Transitioning from Fossil-Fuel Based to Renewable Energy – Dr. Kenny Odugbemi

Transitioning from Fossil-Fuel Based to Renewable Energy

There seems to be a global consensus for countries around the world to leapfrog to renewable energy in order to contain carbon emissions responsible for global warming.

Nigeria, have committed to cutting carbon emissions by phasing out the use of fossil fuels.

The Niger-Delta region remains the focal point when it comes to fossil fuel (oil) exploration in Nigeria, with vast swathes of the local environment brutally ravaged by decades of fossil fuel extraction. Not only that, widespread poverty and unemployment have driven large numbers of people, including women in the region into artisanal refining, popularly known as kpo-fire business. The illegal trade has created massive employment opportunities for local populations.

Nigeria’s transition fuel to aid the process of phasing out carbon-polluting fuels like crude oil. Meeting this target will put an end to Nigeria’s historical dependence on crude oil.

While the national energy transition policy highlights a litany of potential benefits to citizens, it neither makes any specific reference to, nor provision for oil- and gas-dependent communities that will be significantly affected by phasing out fossil fuels.

We have surveyef indigenous communities across 3 oil-rich states in the Niger Delta region of Nigeria –
Imo,
Bayelsa,
Rivers.

All the surveyed communities focused heavily on the impact by the
✓social,
✓financial, and ✓environmental effects of oil exploration and extraction.

The survey around oil producing areas found that policy responses to energy transition have for the most part, been driven by governments and corporations, limiting opportunities to better understand how oil-rich communities, including those dependent on artisanal refining for their livelihoods perceive ‘just energy transitions’: whether or not they support it, and how to engage and facilitate their inclusion in national, regional and global transition plans.

Communities are tasked to clean up the environment after fossil fuels in alliance with government agencies have been abandoned and corporations have gone back to their countries.

Local communities are looking on how to control the wealth accruing from renewable resources under a green economy.

Local communities are also exploring the local livelihoods that are now intertwined with the extraction of fossil mineral resources. Communities are asking whether dependencies, including subsidies, on imported energy products will persist or will be eradicated under a low-carbon economy. Installing and distributing off-grid power and renewable energy infrastructure is not cheap and often far beyond the reach of the common man.

Communities are also re-examiining the way to overcome the existing limitations on access to capital and cleaner energy solutions.

We need a national transition plans and policies neither made arrangements for cleanup, remediation, compensation, and rehabilitation for host and impacted communities nor for addressing the massive environmental damage that has accompanied the country’s protracted dependence on fossil fuels. Significant gaps further exist between the climate change commitments of the country and the policies put in place to foster energy transition in Nigeria.

how do we increase opportunities and participation in the renewable revolution

As an alternative to artisanal refining along with all the attendant pollution and harm. Though it will not be easy, there were suggestions for communities to explore feasible (both technical and political) routes.

One option worth exploring is the idea of community-owned cooperatives launching their own renewable products and services. They could partner with experienced technical partners and then use their own land to build solar farms and use some of the electricity for themselves exporting the rest to the grid. Without the creation of alternative livelihoods, sadly, artisanal refining will continue. Another clear finding is that while the world clamors for an urgent shift to a low-carbon future, the needs and priorities of different contexts vary. And that variance in the contextual needs and priorities in different jurisdictions should inform how, why, and when to transit.

Trajectory of sustainable energy pact from fossil-fuel to renew energy

Nigeria is rich in conventional energy resources such as oil, national gas,lignite,and Coal

Way forward

There is need for close cycle approach in which carbon is extracted from ground, processed for it’s content and returned into safe and stable sinks for permanent disposal

Nigeria will explore these abundant energy sources such as Wind,and Solar,emitted number green gas to be readily available being cheaper than Coal,oil and gas

Renewable energy option

Renewable clean energy solutions for self consumption where photovoltaic solar panels generate enough Electricity

Decentralize solar energy generation

Develop and implement biogas generation using biomass technology

Effort so far?

Nigeria FGN recently launched it’s energy plan ETP

This laudable inniatives was designed to simultaneously tackle challenges of energy poverty and climate change crisis

Pillars of Support

These includes
Access
Efficiency
Sustainability
Security

Financial energy transition

There are two forms of financial flows

Capital investment
Concession
Grant payment

Investment projection

Investment need of $35trn is required by 2030 for successful energy transition to be facilitated by development and agreement between parties of detailed, credible and long view transition plan to engender confidence to contribute to net zero target

Energy transfer-ET

ET can be purchased through Banker broker, financial institution

Financial participations

Financial activities includes transactions in debt equity and dividend as this varies with different Capita structure, dividend policies

Financial pillars in energy transition

Use of proceed
Project evaluation
Traceability-managing proceed
Transparency –
Monitoring
Reporting

Conclusion

Nigeria need global support that will enhance sustainable economy
Soliciting global financial support for social, environment,social goal in particular climate change

Types of fund

Sustainable fund
Impact investment
Adaptation investment
Microfinancing
Active ownership
Credit for sustainable project and development of financial system in a sustainable way

We will also require private investigators participation in the local contents adaptation using local Indigenous technology to develop products and services that will ease seamless transition from our present fossil fuel to Renewable energy and net zero target 2050