Speaking on the agreement, Mr. Damilola Ajayi, Group Executive Director at Vetiva, stated that “the signing of this MOU is another important step in facilitating flow of funding towards bankable, commercially viable and environmentally friendly energy projects in Nigeria and, indeed, the rest of Africa. This does not only provide alternative capital deployment channels for investors but seeks to contribute to addressing the energy deficit in Nigeria”.

Vetiva, in November 2018, announced the signing of a partnership agreement with Climate Bonds Initiative (UK) to develop a liquid green and climate bond market in Africa. This agreement, alongside Vetiva’s strategic partnership with Climate Finance Advisory Limited and African Guarantee Fund West Africa (AGF), is in line with Vetiva’s commitment to make the African continent more attractive to capital flows, in a sustainable and environmentally friendly manner, necessary for long-term infrastructure projects. Vetiva and its partners are proud of their shared vision to not only channel long-term funding into Africa, but also do so whilst addressing the challenges posed by climate change. It is Vetiva’s firm belief that Africa is positioned to lead the climate change conversation globally, whilst deepening the continent’s capital markets.

Ms. Adidja ZANOUVI, Managing Director of AGF West Africa reaffirmed African Guarantee Fund’s commitment in promoting a sustainable and environmental friendly economic growth in Africa. She stated “In 2016, AGF introduced a Green Guarantee Facility geared towards increasing financing for climate change mitigation and adaptation projects. In line with this, AGF West Africa is pleased, to be part of this tripartite partnership as a partial guarantor to enhance access to finance for climate and green growth-oriented SMEs in Nigeria and West Africa at large”.

Dr. Jubril Adeojo, Director and Chief Investment Adviser at Climate Finance Advisory Limited, speaking on the agreement, said that “the ultimate aim of the tripartite partnership is to create green asset portfolio in excess of $100million over a period of 5 years. AGF will provide up to 50% partial risk guarantee to enable green energy project developers access up to 10 years long-term local currency concessional loans to implement their green projects. The green energy projects that qualify are captive power and mini- grid power projects where renewables and gas are preferred sources of energy. On the final note, we are glad that the program has come when Nigeria is strategically making laudable moves to attain its nationally determined contributions (NDCs) to the Paris Agreement on combating climate change.”

Vetiva Capital Management Limited is a Pan-African Financial Services Company incorporated in Nigeria and duly regulated and registered by the Nigerian Securities & Exchange Commission (“SEC”) to carry on business as an Issuing House and Financial Adviser. Also, the company, through subsidiaries, is registered to act as Fund/Portfolio Managers, Trustees and Broker/Dealer by the Nigerian SEC. Vetiva has expertise working hand-in-hand with international advisers, having worked on a number of cross border transactions which include a dual listing on the Nigerian and London Stock Exchanges, listed GDRs for Nigerian Companies as well as other capital raising transactions with international components.

AFRICAN GUARANTEE FUNDis an AA- Fitch rated Pan-African non-bank financial institution. AGF contributes to the promotion of economic development, vital for prosperity, stability and poverty reductionin Africa through two lines of interventions.

• Provision of partial guarantees to financial institutions to facilitate access to finance for Small and Medium-sized Enterprises. AGF offers three types of guarantees: Loan Guarantees, Resource Mobilization Guarantees and Equity Guarantees.

• Provision of Capacity Development support to the Partner Financial Institutions to improve their ability to properly assess SME risks and to the Small and Medium-sized Enterprises to build their capacity for easier access to finance.

AGF West Africa is a subsidiary of the AGF Group and oversees the Group’s operations within the Economic Community of West African States (ECOWAS).

Climate Finance Advisory Limited is an indigenous advisory firm with Pan-African outlook, poised with the strategic direction to crystallize the flow of various forms of intervention funds and investment required to spur the development of Africa’s infrastructure and critical economic sectors via climate finance methodologies. CFAL has expertise in the areas of climate finance, renewable energy technologies deployment, sustainable agriculture, and Blockchain deployment for the financial services sector.

CLIMATE FINANCE ADVISORY LIMITED
8th March, 2019
Contact:info@climatefinanceadvisory.com
Website: www.climatefinanceadvisory.com

This feat is even more remarkable when one considers that demand for electricity in the north African nation has constantly increased, by an average of 6-7% per year over the last 25 years.

For the African Development Bank, Morocco is a prime example of the success of a key High 5 priority – electrification of the African continent by 2013, and a  model to inspire other countries.

Rural Electrification breathes new life into small, independent businesses

In less than 20 years, Morocco has made extraordinary progress to electrify the whole country and this includes even the rural areas, which have seen their coverage increase from 18% in the mid‑1990s to nearly 100% presently.

Thanks to its ambitious Global Rural Electrification Programme (PERG), which received a big contribution of €155 million in funding from the Bank, Morocco has been able to achieve the unthinkable. At the end of 2017, close to 12.7 million Moroccans had been connected to the grid through PERG.. In addition, they have seen their lives radically transformed by the arrival of electricity.

For example, Mohamed Dakhni, 32, a welder in Douar Bou Azza in northern Morocco. When he started his business, Mohamed was content to make small tools and cookery utensils, which he sold in his village market. But, just a few months after being connected to the electricity grid Mohamed trade was transformed.

“Electricity has enabled me to create things and I’ve been able to develop my business by expanding my customer base. I can earn more and live better”, he said with a broad smile. .

Ahmed Hassani, who hails from the same region, had a similar experience. The father of four  inherited a plot of land from his parents which failed all efforts at farming. He transformed the plot into an olive grove using an irrigation system connected to the new electricity installation and his problem was solved. The young olive producer, who now also grows barley, saw his field come to life in just a few years.

“It was total desert when I got here in 2010,” he recalled. “It was all desert. Work required a huge effort. Now, electricity has solved my pumping and irrigation problems. With constant water supply to my field, production has continuously increased.”

Now Ahmed employs four or five seasonal workers for his harvests. “Without electricity, I would not have been able to pursue my business,” he said. “It is my primary support, the single thing that helps me most with this olive grove.”

Other rural sectors are also benefitting from the mass electrification. Village cooperatives, such as the women’s cooperative of Dar Laain, in the Marrakesh region,  are now able to widen the  range of produce they can process such as couscous, barley, and other wheat-based products.

“I can’t imagine life in this village without electricity. It helps women get better products and be much more efficient,” said Fatima Zahera Hagou, a worker in the crèche founded by the village women’s association.

The good news is that PERG is not the only mega scale project launched in Morocco with the Bank’s support.  Over the past two decades, the Kingdom has pursued a programme to strengthen the national electricity supply and diversify its energy mix. With transnational electric interconnections, power station developments, a focus on renewable energy, and energy efficiency, the Kingdom is not sparing its efforts.

Morocco-Spain submarine interconnection

After its first electrical submarine connection to Spain reached full capacity, Morocco decided to build a second plant, doubling transmission capacity to 1400 MW. There too, the Bank supported the project with €80 million.

Combining natural gas and solar energy

The Ain Béni Mathar power station[MS1]  , which opened in 2010, is a 472 MW combined cycle plant that uses both natural gas and solar energy. This project, undertaken in partnership with the Global Environment Facility and the Moroccan National Electricity Agency (ONE), was the African Development Bank’s first foray into solar energy. The Bank provided two thirds of the cost of this project with 187.85 million Euros.

The largest concentrated solar power plant in the world

At the gateway to the Sahara Desert, Ouarzazate sits the largest concentrated solar power complex in the world, named Noor (‘light’, in Arabic). Here again, the Bank is the largest financier to this project, with  € 365 million investment.

Noor I opened in 2016 with a capacity of 160 megawatts and more than 500,000 mirrors arranged in rows = over 460 hectares (that’s 600 football fields) to reflect the sun. Two further thermo-solar power plants, Noor II and Noor III, were commissioned after that, and are due to come on-stream by the end of 2018, with a total capacity of 350 MW.

A fourth 70 MW power plant is also under construction, which will bring the total capacity of the Noor Ouarzazate complex to 580 MW.

“No country or continent ever developed in half-darkness,” said Hassan Lissigui, head of division at the National Electricity Agency (ONE). Here, there isn’t the slightest doubt for millions of farmers, artisans, traders, business owners and women’s cooperatives that the fact of having lighting and an energy supply makes all the difference.”

For over a decade, Morocco has committed to an ambitious programme to strengthen and diversify its energy, hitherto dependent on fossil fuels. That ambition has paid off. Now the next goal is to convert 52% of its energy needs to renewable power by 2030 – and this continental trailblazer is  definitely on track to do that.

Key figures

Ain Béni Mathar Project: US$221.97 million (two thirds of the project cost) from the African Development Bank.

Noor I, II and III Complexes: US$236 million from the African Development Bank

Second electrical interconnection between Morocco and Spain: US$158 million from the African Development Bank

Testimonies

“It was a complete desert here when I arrived in 2010. All there was, was a well. Work required a huge effort. Now, electricity has solved my pumping and irrigation problems.” – Ahmed Hassani, farmer.

“I can’t imagine life in this village without electricity. It helps the women get better products and be much more efficient.” – Fatima Zahera Hagou, teacher in a crèche.

Meanwhile, Nigerian government is presently working out modalities for the construction of the nation’s nuclear research center and nuclear power plant – with ROSATOM – Russia’s state-owned nuclear energy provider.

Signed June 22, 2018, the document establishes legal basis for the implementation of bilateral cooperation in a wide range of areas, including the development of nuclear infrastructure in the Republic of Rwanda and the development of programs aimed at raising awareness of nuclear technologies and their applications, as well as the use of radioisotopes and radiation technologies in manufacturing, agriculture and healthcare.

Indian High Commissioner, Nagabhushana Reddy, at a Business meeting in Abuja, said the home government was committed to deriving at least 30 per cent of its power needs from renewable energy by 2030.

Reddy noted that exploring areas of cooperation in renewable energy would build on existing partnerships between both countries, especially as Nigeria, was member of the International Solar Alliance (ISA).

According to him, ISA intends to provide dedicated platform for cooperation among solar resource rich countries and mobilise $1 trillion funds for future solar generation, storage and technology across the world.

He said: “We are opening a new chapter of India-Nigeria economic engagement by moving into the power sector relating to renewable energy. India had been present in Nigeria in the power sector mostly in the areas of distribution and transmission.”

Reddy also said that both countries would sign a Memorandum of Understanding (MOU) in the renewable sector to create a joint working group to develop projects for enhanced and effective collaboration.

Earlier, President of Abuja Chamber of Commerce and Industry, Kayode Adetokunbo, called on the Federal Government to harmonise policies on renewable energy to create single body for the implementation of relevant policies.

Adetokunbo said: “There is no clarity in policies and we need all the advantages solar power and renewable energy can offer and put it in one agency that has multi-sectoral approach so that other relevant agencies can work together as a team.”

He added that promoting synergy among stakeholders would create jobs and fast track economic development in line with the government’s economic growth plan.

A representative of Nigerian chapter of Associated Chambers of Commerce and Industry of India, Rajneesh Gupta, said that there are ongoing enlightenment campaigns on promoting renewable energy in Nigeria.

He said: “Simba Solar has been educating Nigerians on renewable energy technologies, and how it can deliver value. We are also training electricians and budding entrepreneurs that can key into these technologies to the end users.”

“Electricity generation is fluctuating this year, peaking 5,090megawatts as government continued to show determination to produce an energy mix with 30 per cent component of renewable energy out of the gross energy produced by 2030.”

Vice-President of the bank, Ambroise Fayolle, who announced the project at the ongoing 6th Africa CEO Forum in Abidjan, Cote ‘Ivoire, listed other countries to include Ethiopia, Kenya, Tanzania and Uganda, said the energy would be supplied via solar kits that do not require a grid, which are easy to use and inexpensive for users, to come in a pre-payment system.

He stated that particular emphasis will be placed on rural and suburban populations and micro-entrepreneurs when it eventually materialise.

According to him, the financing will enable d.light design to develop the installation of solar kits – including not only panels and lamps, but also low-energy equipment (radios, TVs, etc.) – in sub-Saharan Africa with the ambitious goal of reaching 10 million solar installations within five years.

“I am delighted that the EIB has signed this new financing with d.light in Africa for an off-grid solar project that will have a major economic and social impact on people and micro-entrepreneurs.

“The EU bank is determined to implement the Paris climate agreement and to cooperate to achieve the sustainable development goals, particularly when it comes to ensuring access to affordable, reliable and sustainable energy for all. With its unique technical and financial expertise in the support of solar projects, the EIB will mobilise new investments to develop renewable energies in Africa,” he said.

Continuing, Fayolle said for the EU bank, climate action and the development of renewable energies are major priorities both inside and outside the EU.

He added that at the founding ceremony of the International Solar Alliance that recently took place in New Delhi, the EIB emphasised its record investment of EUR 1bn into the development of global solar projects in 2017.

‘The Bank also confirmed that it would be significantly expanding its activities in support of solar energy in developing and emerging economies. Since 2002, the EIB has allocated EUR 6.3bn to financing solar projects, with 50 per cent going to emerging and developing economies.”

The initiative, The PV Solar Incubator, tagged: “Your Project, Our Expertise, For a Sustainable Future,” will be held in partnership with Hogan Lovells, Proparco, responsAbility, RINA Consulting, and Solarplaza,.

The organisers therefore invite PV developers to submit proposals for projects that are based in sub-Saharan Africa, and have a clear CSR (Corporate Social Responsibility) component.

Candidates are asked to submit their proposals by October 1,  via Phanes Group’s website. Shortlistees will be invited to pitch their projects to an expert panel comprised of the incubator’s partner organisations at Solarplaza’s “Unlocking Solar Capital Africa” conference in Côte d’Ivoire, October 25  to 26, where the industry’s biggest players will hold extensive discussions about solutions for Africa’s solar energy funding gap.

The Chief Executive Officer, Phanes Group, Martin Haupts, said: “Clean energy has the potential to transform sub-Saharan Africa for years to come, but successfully implemented PV solar projects require a diverse mix of expertise and knowledge to bring them to financial close.

“We believe the Phanes Group Solar Incubator -in collaboration with our partners, will leverage untapped local PV potential, and create more opportunities for local projects. Combined with our strengths in developing bankable solutions for clean, affordable energy and efforts in CSR, the incubator initiative can help to address local needs that haven’t yet been met.”

Also, Christopher Cross of law firm, Hogan Lovells, who will be part of the evaluation panel at the event, said: “We are both honoured and excited to be invited to take part in an on-the-ground initiative such as this. The Solar Incubator seeks to foster both local innovation and investment to bring potential opportunities to fruition for the social and economic benefit of the region and its people.”

The Executive Director, responsAbility Renewable Energy Holding, Joseph Nganga, another participating partner, said: “We aim to finance ideas with growth potential and strong entrepreneurial spirit, that successfully serve broad segments of the population.

The initiative, ‘The PV Solar Incubator, Your Project, Our Expertise, For a Sustainable Future,’ will be held in partnership with Hogan Lovells, Proparco, responsAbility, RINA Consulting and Solarplaza, and invites PV developers to submit proposals for projects that are based in sub-Saharan Africa, and have a clear CSR (Corporate Social Responsibility) component.

Candidates are asked to submit their proposals by October 1, 2017, via Phanes Group’s website. Shortlistees will be invited to pitch their projects to an expert panel comprised of the incubator’s partner organizations at Solarplaza’s “Unlocking Solar Capital Africa” conference in Côte d’Ivoire, October 25 – 26, where the industry’s biggest players will hold extensive discussions about solutions for Africa’s solar energy funding gap.

It comes as part of Phanes Group’s core strategy to collaborate with Africa-focused counterparties, such as local project owners, governments, and developers on projects that seek to create a sustainable future for urban and rural communities across the sub-Saharan region.

“Clean energy has the potential to transform sub-Saharan Africa for years to come, but successfully implemented PV solar projects require a diverse mix of expertise and knowledge to bring them to financial close,” said Martin Haupts, CEO, Phanes Group. “We believe the Phanes Group Solar Incubator -in collaboration with our partners- will leverage untapped local PV potential, and create more opportunities for local projects. Combined with our strengths in developing bankable solutions for clean, affordable energy and efforts in CSR, the incubator initiative can help to address local needs that haven’t yet been met.”

Christopher Cross of law firm Hogan Lovells, who will be part of the evaluation panel at the event, said “We are both honoured and excited to be invited to take part in an on-the-ground initiative such as this. The Solar Incubator seeks to foster both local innovation and investment to bring potential opportunities to fruition for the social and economic benefit of the region and its people.”

There are currently more than 620 million people in sub-Saharan Africa living without electricity, according to the International Energy Agency (IEA), which works to ensure global access to reliable, affordable and clean energy.

This initiative aims to support developers not just in the funding phase, but throughout the project development and delivery phases, to ensure important, CSR-focused projects are brought to financial close. Phanes Group, along with its partners, will provide PV developers with access to a reliable partner that will support them in reaching bankability. Through an initial incubator phase, extensive mentorship, and access to the right network, this year’s candidates will have an opportunity to roll-out a sustainable energy solution in their community, as well as develop a lasting relationship with an end-to-end, integrated solar expert.

Joseph Nganga, Executive Director, responsAbility Renewable Energy Holding, another participating partner, said, “We aim to finance ideas with growth potential and strong entrepreneurial spirit, that successfully serve broad segments of the population. This is why we are excited to be collaborating with Phanes Group on this incubator, and looking forward to our continued partnership with the solar sector in sub-Saharan Africa going forward.”
After the winning project(s) have been announced at the “Unlocking Solar Capital Africa” event, the developers will be invited to join Phanes Group for an intensive 4-day workshop at its headquarters in Dubai, UAE. This will help lay the foundations for delivering a bankable and sustainable project.

“RINA Consulting is keen to assist Phanes Group in this ingenious initiative to unlock solar potential on the continent. We look forward to helping projects find their way to implementation in this challenging but exciting market” said Lee Smith, Project Manager for Africa, RINA Consulting.
“As dreamers of a future where everybody can have access to electricity for a fair price, initiatives focused on long-term success like the Phanes Group’s Solar Incubator are always dear to our hearts,” said Edwin Koot, Solarplaza. “Renewable energy infrastructure projects result in myriad benefits. We wish participants the best in bringing forth this ripple effect to their communities, and look forward to meeting them at the “Unlocking Solar Capital Africa” conference this October,” Edwin Koot added.

At the international Brent price of $52 per barrel, the country lost about $40.20million (N12.30billion) per day.

This has however, resulted to the Nigerian National Petroleum Corporation (NNPC) having a trading deficit of N5.23billion, representing an increase of N3.55billion compared to the previous month’s.

According to the NNPC in its June monthly report released at the weekend, these losses were recorded in Yoho, Forcados, Qua Iboe, Bonga, and Akpo Terminals.

NNPC explained in the report that Force Majeure, or shut in due to circumstances beyond the producers control, which was declared in Forcados Terminal on February 21, 2016 was still in place in May 2017. About 280,000bopd was shut-in in May due to the continued shutdown of the Forcados 48-inch crude export line. In addition, line flush was carried out on May 20th, while export activities have re-opened at the Terminal in the last week of the month.

It added that some production wells in Qua Iboe Terminal were also shut-in during the period due to some Well integrity issues, and high water production, during which an average of 180,000bopd was shut-in throughout the month in review.

NNPC disclosed that production was on total shut down on May 15th due to crude oil leakage, leading to production shut-in of about 190,000bopd.

For the Yoho Terminal, the Corporation said some production wells were shut-in from May 15th –18th. “About 48,100bopd of production was shut-in.”

In view of the shut-ins and attendant revenue losses, NNPC decried that federation funding has been inadequate over the years as a result of the current wave of sabotage orchestrated by militant activities, and low oil prices which further compounded the situation.

Furthermore, products theft and vandalism continued to destroy value and put NNPC at a disadvantaged competitive position. “A total of 1,820 vandalised points were recorded between June 2016 and June 2017,” it added.

On revenue flow, the Corporation said: “Group operating revenue for the months of May and June 2017 were ₦308.87 billion and ₦295.75 billion respectively. These represent 84.43 per cent and 79.54 per cent respectively of the monthly budget.

“Similarly, operating expenditure for the same periods were ₦311.42 billion and ₦300.98 billion respectively, which also represent 97.88 per cent and 94.74 per cent of budget for the months respectively.”

But speaking recently at the African Modular Refinery forum, Minister of State for Petroleum Resources, Ibe Kachikwu, said Nigeria lost about $6billion to vandalism of oil and gas infrastructure in the last five years.

The minister said the losses to pipeline vandalism could be used to actualise the Vision 2020 target of achieving domestic refining capacity, stimulate employment and economic growth.

He said the country had been plagued with continuous import cycle of 92 per cent of its daily fuel consumption. “Despite these challenges, we are focused on the objective of ensuring the nation attained a domestic refining capacity by 2019.”

The project, which also involves the Ministry of Industry, Trade and Investment and the Ministry of Power, Works and Housing, will enable all the partners to work from all fronts to adjust imported electrical products and local substitutes to a sustainable level of efficiency, according to a report.

The SON, as a result, has pegged February, 2018 as a deadline for importation of fridges, air conditioners and other home appliances that are not energy-efficient while fixing 2019 as a deadline for the use of locally manufactured appliances that are not energy-efficient.

According to the agency, this is to ensure that the quantum of electricity generation in the nation currently at 4,000 megawatts is judiciously applied and subsequently shored up to the national sufficiency level of 36,000 mw.

The Director-General, SON, Mr. Osita Aboloma, was quoted in a statement as saying this at the launch of the Nigeria Energy label in Lagos.

He said that the concept would guide consumers’ choices in terms of energy conservation rating of appliances.

“For instance, identifying a less efficient brand of air conditioner is symbolised by one star while five stars indicate better efficient appliance,” he said.

Aboloma warned that with the launch, a label would be attached to every appliance with approved minimum energy performance, making it illegal to import any of the electrical products with less than a star.

He said, “We have designed a road map in conjunction with manufacturers for the implementation of the minimum energy performance and label. Enforcement of the label is scheduled to commence after 18 months for locally manufactured products, and six months for imported products.”