By Patience Chat Moses
A report from the International Energy Agency (IEA) has indicated that global renewable energy capacity grew by the fastest pace recorded in the last 20 years in 2023, which could put the world within reach of meeting a key climate target by the end of the decade. The world’s renewable energy grew by 50% last year to 510 gigawatts (GW) in 2023, the 22nd year in a row that renewable energy capacity additions set a new record.
IEA added that the “spectacular” growth offers a “real chance” of global governments meeting a pledge agreed at the COP28 climate talks in November to triple renewable energy capacity by 2030 to significantly reduce consumption of fossil fuels.
The energy agency’s latest report found that solar power accounted for three-quarters of the new renewable energy capacity installed worldwide last year. Most of the world’s new solar power are in China, which installed more solar power last year than the entire world commissioned the year before, despite cutting subsidies in 2020 and 2021.
Record rates of growth across Europe, the United States (US) and Brazil have put renewables on track to overtake coal as the largest source of global electricity generation by early 2025.
IEA also predicted that by 2028, renewable energy sources will account for more than 42% of global electricity generation. According to IEA’s Executive Director, Fatih Birol, “it’s excellent news to see the historical and spectacular growth of renewable energy.”
He added that while the report shows that global renewable capacity is already on course to increase by two-and-a-half times by 2030, it is not yet expected to reach the COO28 goal of tripling renewables.
“We’re not there, but we’re not a million miles away,” Birol said. “And governments have the tools needed to close the gap,” he concluded.
In the meantime, in a bid to increase electricity distribution, the Kano Electricity Distribution Company (Kano DisCo) is seeking $200 million funding to upgrade its infrastructure and revolutionize electricity distribution for an estimated 25 million Nigerians.
Kano Electric is partnering with BlackAion Capital, a Mauritius-based firm to re-capitalize the network and specifically work on the $200 million fundraising for the interconnected mini-grids and embedded generation projects in Kano, Katsina and Jigawa States, according to media reports.
The Managing Partner at BlackAion, Okwu Njoku, stated that “Kano’s network is the most exciting network for investment, not just in Nigeria but in Africa. Where else do you have a large economy with 25 million people subsisting on mainly diesel and small petrol generators with insufficient grid supply?” he asked.
“Every green investor in the world should be trying to get into Kano because the environmental impact of allowing Kano DisCo to continue to be inefficient is too high, and you can still make a high return while being good,” he added.
The ambitious plan, championed by the company’s core investors, aims to build at least 200MW of incremental capacity through at least 100 mini-grids and embedded generation.
“You will see these interconnected mini-grids popping up everywhere in our network in Katsina and Jigawa also to augment electricity supply for our consumers, while we prioritize bulk grid supply to industrial consumers,” said the Chiarman of Kano DisCo, Adamu Gumel.
“We are looking at some of our key industrial clusters such as Tokarawa and Sharada for 24-hour supply through embedded generation,” he added.
The new core investors in Kano DisCo have signalled the intent to make Kano DisCo the first “Green DisCo in Africa” through the use of embedded solar hybrid power plants, mini-grids, energy storage systems (ESS) and power purchase agreements with generators with clean energy, such as nearby hydro-power plants.
“We are in serious discussions with the institutional investors and the governments of Kano, Katsina and Jigawa to re-capitalize and re-position this entity to be the best performing DisCo in the country,” said Habib Daura, a representative from the new core investor, Future Energies Africa, and Director on the Board of Kano DisCo.
With no direction on centralized electricity tariffs, findings showed that most DisCos operating in Africa’s biggest economy are increasingly looking at more liberalized willing-buyer, willing-seller models of supply to drive efficiency.
“The interconnected mini-grid model is viewed as an important option for networks that are peri-urban with energy needs but lack supply,” Kano DisCo has been quoted as saying in an official document.
The electricity firm also announced plans to execute more mini-grids with a suite of developers and engineering, procurement, and construction (EPC) led by those who executed the Zawaciki Project to speed up the execution of the project to build 100 interconnected mini-grids in an accelerated time-frame.
Valuechain findings revealed that Zawaciki power plant, the DisCo’s first site, which was co-funded by members of Kano DisCo’s core investor consortium, the World Bank, through the Nigerian Electrification Project with the Rural Electrification Agency, and the Global Energy Alliance for People and Planet are ready for technical commissioning.
The $2 million interconnected mini-grid, the largest of its kind, includes a 1MW interconnected solar-diesel hybrid solar plant, metering for 2000+ consumers and low voltage network revamp and rehabilitation.
The Zawaciki power plant was built by Bagaja Renewables, with the construction executed by a consortium led by EMOne in collaboration with Diginet and Digitbit.
The new developments in Kano DisCo will provide a framework for the improvement of access to electricity in rural, unserved, underserved, peri-urban and urban areas through the use of conventional sources and off-grid and mini-grid renewable energy solutions.