5 Role of Law in the Energy Transitions in Africa …
169
incorporate and implement broad fiscal mechanisms for RE development
in a separate legal document as the EPSRA in its present form is cumbersome. Achieving a successful energy transition, as seen in Australia and
Germany would largely depend on a RE-specific law to guide that cause.
Taking a cue from the RE laws of Australia and Germany, Nigeria can
take advantage of its RE law to set strategies and mechanisms in detail
for the implementation of investor-friendly fiscal mechanisms and incentives for private financing of RE projects
124 such as feed-in tariffs, tax
holidays (due to the initial high costs of REs), priority dispatch for
RE transmission, host community issues and definite dispute resolution
mechanisms.
5.4.1.2 Integrating Specific Renewable Energy Provisions
into a Holistic Electricity Legislation
The other view that the EPSRA should be amended to integrate substantial provisions relevant to the development and regulation of REs is
equally considered here. Some experts have advocated the essence of
creating an enabling environment for RE investments and overall RE
development through ‘a simple and efficient renewable energy law’.
125
However, with reference to this second pathway, a simple and efficient
RE law does not necessarily translate to a separate RE law. An electricity
law can encompass substantial and efficient provisions to regulate both
REs and non-REs. In Kenya, REs and non-REs are efficiently governed
by a single electricity legislation.
126 This law, which enjoys heavy government support, substantially incentivizes RE investment through carbon
124 The States can model their State electricity laws to create an enabling environment for
Results-Based Financing (RBF), which international development organizations use to finance
rural electrification projects in order to mitigate off-taker credit risks. This is a valuable source of
project finance for state RE laws to cover especially as Nigeria is yet to record a project-financed
RE infrastructure. See Dolapo Kukoyi, Nnenda Hayatuddini and Victor Samuel, ‘Nigeria’ in
Karen B Wong (ed), The Renewable Energy Law Review (Law Business Research, 2019) 116,
128.
125 Tatjana Tupy (n 6), 8 and 12; E L Efurumibe, ‘Barriers to the Development of Renewable
Energy in Nigeria’ (2013) 2 (1) Scholarly Journal of Biotechnology 11, http://www.scholarly-jou
rnals.com/sjb/archive/2013/jan/pdf/Efurumibe.pdf.
126 Energy Act 2019 (Kenya), https://kplc.co.ke/img/full/o8wccHsFPaZ3_ENERGY%20ACT%
202019.pdf.
169
incorporate and implement broad fiscal mechanisms for RE development
in a separate legal document as the EPSRA in its present form is cumbersome. Achieving a successful energy transition, as seen in Australia and
Germany would largely depend on a RE-specific law to guide that cause.
Taking a cue from the RE laws of Australia and Germany, Nigeria can
take advantage of its RE law to set strategies and mechanisms in detail
for the implementation of investor-friendly fiscal mechanisms and incentives for private financing of RE projects
124 such as feed-in tariffs, tax
holidays (due to the initial high costs of REs), priority dispatch for
RE transmission, host community issues and definite dispute resolution
mechanisms.
5.4.1.2 Integrating Specific Renewable Energy Provisions
into a Holistic Electricity Legislation
The other view that the EPSRA should be amended to integrate substantial provisions relevant to the development and regulation of REs is
equally considered here. Some experts have advocated the essence of
creating an enabling environment for RE investments and overall RE
development through ‘a simple and efficient renewable energy law’.
125
However, with reference to this second pathway, a simple and efficient
RE law does not necessarily translate to a separate RE law. An electricity
law can encompass substantial and efficient provisions to regulate both
REs and non-REs. In Kenya, REs and non-REs are efficiently governed
by a single electricity legislation.
126 This law, which enjoys heavy government support, substantially incentivizes RE investment through carbon
124 The States can model their State electricity laws to create an enabling environment for
Results-Based Financing (RBF), which international development organizations use to finance
rural electrification projects in order to mitigate off-taker credit risks. This is a valuable source of
project finance for state RE laws to cover especially as Nigeria is yet to record a project-financed
RE infrastructure. See Dolapo Kukoyi, Nnenda Hayatuddini and Victor Samuel, ‘Nigeria’ in
Karen B Wong (ed), The Renewable Energy Law Review (Law Business Research, 2019) 116,
128.
125 Tatjana Tupy (n 6), 8 and 12; E L Efurumibe, ‘Barriers to the Development of Renewable
Energy in Nigeria’ (2013) 2 (1) Scholarly Journal of Biotechnology 11, http://www.scholarly-jou
rnals.com/sjb/archive/2013/jan/pdf/Efurumibe.pdf.
126 Energy Act 2019 (Kenya), https://kplc.co.ke/img/full/o8wccHsFPaZ3_ENERGY%20ACT%
202019.pdf.