Energy
Experts point to Solar, Coal, Hydro power, as gas challenges persist
ABUJA – Gas supply shortages affecting power supply in many parts of the country have reinforced the need for the government to speed up efforts at diversifying the nation’s power generation mix, which is currently largely dependent on gas, analysts have said.
Nigeria’s electricity generation has continued to fluctuate between 2,500 megawatts (MW) and 4,600 MW in recent years, with the failure of the federal government to achieve its planned 10,000 MW by December 2013.
Meanwhile, the country, with a population of about 170 million people, is estimated to need about 40,000 MW of electricity over the next decade, but current generation capacity falls far short of the almost 13,000 MW required to meet current peak demand.
Experts say diversification of the generation mix would help to lift power supply in the nation.
They add that to minimise the current supply challenges being faced with gas supply, other fuel sources such as solar, coal and hydro-power should be fully explored in order to ensure diversified electricity sources that will promote electricity availability and reliability.
The need for more incentives to boost the commercialisation of renewable energy technology in the country as alternative source of electricity supply was identified as critical to facilitating further investments.
“There is no doubt Nigeria needs to diversify its energy resource inputs for power. Gas is better as a peak demand source. Coal serves well as a base-load source. I am an advocate of energy resource mix in the power sector. The use of oil to power generators is ludicrous and a waste of a scarce resource.
“ Nigeria must wake up to that. But if we have to rely on gas as a transition fuel, we must explore more aggressively, but we are not. Neither are we doing much for coal as we should,” said Wumi Iledare, president of the International Association for Energy Economics and director, Emerald Energy Institute, University of Port Harcourt.
Atedo Peterside, chairman of the Technical Committee, National Council on Privatisation, speaking at a conference weeks back, had said that while gas supply constraints arising from capacity shortfalls/lags could be foreseen, the impact of pipeline vandalisation was not so predictable and could induce damaging shocks to the health of the entire electricity value chain.
“It has become increasingly likely that renewable energies will provide more of the world’s electricity than gas-fired power plants by 2016, as its declining cost profile positions it to compete more vigorously with fossil fuels”, says a new report by Ecobank Oil, Gas and Energy Research headed by Rolake Akinkugbe.
According to the report titled ‘Fully charged: Key dynamics in Middle Africa’s Power Sector in 2014’, Ghana is leading the rest of West Africa in driving the renewable energy agenda with its 2011 Renewable Energy Act. The country plans to invest at least $1 billion in renewable energy projects in next 7 years to 2020.
“Costs tend to be high for renewable energy projects in Africa due to equipment imports, higher internal transport costs, import levies. Developing local manufacturing capabilities and increasing the share of local content for renewable power generation projects can help reduce costs, which are predicted to decline over time,” the report said.
Adeola Adenikinju, president of Nigerian Association for Energy Economics and director, Centre for Petroleum, Energy Economics and Law, University of Ibadan, said in the short term, the focus would remain on gas due to a number of economic factors and the relatively shorter term of completing a gas-fired thermal plant.
“However, in the medium term and to avoid or minimise the current challenges we are facing with gas supply, we must be thinking of dual-fuel plants, and other fuel sources both renewable and non-renewable, in order to ensure energy security, a diversified electricity source that will promote electricity availability, reliability and enhance electricity access,” he said.
Adenikinju added that there are currently very limited incentives to boost commercialisation of renewable energy technology as alternative source to electricity supply, citing Germany and China as examples worth studying for Nigeria.
The Ecobank report released on January 30, 2014 stated that the full penetration of renewable energy into the African market would largely hinge on investment security underpinned by regulation.
“Many countries in sub-Saharan Africa have renewable potential that is many times their current demand for electricity, but most private sector executives view national targets and Feed-in-Tariffs as the most powerful incentive mechanisms required to accelerate renewable energy development in the region,” the report said.
Oladiran Ajayi, energy expert and a senior associate with Templars law firm, said considering the relative costs of alternative sources of energy, the nation should pursue them, but not at the expense of gas development.
Last year in August, the federal government signed a $3.7bn memorandum of understanding with a Nigerian-Chinese consortium, HTG-Pacific Energy, for the development of a 1000- to 1200-MW coal-fired power plant in Enugu state. The plant is expected to be operational in the next four years.
Also, in late January the government said it was building over 200 new dams in order to achieve its target of 10,000MW of electricity at the end of this year, according to Vice President Namadi Sambo.
Nigeria, with a population of about 170 million people, is estimated to need about 40,000 MW of electricity over the next decade, but current generation capacity falls far short of the almost 13,000 MW required to meet peak demand.
– BUSINESS DAY
In line with its commitment to driving access to quality petroleum products, Asharami Synergy Limited, a leading Sahara Group downstream company, has said the public can now access exceptional fuelling solutions at its newly commissioned retail station in Omagwa, Rivers State.
Situated strategically along the Airport Road in Omagwa, the station, which features a storage capacity of 45,000 litres each for Automotive Gas Oil (AGO, also known as diesel) and Premium Motor Spirit (PMS, also known as petrol) is equipped with two pumps and four discharge nozzles for PMS and AGO.
The facility also has ample space for sundry services in a bid to ensure consumers get more “miles and smiles” as well as the energy to “go further” with Asharami’s world-class products.
“The Asharami Omagwa Retail Station is fully operational, offering a range of premium products and services. It’s a one-stop shop that also gives our esteemed customers eat-in and take-out restaurant services, shopping, as well as the Asha lubricants and Asha Service experience which will ensure premium care for all classes of automobiles and engines,” said Oladimeji Williams, Head, Government Relations and Business Development at Asharami Synergy.
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At the Commissioning, Willaims said the new station represents an important step in Asharami Synergy’s expansion plan aimed at reaching and serving more communities responsibly. “This station is strategically positioned close to the airport, serving as the gateway for powering socio-economic development in the community and those close to it, while enabling Asharami Synergy integrate all aspects of its downstream business towards ensuring efficiency and value for our customers,” he stated.
Williams commended the Federal Airport Authority of Nigeria (FAAN) and the Omagwa community leaders for their support and collaboration throughout the project’s duration, describing it as a “seamless and productive process that highlights Asharami’s corporate stewardship and social impact” in the community.
Similarly, Ifesinachi Ezike, Regional General Manager (South South), FAAN, emphasized the broader significance of the new station, stating, “This occasion marks a significant milestone not just for Asharami Synergy but for the airport and the entire community. It marks not just an opening of a new facility but the beginning of a renewed commitment to enhancing the travel experience of all our passengers and stakeholders”.
In a move that underscores its commitment to sustainability and community development, Asharami Synergy also commissioned a solar-powered borehole during the launch. The borehole is set to improve access to clean and reliable water for residents, marking a tangible contribution to the local community.
“At Sahara, we are always making a difference—not just through our business operations; we are unwavering in our commitment to driving sustainable development and building partnerships that enhance the well-being of our host communities,” Williams added.
The Shell companies in Nigeria and staff won awards in recognition of their robust participation at the 42nd Annual International Conference and Exhibition of the National Association of Petroleum Explorationists (NAPE), held in Lagos.
At the closing dinner of the event, the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Ronald Adams pledged sustained efforts by the company to address “the Nigerian energy trilemma by powering progress towards energy security in a sustainable manner”.
On the awards, the Shell was declared Best Overall Exhibitor and Best Exhibiting Energy company (International) just as Geophysicist Somime Oguntola took home the Award of Excellence for Oral Paper (second place).
The icing on the cake was a Shell staff, Johnbosco Uche, being installed as the new President of the NAPE.
It was gathered that the Shell companies in Nigeria have supported NAPE since its founding in 1975, using the skills and expertise of the large pool of energy professionals in its employment to improve its activities especially educational and mentoring programmes.
In addition to being a major sponsor of the 2024 conference, Shell mounted a high-profile exhibition, featuring among other things, career counselling, engagements on Nigerian Content and Contractor development and panel sessions on Women in Industry and Sustainability Energy Challenge.
A highlight was the Shell medical stand which attended to more than more than 500 conference participants and members of the public over the four days of the annual event. The doctors and nurses offered a wide range of services including laboratory tests, deworming, medical consultation as well as ophthalmology checks and distribution of nearly 300 eyeglasses.
Adams referred to the operations of SNEPCo as an example of Shell’s contribution to energy security in Nigeria. “As a result of sustained production from Bonga, we have provided funds to finance development, created a new generation of Nigerian Deepwater professionals, empowered indigenous contractors and service providers, and implemented social investments that have touched lives in the six geo-political zones of the country,” he said.
Adams added, “SNEPCo and indeed Shell are in Nigeria for the long haul. Our commitment is reflected in both our current and growth plans, all of which are grounded in principles of safety, affordability, and competitive performance.”
Owing to the persistent power outage, which has crippled economic and social life in most parts of Akwa Ibom State and environs, Accugas Limited has washed its hands off the ugly situation.
This was contained in a statement under the signature of its Communications Manager, Okwudili Onyia, in which the company traced the anomaly to a “fault in the 132-KV Aba-Itu transmission line”.
To ameliorate the situation, the company maintained that “It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.”
In addition, the company pledged thus, “Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”
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The statement reads, “Accugas Limited, a subsidiary of Savannah Energy, wishes to strongly deny the misinformation concerning its alleged involvement in the current power outage in Akwa Ibom State.
“The power cut in Akwa Ibom State is entirely due to the reported fault in the 132-KV Aba-Itu transmission line, which, unfortunately, is preventing power being transmitted from the National Grid into the State. It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.
“Ibom Power Company (“IPC”) is one of 23 thermal power generation companies which channel power to the National Grid, which in turn disseminates all accumulated power to each State of the Federation through the electricity distribution companies (“Discos”). Indeed, Accugas supplies gas to enable c. 20% of Nigeria’s thermal generation capacity and, as such, is a critical enabler of the Nigerian economy.
“Within Akwa Ibom State, Accugas has been the sole supplier of gas to IPC since 2014 and, together with other Savannah subsidiaries, has invested over US$1.5 billion in gas development within the state. Furthermore, Savannah has recently invested c. US$45 million in a gas compression project at Accugas’ Uquo central processing facility at Esit Eket. Accugas’ commitments also extend to several social investment projects in the state. All the foregoing investments and projects, including other imminent investments Accugas intends to make in the State, demonstrate the Company’s long-term commitment to Akwa Ibom State and Nigeria.
“Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”
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