‘Oil, fuel important in Africa’s power transition’

The Chairman of Solad Energy Group, Constantine Ogunbiyi, has cautioned towards portraying Africa’s power transition as a straight selection between fossil fuels and renewable power, saying such framing overlooks the continent’s improvement and energy realities.

In a press release on Wednesday, Ogunbiyi stated debates round power transition on the continent are sometimes formed by ideology quite than practicality, stressing that Africa’s pathway should accommodate each current hydrocarbons and rising clear applied sciences.

Ogunbiyi stated Africa’s power future could be pushed by sensible options that tackle entry and reliability challenges throughout city and rural communities.

“Africa’s power transition is simply too usually framed as a binary selection: fossil fuels or renewables. This framing might swimsuit marketing campaign slogans, but it surely doesn’t mirror realities on the bottom.

“From the oil fields of the Niger Delta to the photo voltaic microgrids powering rural communities, Africa’s power future can be outlined not by ideological purity however by pragmatism,” he stated.

Reflecting on his skilled background, the power professional stated his expertise throughout each oil and fuel and renewable power sectors had formed his views on what a simply transition ought to appear to be for Africa.

He stated the switch of oil belongings to native corporations marked a serious shift in Nigeria’s power trade.

Ogunbiyi stated the expertise underscored the significance of industrialisation in Africa’s transition planning, warning towards adopting international fashions that don’t match native situations.

“I’ve had the bizarre vantage level of engaged on each side of this divide. Earlier than chairing Solad Energy Group, I helped construct indigenous oil and fuel companies, together with as a founding father of each Afren Plc, one of many first Africa-focused impartial power firms listed on the London Inventory Change, and later First Hydrocarbon Nigeria Ltd., which in 2009 led the acquisition of upstream oil belongings from Shell’s Nigerian three way partnership.

“Alongside Seplat’s contemporaneous acquisitions, this marked the primary main switch of onshore oil belongings to Nigerian independents. That have provided a transparent lesson: a simply power transition in Africa can’t ignore industrialisation. Nor can or not it’s achieved by importing fashions designed for superior economies with mature grids, deep capital markets, and surplus capability,” he famous.

The Solad boss stated Africa faces the twin job of increasing entry to energy whereas additionally lowering emissions.

Addressing requires Africa to maneuver straight to totally renewable power techniques, Ogunbiyi argued that such expectations ignore current infrastructure limitations.

He stated a secure energy provide stays essential, noting that fuel continues to play a central function in supporting renewable power integration.

“The stress on creating nations to leapfrog on to 100 per cent renewables is comprehensible however unrealistic within the close to time period. Energy techniques require stability. Till grid infrastructure and power storage are considerably scaled, pure fuel will stay indispensable as a bridging gasoline. It offers the dependable baseload energy that permits intermittent renewables to operate at scale,” Ogunbiyi asserted.

He confused that his place didn’t quantity to delaying local weather motion however quite sequencing reforms appropriately, warning that clear power options have to be able to supporting financial exercise or threat worsening power poverty, saying, “Sustainable power techniques should even be economically viable. Clear energy that can’t assist factories, hospitals, information centres, or urbanisation dangers entrenching power poverty quite than ending it.”

This pondering, he added, more and more formed private-sector investments, together with Solad’s work in decentralised energy.

“This hybrid logic more and more informs private-sector funding. At Solad, our work started with decentralised options supporting Nigeria’s Rural Electrification Company throughout Lagos, Ogun, and Kano States. Right this moment, we’re more and more engaged with industrial and industrial shoppers, the place emissions discount should go hand in hand with reliability and value effectivity,” he said.

Highlighting ongoing initiatives, Ogunbiyi stated renewables had been being built-in into oil and fuel operations with out compromising efficiency.

He gave an instance of the corporate’s work with companions within the OML 34 NNPC/ND Western Joint Enterprise, the place he stated photo voltaic installations are being deployed to decarbonise operations whereas sustaining operational resilience.

He stated the strategy prioritised effectivity over symbolism, including that the hybrid strategy aligned with nationwide power coverage: “The target shouldn’t be beauty ‘greening’, however measurable effectivity positive factors. Gasoline continues to underpin baseload energy, whereas renewables cut back emissions and working prices.

“This strategy intently mirrors Nigeria’s Power Transition Plan, which recognises that fuel and renewables are enhances, not rivals, in the course of the transition.”

Whereas noting rising coverage assist throughout West Africa, Ogunbiyi warned that implementation remained the largest hurdle.

He confused that coverage momentum is starting to meet up with this actuality, but coverage ambition will matter little with out execution. He recognized financing as the important thing constraint to scaling clear power deployment.

“Coverage momentum is starting to meet up with this actuality. Throughout West Africa, initiatives such because the World Financial institution’s $750m Distributed Entry by Renewable Power Scale-Up programme and the Mission 300 initiative are mobilising capital for decentralised energy. Devices such because the Common Power Facility and Distributed Renewable Power funds are serving to to de-risk early-stage initiatives.

“But coverage ambition will matter little with out execution. The binding constraint shouldn’t be know-how however capital, particularly affected person, blended finance able to absorbing early (together with forex devaluation) threat. With out it, deployment will stay fragmented and uneven. Governments, multilaterals, and personal traders should align round bankable buildings, native manufacturing, and scalable supply fashions. Capital is out there. It simply wants assist to be optimally deployed.

“Africa’s power transition won’t be outlined by what it abandons, however by what it builds. From hydrocarbons to photo voltaic, from centralised grids to decentralised techniques, the duty is integration quite than substitution. If accomplished properly, Africa can pursue a transition that’s not solely cleaner but additionally fairer and able to powering long-term development,” he concluded.