07 December 2014, Lagos – NIGERIA occupies the 81st position in the World Energy Trilemma rating released last week. Energy equity remains by far the country’s weakest energy dimension.This year sees a slight improvement in energy security as electricity transmission and distribution losses decline, from 18 per cent to 10 per cent of the total amount of electricity generated, according to the new rating.
The report hinted that to sustain and continue economic growth and become par with South Africa, Nigeria needs to solve its issues with power generation urgently.
It noted however that less than half of Nigerians have access to modern electricity services.
It stated: “Environmental sustainability performance also remains low, as lower levels of energy intensity are offset by higher CO2 emissions from electricity generation. Contextual performance overall is very weak for indicators of political and societal strength, but improves for economic strength. Changes here are caused by an update of the data points underlying the indicator for cost of living expenditure.
“The decisions that investors make today in the energy sector will make or break the sustainability of global energy systems for years to come, according to a new report from the World Energy Council.
The report finds that as global energy systems are being placed under increasing strain and as governments limit their spending under tough economic conditions, the ability to invest the $48 trillion required over the next 20 years into energy could be put in jeopardy, threatening countries’ ability to supply sustainable, reliable, and affordable energy for their people.
The study, “World Energy Trilemma: time to get real – the myths and realities of financing energy systems”, conducted with the global management consulting firm Oliver Wyman, analyses what is needed to unlock the required energy investment and is based on extensive interviews with close to 50 leaders from the international energy finance community.
Executive Chair of the World Energy Trilemma work, Joan MacNaughton CB, stated: “Unlike many commentators’ warnings, our report finds that capital is available in the private sector to the required scale, but the patterns of investment will need to change radically in terms of the type of energy source, technology, and infrastructure. Above all, investors and developers will have to invest way beyond their comfort zones, and they will need better help from governments, regulators, and international financial institutions than is currently envisaged.”