President Muhammadu Buhari has outlined the comprehensive Energy Transition Plan unfolded by his administration in response to the issues associated with climate change and restated the determination of the Nigerian government to achieving the vision of 30,000 megawatts of power by 2030, while calling on the U.S. for financial and technical support.
President Buhari stated this in Washington DC, USA on Tuesday, 13 December 2022, during the discussion panel on Just Energy Transition at the ongoing US-Africa Leaders Summit.
The President said that as part of the National Renewable Energy and Energy Efficiency Policy, his administration set the vision 30:30:30 which aims at achieving 30GW of electricity by 2030 with renewable energy contributing 30% of the energy mix.
According to him, last year, Nigeria became the first African country to develop a detailed Energy Transition Plan to tackle both energy poverty and climate change, and deliver SDG7 by 2030 and net-zero by 2060.
“Our Federal Executive Council approved the plan earlier this year and adopted it as a national policy. As part of the plan, we intend to completely eliminate the use of petrol/diesel generators by 2060 and therefore need to deploy renewables, particularly solar, at an unprecedented scale.
“For instance, the Energy Transition Plan requires that 5.3 GW of Solar be deployed annually until 2060 to achieve our targets,” the Nigerian President added.
He stressed that the government of Nigeria has embarked on several reforms, one of the best in Africa, on mini-grid regulations as well as the integration of renewable energy into the national grid. He mentioned some of the reforms which have positively impacted the energy sector in Nigeria.
“Our aggressive power sector reforms have resulted in cost-reflective tariffs in the power sector for the first time since privatization. Under the Nigeria Electrification Project, over 4 million people have been impacted through solar mini-grids and solar stand-alone systems. With respect to hydro, the Zungeru hydropower project is nearing completion and will add 700MW in capacity to the grid.”
President Buhari stressed on the resources that the administration has committed towards the realisation of the vision and nevertheless, called for “considerable financial and technical support” to achieve the goals.
“For instance, our analysis shows that delivering the Energy Transition Plan requires $1.9 trillion spending up to 2060, including $410 billion above business-as-usual spending.
“This additional financing requirement translates to a $10 billion investment needed per annum. Between 2000 and 2020, just $3 billion per year was invested in renewable energy in the whole of Africa.
“Consequently, the $10 billion per year target of our Energy Transition Plan represents a significant scaling of current investment flows and we need support from the U.S. to mobilize the needed resources.
“It is important to note that for African countries, the cost of finance and perceived investment risk remains significantly higher than for developed economies despite vast improvements in stability and governance.
“For our clean energy market to scale, Nigeria and more broadly Africa needs concessional, low-interest capital-led investments.
“Furthermore, we believe that the Nigeria Energy Transition Plan and the net-zero compliant investment pipeline we have developed is prime for a just energy transition partnership like the one offered to South Africa and, more recently, Indonesia. Nigeria too seeks support from the US to be included in the G7’s Climate Partnerships List for the co-creation of a Just Energy Transition Partnership.”
President Buhari finally called on the U.S. and global business community to tap “into the innovation and potential returns in our enormous market which is yet to be fully optimized.”