Solar Program in Burkina Faso – the first of dozens of similar projects expected to flourish across the Sahel region – will provide energy to 150,000 households in rural areas through solar mini-grids and solar home systems, and an additional 52 MW of grid-connected solar generation, enough to power 30,000 new households.
Achieving the objectives of the New Deal on Energy for Africa will require a significant increase in private sector investments. The Bank catalyzes more private investments into independent power producers and off-grid projects through partnerships with project developers, commercial banks, private equity funds, institutional investors and other development finance institutions. Over the past five years, the Bank’s interventions reached $1.5 billion in private sector operations, corresponding to 1.7 GW additional generation capacity through independent power producers.
In addition to mobilizing concessional resources through bilateral and multilateral sources – notably from the European Union, Green Climate Fund and Climate Investment Funds – the Bank hosts the Sustainable Energy Fund for Africa (SEFA), one of the largest multi-donor technical assistance and concessional capital funds in the continent, designed to catalyze private sector participation in renewable energy.
How Josh Kalisa’s One Africa Business Solution Ltd Is Addressing Energy Gaps In East, Central Africa Using Solar Products (Article)In 2019, the Bank converted SEFA into a special trust fund to widen its interventions into green mini-grids to accelerate energy access to underserved populations; green baseload to support clean generation capacity; and energy efficiency to optimize energy systems and reduce energy intensity. SEFA is expected to contribute to the electrification of more than 7 million households by 2030. The Bank is also actively supporting the mobilization of commercial capital through blended finance solutions. The Facility for Energy Inclusion, which was operationalized in 2019, is a $500 million investment platform organized around two funds – off-grid and on-grid – to provide flexible debt products, including in local currency, to emerging business models in the small-scale renewable energy space. The Facility for Energy Inclusion will contribute to more than 3 million new connections by 2030. To enhance institutional performance and improve the enabling conditions to attract much needed investments, the Bank has also implemented initiatives such as the Electricity Regulatory Index to monitor and benchmark regulatory performance against best practices, the Sustainable Utilities Transformation Agenda, to build sustainable utilities and energy institutions, and the Africa Energy Portal to provide accurate, up-to-date data on Africa’s energy sector. In 2019, the African Development Bank reported that an additional 9 million African households had gained access to electricity between 2015 and 2019, with countries like Rwanda on track to achieve universal access by 2025. Despite this encouraging progress, close to 600 million Africans still lack electricity access and achieving universal access goals under SDG7 still requires greater and swifter efforts to meet the demands of Africa’s growing population. Addressing electricity access remains a costly enterprise, with the International Energy Agency placing the price tag at around $120 billion annually through 2040, four times higher than current levels. While our direct financial contribution is modest by comparison, we are confident that its judicious application to catalytic power projects, innovative financial structures, sector reform processes and acceleration of decentralized solutions will get us far in our mission. Dr. Kevin Kariuki is the Vice President, Power, Energy, Climate Change & Green Growth, at African Development Bank.