Africa’s energy transition is not developing at the same pace as the rest of the world
African economies still rely heavily on hydrocarbon production and focus primarily on delivering energy security for all and ending poverty.
At an ADIPEC Energy Talk, Rt. Hon Obongemem Ekperikpe Ekpo, Hon Minister of State (Gas), Federal Republic of Nigeria and Proscovia Nabbanja, CEO Uganda National Oil Company, discussed the challenges and pathways of the energy transition for Africa.
Nabbanja commented that a strong message coming out of ADIPEC had been that there are serial pathways to energy transition. “There is also granularity within Africa, and the transition of South Africa may be different from the transition in Uganda, which may be different from the transition in Nigeria.
“Uganda is being asked to decarbonise even before we produce the oil and gas resources. So while it’s fundamental we address the issues of the energy transition, and we are all supposed to be responsible citizens and address environment protection issues, we must also focus on the fact that this is a population that has never had access to energy, and we are asking them to transition.” She noted that Africa was responsible for only 3% of global CO2 emissions.
“If you are trying to use oil and gas resources for industrialisation, and another party is asking you not to use those resources, that is not equitable. If solar can give us the products of industrialisation, we can have the conversation. It’s not that we can’t do the right thing. In Uganda, we have the opportunity to start with a clean slate; technologies exist to decarbonise our systems from the start.”
Nabbanja pointed out that most of the local population in Uganda is reliant on biomass.
“To move local people dependent on biomass to another form of energy, that form of energy needs to be accessible, available, affordable and sustainable. If the switching cost is high, they won‘t adopt whatever system it is you want to move them to. It’s easier for us to use gas as a transition fuel than hydrogen, which requires capital.”
It will also require a mindset change, she added, and the involvement of local people.
Nabbanja also highlighted the issue of non-fulfilment of investment commitments, the need for further investment in clean technology, and the importance of creating the fiscal and legal framework to attract investment.
“Africa needs to create solutions to African problems,” she commented, noting the establishment of the African Energy Bank that will provide capital for energy investments.
Meanwhile Ekpo explained that Nigeria’s administration is travelling towards low carbon energy and reducing its dependence on oil by diversifying into exploitation of its gas resources, with energy security and reduction of energy poverty being priorities.
“New initiatives are being pursued for gas, CNG and utilisation of flared gas to ensure gas potential is tapped and converted into clean energy for the benefit of the country,” he said.
Laws and initiatives are being established to encourage investors to invest in non-associated gas for domestic use and export. The Minister said that Nigeria currently produces around 7bn cubic feet of gas; now the government and private sector are working together to move production up to 12bn cubic feet, and rolling out a plan over the next six months which will create employment.
The Minister stressed that the administration is committed to ensuring gas sector growth for the reduction of carbon emissions.
“We need around US$20bn investment in the country,” he said, but added that the fear of investors to move into Nigeria is an obstacle.
