Friday, 15 June 2018

Nigeria is experiencing a remarkable paradox. The country has abundant energy resources – and yet many of its residents can’t access sufficient energy.

About 40% of Nigeria’s population don’t have access to electricity and around 70% of households rely on firewood for their most basic needs, like cooking. This is dangerous. Annually, 93 000 Nigerians die from smoke inhalation.

The government is trying to tackle its energy issues, particularly by focusing on renewable resources. For instance it has built more natural gas power plants. It has also increased the number of off-grid solar PV systems – which convert solar energy into electricity – in rural areas .

These interventions came after the Energy Commission of Nigeria, which is in charge of coordinating and supervising all energy functions and activities within each member state, conducted a number of studies. Their research aimed to ascertain the country’s future energy demand and supply projections. But the commission didn’t really address how demand could be met in an environmentally sustainable way.

We wanted to address this gap. So we conducted a study that identified efficient ways of meeting Nigeria’s energy demands at minimal cost and with low carbon emissions. Our results suggest that increasing the country’s renewable energy capacity and introducing nuclear energy will be the best approach.

This may seem like a strange combination, given ongoing controversies around nuclear power. But nuclear power produces low emissions and uranium ore is readily available in a number of Nigerian states.

Our results show that combining these improvements to energy efficiency with fuel switching and technology switching has the potential to lower energy demand by 826 Petajoules in 2040 (229,444 GWh). Fuel switching involves moving from one fuel type to another, such as from kerosene to liquefied petroleum gas. Technology switching is the process of changing conventional energy technologies to low carbon energy technologies. For example, petrol generators can be replaced with rooftop solar PV systems.

Here are some changes that Nigeria can make to properly harness its energy resources.

A range of changes

1. Improving technologies in the home

More households are starting to use safer, energy efficient cooking stoves. But these are more expensive than traditional firewood stoves. And people aren’t educated about the importance of energy efficiency. Consumer awareness is key.

2. Energy efficiency standards in buildings

Our study found that increasing solar PV systems in residential and commercial buildings could reduce energy consumption by more than half. The government should provide incentives for buildings with solar PV systems and reward those groups or organisations that maintain good standards of energy efficiency.

3. Making strides in the industrial sector

Improving energy efficiency in the industrial sector is vital in achieving low carbon development. Simple switches like maintaining air conditioners and switching off lights during the day will really help.

Industry could also tap into the Global Energy Efficiency and Renewable Energy Fund. This provides capital for projects that aim to improve sustainable energy and energy efficiency.

4. The transport and electricity sector

Changes in the transport and electricity generation sectors could significantly lower greenhouse gas emissions in Nigeria. We found that encouraging public transport could make a huge difference.

Alternative vehicle fuels – liquefied petroleum gas, compressed natural gas, or bio fuels like petrol and ethanol, blended fuel and electricity for electric cars – will reduce the dependence on high emission emitting petrol and diesel fuels.

Nigeria’s government could adopt the global Autogas Incentive Policies, or develop something similar. Incentives include lowering vehicle taxes and removing barriers like parking restrictions. Some countries with successful policies of this nature include Germany, India, Japan and Thailand.

Carrying projects through

To its credit, the Nigerian government is already championing various initiatives designed to address the country’s widespread energy poverty.

For instance, low carbon development has been championed by the Renewable Energy Program, which is part of the Ministry of Environment. Through this programme the Nigerian government has set up projects to promote cleaner energy to mitigate climate change. Some projects include developing a bio fuel production complex in the northern part of Nigeria’s Ekiti state, and the establishment of a rice processing and power generating plant in Adamawa state.

The government has also started a campaign to raise public awareness about firewood and introduce clean cooking stoves which are more energy efficient and less polluting. Other projects include the 50 MW solar farm in Kaduna state, an energy efficient housing scheme, the Nigerian Clean Energy Access Programme and the introduction of compressed natural gas bus transport system in Nigeria .

These projects are mostly in the early stages. Authorities must commit to seeing them through.

Another important focus will be for Nigeria to develop homegrown solutions and technologies. This is because energy technologies such as solar PV manufactured overseas may be substandard. The government should provide incentives for local investors and promote indigenous technologies.

Some examples include the case of bio fuel incentives in Mozambique. There, private biofuel companies can benefit from tax exemptions when exporting bulk of biofuel products to Europe and the United States. In South Africa, the Renewable Energy Independent Power Producers Procurement Programme launched in 2011 led to the development of the wind industry with an increase in local content and a rise in Black Economic Empowerment.

Nigeria and Ghana’s governments have declared support for and partnership with local solar PV manufacturers to boost local manufacturing of solar PV systems. With policy incentives and government support, Nigeria can tackle its energy crisis and improve its energy access.


Nnaemeka Vincent Emodi, P.hD. candidate in Energy and Environmental Economics and Policy, James Cook University

This article was originally published on The Conversation. Read the original article.

Published in Economy

Investors Ontario Teachers Pension Plan (OTPP) and Macquarie have settled a legal dispute over Brussels Airport, allowing the sale of the transport hub to go ahead after the summer, sources familiar with the situation said.

OTPP has given up its preemption rights over the asset and agreed to information being circulated to potential buyers of Macquarie's stake, one of the sources said, without specifying what conditions the Australian investor met in return.

A spokesman for OTPP declined to comment.

OTPP bought 39 percent of Brussels Airport in 2011 and rights of first refusal on Macquarie's stake. It wanted Macquarie to provide limited information to prospective bidders as this may give a competitive advantage to those taking part in the initial stages of the process.

JP Morgan is still mandated to sell the airport, which had nearly 2.25 million passengers in April, a rise of 5 percent compared with the same month in 2017.

The Wall Street bank declined to comment.

Brussels Airport serves as a hub for Brussels Airlines, which was taken over by Lufthansa in 2016.

Macquarie wants to cash out as the fund in which it holds part of its stake has matured. Brussels airport is the last remaining asset of the Macquarie European Infrastructure Fund (MEIF) I, while the remainder of the stake is held in its MEIF III, which was closed to new investors in 2010.

According to ratings agency Fitch which upgraded the airport in May, earnings before interest, tax, depreciation and amortization (EBITDA) post-specifics increased to 308 million euros during the 2017 financial year.

Fitch said the airport had recovered since a 2016 bomb attack.


Published in Travel & Tourism
Friday, 15 June 2018 09:07

South African Towns Are Falling Apart

Trash heaps line the potholed streets of Edenville in central South Africa, where residents complain that municipal services have ground to a near halt, crime is rampant and jobs are scarce.

It’s a familiar story in scores of other rural towns driven to a state of near collapse by years of mismanagement, graft and declining revenue as companies gravitate toward cities with better services and transportation links. The meltdown has put the nation’s finances at risk, as the National Treasury faces increasing demands to bail out broke councils.

It can take weeks for the Edenville municipality to unblock sewage pipes or collect the garbage, and the local economy has ground to a near halt, according to Miriam Matsuso, who lives in the town of about 6,200 people in the Free State province, about 180 kilometers (113 miles) south of Johannesburg.

“Sometimes it does feel as though we as the people living in small towns are forgotten by the government,” Matsuso, 70, who supports her unemployed daughter and two grandchildren on her monthly state pension of 1,695 rand ($128), said outside a grocery store. “Our children have to move to bigger towns just to try and look for jobs.”

More than 60 percent of the 257 municipalities are categorized as dysfunctional or almost dysfunctional, according to the Co-operative Governance Ministry. The parlous state of their finances was laid bare last month in an Auditor-General’s report, which showed just 33 got clean audits in the year through March last year and spending that contravened regulations surged 75 percent to a record 28.4 billion rand ($2.2 billion).

“Across the country, smaller municipalities are under significant pressure,” Kevin Allan, the managing director of Johannesburg-based Municipal IQ, which monitors local government, said by phone. “It is difficult to sustain a local economy where there isn’t a lot going on.”

SA Local Butchery

Dalene van Stryp, who’s lived in Edenville for 26 years, has seen her own fortunes decline along with the town’s. While customers used to line up outside the door of her butchery, she’s now down to a few clients a day, and her once-full shelves are sparsely stocked.

“A lot of people are leaving to seek a better life,” she said. “The facilities haven’t been maintained in years, the roads are still mainly gravel roads, and I cannot tell you how many times in a week I call the municipality asking for the streets to be cleaned or any other services that we need, and there’s no response.”

The decay is equally evident in Jagersfontein, about 500 kilometers southeast of Johannesburg, where many buildings have been abandoned and stripped of their windows and doors and the disintegrating roads are strewn with trash. The town hasn’t had running water since November, according to Nthabeleng Olyn, an attendant at the only gas station.

SA Rural Area

“It’s almost as though small towns like this one don’t matter or even exist in South Africa because no matter how many times the communities protest or complain to the municipality, there’s no change or development,” 32-year-old Olyn said. “This town is basically dead.”

Fixing the municipalities will require more active intervention by provincial authorities, and the government and ruling African National Congress to ensure officials are held accountable, according to Municipal IQ’s Allan.

The government has set up teams to ensure municipalities put proper governance structures in place, fill their vacancies, do proper budgeting, collect revenue that is owed to them and spend their infrastructure budgets, according to Co-operative Governance Minister Zweli Mkhize.

“Right now we think there is enough political will to actually get the matters resolved,” he said in Cape Town on Thursday.

Matsuso, the Edenville grandmother, isn’t optimistic that will happen.

“I have lost hope for this town,” she said. “It is too far gone.”


Source: Bloomberg

Published in Economy
  1. Opinions and Analysis


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