Tag Archive for: Climate Change

Nigeria’s chronic power shortages have been a defining feature of the country’s path to sustainable economic development.

As an oil-producing net importer of petroleum products, this makes the lack of investment in Nigeria’s own domestic energy infrastructure even more stark – a trend which must be reversed.

Currently, peak power supply is a quarter of the total 20,000MW demand in the country. With electricity generation per head 25% below sub-Saharan African averages, the country spends $12bn annually on diesel to power generators. This cost comes with additional health and environmental hazards, highlighting the importance of developing a sustainable, reliable energy mix.

Economic productivity is severely impacted because of inconsistent power supply. Its resulting cost to the economy is estimated at $29bn annually. In the context of an anticipated COVID-19-induced recession forecast to be the worst in four decades, there is an urgent need to act.

The gas sector offers a more environmentally friendly alternative than oil. Policy implementation in the shape of the Nigerian Gas Transportation Network Code (NGTNC) illustrates a potential future of an equitable and competitive gas market. Better infrastructure and broader access to gas across the country can have a considerable impact.

Most importantly, these steps open the door to increased investment. Where private sector participation had previously been muted, there is currently an uptick in activity. A healthy proportion of this has been directed to development of midstream assets, and with the influence of the NGTNC the sector’s potential will increase.

New Investments

African Infrastructure Investment Managers (AIIM) sees value in this, as reflected in our recent activity through our pan-African AIIF3 fund. By acquiring stakes in Savannah Uquo Gas and Accugas, [Nigeria is] invested in an integrated gas midstream business.

Accugas has 260km of pipeline network and a gas processing facility, critical to realizing ambitions of being Nigeria’s gas supplier of choice. Accugas is currently responsible for supplying gas to around 10% of the country’s power generating capacity. Assisting this process are shifts in policy which are helping direct gas production towards domestic demand.

Given that most of Nigeria’s power demand today is fulfilled through diesel based self-generation, significant opportunity also lies in solutions which help the switch from high-carbon, high-cost generating capacity to low-carbon, low-cost alternatives.

[Nigeria has] also invested in Starsight Power, a rooftop solar company which has become one of the leading commercial and industrial solar power providers in Africa. It has a portfolio of over 35MW of generation assets installed in Nigeria and Ghana. This model encapsulates Nigeria’s future energy and economic ambitions, harnessing the vast potential of our solar resources, while reducing reliance on the nation’s primary commodity.

Increasing utilisation of lower carbon emitting fuels and energy sources speaks to a future which considers sustainable growth and the lives of generations to come. A warmer climate and less predictable rainfall are having deleterious effects on many communities, especially those whose livelihoods rely on rain-fed agriculture. Climate change is driving displacement across these communities, impacting millions and compounding issues food security issues.

Solar Power

Achieving inclusive and sustainable growth will mean fully embracing alternative, cleaner energy sources. In a country where 43% of people are living off-grid, options like solar mini-grids bypass the need for installation of transmission infrastructure, bringing down costs and delivering power at affordable rates. Technology developments also mean such options are widely deployable and rapidly scalable.

Despite modest uptake, there is growing momentum towards commitment to a more sustainable future. In August, the government released eight tenders for solar power projects, which will be followed by a US$200m mini-grid development initiative from the African Development Bank. The World Bank has also pledged its support for the second phase of Africa’s largest off-grid hybrid solar project, the Energizing Education Programme.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

South Africa will embrace efforts by businesses to generate their own electricity, President Cyril Ramaphosa said recently, reacting to growing frustration at red tape throttling private power generation.

Ramaphosa is under pressure over nationwide power cuts that have dented economic output and sapped investor confidence in Africa’s most industrialized economy.

Ailing state-owned utility Eskom generates more than 90% of the country’s electricity but regularly struggles to meet demand because of breakdowns at its coal-fired power plants.

Many power-hungry companies such as mines want to build their own renewable energy plants to reduce their reliance on Eskom but have not been able to secure the necessary regulatory approvals.

“For the first time we are now saying let us have self-generation,” Ramaphosa told an economic conference in Johannesburg. “We have opened up a new era … that says we are now embracing the fact there are those companies and households that want to generate their own energy.”

“We cannot stop technology, we cannot stop the future from arriving,” he added.

South Africa’s mining industry body the Minerals Council on Monday urged the government to act urgently to bring online new power sources and ease licensing rules.

Roger Baxter, chief executive of the Minerals Council, told Reuters last month that miners could build between 500 megawatts (MW) and 1,500 MW of their own generating capacity over the next few years if regulations were eased.

Ramaphosa’s government has been slow to procure more power since the electricity cuts escalated last year.

Some labor unions and members of Ramaphosa’s governing African National Congress party are deeply suspicious of allowing in more independent power producers. A vocal coal lobby has also blamed renewable energy firms for hastening Eskom’s financial decline.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Johanna Montoya [1], [2].

South African retailers have announced expanded product ranges as consumers increasingly turn to vegan and ‘flexitarian’ diets.

Both Pick n Pay and Checkers said that they had experienced increased demand for more plant-based options which was now reflected by the products they offered in-store.

Nicki Russell, head of Innovation and Trend at Pick n Pay, said that its research shows more customers are opting for a ‘flexitarian’ diet which incorporates more plant-based options and less meat.

“What started as Meatless Monday has since expanded to include more and more days of the week.

“We’ve been working really hard to bring customers new and innovative local plant-based offerings to create a one-shop destination for customers wanting to adopt a more plant-based lifestyle.”

Checkers said it has also seen a steady uptake in customer requests for more vegan and plant-based alternatives over the past 12 months.

“Demand for vegan, plant-based, meat-free and dairy-free options continue to grow. Whether a customer is strictly vegan or just cutting down on meat and dairy, we are making sure we meet their needs,” said Willie Peters, general manager of marketing at Checkers.

Peters said that Google Trends data shows that South Africa is the only African country with a sizeable vegan following.

“Checkers will always be guided by what its customers want and will continue to expand on its already extensive variety of vegan and/or plant-based ingredients, convenience meals, salads and snacks.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], Anna Pelzer [2].

As Eskom fails to keep unplanned breakdowns at below 9,500MW – the level at which it is forced to consider load shedding – since the start of December, there is growing pressure on government to fast-track renewable power projects.

Ntombifuthi Ntuli, CEO of the South African Wind Energy Association (SAWEA), believes just by lifting the Maximum Export Capacity (MEC) on all operating wind farms, which governs how much energy is permitted to be exported by wind farm power generators to the grid, 500MW of energy could immediately be brought online.

According to the Independent Power Producers Procurement Programme (IPPPP), 3,976MW of electricity generation capacity from 64 IPP projects has been connected to the national grid. Wind makes up the lion’s share providing 52% of renewable energy to the grid. Among the largest are 3 wind farms that contribute almost 140MW each.

IPPs are nowhere near the 36,400MW (41,000MW if you include Medupi and Kusile which aren’t finished yet) delivered by coal. But this picture could change quickly: unlike coal power stations, which take years to build – Medupi has been under construction since 2007 – renewable projects can be built quite quickly and there’s a good track record of them sticking to schedules.

There is some good news on the way. IPP contribution is expected to go up to 6,422MW once all 112 projects come online. These are part of Bid window 4, the last bid window to be signed off by Eskom. These are currently the largest sustainable energy projects:

Longyuan Mulilo Green Energy Number 2 North Wind Energy Facility – 138.96MW

Longyuan Mulilo’s Number 2 North Wind Farm is one of the largest wind farms in South Africa. It is a massive 138.95MW farm found a few kilometers outside of De Aar, in the Northern Cape. Along with a second 100MW wind farm, also in De Aar, Longyuan South Africa has invested almost R5 billion into the two projects. Longyuan SA is a wholly owned subsidiary of China Longyuan Power Group Corporation – one of the world’s largest wind-power developers.

Loeriesfontein Wind Farm 2 – 138.23MW

On 8 December 2017, Loeriesfontein Wind Farm was delivered into operation on schedule, and on budget, as part of the third round bid window of the REIPPP. With a generation capacity of 140MW the R3.5 billion farm boasts 61 Siemens SWT-2.3-108 turbines. The Loeriesfontein Wind Farm forms part of a joint venture between global energy producers Mainstream Renewable Power and Lekela Power.

The site was chosen because of its excellent wind resource, its proximity to national roads for wind turbine transportation, the favourable construction conditions, municipality and local stakeholder support, the straightforward electrical connection into the Eskom grid, and studies showed that there would be little environmental impact.

Khobab Wind – 137.74MW

Khobab Wind Farm, also built by Mainstream Renewable Power, is located right next door to Loeriesfontein Wind Farm. Like its neighbour the farm contributes almost 140MW. The wind farm was estimated to cost R3.5 billion.

Cookhouse Wind Farm – 135.8MW

The R2.4 billion Cookhouse Wind Farm comprises of 66 Suzlon S88 wind turbine generators with a capacity of 135.8 MW.

It is located just outside of Cookhouse, in the Blue Crane Route Municipality in the Eastern Cape, and spans 2,600 hectares of pastoral land. The land is leased from a local farmer and you can expect to see plenty of sheep grazing below the blades. The wind farm first supplied electricity to the grid in March 2014.

Suzlon Wind Energy South Africa constructed the wind farm and is currently responsible for operation and maintenance. It is owned by Old Mutual, the African Infrastructure Investment Managers (AIIM) and the Local Community Trust.

Gouda Wind Project – 135.5MW

The R2,7 billion Gouda Wind Farm is owned by a consortium of ACCIONA Energía (51%); Aveng (29%); Soul City Broad-Based Empowerment Company (10%); and the Gouda Wind Energy Community Trust (10%). Located in the Drakenstein munisipality, Western Cape, it has 46 AW3000 turbines mounted on 100 meter-high concrete towers.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], Anastasia Palagutina [2].