Yemi Osinbajo, Nigeria’s Vice President on Monday said that Nigeria’s Energy Transition Plan (ETP) would require funding of about 1.9 trillion U.S. dollars up to 2060.
Osinbajo represented by the Minister of Power, Mr Abubakar Aliyu, said this in Abuja while declaring open the ECOWAS Sustainable Energy Forum(ESEF)2022.
”For the sake of emphasis, it is relevant to note that Nigeria’s Energy Transition Plan (ETP) would require funding of about USD1.9 trillion up to 2060.
”USD410 billion of this amount is above usual spending and implies that we need to mobilise an additional USD10 billion per annum.
”The realisation of this goal depends on the implementation of our nation’s Energy Transition Plan (ETP) which was recently launched by this administration.
”Nigeria’s Energy Transition Plan is a prime example of the needed evolution of policies to deliver both the growth in energy consumption necessary for the development and the climate response required for the preservation of our planet.
”Our Energy Transition Plan seeks to tackle the dual crises of energy poverty and climate change, and deliver universal energy access (SDG7) by 2030 and net-zero by 2060.
”It is also a bolder articulation of our commitment to sustainability and renewables as earlier proposed in the Electricity Vision 30:30:30, which aims to provide 30 Gigawatts (GW)of electricity by the year 2030 with renewable energy contributing at least 30 per cent to the energy mix, ”he said.
According to him, the success of universal energy access and carbon neutrality is dependent on the effectiveness of crowding in these investments.
Osinbajo said that the Federal Government planned to roll out a set of policy measures that would attract financing and investments of up to 10 billion U.S. dollars and create scalability of programmes of over 30 billion U.S. dollars over the coming decades.
The vice president said that these policy measures and programmes would be leveraged to catalyse the Nigerian ETP; specifically on renewable power.
”For instance, we are updating the Mini-Grid Regulation to raise the cap for licensing from 1 megawatt (MW) to 5 megawatts (MW); developing the policy for the integration of Utility Scale Solar into the Grid.
”With the requirement for 10 per cent of on-grid power to come from Solar by 2025creating a Solar Stabilisation Fund with a target of 100 million dollars to backstop on-grid solar contracts.
”Completing scalable, private sector-driven Renewable Energy Distribution Franchise pilots (all at Financial Close) including Konexca Distribution model 90 million dollars with the Kaduna Distribution Company (DISCo)
”Maiduguri Solar Power Island -40 million dollars Kano Interconnected Minigrid – 100MW pilotSecuring 1.5 billion dollars in additional financing through the World Bank to expand the Nigerian Electrification Programme.
”And stabilise the on-grid sector through modernising operations of our Grid and further preparing the grid for renewables, ”he said.