UNLOCKING NIGERIA’S ENERGY POTENTIAL: Germany Contributing to Renewable Energy Use in Nigeria
for a rural electrification fund, adding that investors and developers should key into the fund.
Biogas Development in Nigeria: The Consulate General of the Federal Republic of Germany in
Lagos, organized a seminar on “Biogas Production and Waste Management” which took place in Lagos recently. The event was the continuation of twelve successful seminars on the Renewable Energy Potentials in Nigeria initiated by the Consulate General of the Federal Republic of Germany in Lagos
The event was financed and also facilited by the Foreign Energym Policy Fund of the German Ministry of Foreign Affairs, the Energy and Environment Desk of the Delegation of German Industry and Commerce in Lagos (DGIC) and the Embassy of the Federal Republic of Germany in Abuja.
Mrs. Alexandra Herr, the Deputy Consul General said the German government is very commitment to promoting renewable energy in Nigeria.
Speaking further, Mr. Olasunkanmi Akindele, Project Assistant of the Energy and Environment Desk at DGIC said that given the current energy gap and waste management challenges in Nigeria, biogas technology presents a comprehensive and sustainable waste-to-energy solution for improved productivity in industry and a safer environment. Biogas is utilized worldwide to redress fluctuating energy demand, produce fertilizer, cooking gas and biofuels. It also serves to mitigate deforestation, CO2 emissions and other environmental concerns associated with non-sustainable waste disposal and management practices.
There was huge interest focused on the development of biogas as a viable alternative energy source to fossil fuel generators and as an effective tool for integrated solid waste management in Nigeria. It highlited on best practices, perspectives and current bioenergy trends from Nigeria, Ghana and Germany.
Investing in Africa’s Energy Projects The German Development Bank, and the African Trade Insurance Agency (ATI) announced a few weeks ago, that a new instrument has been allocated to support renewable energy projects in sub-Saharan Africa which targets small- and midscale (up to 50 MW) green power renewable energy projects.
The facility is designed to provide a viable solution to one of the biggest challenges facing independent power producers (IPPs) operating in Africa, specifically the requirement to provide
project lenders with a liquidity guarantee. The German Federal Ministry of Economic Cooperation and Development (BMZ) through KfW will provide funding of up to 32.9 million EUR to the facility, which aims to enable small-and mid-scale renewable energy projects in Africa to reach financial close by addressing liquidity requirements that lenders frequently require in order to fund such projects.
The International Energy Agency (IEA) expects sub-Saharan Africa’s renewables capacity to grow by 73% (24.4GW) over the period 2017-22. In addition, small-scale projects are seen as a potential solution to Africa’s energy deficit because they are easier to implement and can target energy requirements at
source, but these projects find it difficult to access the type of guarantees needed to reach financial closure. The facility will kick in by providing immediate liquidity to keep the IPP afloat
during periods of payment delays that are beyond the grace period provided in the power purchase agreement.
Günther Nooke, Personal Representative of the German Chancellor for Africa, BMZ, said “The Regional Liquidity Support Facility will address a key challenge in renewable energy project finance and de-risk private sector investments. We are pleased to provide the funding to this innovative instrument underlining Germany’s commitment to the objectives of the