Many nations in Africa are currently experiencing several challenges in achieving clean and affordable energy, in line with the United Nations (UN) Sustainable Development Goal (SDG 7). For instance, countries like Nigeria which are richly endowed with natural resources, but still face a serious energy crisis.
Challenges to achieving SDG 7 include: extreme poverty, rapid population growth rate, rapid urbanisation, deforestation, the environmental impact of extractive industries, and the rate of economic growth, among others.
Notwithstanding, African governments have realised that there is a need to implement certain strategies to scale up renewable industry on the continent. To make a successful shift to renewable energy, the government will need to consider full exploitation and promotion of renewable energy resources, energy efficiency practices, as well as the application of energy conservation measures in various sectors such as in the construction of industrial, residential, and office buildings as well as in transportation.
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A report by KPMG titled, “The Twin Shocks and the Nigerian Energy & Natural Resources Industry”, revealed that, as a result of the pandemic, global oil demand dropped sharply by about 9.07mb/d (YOY), and as a result of OPEC+’S inability to reach an agreement on production cuts, there was a resultant oversupply in the market which triggered subsequent price drops.
Given the adverse impact of the COVID-19 pandemic on the Oil and Gas industry globally, Nigeria is now exploring gas as a means of achieving sustainable energy to drive its operations and create economic value.
Insights from an episode of Hogan Lovells “The A Perspective Podcast Series”, which featured the Head of Hogan Lovells Africa Practice, Andrew Skipper, and Vice President/managing Director for Equinor Nigeria, Heine Melkevik revealed the intricacies of investing in renewable energy and the growing demand for clean energy in Africa, particularly Nigeria.
“Focusing on the renewable energy landscape in a country like Nigeria, there is an urgent need for a framework, enabling policies and structures which would interest investors in this sector, for instance, solar energy is more relevant considering the climatic condition in Nigeria. Hence, the government needs to set the scene in terms of its investment in solar energy”, said Heine Melkevik.
Recently, the Nigerian government in collaboration with the European Union and the Department for International Development (DFID) implemented a project under a framework that provides sustainable, reliable and affordable energy supply in compliance with Nigeria’s commitment to achieving the UN SDGS.
Restating the importance of building a sustainable future in the energy sector, Heine Melkevik said, “As a key industry player, we are particular about ensuring that we have minimum emissions from our operations and also developing natural gas, considering the shift to natural gas in Nigeria. We are also focused on creating a reliable means of supplying Nigerians with natural gas, in an efficient manner with the lowest emissions possible. This initiative will certainly help enhance industrialisation and improve power generation capacity in Nigeria to meet the growing demand from an average Nigerian”.
