The International Renewable Energy Agency (IRENA) has projected that the world would need around $35 trillion for transition technology by 2030, including improving efficiency, electrification, grid expansion and flexibility.
The agency said that global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris climate accord.
Investments in renewable energy technologies reached a record of $1.3 trillion last year but that figure must rise to around $5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial levels, IRENA said.
Renewable energy deployment must grow from around 3,000 gigawatts annually today to over 10,000 GW in 2030, IRENA said, adding that more equality is needed in renewable expansion between industrial and developing countries.
New renewable energy projects in China, the European Union and the United States accounted for two thirds of installed capacity last year, while Africa accounted for only 1 per cent of renewable capacity installed.
A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation,” IRENA’ Director General Francesco La Camera said, calling on financial institutions to direct more funds towards energy transition projects with better conditions.
IRENA called for directing planned fossil fuel investments -around $1 trillion of fossil fuel investments per year by 2030 – toward renewable energy technologies and infrastructure
The projected expenditure has posed a new challenge to Nigeria which is facing funding crises to stabilise her electricity industry.
As Africa grapples with energy crises which is more endemic in Nigeria given exponential energy demand, stakeholders in the continent sees Nigeria as struggling to address her energy poverty syndrome.
Recently, the Middle East Energy, the leading energy event in the Middle East and Africa (MEA) region, moved further to advance Africa’s energy industry throwing open new opportunities to address the continents energy crises at its recently concluded high-impact 48th edition.
The conference highlighted Nigeria’s energy situation during a dedicated panel session on day one, which also explored the country’s untapped unique opportunity to merge economic development and climate action priorities.
As Africa’s largest economy and set to be one of the world’s first true just transitions, Middle East Energy assessed the challenges and opportunities for Nigeria’s natural gas in the energy transition.
The panel session featured high-level speakers including Sule Abdulaziz, Chairman of the Executive Board, West African Power Pool and the managing director, Transmission Company of Nigeria; Sowunmi Olabode, Senior Legislative Aid to the Senate President, National Assembly and Olakunle Williams, Chief Executive Officer, Tetracore Group.
During the session, Engr. Sule Ahmed Abdulaziz, spoke on Nigeria’s ability to develop its energy infrastructure and the partnerships needed to solve its challenges.
He said, “The number one challenge we face in the sector is funding, especially as the Transmission Company of Nigeria (TCN). The generation and distribution arms of the sector are owned by private companies so they are able to source funding through various investors and banks.
“On the other hand, TCN is availed only three sources to garner funds from – government allocation, internally generated revenue, and donor funding from multi-lateral organisations including the World Bank and the African Development Bank.
“The TCN currently has over 100 ongoing transmission projects (lines and substations), so we are always striving to pool funds to complete each project. We currently have companies approaching us with PPAs and we have signed MoUs and agreements so that these projects can be actualised.
“We have also partnered with certain parties we call eligible customers, mainly steel companies based in Nigeria, to build the needed infrastructure to advance the sector.”
On his part, Olabode Sowunmi also expanded the discussion on the current gap in Nigeria’s energy infrastructure which has caused stagnation in development.
He explained, “Many times, what has been noticed is a disconnect between policies and the private sector, for whom the policies are intended.
This is because there have been inadequate opportunities for interactions and effective constructive engagement between beneficiaries. For sustainable development, there must be consistent, regular, and effective communication between the private sector and policymakers.”
In addition, Olakunle Williams shared his thoughts on the future of energy infrastructure and development in Nigeria, saying, “In the next five years, Nigeria will need to improve its energy access by getting more people connected to the grid. We will also need to considerately step up our gas-based industries because as we continue to meet power needs, we have huge requirements to industrialise in a very short time. Regarding solar power and other renewable energy sources, I want to see a situation where we can incorporate them more into our national energy mix and be a major player when it comes to expanding clean energy across Africa.”
Hosted at the Dubai World Trade Centre from 7 – 9 March 2023, the conference and exhibition gathered over 23,000 energy professionals from across the global energy ecosystem as an avenue for cross-continental partnerships, exploring the latest advancements in energy products and solutions, and participation in key dialogue.
Organised by Informa Markets, this year’s edition is said to have facilitated over $1.86 billion in business deals in its three-day showcase.
The event also accomplished its goal to guide the region through the energy transition, with a strong focus on enabling relevant discussions about the opportunities, challenges, and barriers to renewable energy market growth and implementation, leveraging case studies and real-world examples.
Africa remained at the forefront of the event’s agenda with dedicated seminars and fireside chats discussing key issues including perspectives from Rwanda on the energy transition, exploring projects in Egypt that are accelerating the transition to clean energy and energy decarbonisation, and examining how East Africa is rapidly emerging as a renewable energy superpower in Africa by building up capacities, plans, and projects to reach 100 per cent clean energy, amongst others.
Middle East Energy now holds a 48-year legacy as a leading global energy industry event. By addressing the entire product spectrum of the power industry, year after year, the event attracts a more diverse audience of professionals seeking to source products from multiple sectors, drive cost-effectiveness and efficiency, and move projects forward.
The MEE has been an essential part of the Middle East and Africa’s economic expansion, connecting businesses and introducing new products to the regions to build infrastructure, real estate, and commerce.
The MEE is now helping governments, organisations, and SMEs diversify the generation and supply of energy and build a sustainable future.
Conversations on enabling the development of Nigeria’s energy sector will continue at the upcoming 10th anniversary of the Nigeria Energy Exhibition and Conference. Scheduled from September 19 – 21, 2023 at Landmark Center, Lagos, the event will bring together contractors, developers, investors, project owners, and utilities to network and develop reliable power solutions for Nigeria’s peak energy demand and pave the way for decentralisation.
In addition, the challenge of improving access to energy will be addressed at the upcoming Enlit Africa conference and expo when it returns to Cape Town from 16–18 May 2023.
On 17 May, Day 2’s keynote session focuses on Africa’s just energy transition and the importance of ensuring that energy access is a central outcome of that transition.
“We believe that the issue of energy access cannot be ignored,” says the event’s content director Claire Volkwyn, adding: “with figures predicting that between 700 million and 900 million are currently without energy access in Africa, this is a crisis that must be addressed.”
In a report released by UNCTAD (United Nations Conference on Trade and Development) on 21 March, some of the real-life impacts of the lack of energy access, such as implications for health, education, poverty reduction and sustainable development, were addressed. The report, “Commodities at a glance: Special issue on access to energy in sub-Saharan Africa”, warns that without additional efforts, the region’s population without access to clean fuels could increase to over 1.1 billion people in 2030.
“Access to a reliable and quality energy supply is vital to the economic development of any country,” the report says. “It drives industrialization, boosts productivity and economic growth, spurs human development, and is crucial to achieve almost all of the United Nations Sustainable Development Goals (SDGs)”.
“Africa has arrived at an intersection between affordability, reliability and access to power”, Volkwyn states; “while this position presents incredible opportunities and inspires innovation, at the same time, it also creates some tension, particularly regarding the SDGs and the energy transition”.
She explains: “Africa’s just energy transition ambitions are being tested in the face of a global recession, rising poverty, unemployment and falling revenue. In addition to the staggering sums of investment that have been identified for the technology and headline achievements of the energy transition, Africa is facing the reality that it will likely not meet SDG7, which aims to ensure access to affordable, reliable, sustainable and modern energy for all”.
“But there is also lot to celebrate” Volkwyn says, “and we will share many success stories and showcase new innovations. This year’s programme features an incredible line-up of experts from across the African continent who will share their winning strategies and projects with the 5000+ expected delegates and visitors. Another huge vote of the confidence in Africa’s energy sector will be the exciting and vibey expo floor with 250 suppliers of expert technologies and services, including country pavilions from Belgium, Brazil, Canada, China, Germany, India, Taiwan and the USA.
A flagship annual industry event since 2000, Enlit Africa offers more than 5000+ attendees, representing the entire power and energy value chain, multiple opportunities to meet, do business and inspire each other, driving energy action into a working plan for the years ahead. From governments, municipalities to large energy users, investors, EPCs, IPPs and start-ups, Enlit Africa is a constantly growing, inclusive, end-to-end power and energy conference and solution focused exhibition, that addresses every aspect of Africa’s energy transition.
The programme will also focus on finance and investment strategies, renewable energy, storage and alternative solutions as well as generation, transmission and distribution. The spotlight stage sessions will provide sector innovators from across the continent the opportunity to share their next new ideas or showcase success stories and case studies from across the continent.
