Report reveals growth for global intelligent electronic devices market

Africa Energy Investment must quadruple, says IEA, to deliver electricity access via grids, mini-grids, and stand-alone solar PV, wind, hydropower, natural gas, and geothermal, targeting $120 billion annually and 2.5% of GDP.

Key Points

Africa Energy Investment funds reliable, low-carbon electricity via grids, mini-grids, and renewables.

✅ Requires about $120B per year, or 2.5% of GDP

✅ Mix: grids, mini-grids, stand-alone solar PV and wind

✅ Targets reliability, economic growth, and electricity access

African countries will need to quadruple their rate of investment in their power sectors for the next two decades to bring reliable electricity to all Africans, as outlined in the IEA’s path to universal access analysis, an International Energy Agency (IEA) study published on Friday said.

If African countries continue on their policy trajectories, 530 million Africans will still lack electricity in 2030, the IEA report said. It said bringing reliable electricity to all Africans would require annual investment of around $120 billion and a global push for clean, affordable power to mobilize solutions.

“We’re talking about 2.5% of GDP that should go into the power sector,” Laura Cozzi, the IEA’s Chief Energy Modeller, told journalists ahead of the report’s launch. “India’s done it over the past 20 years. China has done it, with solar PV growth outpacing any other fuel, too. So it’s something that is doable.”

Taking advantage of technological advances and optimizing natural resources, as highlighted in a renewables roadmap, could help Africa’s economy grow four-fold by 2040 while requiring just 50% more energy, the agency said.

Africa’s population is currently growing at more than twice the global average rate. By 2040, it will be home to more than 2 billion people. Its cities are forecast to expand by 580 million people, a historically unprecedented pace of urbanization.

While that growth will lead to economic expansion, it will pile pressure on power sectors that have already failed to keep up with demand, with the sub-Saharan electricity challenge intensifying across the region. Nearly half of Africans - around 600 million people - do not have access to electricity. Last year, Africa accounted for nearly 70% of the global population lacking power, a proportion that has almost doubled since 2000, the IEA found.

Some 80% of companies in sub-Saharan Africa suffered frequent power disruptions in 2018, leading to financial losses that curbed economic growth.

The IEA recommended changing how power is distributed, with mini-grids and stand-alone systems like household solar playing a larger role in complementing traditional grids as targeted efforts to accelerate access funding gain momentum.

According to IEA Executive Director Fatih Birol, with the right government policies and energy strategies, Africa has an opportunity to pursue a less carbon-intensive development path than other regions.

“To achieve this, it has to take advantage of the huge potential that solar, wind, hydropower, natural gas and energy efficiency offer,” he said.

Despite possessing the world’s greatest solar potential, Africa boasts just 5 gigawatts of solar photovoltaics (PV), or less than 1% of global installed capacity, a slow green transition that underscores the scale of the challenge, the report stated.

To meet demand, African nations should add nearly 15 gigawatts of PV each year through 2040. Wind power should also expand rapidly, particularly in Ethiopia, Kenya, Senegal and South Africa. And Kenya should develop its geothermal resources.

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Maritime Link Subsea Cable enables HVDC grid interconnection across the Cabot Strait, linking Nova Scotia with Newfoundland and Labrador to import Muskrat Falls hydroelectric power and expand renewable energy integration and reliability.

Key Points

A 170-km HVDC subsea link connecting Nova Scotia and Newfoundland and Labrador for Muskrat Falls power and renewables

✅ 170-km HVDC subsea route across Cabot Strait

✅ Connects Nova Scotia and Newfoundland and Labrador grids

✅ Enables Muskrat Falls hydro and renewable energy trade

The longest sub-sea electricity cable in North America now connects Nova Scotia and Newfoundland and Labrador, according to the company behind the $1.7-billion Maritime Link project.  

The first of the project's two high-voltage power transmission cables was anchored at Point Aconi, N.S., on Sunday. 

The 170-kilometre long cable across the Cabot Strait will connect the power grids in the two provinces. The link will allow power to flow between the two provinces, as demonstrated by its first electricity transfer milestone, and bring to Nova Scotia electricity generated by the massive Muskrat Falls hydroelectric project in Labrador. 

Ultimately, the Maritime Link will help Nova Scotia reach the renewable energy goals set out by the federal government, said Rick Janega, the president and CEO of Emera Newfoundland and Labrador, whose subsidiary owns the Maritime Link.

"If not for the Maritime Link then really the province would not have the ability to meet those requirements because we're pretty much tapped out of all the hydro in province and all the wind generation without creating new interconnections like the Maritime Link," said Janega. 

Not everyone wanted the link 

Fishermen in Cape Breton had objected to the Maritime Link. They were concerned about how the undersea cable might affect fish in the area. 

The laying of the cable and other construction closed a three-kilometre long and 600-metre wide swath of ocean bottom to fishermen for the entire 2017 lobster season.  

But the company came to an agreement to compensate a group of 60 Cape Breton lobster and crab fishermen affected by the project this season. The terms of the compensation deal were not released. 

Long cable, big job

The transmission cable runs northwest of the Marine Atlantic ferry route between North Sydney, N.S., and Port aux Basques, N.L. 

Installation of the second cable is set to begin in June, a major step comparable to BC Hydro's Site C transmission milestone achieved recently. The entire link should be completed by late 2017 and should go into full service by January 2018.

"We're quite confident as soon as the Maritime Link is in service there will be energy transactions between Nova Scotia Power and Newfoundland Hydro. Both utilities have already identified opportunities to save money and exchange energy between the two provinces," said Janega.

That's two years before power is expected to flow from the Muskrat Falls hydro project. The Labrador-based power generating facility has been hampered by delays.

Those kinds of transmission project delays are expected for such a large project, said Janega, and won't stop the Maritime Link from being used. 

"With the Maritime Link going in service this year providing Nova Scotia the opportunity that it needs to be able to reach carbon reductions and to adapt to climate change and to increase renewable energy content and we're very pleased to be at this state today," said Janega.

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Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

• The impact of the COVID-19 electricity demand shift on operations and revenues;
• State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
• The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
• The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
• The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
• Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
• Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
• Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
• Advancements in technology;
• Additional competition in electric and natural gas markets and continued industry consolidation;
• The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
• The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
• The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
• Operational interruptions to our natural gas distribution and transmission activities;
• The availability of adequate interstate pipeline transportation capacity and natural gas supply;
• The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
• The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
• The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
• The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
• Credit ratings of the Duke Energy Registrants may be different from what is expected;
• Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
• Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
• Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
• The ability to control operation and maintenance costs;
• The level of creditworthiness of counterparties to transactions;
• The ability to obtain adequate insurance at acceptable costs;
• Employee workforce factors, including the potential inability to attract and retain key personnel;
• The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
• The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
• The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
• The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
• The impacts from potential impairments of goodwill or equity method investment carrying values; and
• The ability to implement our business strategy, including enhancing existing technology systems.
• Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Goreway Power Station Overbilling exposed by Ontario Energy Board shows IESO oversight failures, GCG gaming, and $100M in inappropriate payments at the Brampton natural gas plant, penalized with fines and repayments impacting Ontario ratepayers.

Key Points

Goreway exploited IESO GCG flaws, causing about $100M in improper payouts and fines.

✅ OEB probe flagged $89M in ineligible start-up O&M charges

✅ IESO fined Goreway $10M; majority of excess costs recovered

✅ Audit found $200M in overbilling across nine generators

Hydro customers shelled out about $100 million in "inappropriate" payments to a natural gas plant that exploited flaws in how Ontario manages its private electricity generators, according to the Ontario Energy Board.

The company operating the Goreway Power Station in Brampton "gamed" the system for at least three years, according to an investigation by the provincial energy regulator. 

The investigation also delivers stinging criticism of the provincial government's Independent Electricity System Operator (IESO), slamming it for a lack of oversight. The probe by the Ontario Energy Board's market surveillance panel was completed nearly a year ago, but was only made public in November because it was buried on its website without a news release. CBC News is the first media outlet to report on the investigation.  

The excess payments to Goreway Power Station included:

• $89 million in ineligible expenses billed as the costs of firing up power production. 
• $5.6 million paid in three months from a flaw in how IESO calculated top-ups for the company committing to generate power a day in advance.   
• Of $11.2 million paid to compensate the company for IESO ordering it to start or stop generating power, the investigation concluded "a substantial portion ... was the result of gaming."  

Most privately-owned natural gas-fired plants in the province do not generate electricity constantly, but start and stop production in response to fluctuating market demand, even as the energy minister has requested an halt to natural gas generation across the grid.  IESO pays them a premium for the costs of firing up production, through what it calls "generation cost guarantee" programs. 

But the investigation found IESO did little checking into the details of Goreway Power Station's billings. 

Goreway Power Station, located near Highway 407 in Brampton, Ont., is an 875 megawatt natural gas power plant. (Goreway)

"Conservatively, at least $89 million of Goreway's submissions were clearly ineligible by any reasonable measure," concludes the report.

"Goreway routinely submitted what were obviously inappropriate expenses to be reimbursed by the IESO, and ultimately borne by Ontario ratepayers,"

The investigation panel found an "extraordinary pattern" to these billings by Goreway Power Station, suggesting the IESO should have caught on sooner. The company submitted more than $100 million in start-up operating and maintenance costs during the three-year period investigated — more than all other gas-fired generators in the province combined. The company's costs per start-up were more than double the next most expensive power generator. 

"Goreway repeatedly exploited defects in the GCG (generation cost guarantee) program, and in doing so received at least $89 million in gamed GCG payments." 

Company fined $10M

The investigation covered a three-year period from when Goreway Power Station began generating power in June 2009. Investigators said that delays in releasing documents slowed down their probe, and they only obtained all the records they needed in April 2016.

The investigating panel does not have the power to impose penalties on companies it found broke the rules. 

The IESO fined Goreway Power Station $10 million. The company has also repaid IESO "a substantial portion" of the excess payments it received during its first six years of operating, but the exact figure is blacked out in the investigation report that was made public. 

The control room from which the provincial government's Independent Electricity System Operator manages Ontario's power supply. The agency is also responsible for managing contracts with private power producers.(IESO)

"Goreway does not agree with many of the draft report's findings and conclusions, including any suggestion that Goreway engaged in gaming or that it deliberately misled the IESO," writes lawyer George Vegh on behalf of the company in a response to the investigation report, dated Aug. 1.

"Goreway has implemented initiatives designed to ensure that compliance is a chief operating principle."     

The power station, located near Highway 407 in Brampton, is a joint venture between Toyota Tsusho Corp. and JERA Co. Inc. During the period under scrutiny, the project was run by Toyota Tsusho and Chubu Electric Power Inc., both headquartered in Japan. 

Investigators fear 'same situation' exists today

The report blames the provincially-controlled IESO for creating a system with defects that allowed the over-billing. 

"Goreway was able to — and repeatedly did — exploit these defects," says the investigation report. It goes on to explain the flaws "have created opportunities for exploitation, to the serious financial disadvantage of Ontario's ratepayers," even as greening Ontario's grid could entail massive costs.

The investigation suggests IESO hasn't made adequate changes to ensure it won't happen again, at a time when an analysis of a dirtier grid is raising concerns.   

"Goreway stands as a clear example of how generators are able to exploit the generation costs guarantee regime," says the report.

"The Panel is concerned that the same situation remains in place today." 

PC energy critic Todd Smith raised CBC News' report on the Goreway Power Station in Tuesday's question period. (Ontario Legislature)

After CBC News broke the story Tuesday, the provincial government was forced to respond in question period, amid a broader push for new gas plants to boost electricity production. 

"Here we have yet another gas plant scandal in Peel region that's costing electricity customers over $100 million," said PC energy critic Todd Smith. He slammed "the incompetence of a government that once again failed to look out for electricity customers." 

Economic Development Minister Brad Duguid said: "There is no excuse for any company in this province to ever game the system."

Nine companies overbilled $200M: audit 

The IESO found out about the overbilling "some time ago," said Duguid.

"They fully investigated, they've recovered most of the cost, they delivered a $10 million fine — the biggest fine on record."

The program that Goreway exploited became the subject of an audit that the IESO launched in 2011. The agency uncovered $200 million in ineligible billings by nine power producers, wrote the IESO vice president for policy Terry Young in an email to CBC News.

The IESO has recovered up to 85 per cent of those ineligible costs, Young noted.

Reforms to the design of the the program have removed the potential for overpayments and made it more efficient, he said, even as Ontario weighs embracing clean power more broadly. Last year, its total annual costs dropped to $23 million, down from $61 million in 2014.

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BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

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Nigeria Electricity Crisis undermines energy access as aging grid, limited generation, and transmission losses cause power outages, raising costs for businesses and public services; renewables, microgrids, and investment offer resilient, inclusive solutions.

Key Points

A nationwide power gap from weak infrastructure, low generation, and grid losses that disrupt services and growth.

✅ Aging grid and underinvestment drive frequent power outages

✅ Businesses face higher costs, lost productivity, weak competitiveness

✅ Renewables, microgrids, and regulatory reform can expand access

In Nigeria, millions of residents face persistent challenges with access to reliable electricity, a crisis that has profound implications for businesses, public services, and overall socio-economic development. This article explores the root causes of Nigeria's electricity deficit, drawing on 2021 electricity lessons to inform analysis, its impact on various sectors, and potential solutions to alleviate this pressing issue.

Challenges with Electricity Access

The issue of inadequate electricity access in Nigeria is multifaceted. The country's electricity generation capacity falls short of demand due to aging infrastructure, inadequate maintenance, and insufficient investment in power generation and distribution, a dynamic echoed when green energy supply constraints emerge elsewhere as well. As a result, many Nigerians, particularly in rural and underserved urban areas, experience frequent power outages or have limited access to electricity altogether.

Impact on Businesses

The unreliable electricity supply poses significant challenges to businesses across Nigeria. Manufacturing industries, small enterprises, and commercial establishments rely heavily on electricity to operate machinery, maintain refrigeration for perishable goods, and power essential services. Persistent power outages disrupt production schedules, increase operational costs, and, as grids prepare for new loads from electric vehicle adoption worldwide, hinder business growth and competitiveness in both domestic and international markets.

Public Services Strain

Public services, including healthcare facilities, schools, and government offices, also grapple with the consequences of Nigeria's electricity crisis. Hospitals rely on electricity to power life-saving medical equipment, maintain proper sanitation, and ensure patient comfort. Educational institutions require electricity for lighting, technological resources, and administrative functions. Without reliable power, the delivery of essential public services is compromised, impacting the quality of education, healthcare outcomes, and overall public welfare.

Socio-economic Impact

The electricity deficit in Nigeria exacerbates socio-economic disparities and hampers poverty alleviation efforts, even as debates continue over whether access alone reduces poverty in every context. Lack of access to electricity limits economic opportunities, stifles entrepreneurship, and perpetuates income inequality. Rural communities, where access to electricity is particularly limited, face greater challenges in accessing educational resources, healthcare services, and economic opportunities compared to urban counterparts.

Government Initiatives and Challenges

The Nigerian government has implemented various initiatives to address the electricity crisis, including privatization of the power sector, investment in renewable energy projects, and regulatory reforms aimed at improving efficiency and accountability, while examples like India's village electrification illustrate rapid expansion potential too. However, progress has been slow, and challenges such as corruption, bureaucratic inefficiencies, and inadequate funding continue to impede efforts to expand electricity access nationwide.

Community Resilience and Adaptation

Despite these challenges, communities and businesses in Nigeria demonstrate resilience and adaptability in navigating the electricity crisis. Some businesses invest in alternative power sources such as generators, solar panels, or hybrid systems to mitigate the impact of power outages, while utilities weigh shifts signaled by EVs' impact on utilities for future planning. Community-led initiatives, including local cooperatives and microgrids, provide decentralized electricity solutions in underserved areas, promoting self-sufficiency and resilience.

Path Forward

Addressing Nigeria's electricity crisis requires a concerted effort from government, private sector stakeholders, and international partners, informed by UK grid transformation experience as well. Key priorities include increasing investment in power infrastructure, enhancing regulatory frameworks to attract private sector participation, and promoting renewable energy deployment. Improving energy efficiency, reducing transmission losses, and expanding electricity access to underserved communities are critical steps towards achieving sustainable development goals and improving quality of life for all Nigerians.

Conclusion

The electricity crisis in Nigeria poses significant challenges to businesses, public services, and socio-economic development. Addressing these challenges requires comprehensive strategies that prioritize infrastructure investment, regulatory reform, and community empowerment. By working together to expand electricity access and promote sustainable energy solutions, Nigeria can unlock its full economic potential, improve living standards, and create opportunities for prosperity and growth across the country.

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