Renewable energy investments projected to create more jobs than petroleum sector-Ofili, Energy policy/sustainability expert
Methadeus Ofili is renowned environmental scientist. He is a voice to reckon with in Energy Policy/Sustainability sector in Nigeria. He is the Rector/CEO of Oil and Gas Business School, Port Harcourt.
After graduation from the University, he worked as a Trainer and Consultant with several environmental consulting firms that specialize in the energy industry, as well as the manufacturing sector. Armed with am MBA a few years ago, he is currently pursuing a PhD program in Energy Policy/Sustainability.
In addition to over 20 years of consulting and training experience, Ofili has been appointed into several Environmental Impact Assessment Expert Panel Reviews by Nigeria’s Federal Ministry of Environment.
In this exclusive interview with Xpress Newspaper, Ofili spoke on Nigeria’s current energy sector with regards to security and environmental sustainability. He stated that renewable energy investments is projected to create more jobs than the petroleum sector as well as eradicate energy poverty and create independence in energy ownership.
What are the critical issues currently facing Nigeria’s energy sector?
Apart from frequent oil spills and hazardous waste generation, Nigeria’s fossil fuel production and consumption contributes greatly to global warming through vehicular greenhouse gas emissions. We are also about the third largest gas flaring country in the world, and we are yet to make any significant stride in the development and use of renewable energy. Most of our rural dwellers still use fire wood for cooking, resulting in deforestation and uncontrolled carbon emissions.
Deforestation leads to carbon emission back into the atmosphere, just as forests help to sequester carbon. So we need to seriously embark on the energy transition. There are carbon credits to be earned. Keep in mind that some countries will soon stop using gasoline and diesel to power their cars.
How would you assess the effectiveness of Nigeria’s current energy policy in addressing both security and environmental sustainability?
Our energy policy is tied to our climate policy and the Climate Change Act. What we have are good policy documentations, but their implementation remains to be seen. We must utilize policy instruments like carbon tax and fines, carbon credits and adequate legislations to advance in these areas. Also the Clean Development Mechanism, the Joint Implementation and the Emission Trading Scheme are global climate/energy policy instruments that we can deploy.
In terms of energy security, it will be wise to invest and develop solar, wind, hydro and biofuels, while also engaging in hydrogen production especially green hydrogen. In this way we will be more secured. One thing about renewable energy is that it decentralizes energy production among nations, unlike oil and gas that are produced by the few endowed countries, who can deploy same as energy geopolitical weapons, to destabilize other nations or regions, as was observed during Arab/Israeli war.
What role does renewable energy sources should play in Nigeria’s energy policy?
Renewable energy is the final destination of the energy transition. So we must invest in the development of biofuels, solar farms, and wind, especially offshore wind. My research was focused on the energy transition strategy of the harder-to-abate sectors of shipping, aviation and trucking. These sectors are harder-to-abate because they are difficult to electrify. They are not easily amenable to solar and wind energy.
Biofuels and hydrogen are the fuels of choice for these sectors. While every effort must be made to utilize energy crops that are not in competition with food crops for biofuel production, green hydrogen which is made by splitting water molecule into hydrogen and oxygen, should be prioritized. Though, in the meantime, blue hydrogen production, which is made from natural gas, should be coupled to carbon capture and storage, in order to prevent carbon emissions into the atmosphere, as this is generated from the process. Nigeria has natural gas in abundance, so it can focus on blue hydrogen production, while big industrial users of carbon dioxide must be sought.
How is the Nigerian government addressing the challenges of energy poverty, particularly in rural areas?
I don’t think much is been done in this area. Rural dwellers should be assisted with solar energy like solar lamps, home and street lights and solar stoves. Apart from government, NGOs can also play key roles in this area. If rural energy poverty is alleviated, there will be increased prosperity and less deforestation. We already have several hydropower production dams across the country. In addition to this, mini hydropower can be developed for small communities who lack access to the main grid, but possess appropriate flowing streams and topography.
What has been your most significant learning experience in your work regarding Nigeria’s energy policy?
It is the existence of Nigerian ‘Energy Transition Plan’ along with our Climate Change Act and the Biofuel Production Incentive Act; and the fact that a huge transformation is possible if implemented. This is so because renewable energy investments is projected to create many more jobs and businesses than the petroleum sector. It will also eradicate energy poverty and create independence in energy ownership.
Can you explain the process of environmental impact assessments (EIAs) in Nigeria? How well is it implemented?
EIA is a sustainable development tool that is used to predict the negative and positive impact of projects, document existing environmental conditions, proffer mitigation strategies for negative impacts and enhancement of positive impacts. It also develops environmental management plan for the project, including a monitoring plan. The process also includes the public display of the report for public comments, and panel review where stakeholders and experts engage the proponents and their consultants, in order to address all concerns before major project developments are allowed to proceed.
It includes, but goes beyond regulatory compliance, as international financial institutions like the IFC and the World Bank make EIAs mandatory requirements for funding such projects. They do not fund projects with adverse environmental impacts, except there are verifiable impact mitigations.
If performed well, it can also act as a social license from communities, especially if their concerns are addressed during stakeholder engagements. I have been involved in conducting some of these EIAs and also participated in Expert Panel Reviews. EIAs are well conducted in Nigeria as regulators, experts and consultants are fully aware that these reports must comply with local and international standards, including the World Bank’s Equator Principles. It is not just a local documentation that is designed for national regulatory approval.
What are the common challenges faced during the EIA process in Nigeria?
The common EIA challenges in Nigeria include community militancy or hostility to Companies and their Consultants that go to the field for sample and data acquisition; sometimes incompetent environmental laboratories, sample handling, preservation and logistics, slow approval processes, challenges with monitoring environmental management and mitigation plans, and time constraints for biodiversity (vegetation and wildlife) studies within the study timeframe.
How can EIAs be improved to better serve both environmental and community interests?
These challenges can be addressed by adequate stakeholder/community engagements, employing accredited consultants and improving regulatory regimes.
How is Nigeria’s energy policy adapting to the challenges posed by climate change?
Unfortunately, not much has been done. However, I know that many international organizations are facilitating renewable energy development in Nigeria.
The capital investment required for solar energy, like other renewable energy sources, is still very high for most Nigerians. In a country where grid power sources are relatively unstable, our energy policy should be targeted at solar CAPEX reduction. This will encourage more adoption of solar power, and reduce dependence on fossil fuel generated power.
What measures are in place to ensure that energy development projects are consistent with Nigeria’s commitments under international climate agreements?
We do have a Climate Change Act that is intended to align our energy development to our commitments under international climate change agreements, yet we are still going on with serious investments in the petroleum industry. But then, the Clean Development Mechanism, Joint Implementation and Emission Trading Scheme are instruments that have enabled foreign investments in clean energy projects in Nigeria. Under the previous Nigerian government, a few wind and solar farm investments have come into the country, facilitated by the World Bank.
Apart from the petroleum industry, there are other big carbon emitters such as the cement, steel, petrochemicals and fertilizer industries.
How do you view the role of local communities in shaping energy policy and assessing environmental impacts?
Their needs must be factored in. energy policy should be focused not only on rural electrification, but also in providing access to various solar devices. Special credits or incentives should be given, for instance, to NGOs and companies that facilitate solar stove acquisitions in local communities
Communities are already playing key roles in EIAs. They do so during Consultants’ field work especially within the social impact assessment aspect, during public displays of reports, which enable them to make comments, and also during expert panel reviews, where they are physically present to present their concerns.
What are the key trends you see shaping the future of energy policy in Nigeria over the next decade?
Renewable energy sources are plagued by intermittencies. For instance, solar panels cannot have access to sunshine in the night, wind infrastructures have access to high wind velocities within limited time frames and hydropower generation drops during the dry season when there is less rainfall. Energy policies need to encourage portfolio balance by investors, whereby they can invest in two or three renewable energy sources, in order to address intermittency. Blue hydrogen production (coupled to carbon capture and storage facility) from Nigeria’s abundant natural gas resources should be pursued while biofuel investments need to be multiplied, as this is the only known liquid alternative to liquid petroleum fuels. Finally efforts towards solar CAPEX reduction must be driven by energy policy instruments.
How can Nigeria balance economic development with environmental sustainability in its energy strategy?
This can be done through the adoption of the sustainable development goals and principles. Sustainable development approaches today’s development in such a way that development by future generations is not compromised. It is a balance between environment, social and economic development. Our energy strategy should be based on the UN Sustainable Development Goal number 13, which prescribes clean energy. In this way, the negative environmental and social impacts from oil and gas production and consumption will be addressed.
How can the private sector be better engaged in the transition to sustainable energy sources in Nigeria?
The private sector can begin by developing company energy policies, reduce energy consumption, adopt renewable energy in their organizations, and invest in renewable energy projects such as biofuels, solar and wind. The offshore wind aspect is yet to be seriously evaluated in Nigeria. That sector will be a game changer if our offshore wind, current and tidal regimes are found favorable. Companies can utilize the Clean Development Mechanism and Emission Trading Schemes to do this. The CDM facilitates clean energy projects from a developed country to a developing country; the Joint Implementation Mechanism is applicable between two developed countries, when one seeks to invest in projects that reduce carbon emissions including clean energy and reforestation projects, while the Emission Trading Scheme is focused on selling and buying earned carbon credits. These are all investment opportunities that easily attract international funding.
What ‘s you message to policymakers, practitioners, and the general public regarding energy policy and environmental sustainability in Nigeria?
They should implement these policies through the carrot and stick approach, by providing incentives to renewable energy users and investors, and discourage fossil fuel use through carbon taxation. The same should be applied to environmental sustainability. Keep in mind that there are huge climate funds out there including the global environmental facility fund waiting to be accessed by implementing sustainability and clean energy programs. Besides, time is running out. Countries like the UK have set fossil fuel car ban deadlines, beyond which they will be withdrawn. What then will be the fate of oil exporting countries like Nigeria?
