ENERGY – Tech and Biz News Nigeria

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5 min read

Nigeria’s Energy Sector Faces Crisis Amid Fuel Subsidy Removal: Anayo Nwosu Offers Insight on Dangote Fuel Pricing Strategy

Nigeria’s energy sector is currently grappling with significant disruptions following the removal of fuel subsidies by the current administration. This policy shift has led to widespread market changes and subsequent price adjustments, causing a ripple effect across the country. Amidst this evolving crisis, Anayo Nwosu, a seasoned investment banker, has weighed in on the matter, shedding light on the complexities surrounding the current energy situation and the role of the Nigerian National Petroleum Company Limited (NNPCL) in addressing the challenges.

Nwosu emphasized that the price consumers pay for fuel at filling stations is determined by two key factors: the cost of refining the fuel and the cost of transporting it to the final point of sale. Ideally, he explained, residents of Lekki, Victoria Island, Epe, and the broader Lagos region should enjoy lower fuel prices due to their proximity to the Dangote Refinery. The logic behind this is that shorter transportation distances reduce costs, making it cheaper for areas near the refinery to access petrol.

However, the situation is not that straightforward. Allowing Lagos and its surrounding areas to benefit from cheaper fuel prices would inevitably create a disparity in pricing across the country, with fuel becoming more expensive the further one moves from the refinery. Nwosu drew a parallel with the agricultural sector, where products like yams are sold at lower prices near their point of production and become progressively more expensive as they are transported to distant markets. This uneven pricing dynamic is at the heart of the debate regarding fuel distribution.

The key issue now is how to manage these price differences in a way that does not exacerbate the already high levels of inflation in the country. Nwosu pointed out that while the federal government has made it clear that fuel subsidies are gone, there is now a looming question over whether citizens living near the refinery, who endure the environmental and pollution-related impacts of its operations, should effectively subsidize the fuel prices for those living in more distant locations. This would mean that Lagos residents, who deal with tanker congestion, pollution, and other environmental challenges, would be required to shoulder the cost of making fuel more affordable for those in other parts of the country.

Nwosu suggested that a potential solution could lie in improving the logistics of fuel distribution. By utilizing railways, pipelines, and large ships to transport fuel to distant regions, it may be possible to mitigate the price disparities and reduce the financial burden on consumers living far from the refinery. This could help ensure that those in remote areas are not disproportionately affected by high fuel costs while maintaining a more equitable pricing structure nationwide.

Additionally, Nwosu proposed that the federal government should allow Dangote Refinery to sell its products at ex-depot prices, enabling state governments to step in and subsidize fuel for their own citizens if they deem it necessary. This approach would resemble the way states currently handle education subsidies, with each region tailoring its support based on local needs and resources. By doing so, regions that bear the brunt of the environmental and logistical challenges posed by the refinery’s operations could benefit from lower fuel prices, providing some level of compensation for the hardships they face.

In conclusion, Nwosu highlighted the need for a more nuanced approach to fuel pricing in Nigeria, one that balances the needs of both near and distant regions. While the removal of subsidies marks a significant policy shift, it also presents an opportunity for the government and stakeholders to explore innovative solutions that ensure fair and sustainable pricing for all Nigerians. As Nwosu put it, “What do I know?” leaving his insightful remarks open for further discussion on the future of Nigeria’s energy landscape.

By Anthony Emeka Nwosu

Business Economy Energy Environment Government
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3 min read

Dangote Refinery’s Clear Petrol Raises Eyebrows Amid Energy Crisis Relief

As Nigeria continues to face a prolonged fuel and energy crisis, the newly operational Dangote Refinery has begun supplying petrol to the domestic market, offering some relief to Nigerians. However, the introduction of a new type of Premium Motor Spirit (PMS) has sparked curiosity and concern among consumers. The PMS, which appears clear like water, is different from the red, green, or golden-coloured petrol Nigerians are used to seeing.

Addressing public concerns, Dangote Petroleum Refinery assured Nigerians that the new clear petrol is of the highest quality. Rolled out into the market on Tuesday, September 3, the new fuel’s distinguishing feature is its clarity, which is attributed to the use of ethanol as a refining additive.

Understanding Ethanol’s Role in Fuel

Ethanol, a renewable fuel additive, is known to offer several advantages for fuel economy and engine performance. Vehicles optimized for higher ethanol blends tend to achieve better fuel efficiency due to increased engine efficiency. Furthermore, ethanol boasts a higher octane rating than traditional gasoline, which translates to improved power and performance.

The clear appearance of Dangote’s PMS contrasts with the coloured petrol previously available in Nigeria. Typically, petrol appears red when octane is added, green when octane levels are higher, and yellow when it is unleaded. In the case of Dangote’s new fuel, the clear, water-like appearance indicates the use of ethanol. This additive not only enhances engine performance but also reduces carbon emissions. Its oxygen-rich composition reduces engine carbonation, subsequently lowering carbon dioxide emissions, making it an environmentally friendly choice.

Relief Amid Crisis

The release of this high-grade, clear PMS by Dangote Refinery comes at a crucial time as Nigerians struggle with energy shortages. The refinery’s commitment to providing cleaner, more efficient fuel is seen as a positive step towards addressing the country’s energy challenges.

While some Nigerians may be adjusting to the new look of their petrol, Dangote Petroleum Refinery’s move highlights an innovative approach in refining processes that could lead to broader acceptance of ethanol-blended fuels. This transition marks a significant development in Nigeria’s energy landscape, offering both environmental and performance benefits.

As the fuel continues to circulate in the domestic market, all eyes are on how Nigerians will respond to this new product and its potential to ease the country’s fuel woes.

Reported by Anthony Emeka Nwosu

NNPC Delegation Pays Condolence Visit to Family of Late Senator Ifeanyi Ubah

A delegation from the Nigerian National Petroleum Corporation (NNPC) Ltd., led by its Chief Corporate Communications Officer, paid a condolence visit to the family of the late Senator Ifeanyi Ubah, Chairman of the Senate Committee on Downstream, in Abuja.

The delegation was received by Dr. Mrs. Uchenna Ubah, the widow of the distinguished senator from Anambra State. Senator Ifeanyi Ubah, who passed away on July 27, 2024, in London, United Kingdom, at the age of 52, was a prominent Nigerian politician and businessman. He was the CEO of Capital Oil and Gas Industries Limited, a leading oil and gas company in Nigeria.

Representing Anambra South Senatorial District, Senator Ubah was known for his impactful contributions to Nigeria’s oil and gas sector. As the Chairman of the Senate Committee on Downstream, he was instrumental in shaping key policies and regulations aimed at enhancing transparency, efficiency, and growth in the downstream sector. He championed the deregulation of the downstream petroleum sector, advocating for a competitive market that would benefit both consumers and the national economy.

Beyond his role in the Senate, Ubah was a major player in the oil and gas industry through his company, Capital Oil and Gas. Headquartered in Nnewi, Anambra State, the company emerged as a critical player in Nigeria’s petroleum distribution network, significantly influencing market dynamics and contributing to energy security. His entrepreneurial spirit and innovative strategies in fuel distribution and logistics brought about greater efficiency and accessibility within the sector, earning him a reputation as a transformative figure in the industry.

Senator Ifeanyi Ubah’s legacy extends beyond his business achievements and political service; he was also a philanthropist dedicated to improving the lives of his constituents and Nigerians at large. His passing is a significant loss to the nation, especially in the context of ongoing reforms within the petroleum sector.

Anthony Emeka Nwosu

NNPC Ltd. Grapples with Financial Pressures Due to Rising PMS Supply Costs, Raising Concerns Over Fuel Supply Sustainability

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has acknowledged recent media reports highlighting the company’s significant outstanding debts to petrol suppliers. This situation has intensified the financial strain on NNPC Ltd., raising concerns about the long-term sustainability of fuel supply in Nigeria.

In response to these challenges, NNPC Ltd. reiterated its unwavering commitment to its statutory role as the “supplier of last resort” under the Petroleum Industry Act (PIA). The company remains focused on safeguarding the nation’s energy security amidst the mounting financial pressures caused by escalating Premium Motor Spirit (PMS) supply costs.

NNPC Ltd. is proactively engaging with relevant government agencies and key stakeholders to navigate these financial challenges and maintain a steady and consistent supply of petroleum products across the country. This collaborative approach aims to mitigate potential disruptions and uphold the company’s dedication to ensuring national energy security, even in the face of daunting economic realities.

NNPC Ltd. reassures the public of its commitment to transparency and responsible management, pledging to keep Nigerians informed about ongoing developments and efforts to stabilize the fuel supply chain. As the nation’s leading energy provider, NNPC Ltd. will continue to take all necessary steps to address the current situation and sustain its mission of ensuring reliable fuel availability nationwide.

Economy Energy Government
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3 min read

NNPC Releases 2023 Audited Financial Statement: Posts N3.3 Trillion Net Profit, Declares N2.1 Trillion Dividend, Targets 2 Million Barrels Per Day Crude Oil Production by December 2024

The Nigerian National Petroleum Company (NNPC) Limited has announced its 2023 Audited Financial Statement (AFS), revealing a record-breaking net profit of N3.297 trillion for the financial year ending in December 2023. This marks a significant increase of over N700 billion, or 28%, compared to the N2.548 trillion profit reported in 2022.

During a world press conference held at the NNPC Towers in Abuja on Monday, the Chief Financial Officer, Mr. Umar Ajiya, emphasized that the release of the AFS underscores the company’s dedication to transparency and accountability. “Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges in our operational and economic environment, we have improved the productivity and financial performance of this great company,” Ajiya stated.

He further highlighted that achieving such impressive returns underscores NNPC Ltd’s ongoing commitment to sustaining profitability while supporting national energy security goals as outlined by the Petroleum Industry Act (PIA) 2021. This commitment, he noted, also meets the expectations of the company’s shareholders.

In response to inquiries about the company’s Initial Public Offering (IPO), Ajiya assured that NNPC Ltd. will announce its IPO once the shareholders and Board reach a decision. He also addressed rumors regarding subsidy payments, clarifying that the company is solely managing the shortfall in PMS importation between itself and the Federation.

Speaking earlier at the press conference, NNPC Ltd. Board Chairman, Chief Pius Akinyelure, attributed the company’s exceptional performance to the reforms introduced by the PIA 2021, as well as the unwavering dedication of the Board, Management, and staff. He also announced that the company’s shareholders have approved a final dividend of N2.1 trillion, in accordance with the provisions of the PIA 2021.

Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, also spoke at the briefing, highlighting the company’s progress in combating crude oil theft and pipeline vandalism. She expressed confidence that NNPC Ltd. is on track to achieve its target of producing 2 million barrels per day of crude oil by the end of 2024.

Regarding the recent fuel shortages in parts of Lagos and the Federal Capital Territory (FCT), Executive Vice President, Downstream, Mr. Dapo Segun, appealed for patience from Nigerians. He assured that the company is collaborating with relevant stakeholders to resolve the distribution, evacuation, and logistics challenges that have led to the queues.

NNPC Ltd. has been on a remarkable financial journey, transforming from a loss position of N803 billion in 2018 to reporting its first-ever profit of N287 billion in 2020. This upward trajectory continued with a profit of N674.1 billion in 2021, followed by an unprecedented N2.548 trillion profit in 2022. The N3.297 trillion profit declared for 2023 is the highest in the company’s 46-year history, marking a new era of profitability and growth for NNPC Ltd.

Tony Emeka Nwosu

Business Energy Environment Events Society
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3 min read

NNPC Chief Rallies Judiciary’s Support Against Crude Oil Theft

…Calls for Establishment of Special Court, Accelerated Hearing

In order for the oil and gas industry to achieve its full potential as an enabler of national economic and industrial growth, the Group Chief Executive Officer of the NNPC Limited, Mr. Mele Kyari, has called for the support of the judiciary in tackling the twin challenges of crude oil theft and pipeline vandalism.

Kyari made the call at the National Judges Capacity Building Workshop on the Petroleum Industry Act (PIA) 2021, organised by the National Judicial Institute (NJI) and INVESTIN 234, on Thursday in Abuja.

In a goodwill message he delivered at the workshop, the GCEO stated that the gains of the PIA have been severely undermined by crude oil theft and pipeline vandalism and urged the judiciary to consider the creation of a special court to try offences related to crude oil theft and pipeline vandalism or granting accelerated hearings to such cases.

According to him, the role of the judiciary was critical to the success of the efforts of the various security arrangements put in place by NNPC, the law enforcement agencies and other stakeholders in the industry.

“In particular, is the recommendation that a special court be created to try those offences as they hinge on our survival as a country and/or for such trials to be conducted under an accelerated hearing process by the issuance of Practice Directions to that effect, with concomitant sanctions to deter would-be offenders,” Kyari stated.

The GCEO also called on the judiciary to accelerate hearings on criminal cases in their courts, through timely determination of the criminal charges and imposing adequate punishments and sanctions on culprits to serve as deterrence to others.

He said that NNPC remains committed to collaborating with all relevant stakeholders to ensure the successful implementation of the PIA, adding that “together, we can ensure that the benefits of our natural resources are maximised for the economic and social development of our country”.

Kyari also commended the Chief Justice of the Federation, Olukayode Ariwoola and the organisers of the workshop for extending the invitation to him and the opportunity to deliver a goodwill message at the workshop.

Economy Energy Finance
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2 min read

Economic Community of West African States (ECOWAS) Investment Forum shows opportunities in West Africa

The forum gathered leaders in government, finance and business from across the Economic Community of West African States (ECOWAS). They unpacked ways that investment can improve farming and food security across West Africa.

The ECOWAS Bank for Investment and Development (EBID) hosted the event in Lome, Togo, from 4 to 5 April.

Togo Prime Minister Victoire Tomegah Dogbé opened the forum, held under the theme ‘Transforming ECOWAS Communities in a Challenging Environment’.

She emphasized the need for a wide range of investment across human capital, energy, the digital economy, and infrastructure.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), spoke by video about how regional integration can strengthen investments.

Simon Tiemtore, President of Vista Group Holding, and Kanayo Awani, Executive Vice President of the African Export-Import Bank (Afreximbank) stressed the importance of collaborative efforts and innovative strategies to advance investment priorities.

Discussions during the forum addressed crucial topics such as food security, fortifying agricultural supply chains, and enhancing security in West Africa.

Panellists proposed strategies for tackling challenges in agriculture, underscoring the significance of cooperation and innovation for sustainable development.

They underscored major challenges around access to finance, which seriously affects small businesses, particularly for agribusinesses and young entrepreneurs. Among the solutions discussed were ways development finance institutions such as EBID could make facilitate access to loans.

This is one of the issues that the International Trade Centre (ITC) addresses with the ECOWAS Commission through the West Africa Competitiveness Programme (WACOMP).

WACOMP facilitated the participation of nine investment promotion agencies from West Africa. These agencies showcased investment projects in their countries. The delegates engaged with business leaders on investments in critical areas such as agriculture, infrastructure development, support to small businesses, energy and climate change.

Participants deliberated on concrete projects and investment opportunities, with a focus on fostering employment, financing infrastructure, and embracing climate-resilient energy solutions. Along with ITC and the ECOWAS Commission, the delegation met with EBID management on how to strengthen collaboration to support the inflow of investment in the region.

Barth Nnaji: Why I Located $800m Geometric Power Plant in Aba

The Chairman of Geometric Power Group, Professor Barth Nnaji, has explained that his passion to contribute to industrial development in Igbo land in a manner that would accelerate rapid development of Nigeria was the major influence behind the decision to locate the Geometric Power Plant in Aba.

Nnaji, who was Nigeria’s former Minister of Power, disclosed this at the leadership colloquium on, “Igbo Leadership and Development,” that was convened recently.

He said: “I am passionate about the rapid development of Nigeria, starting with Ala Igbo because of the structural problems it has faced since the end of the Nigerian Civil War in 1970 and also because of its enormous technological and economic potential.

“Geometric Power Limited is making its contribution to help reclaim the old economic days of the Great Zik of Africa, Dr. M.I. Okpara and many others. Once Geometric Power addresses the electricity challenge in nine out of 17 local government areas in Abia State fully, not even the sky will be the limit of the attainments of the people and government of Abia State. Abia can set the stage of development miracle which has been waiting to happen.”

The professor of Manufacturing Engineering, further disclosed that the 188-megawatt Geometric Power Plant in Aba and the Aba Power distribution firm in Osisioma Industrial Layout would have been more profitable venture if they had been located in Ikeja or in the Ilupeju the Industrial Estate in Lagos State or in the Agbara Industrial Layout in Ogun State or in or around the Federal Capital Territory of Abuja.

Nnaji said: “The return of investment would have been quicker and bigger (in these locations). But the strategic reason for locating both the generation and distribution arms of Geometric Power Group would have been missed. Only the investors and promoters of Geometric Power would have benefitted directly, but the people and governments of Ala-Igbo would be the losers.”

He also said locating the project in any of the aforementioned locations would have saved the Geometric Group the experience of a tortious ten-year tussle over the right ownership of the Aba-Ringed Fence Area, which took a toll on the financiers of the $800 million project, the investors, the host community, suppliers, contractors, the Aba business community and the people and government of Abia State.

Nnaji traced the history of the Aba power plant to when former Nigeria’s Minister of Finance, Dr. Ngozi Okonjo-Iweala, invited a former President of the World Bank, late Dr. James Wolfohnson, to Aba to see, firsthand, Aba’s tremendous economic and technological potential.

“After the visit in 2004, I was asked by the duo to consider building a 50 megawatt power plant in Abia for manufacturers, both big ones like the Star Paper Mill and small ones like the hundreds of excellent shoemakers and clothiers at the famous Ariaria Market.

“They approached me obviously because I had led a small team of dedicated Nigerian engineers and entrepreneurs to build a 22megawatt Emergency Plant in Abuja in 2001 for the supply of electricity to State House, the NNPC headquarters, the Abuja Business District and other places.

“I acceded to the request by Dr. Okonjo-Iweala and Dr. Wolfohnson. What the two did not realise is that my enthusiastic acceptance was because the plant would be located in Aba. This city has a special place in the heart and mind of every person interested in our country’s rapid progress: It is the home of indigenous manufacturing, innovation and entrepreneurship.

“There is another reason why I accepted to build the plant in Aba. I had experienced, firsthand, what industrialists in Igbo land were going through.

“As a professor of manufacturing engineering in the United States in the 1990s, I decided to build a plant in Emene, Enugu, to produce vehicle spare parts, including engines, of the highest standard in the world. After all, I had watched my former students from Taiwan and other places in Southeast Asia rush home to produce sophisticated auto parts and engines.

“So, a large swath of land was purchased for this purpose, but when my South Korean partners visited Enugu, it became obvious that the project would not take off principally because of poor electricity. It was while I was thinking of how to help resolve the electricity problem in Ala Igbo that Dr. Okonjo-Iweala and Dr. Wolfohnson made the request. The rest is history,” Nnaji said.

Yet, the proprietor of the Geometric Group, said: “I must add that it has since 2004 been tears, sweat and blood, to borrow the words of late Mr. Winston Churchill, the former British prime minister.

“I don’t want to tell the story of sweat, blood and tears now; all I can say this moment is the game is worth the candle. Nothing can give as much fulfillment and satisfaction as working wholeheartedly for your people.

‘It took the Nnewi people quite a lot when they decided to develop their hometown themselves. Even without basic infrastructure like roads, electricity and telephone services, the Nnewi people decided to take their destiny in their hands after the Nigerian Civil War,” he added.

Business Energy
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2 min read

Nigerian Electricity Regulatory Commission (NERC) Considers Adjusting Prepaid Meter Prices

In response to the challenges posed by limited resources and foreign exchange constraints within the country, the Nigerian Electricity Regulatory Commission (NERC) is currently examining the possibility of implementing adjustments to the prices of prepaid meters.

Acknowledging the prevailing economic realities, the Commission is deliberating potential price increases to ensure sustainability and viability within the electricity metering sector. This initiative aims to address the intricacies associated with meter pricing in light of evolving market dynamics.

In line with this effort, Meter Asset Providers (MAPs) have temporarily suspended the sale of new meters, pending NERC’s approval of revised pricing structures. Consequently, the processing of new meter applications has been put on hold until the anticipated price adjustments come into effect.

Moreover, in response to foreign exchange challenges, meter manufacturers have temporarily halted the issuance of invoices until the revised meter prices are finalized. This strategic pause underscores the industry’s concerted effort to navigate prevailing economic constraints while maintaining operational continuity.

A reliable source familiar with the matter conveyed to TECH AND BIZ NEWS , “The cost of prepaid meters is going to go up soon. Meter Asset Providers have stopped selling new meters as they await NERC to approve new prices. New meter applications are not being processed until the price changes are reflected. So due to FX issues, the meter manufacturers have stopped sending invoices until the meter price is reviewed.”

NERC remains committed to fostering a sustainable and resilient electricity metering ecosystem that aligns with national developmental objectives. The Commission continues to engage stakeholders and industry players to ensure transparent and equitable solutions that benefit all stakeholders.

The Nigerian Electricity Regulatory Commission (NERC) is an independent regulatory body established by the Electric Power Sector Reform Act (EPSRA) 2005 to regulate the Nigerian Electricity Supply Industry (NESI). NERC’s mandate includes promoting competition, efficiency, and ensuring fair market practices within the electricity sector.

ANTHONY NWOSU

Economy Energy
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0
10 min read

Four top trends to watch in the African energy sector in 2024

As we head into 2024, the renewable energy sector is set to see innovation that will transform the way energy is accessed, stored and deployed across Africa. Paul van Zijl, Group CEO at Starsight Energy (https://StarsightEnergy.com/), discusses 4 key trends that he thinks will profoundly shape the industry over the next year.

Batteries will provide benefits far beyond backup for behind-the-meter projects

One of the most significant shifts in solar technology revolves around the integration of battery energy storage systems (BESS) – especially for behind-the-meter solar (also known as onsite solar). Traditionally, batteries were seen primarily as backup storage when paired with a solar system, ensuring a steady power supply during cloudy days, nighttime or when the grid is unavailable. However, in 2024, the focus is vastly shifting towards load management, where batteries play a dynamic role in optimising energy consumption.

As the trend for the deployment of batteries across the continent grows, cutting-edge management systems will become a key part of solar installations with an integrated battery component. These systems use advanced algorithms to predict energy demand patterns. This allows for the strategic use of battery storage – discharging it during expensive peak times and charging it using solar energy or the grid during off-peak – to reduce the costly demand charges that come with variable tariff structures. Along with enhancing the efficiency of solar systems, integrated battery storage solutions can also contribute to grid stability by reducing strain during high-demand periods.

When it comes to front-of-the-meter (or offsite) storage, BESS is also set to play a bigger role in the deployment of utility-scale renewable energy technology like wheeling – where power is generated at an offsite location (like a solar or wind farm) and transported using the available power network to different off-takers.

In South Africa for example, the national energy provider Eskom announced the deployment of around 343 MW in BESS projects as part of an overall 500 MW BESS initiative aimed at addressing the country’s long-running electricity crisis. The systems will be in remote areas (with limited access to Eskom’s network) but still close to renewable energy plants built by independent power producers (IPPs).

This collaboration between the public and private sectors supports more widespread deployment of utility-scale power and the adoption of renewable energy projects. By adding battery storage components to the national grid, businesses and consumers can gain quicker access to reliable electricity while the power utility can address peak energy demands more easily. This also ensures that the increasing amount of power generated from utility-scale solar projects can be stored and consumed outside of daylight hours to avoid stranded grid capacity.

Data, banking and tourism: The rise of sustainable off-grid solar solutions

Off-grid renewable energy solutions, including stand-alone systems and mini-grids, offer a unique opportunity to expand modern energy access services. The distributed nature of these systems allows them to be tailored to local conditions, tap into available renewable resources, deliver diverse energy services, and utilise local capacity to ensure long-term sustainability.

We will see a rise in these solutions as more and more commercial and industrial businesses realise the value of effectively moving off-grid. This will be prevalent in three industries:

As more and more businesses become aware of the benefits of off-grid solar, it is likely that we will see an even greater adoption of this technology in the coming year

Data centres: Africa is a global hub for data centres. According to research from African Infrastructure Investment Managers (AIIM), there is around 250 MW of installed data centre capacity across Africa – with the demand for centres in Africa expected to exceed supply by 300% by 2030. These powerhouses of technology rely heavily on a steady and safe electricity supply. From operating to maintaining their vast cooling systems, large data centres simply can’t afford the risk of a grid collapse or any possible power interruptions. Power autonomy is the name of the game here, making battery storage a necessity from the get-go.

Banking: While the prevalence of mobile financial services continues to soar on the continent, there is still a tangible need for brick-and-mortar banks and ATMs in countries where access to these services remains essential. These sites need to remain operational should there be any sort of grid collapse or catastrophic power failures – making an off-grid solution a non-negotiable component of the future of banking in Africa.

Tourism: With the rise of conscious consumerism and eco-tourism, sustainability is fast becoming the differentiating factor for discerning travellers choosing their next holiday destination. Luxury lodges in popular destinations in East and Southern Africa are fast moving towards fully off-grid solar battery operations to offer their guests uninterrupted access to power while boosting the lodge’s green credentials in the process.

As more and more businesses become aware of the benefits of off-grid solar, it is likely that we will see an even greater adoption of this technology in the coming year.

Seamless access to renewables through a reimagined aggregation model

We will certainly see a shift towards aggregated solutions, wherein energy providers will consolidate diverse technologies and services into comprehensive packages in 2024. This trend is driven by the recognition that a holistic approach to energy solutions is not only more convenient for consumers but also more effective in optimising energy production and consumption.

This can be done in several ways. For example, trading of electricity in South Africa allows a service provider of solar energy to buy and sell, excess wind energy without having to invest substantial capital expenditure amounts. Similarly, instead of having gas-powered energy compete with renewable energy, the aggregation model will also allow providers of such services to aggregate their energy solutions and provide the client with a holistic offering. The goal is to provide consumers with a seamless and integrated final product that maximises the benefits of renewable energy across various aspects of their daily lives. The real value for customers lies in a collaboration of providers who can meet their specific needs and power the entire energy lifecycle.

Tackling complexities through an increasingly consolidated sector

As the solar industry matures, a trend towards consolidation will become increasingly evident in 2024. Larger energy companies will consider merging or acquiring smaller players, creating more robust and diversified entities. This consolidation is driven by the desire to achieve economies of scale, increase market share, and foster innovation by pooling resources and expertise.

Consolidation in the industry is not limited to manufacturers but extends to service providers, research and development firms, and energy management companies. By joining forces, these entities can tackle the complexities of the evolving energy landscape more effectively, driving down costs and accelerating the adoption of alternative energies across the continent.

This trend is fostering the emergence of holistic service providers capable of providing end-to-end solutions that address the diverse needs of businesses, consumers and communities. Our recent market-milestone merger between Starsight Energy (https://StarsightEnergy.com/) and SolarAfrica (https://SolarAfrica.com/) is a case in point. Customers in Eastern, Southern and Western Africa can access our comprehensive mix of cost-effective solutions that provide power security and carbon reduction. These include solar energy, battery storage, wheeling, and energy management, among others.

The future is bright. If 2023 was anything to go by in terms of transformation for the energy sector, 2024 will be marked by accelerated innovation and a collective commitment to harnessing the full potential of renewable energy that holds the promise of a more resilient, more sustainable, and more tightly connected energy future for Africa.

Tag: ENERGY