Page 9 - AfrElec Week 03 2023

AfrElec COMMENTARY AfrElec

Nigeria’s future is green:

renewables can meet 60% of

demand by 2050, IRENA says

NIGERIA Green energy could provide 60% of Nigeria’s a sustainable energy system based on renewables
energy needs for all sectors of its economy that support socioeconomic recovery and devel-
by 2050, but only if investment reaches a total opment while addressing climate challenges and
of $1.22 trillion over the next three decades, accomplishing energy security.”
according to a new International Renewable
Energy Agency (IRENA) report. Energy transition
Pumping money into renewables could Advancing the energy transition requires a shift
reduce gas demand in Nigeria by 40% and oil and scaling-up of investments in the short term
demand by 65% by 2050, thereby reducing CO2 to avoid being drawn into fossil fuel infrastruc-
emissions and combating climate change at the ture investments with long lifetimes such as nat-
same time as meeting the growing demand for ural gas pipelines.
power in Africa’s most populous country. By 2050, a significant reduction in the use of
natural gas and oil compared to planned policies
IRENA’s report would have profound implications for infra-
The share of primary energy requirements met structure investment in fossil fuels, increasing
with renewable energy can reach 47% by 2030 the risk of stranded assets.
and 57% by 2050, IRENA said in its report. The Nigerian power sector continues to expe-
Electrification will play an important role in rience many broad challenges related to electric-
achieving higher renewable energy shares with ity policy enforcement, regulatory uncertainty,
electricity in final energy use nearly doubling by gas supply, transmission system constraints,
2050. and major power sector planning shortfalls that
Under IRENA’s Energy Transition Sce- have kept the sector from reaching commercial
nario, investment in renewables will be more viability.
cost-effective than the conventional pathway, Despite being endowed with large oil, gas,
with lower investment costs of $1.22 trillion hydro and solar resources and having the poten-
compared to $1.24 trillion over the next thirty tial to generate 12,522MW of electric power
years. This corresponds to $35bn versus $36bn from existing plants, on most days, Nigeria can
per year respectively and means that investing only dispatch around 4,000MW.
in solar and wind, rather than oil and gas, will This means that it is vulnerable to power cuts
prove cheaper in the long run. and outages, known across West Africa as “dum-
sor.” Anyone who can afford it has their own
Energy security diesel-power backup generator, which causes
Nigeria has the lowest access to electricity glob- higher carbon emissions and damages public
ally, with about 92mn people out of the country’s health in crowded cities.
more than 200mn population lacking access to Nigeria recently announced a new National
power, the 2022 edition of the Energy Progress Renewable Energy and Energy Efficiency Policy
Report says. in a bid to fast-track the government’s effort to
With a growing population and a range of diversify the energy mix. This aims to promote
socioeconomic challenges, Nigeria requires energy sources such as solar, wind, biomass,
sustainable energy sources to meet the increas- hydro and coal to power. It also aims to increase
ing demand for all sectors of its economy and electricity access to unserved and underserved
achieve universal access to modern energy pre-urban, rural areas or areas with difficult ter-
services. rains as well as strengthen the existing partner-
“By using its abundant, untapped renewa- ship in the sector.
bles”, IRENA Director-General Francesco La Speaking at the 5th National Council on
Camera said, “Nigeria can provide sustainable Power (NACOP) conference in Abuja in Decem-
energy for all its citizens in a cost-effective man- ber 2022, the Minister of Power Abubakar
ner. Nigeria has a unique opportunity to develop Aliyu explained the country’s policy and its

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