Off-grid energy solutions are offering African countries pathways to increasing reducing energy poverty. Nigeria, Ethiopia and Kenya are emerging as dominant markets for mini-grid developments in Africa, alongside Tanzania and Uganda.
Off-grid renewable energy options, notably standalone systems and mini-grids are projected to see strong sustained growth in the coming decade, in response to demand for energy in areas unlikely to be serviced by national grids, according to the African Energy Outlook 2021 report released by the African Energy Chamber.
Towards 2030, standalone systems and mini-grids could provide almost 50 percent of the new electricity access as this represents the least cost solution to connect about 450 million (41 percent of the population) people on the continent. In Nigeria over 40 percent of its 200 people have no access to the conventional grid.
To bridge the energy access gap in Africa, governments will require a successful mix of strategies that integrate grid extension and improvement, mini- grids and standalone generating systems. Mini-grids are cheaper and cleaner than owning generating sets. They use renewable energy resources and bring the load closest to the community where the electricity is consumed, minimising technical losses.
“The mini-grid and standalone generating systems is a multibillion dollar market in Nigeria. This is because there are areas where it is neither economically nor financially feasible to extend the national transmission lines to,” Ayodele Oni, energy partner at Bloomfield Law Practice said. “Pricing remains a major challenge though and electricity distribution companies also weaken the expansion of mini-grids in Nigeria.”
The relevance of mini- grids in addressing the energy access challenge is spurred on by the increasing competitiveness of solar and battery storage, not forgetting improved energy efficiency of appliances.
“There are huge opportunities in Nigeria’s mini- grid market. We have not even started scratching the surface. Challenges exist but the rewards are worth fighting for,” Habiba Ali, chief executive officer Sosai Renewable Energies Company told Businessday.
Owing to the heightened importance that the COVID-19 pandemic has put on access to affordable and reliable energy, short to medium term recovery planning by most governments is highly likely to prioritise expanding access to areas the grid is yet to reach to reduce vulnerability and improve resilience.
For example, Nigeria’s government has detailed in its 2020 Economic Sustainability Plan a solar power strategy that it seeks to install five (5) million solar-home systems and mini-grids for communities and health clinics.
The recovery plan also states a commitment to support private installers with low-cost financing and a requirement for solar equipment manufacturers to create additional job opportunities by setting up production facilities in Nigeria.
In Africa, mobile connectivity, coupled with the use of mobile money has created opportunities to improve electricity access by leveraging the mobile internet of things (IOT).
At present, providers of electricity via solar home systems and microgrids leverage mobile IOT for accurate metering and billing of consumers as well as collecting data about power supply and demand.
The use of mobile IOT is likely to grow as millions gain access to electricity towards 2030. Although many African countries acknowledge the importance of modernising the grid and improving system flexibility through smart grids, the high costs and degree of market development will be a barrier in the next decade.
Washington-based Energy Information Administration (EIA) estimates indicate that annual energy investment needs in Africa will have to increase by 100 percent from the current $60 billion per annum (1.8 percent of the continents gross domestic product, GDP) to $120 billion (2.4 percent of GDP) in order to attain universal access.
This will go into both expanding generation capacity and upgrading the electricity network. This is corroborated by the IEA estimates, which indicate that annual power supply investments would need to increase to $120 billion per year until 2040.
Read Also: World Bank approves $500m to support electricity distribution in Nigeria
Four Nigerian young education activists Iyunoluwa AdemolaPopoola, 21 Maryjacob Okwuosa, 25; Mukhtar H. Modibbo, 24; Ola Abagun, 29 have joined 12 others across the globe in collaboration with Global partnership for education to transform education systems in the lowest income countries in the world.
As the coronavirus pandemic puts school and learning further out of reach for children globally, these young education activists are raising the alarm and calling for support to education.
Already they are at the forefront of addressing the world’s greatest challenges, from climate change to racism, gender inequality and lack of education.
According to a report on GPE website, AdemolaPopoola a student in university of Ibadan through her volunteering work with One African Child for creative learning, believes that the educational system in Nigeria has to be transformed because presently it isn’t inclusive.
Okwuosa is the founder and Executive Director of Whisper to Humanity, a youth-led feminist organisation that is training teachers and students to create a more conducive learning space for all.
Modibbo is a social development advocate and a champion of the Follow the Money initiative and specialises in practical issues around education financing, advocacy and development of education policies as it affects rural and deprived grassroots communities.
On her part, Abagun a lawyer strongly believes that a gender-transformative education system is critical for a truly equal and inclusive society.
GPE youth leaders are young education activists, based in GPE partner countries in Africa, Asia and Latin America. With youth networks in their countries, they are raising awareness of the barriers to education and aiming to increase the ambition of leaders for financing education and development.
GPE’S youth leaders have seen first-hand how a quality education changes lives and are passionate about transforming education systems in their countries.
Through this pilot one-year engagement, GPE is partnering with youth in four ways to drive global change on education issues:
Babatunde Fashola, minister of Works and Housing, says that beyond infrastructure and assets development, there are also opportunities and economic benefits in the federal government’s Highway Development and Management Initiative (HDMI).
Fashola’s ministry was recently issued Certificate of Compliance by the Infrastructure Concession Regulatory Commission’s (ICRC) to proceed with the implementation of the highway initiative.
As an indigenous Land Value Capture scheme conceived by the ministry to develop Nigeria’s network of federal highway corridors and boost economic development along the Right of Way, HDMI is expected to create thousands of jobs for Nigerians.
“The initiative will open up the highway economy with opportunities in various economic activities, including fabrication of gantries and directional signages with advertising opportunities, towing van operations and auto repair stations, operation of rest areas and emergency services, among others,” Fashola explained.
He added that “when fully operational, road users will enjoy first-class facilities on federal highways with directional signages, wellequipped rest areas, roundthe-clock security patrol, and ambulance services for emergencies.”
The minister assured that, with the receipt of the Certificate of Compliance, government would commence officially the procurement process for the highway concessions under the HDMI.
According to him, HDMI would facilitate further development of Nigeria’s federal highway network by bringing in investment to improve efficiency, accountability, and profitable entrepreneurship to the operation, management, and maintenance of all assets within the Right of Way on the highways.
“This initiative has further affirmed federal government’s commitment to infrastructure development funding which has been driven by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Order of 2018, the Presidential Infrastructure Development Fund (PIDF) being managed by the Nigeria Sovereign Investment Authority (NSIA) and the SUKUK Fund,” he disclosed.
He noted that, through such initiatives, the federal government has been leveraging private sector funding and participation in the development of critical infrastructure across the country, pointing out that HDMI was another innovation developed to attract the private sector.
The minister assured that HDMI would deliver a safer and enjoyable travel experience for Nigerian road users as travel time would be shortened, cost reduced and commercial activities stimulated.
“This is an indigenous Land Value Capture scheme conceived by the Ministry to develop Nigeria’s network of federal highway corridors and boost economic development along the Right of Way; it will be executed in two parts— Value Added Concession (VAC) and Unbundled Assets Approval (UAA), the minister disclosed.
Babangida Hussaini, Permanent Secretary at the ministry, explained that the development, expansion, and maintenance of federal highways had increasingly become a herculean task to the government due to dwindling revenues and other compelling public service obligations.
“It is to mitigate this challenge that the ministry has adopted the option of exploring the Public-private Partnership (PPP) arrangement, which seeks to employ the private sector’s technical competencies, managerial capabilities, and financial resources to salvage the federal roads networks.”
According to him, the PPP arrangement in the management of our highways will bring order, efficiency, accountability, and profitable entrepreneurship to the operation, management, maintenance of all assets within the nation’s right of way.
Earlier, ICRC’S DirectorGeneral, represented by Joel Ohtani, who presented the certificate to the minister, said the initiative would enable private sector participation in the management and maintenance of road assets through PPP arrangements.
ICRC is charged with the responsibility of developing guidelines for monitoring contract compliance during construction, operation, and contract termination and supporting MDAS like the Ministry of Works and Housing in achieving such compliance.
Over time, ICRC had collaborated with the Ministry of Works and Housing to implement a cohesive national legal, policy, and regulatory environment that was conducive to private sector investment in Nigeria’s roads and housing projects.
He commended the novel initiative and said that it would create jobs, boost government’s revenue, and speed up Nigeria’s economic recovery, citing the popular Chinese proverb that says, “If you want to grow rich, build a good road first.”
