Inaction, finance, stall renewables pacing global energy demand – REN21

• GHG emissions to rise

• LIC only 10% renewables projects rise

• 1000 GW renewable needed, only 473 GW in ‘23

• Investment of $1,350bn, only $623bn in 2023 

• Nigeria no where on radar

Ben Eguzozie 

Despite the ongoing global heightened efforts by national governments, corporates and institutions for the world to hit a Net Zero 1.50C by 2050, greenhouse gas emissions might just refuse to decrease, but rather increase, due to inaction, finance, and issues with infrastructure that are preventing renewables from keeping pace with rising energy demand, according to the REN21, the international renewable energy network’s annual Global Renewable Status Report (GSR) – the largest study of its kind on the state of renewables around the world.

The situation will consequently lead to an increase in greenhouse gas (GHG) emissions, the report stated in a key revelation.

According to the GSR by REN21, “the global financial landscape continues to put low-income countries at a significant disadvantage, with the cost of capital for renewable energy projects reaching as high as 10%, compared with less than 4% in high-income countries.”

The report further said: “renewables are growing but not replacing fossil fuels fast enough due to rising energy demand, high costs in developing nations, and obstacles in permitting and grid connections”.

In particular, global barriers such as grid limitations and funding issues are causing 3,000 GW of renewable projects to stall.

Urgent focus on renewable energy enablers like policies, permitting and finance, is needed to meet ambition and achieve an equitable and just energy transition.

Rising demand for energy is not yet fully met by renewables, leading to a 1.1 percent increase in energy-related carbon-dioxide emissions in 2023, the report added.

The 473 GW of renewable power capacity added in 2023 is a new record. But it falls short from the 1,000 GW needed annually to meet global climate and sustainable development commitments.

Between 2012 and 2022, renewable energy use jumped 58 percent, yet overall energy demand also rose 16 percent. Coal, oil, and fossil gas met most of the increased demand, comprising around 65 percent of energy consumption growth.

Global investment in renewable energy rose by 8.1 percent in 2023, reaching approximately $623 billion. However, to meet COP 28 and 2015 Paris Agreement targets, an annual investment of $1,300 billion to $1,350 billion is required.

Nigeria not anywhere in the radar 

Nigeria, Africa’s largest economy, and currently in economic throes, is not anywhere in the radar of decided renewable energy accretion. Available data from Statista said the country only managed a 2.16 MW of renewable energy capacity as of the end of 2022. This accounted for 16.4 percent of the country’s total electricity capacity during the period under review. 

Sadly, the African top oil producer has the lowest access to electricity globally, with 92 million people of the country’s 210 million lacking access to electric power supply from the public mains, according to Energy Progress Report 2022 released by Tracking SDG 7. 

Nigerians spend N12 trillion annually on electricity self-generation, reports say. Additionally, the Manufacturers Association of Nigeria (MAN) said their member-companies spent N639 billion in alternative energy sources between 2014 and 2021. Specifically, manufacturers spent N25 billion on self-generation in 2014, N59 billion in 2015 and N129.95 billion in 2016. 

In 2017, MAN said its member-companies spent N117.38 billion on energy; N93.11 billion in 2018; N61.38 billion in 2019; N81.91 billion in 2020, and N71.22 billion in 2021.