Latest news with #energypoverty
Irish Times
19 hours ago
- Business
- Irish Times
Consumers will foot bill for clean energy transition but still not clear how high bills will rise
Paying for Ireland's transition to clean energy will ultimately fall to consumers, but the extent to which household bills will rise is still unclear, according to a new report from the National Economic and Social Council (NESC). The report, Connecting People to the Energy Transition, is based on in-depth research and consultations with households, energy communities, policy makers and research experts. It identifies a range of challenges to be addressed, including energy affordability and the persistent issue of energy poverty for vulnerable groups. It also says households face barriers including high upfront costs, complex grant processes, uncertainty, and practical issues. READ MORE Households are largely 'in the dark' about their energy use, the report argues, and are not yet benefiting from some of the new opportunities from electricity usage such as dynamic tariffs and energy sharing. [ Irish renewable energy policy gets a badly needed reality check Opens in new window ] Furthermore, extreme weather events are highlighting the need for energy resilience at a local level. In addition, energy groups are 'facing barriers' to delivering projects to generate energy. The report calls for a 'fundamental shift', urging policy and practice to place people and their wellbeing 'firmly at the centre'. It says the priority must be on safeguards from price volatility, particularly for vulnerable groups. Addressing the long-term costs of the transition and how they will be shared is 'crucial' and requires a clear approach 'beyond consumer bills'. Furthermore, barriers to clean heat and energy efficiency 'need to be addressed' by scaling up energy efficiency and transitioning to clean heat like heat pumps and district heating. Households can become 'more active participants', while increased measures to ensure equitable access for all could be supported by secure application of digital and artificial intelligence technologies. On consumer bills, the report notes additional costs are attributed to 'capacity payments', estimated to be a fifth of recent price rises and which have reportedly doubled in the past six years. 'These are payments to electricity providers, including data centres, for being available to supply power when it is needed, and a component of the price of electricity,' the report says. 'Reports suggest that, between 2007 and 2018, bill payers paid about €5 billion in capacity payments, an average of €454 million a year.' Further costs to be met include repairs to the transmission system after extreme weather events. 'While this is not expected to be passed to households in 2025, it is not yet clear how these costs will be shared going forward,' the report says. 'More broadly, bill payers will be meeting the costs associated with the offshore wind infrastructure, grid resilience, and planned gas generation capacity, as well as the costs associated with the delayed North-South interconnector. 'It is not clear how much would be added to household bills or to Exchequer costs, thus raising an affordability risk.' The report says tenants in the private rented sector are some of those most at risk of energy poverty, yet this is one of the most difficult tenures to improve because of the 'split incentive' problem where tenants and landlords both lack incentives to upgrade buildings. ESRI research has shown that it would cost landlords €7 billion to €8 billion to raise the roughly 250,000 rental properties with below B ratings to B2 standard. 'Housing in the private rented sector is more poorly insulated and less energy-efficient than similar properties in the owner-occupied sector,' the report said. An estimated 80 to 85 per cent of private rented dwellings currently have a BER rating below B – about 240,000 to 260,000 properties. Compared to owner occupiers, renters were far more likely to be unable to keep the house adequately warm (9.4 per cent compared to 2.9 per cent) or go without heat (13.2 per cent compared to 6 per cent). 'The residential sector must rapidly scale up efforts to replace fossil-fuel heating systems and increase energy efficiency as it contributes to nearly a tenth of Ireland's greenhouse-gas emissions,' the report added.
Zawya
31-07-2025
- Business
- Zawya
Op-Ed: Financing Energy Access in Africa: Leveraging Fossil Fuel Revenues to End Energy Poverty
NJ Ayuk, Executive Chairman of the African Energy Chamber In an emissions-focused world, do oil and gas revenues have a role to play in ending energy poverty in Africa? It may sound counterintuitive, but many would argue that they do, albeit as enablers of a future powered by alternative energy sources. The key lies in recognizing that Africa's situation is unique, and solutions take time, building on what we have and what we can do with it. This means that, in working towards a just energy transition, the continent's oil and gas resources shouldn't be viewed as obstacles that need to be immediately replaced by renewable energy sources. Instead, rather than prematurely phasing out fossil fuels in response to global pressure, Africa should harness these revenues responsibly to finance its energy transition and ultimately eradicate energy poverty. Prioritizing Development Alongside Sustainability Nearly 600 million Africans still live without access to electricity ( This access is a fundamental human right, yet energy poverty remains one of the continent's most significant barriers to development. This undermines health systems, education, industrialization, and dignity. As the world debates how to rapidly achieve net-zero, Africa's priority is different: how to power its people now, while building a sustainable future. Measuring Africa's energy transition progress against external calls for an abrupt end to fossil fuels risks leaving millions behind. Our continent contributes less than 4% ( to global emissions, yet we are expected to decarbonize at the same pace as industrialized nations that built their wealth on hydrocarbons. Instead, the continent's abundance of fossil fuels should be viewed as a bridge, not a barrier. The African Energy Chamber (AEC) Africa-Paris Declaration ( underscores this principle – Africa's oil and gas revenues can and must be used as a financial lever to invest in electrification, clean energy, and infrastructure projects. This pragmatic and just approach prioritizes development alongside sustainability, not instead of. There are several ways to achieve this. First, reinvesting oil and gas revenues into rural electrification can transform communities. Decentralized solutions like off-grid solar and mini-grids offer practical ways to reach remote areas. Although urban dwellers do experience power outages, for many rural populations, it's a way of life. For the mother cooking with firewood or the student studying by candlelight, a small solar grid is life-changing. Fossil fuel revenues can finance these systems at scale, bridging the immediate access gap while longer-term grid expansions are in progress. Second, establishing innovative financing mechanisms is essential. For instance, the fledgling Africa Energy Bank ( aims to bridge the continent's estimated $31 billion to $50 billion annual energy funding gap by focusing predominantly on financing energy projects. Launched in 2025, the bank is poised to play a transformative role in mobilizing capital for African energy projects. Additionally, global investors are increasingly exploring energy investment opportunities in Africa. In support of this, development finance institutions, such as the African Development Bank, the World Bank, and the International Finance Corporation, are de-risking investments by offering concessional loans, guarantees, and technical assistance, making investment in African energy projects more attractive. Third, policy reforms that create enabling environments are critical. Here, governments have a role to play in prioritizing revenue-generating projects, creating stable regulatory frameworks, and offering incentives for public-private partnerships. This will support investment, reduce risks, and unlock the transformative power of energy access. These solutions demonstrate the importance of a fair and equitable transition and the vital role that fossil fuels will continue to play in achieving this goal. They also prove that this goal is achievable, even if it is on the continent's own terms. Unique Solutions to Africa's Energy Challenges Africa's path to net-zero has the same end goal as the rest of the world, but it can't mirror their journey. Our starting points are different, and our development needs are urgent. We understand that climate action can't be delayed. But it can be just, inclusive, and rooted in African realities. And it can also be supported by revenues from our abundant natural resources. The Africa-Paris Declaration notes that 'a fair transition recognizes that fossil fuels remain valuable for Africa's development, prosperity, and energy access goals. Africa doesn't need to choose between oil and gas or renewables. Given our current position, all are important and require both strategic and sensible deployment. Fossil fuels generate the revenues to invest in solar, wind, hydropower, and grid infrastructure. They fuel industries that create jobs. They support healthcare, education, and innovation. When managed responsibly, Africa's fossil fuel revenue can serve as a bridge to a brighter, greener, and more prosperous continent. Will it be quick and easy? No. Will some question the approach? Most certainly. But the alternative is leaving hundreds of millions of people in the dark. Distributed by APO Group on behalf of TotalEnergies.
Zawya
03-07-2025
- Business
- Zawya
Nugeria: Zamfara, gov Lawal, REA sign MoU on solar energy
The Zamfara State government and the Rural Electrification Agency (REA) have signed a Memorandum of Understanding (MoU) on solar energy in Abuja. Speaking at the ceremony on Wednesday, Governor Dauda Lawal described Zamfara as an ideal site for the harvest of solar energy, highlighting the availability of intense sunlight all year round throughout the area. A statement by the Governor's spokesperson, Sulaiman Bala Idris, said the MoU on solar energy signing ceremony also featured roundtable discussions and commitments involving energy sector stakeholders. According to the statement, the roundtable focused on revitalising the Zamfara electricity sector to promote social justice, strategic development and innovation through renewable energy. In his remarks, Governor Lawal said he inherited a government gripped by widespread energy poverty. The Governor said, 'Many Local Government Areas were disconnected from the national grid. Public utilities were decayed, vandalised or non-functional. Critical infrastructure had collapsed under years of neglect and our industrial and commercial centres were crippled by unreliable power supply. 'However, we chose not to wallow in the blame game. Instead, we intentionally responded to the challenges we met with strategic vision, unwavering resolve and decisive action. 'Since then, our administration has embarked on a mission to rewrite that narrative by placing energy access at the heart of our development strategy. We launched one of the country's most ambitious state-led transformer deployment programmes, installing more than 150 units across urban and rural communities. 'In collaboration with Kaduna Electric, we restored power to six Local Government Areas, and we are reconnecting seven more, some of which have been without power for over a decade. These efforts are part of a plan to expand access, stimulate enterprise and unlock private sector investment.' Governor Lawal noted that Zamfara offers compelling advantages for renewable energy investment. 'We are blessed with high-intensity year-round sunlight, making us a prime location for solar farms, mini-grids and standalone systems. 'Coupled with this is the immense potential of the Bakalori Dam, a largely untapped hydropower asset with an irrigation command area of over 30,000 hectares. This synergy of solar and hydro presents an opportunity to deploy hybrid energy solutions that can power semi-urban and rural clusters. 'Our agricultural sector is another strong anchor. Zamfara is consistently ranked among Nigeria's top millet, sorghum, soybeans and groundnuts producers. We are repositioning this sector through improved inputs, mechanised systems and irrigation rehabilitation. 'Yet, what is lacking and what renewable energy can provide is the critical power infrastructure needed for agro-processing, cold-chain storage and value addition at the source. Energy is the missing link that can transform our agrarian communities into engines of rural industrialisation. 'Our infrastructure renewal is exemplified by the nearly completed Gusau International and Cargo Airport, envisioned as a gateway for passengers, trade, logistics and investments. 'To realise our green vision, we aim for this facility to be Nigeria's first airport powered by at least 50 per cent renewable energy, offering RESCOs a chance to lead in sustainable aviation,' the Governor said. Earlier, the REA Managing Director, Abba Abubakar Aliyu, assured Governor Lawal of the agency's commitment to deploying electricity infrastructure in Zamfara State. 'For the first time in the history of Nigeria, mapping the entire country has been done and it shows the number and location of the people who do not have electricity. The nature of their community and their electricity demand. 'This helps the RESCOs, the finances and the state government develop a strategy for channelling efforts to ensure that these people have electricity,' he said. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
01-07-2025
- Business
- Zawya
Afreximbank Appoints Dr. George Elombi as President in Strategic Move for African Energy Trade
The shareholders of multilateral financial institution the African Export-Import Bank (Afreximbank) have appointed Dr. George Elombi as President and Chairman of the Board of Directors. Dr. Elombi succeeds Professor Benedict Oramah to become the fourth president since the bank's establishment in 1993. The move signals a strategic shift for the institution as it strives to become a $250 billion bank in the next 10 years. As the voice of the African energy sector, the African Energy Chamber (AEC) congratulates Dr. Elombi on his appointment as President and Chair. In this capacity, Dr. Elombi is poised to play an instrumental part in leading the bank's long-term objectives. At a time when Africa is seeking to alleviate energy poverty, enhance industrialization and accelerate low-term and sustainable development, institutions such as Afreximbank play a vital role in financing African energy projects and trade efforts. Under the leadership of Dr. Elombi, Afreximbank is well-positioned to play an even greater role in transforming Africa's energy industry. Over the years, Dr. Elombi has held various positions at Afreximbank, including Chair of the Emergency Response Committee – where he mobilized over $2 billion for vaccine acquisition and deployment across Africa and the Caribbean – and head of the Equity Mobilization and Investor Relations department. In this position, he supported the bank as it increased its total ordinary equity to $3.6 billion as of April 2025. Looking ahead, Dr. Elombi has committed to ensuring Afreximbank serves as a force for industrializing Africa and regaining the dignity of Africans wherever they are. He has vowed to not only preserving Afreximbank as a valuable and strategic asset in Africa, but to realize the shareholders' goal of establishing the bank as a $250 billion financial institution within the next ten years. This will have a significant impact on Africa's energy sector, offering a vital source of financing for a variety of impactful energy projects – from upstream oil and gas to downstream infrastructure to power, technology, trade and development. 'Afreximbank is embarking on a new chapter with the appointment of Dr. Elombi as President and Chairman of the Board of Directors. This chapter is expected to be marked by growth and transformation as Dr. Elombi works to realize the goals set out by the Afreximbank shareholders. Afreximbank has a critical role to play in Africa – from financing major projects to supporting regional trade initiatives to coordinating between global and African partners. The AEC commends Dr. Elombi on his appointment and looks forward to working with him to unlock the full potential of Africa's energy resources,' states NJ Ayuk, Executive Chairman of the AEC. Dr. Elombi will assume the position in September 2025, taking over from Professor Oramah who has held the role since 2015. Under Oramah's leadership, Afreximbank strengthened its institutional and financial capacity through the introduction of innovative financing mechanisms and involvement in multi-faceted projects. Major milestones included the launch of the African Energy Bank in collaboration with the African Petroleum Producers Organization. The bank uniquely mobilizes financing to support investments across Africa's entire energy spectrum in line with the continent's energy needs and environmental sustainability targets. The bank has an initial share capital of $5 billion and is on the precipice of being launched. The bank also increased its portfolio of project and trade financing in Africa, further strengthening its position as a major financier across the continent. By 2026, the bank is on track to double its intra-African trade financing from $20 billion in 2021 to $40 billion in 2026. The funding is expected to support infrastructure development under the broader African Continental Free Trade Agreement. 'Professor Oramah has played an instrumental role in Africa's energy sector, with his relentless pursuit of development unlocking greater benefits for the energy and trade industries. Over the past 10 years, he has not only strengthened Afreximbank's role as an African financier but laid a strong foundation for future growth and development. His legacy is one defined by innovation and vision,' adds Ayuk. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
25-06-2025
- Business
- Zawya
Here's why Africa should develop nuclear energy?
Across the continent, a staggering 600 million people remain without access to electricity, a number that translates into significant energy poverty, particularly in rural Africa, where 70-80 million need to gain access yearly to be on track to meet the 2030 universal access to electricity target. While our continent accounts for 17 percent of the world's population, we generate less than 3 percent of global electricity. This 'power poverty' stifles industrialisation, limits healthcare outcomes, and constrains economic transformation even as Africa exports uranium and other critical minerals to power many parts of the world. Although there is remarkable progress across countries on the continent, the overall pace of progress is slow, requiring an ambitious shift towards nuclear energy, tailored to Africa's unique needs and opportunities. Critics are right to debate questions of safety, malice, accidents, cost and potential harmful effects on the environment. Many argue that investing in renewables is sufficient. Furthermore, the public is unlikely to forget Chernobyl and Fukushima and the constant threat of nuclear war. Yet, South Africa's Koeberg plant has operated safely for 40 years, proving nuclear energy works on the continent. In addition, experts note that nuclear energy has the lowest death rate per kWh of any major energy source, safer than wind and solar when accounting for manufacturing risks. Modern reactors such as Westinghouse's AP1000 have passive safety systems that shut down automatically. With its 25 reactors, South Korea has gone from energy importer to nuclear energy exporter and has a target of providing 30 percent of its electricity while cutting emissions by 2030. Similarly, France generates 70 percent of its electricity from nuclear, achieving Europe's lowest electricity prices and a clean grid. Bangladesh, with GDP per capita -- similar to Kenya's -- is building its first reactor with Russian support, proving nuclear energy can be accessible to developing countries. And there are more encouraging developments closer home. Egypt is constructing four 1,200MW reactors at El Dabaa—a $30 billion bet on nuclear as an industrial catalyst. Ghana has partnered with NuScale Power to explore Small Modular Reactors - SMRs that could power mines and cities simultaneously. Furthermore, countries that fall under the Tier 1 category - Egypt, Rwanda, Ghana, Uganda, South Africa, Nigeria and Zambia - are starting or expanding their nuclear energy programs. Governments in Niger, Kenya, Tunisia, Morocco, Ethiopia, Tanzania, Namibia, DR Congo, Senegal, Algeria and Zimbabwe are working towards the role of nuclear energy in their future electricity supply systems. Read: Uganda sets 2031 target for nuclear energyThe International Energy Agency estimates that growth in Africa's industry, commerce and agriculture will require electricity demand to grow by 40 percent by 2030. The United Nations Economic Commission for Africa assesses that the African Continental Free Trade Area electricity needs will account for 8 percent of the total continental electricity capacity by 2035, and 14percent by 2040, requiring additional investment of $22.4 billion between 2025 and 2040. Furthermore, by 2040, due to rapid population and economic growth in Africa, the electricity supply must expand by more than four times. Furthermore, Africa is facing sectoral transformations due to frontier technologies. Data centres to store big data and power frontier technologies require a significant energy supply. The gradual transition of Africa's transport system to electric vehicles will also increase the demand for electricity generation on the continent. Read: Kenya electric vehicles uptake goes up five-foldAfrica can no longer risk crawling its way out of energy insecurity. As we say in Africa, we can sing and dance at the same time. As we invest in renewable energy resources, we can also advance nuclear energy development. Egypt's El Dabaa will deliver 4,800MW for $6.25 billion. With an over 40-year lifespan, nuclear makes it cost-competitive. But what about the nagging question of nuclear waste? Current innovations are proving that new reactor designs consume nuclear waste as fuel. Waste management systems have also developed to offer safer options for disposal. Countries such as Niger with large deposits of uranium could power reactors for centuries while solving waste challenges. Namibia could achieve energy independence and power the rest of Africa for decades to come – after all, Africa controls 20 percent of global uranium reserves. The path ahead is clear. We must harness nuclear energy's potential and adopt a bold political commitment backed by a clear national roadmap, including target dates for operational plants and long-term capacity-building initiatives. The potential is enormous and could result in creating thousands of skilled jobs and transforming Africa's energy system towards greater energy security. Governments need to tap into the reliability of nuclear power. With a 90 percent capacity factor, plants enjoy up to 45 years of economic life. While large-scale reactors provide stable baseload power, low-hanging fruit should focus on deploying SMRs first (20-300MW) to power mines and industries, before scaling up to gigawatt plants. To address the financing hurdle, which requires high upfront costs (70–85 percent fixed), countries can draw lessons from Africa's 6.4GW renewable energy projects, such as South Africa's procurement programme and global nuclear public-private partnership financing models. Africa's regional power pools, such as the Southern African Power Pool and the upcoming regional electricity market in the East African Power Pool, could amplify investment by pooling demand. The African Single Electricity Market (Vision 2040) aims to integrate continental grids, boosting nuclear power's viability. Creating an African nuclear alliance can pool resources, negotiate better technology transfer deals and training programs and reform energy financing in partnership with Africa's financial institutions to de-risk projects. The African Union and regional blocs must lead this charge to secure Africa's energy future. The time is now to move from potential to action. If done right, Africa could be a leader in this sector. Nuclear energy offers a bright future. But we must act deliberately and have the courage to embrace it. Claver Gatete is Executive Secretary of UN Economic Commission for Africa. © Copyright 2022 Nation Media Group. All Rights Reserved. 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