.NRGI seeks leeway amid energy transition
Nigeria and other African countries pushing for energy transition, with gas as a temporary option, may face serious challenges in securing capital for gas infrastructure.
Even with about $62 billion planned power generation projects on the continent and $89 billion planned gas pipeline projects, translating to $151 billion, only $13.7 billion (9.07 per cent) is under construction, a new report by the Natural Resources Governance Institute (NRGI) revealed yesterday.
The report, which examined risk, renewable options, environmental concerns, energy security and funding, noted the need for proper planning, especially considering options depending on countries.
NGRI’s Tengi Gorge-Ikoli and Aaron Sayne, in the report, note that as the world moves away from fossil fuels, pro-gas voices in and outside government should explain to the public why gas is the best fuel for their country to reach its energy, economic and climate goals.
The think tank said the countries should also make fast, equitable and inclusive plans to move different sectors (such as power and transport) away from gas, while asking civil society actors, researchers and the media to question the risks of continued investment in gas, and whether other alternative technologies could deliver similar or better outcomes.
With the pros and cons of gas and renewable energy, the report noted that in circumstances where a country had significant gas reserves and already established domestic infrastructure, gas might prove to be a more feasible temporary option for countries.
It added that gas for power generation, in that context, could be a more reliable option, adding that as technological advancements were made to address the intermittency issues, renewables would become more competitive.
On environmental issues, the report noted: “While burning gas for electricity is not as dangerous as fuels like coal or oil, there is a need to halve the world’s gas consumption by 2050 to avoid the worst climate outcomes and meet the Paris Agreement of keeping global warming within 1.5 degrees Celsius of pre-industrial levels.”
It stated that while voices from countries, including Colombia, Ghana, Lebanon, Mexico, Nigeria and Senegal, were using the prospect of ending fossil fuel import as justification for boosting their own gas production and use, building the infrastructure might remain a mirage.
“There is insufficient investment capital to fund the new gas infrastructure some lower- and middle-income producers want to build. These countries cannot pay the large price tags themselves, and foreign investors are unwilling to pay. This means most planned projects are unlikely to move ahead,” the report noted.
According to the report, only a handful of commercial banks lend money for gas projects, while interest from foreign private equity is scarce.
The post Nigeria, others secure nine per cent of $150b gas investment appeared first on Guardian Nigeria News.
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