“Energy transition refers to the move of energy production and consumption from sources that emit greenhouse gases to other sources that are more environmentally friendly”
By YANGE IKYAA
The Executive Director of Tripple Energy, Mr. Jesse Bala, has said that the current energy transition plan being canvassed by developed nations is largely driven by politics and climate activism, when it should rather have been driven by technology and innovation in a coordinated manner by all players.
Energy transition refers to the move of energy production and consumption from sources that emit greenhouse gases to other sources that are more environmentally friendly.
In the words of the Tripple Energy boss, “the recent call by the UN Secretary-General for a complete stop to funding fossil fuel projects I consider as policy activism and contradicts the UN SDG7 aspiration, as the current requirements cannot be met by renewable energy sources alone.”
As the call for energy transition around the globe thickens, Nigeria has also made its commitment to ensuring that by 2030, the country must have made significant progress in the area of clean energy.
However, some energy experts are saying that one of the biggest challenges in energy transition is the continuous discordant tunes that are being sung across the world, as some countries are keen on the need for renewable energy, while others are increasing their frontiers for fossil fuels.
At a recent virtual meeting of energy experts, tagged “Charting a New Course,” the out-going chairman of Seplat Energy Plc, Dr. Bryant Orjiakor, said the best of the new journey in the energy world could only be achieved in a collaborative manner, leveraging technology and innovation.
Orjiakor, was a speaker at one of the panel sessions, focused on “Energy and commodity Markets: Structural Bull or Earthbound?”
In his contribution, he noted that “we must develop a coordinated and coherent approach to energy transition with the specific needs of several geographies in consideration,” adding further that “without cogent policies and political will, the country’s energy transition plan may not see the light of the day.”
Also speaking, Bala said the massive withdrawal of funding for fossil fuel projects has led to a market imbalance where, with every slight rise in demand, comes a sharp increase in commodity prices as seen in the uptick in the price of coal.
“Energy transition must be done in a collaborative manner where there must be a balance between net-zero/carbon neutrality and energy poverty in Africa and much of the developing world. To put this in context, Nigeria, with a population of over 200 million people, for example, has installed grid capacity of 12,500mw, but the availability of grid power to the population is only 3,000 to 4,000mw, and 25,000mw off-grid power is supplied by diesel generators,” he said.
Bala added that over 60 per cent of the population has no access to electricity and relies heavily on biomass and kerosene for cooking, and the challenge remains.
“So, how do we prioritize a transition to renewables overnight without addressing the energy poverty that exists with the available fossil fuel?
“Nigeria cannot afford to not utilize its over 200 Tcf of gas reserves in the bid to address the UN SDG7 as it pertains to universal energy access. This gas reserves will leapfrog the transition.”
He further argued that there is a high possibility of oil surging beyond $100 per barrels in the near term, especially if it is considered that coal plants cannot sustain demand in China.
According to him, “the bull market is not isolated and oil prices will experience volatility in the long term. The phenomenon of energy transition has been around for a while – e.g. the transition from coal to oil and then to gas. Energy transition in the past typically took about 100 years and keeps evolving over time. The current energy transition push is mainly driven by climate change and the urgency of now; however, it will not happen overnight.”
The rationale by world leaders to adopt clean energy transformation is to limit and mitigate the effects of climate change, through the reduction of greenhouse gas emissions such as carbon dioxide, carbon monoxides, and nitrous oxides associated with the burning of fossil fuels.
Emission and leakage of un-combusted natural gas from oil and gas facilities also contribute to increased carbon content in the atmosphere, negatively impacting the earth’s climate.
Most of the world’s energy is generated from fossil or carbon-based fuels. Carbon-based fuels account for about 85% of the energy used globally. The combustion of carbon fuels produces carbon dioxide, which contributes 76% to the total emission of greenhouse gases. Thus, the burning of carbon-based fuels is the single largest contributor to global warming and climate change.
The greenhouse gases that are emitted from the burning of fossil fuels absorb infrared radiation from the sun and prevent it from leaving the atmosphere by retaining it within the earth’s atmosphere leading to a rise in temperatures.
Apart from the pressing issue of climate change, there is a limited amount of fossil fuel in the ground, predetermined by nature. Current proven oil reserves will be depleted and unavailable within the next 100 years. This makes alternative eco-friendly sources of energy a top priority of the century.
FG’s Position
Meanwhile, the federal government through the minister of state for petroleum resources, Timipre Sylva, has explained that energy transition is a process, not an instant destination.
According to him, Nigeria will continue to explore and invest in the development of hydrocarbon resources, while pushing for the use of gas as a transition fuel.
He noted that, for most African countries with huge energy deficits, moving away from the deployment of hydrocarbon was a huge concern, stressing further that developing countries were also striving to attain certain baselines of industrialization.
His words: “While acknowledging our commitments to net-zero as a nation, there is no gainsaying the fact that Nigeria requires fossil fuel as its baseload energy source.
“This is undoubtedly a major concern for climate activists in developed nations, but the clamour to emphasize only renewable energy as the sole pathway to energy transition is a source of concern for African countries that are still working to achieve baseload industrialization, address energy poverty and ensure reliable power supply.
“This is why, in Nigeria, we reject the concept of a single pathway to energy transition. Indeed, we prefer the concept of ‘just’ energy transition, which takes into cognisance the specific circumstances of each nation in developing the energy transition pathway that best achieves the environmental, social, political and economic objectives of the transition in that specific nation.
“Multiple pathways to energy transition should and must exist in order to ensure that no country is left behind in the process of achieving net-zero by 2050.”