‘Start-ups need renewable energy, partnerships to grow’

Alice Adebayo is an entrepreneur and the founder of Africa Energy Advocacy Initiative (AEAI), an organisation that trains start-ups on delivery of clean energy options in Africa and Nigeria in particular. In this interview with JOSEPHINE OKOJIE, she talks about opportunities in the country’s renewable energy for start-ups.

You groom start-ups in the Nigeria’s renewable subsector. What inspired you to establish AEAI and what is it all about?

The Nigerian population is about 180 million people, and about 55 percent of the population have no access to grid-connected electricity. Access to electricity in the rural areas is about 35percent and about 55percent in the urban areas. To change this, I established AEAI and we are dedicated to training entrepreneurs between the ages of 18 and 45 years on opportunities that abound in the sector from solar, wind, hydro and bio-energy. Being a platform for young professionals, we are bringing innovations and disruptions in the renewable energy sector, hence create opportunities especially through empowerment and our trainings.

What are the key challenges in the country’s energy sector and why are we yet to take advantage of renewable energy?

There are a lot of problems in Nigeria’s energy sector, ranging from shortage of gases and huge infrastructural deficits, among others. We are yet to take advantage of renewable energy because of our failed system of policy implementation.

How do you think the government can address some of these challenges?

What we need in Nigeria is to decentralise our power generation. Nigerians are willing to pay for electricity when they derive satisfaction from their consumption. In 2017, I visited a solar energy mini-grid location in Bisanti, Bida- Niger State and I discovered that the community paid as much as 60 cents per kwh, which had actually brought about development in their health care delivery, making nearby communities troop into Bisanti to access to their health care facilities. Government needs to decentralise our generation and not connecting everybody to the national grid. Also, we have fantastic policies in the sector, but the Will to see it through is lacking. Implementation of these policies has remained a major challenge, limiting the industry. Government must provide a model that will ensure efficiency in policy delivery.

You have interface with some young entrepreneurs in the energy sector. Why do most of them fail within five years of being birthed?

One of the problems faced by young entrepreneurs is high production cost–speaking from the renewable energy perspective and exchange volatility. Most of the equipment used by small business in the renewable energy subsector are mostly imported and with high import tariffs, it makes production cost higher for start-ups.

Investments in the energy sector are capital intensive. How can young entrepreneurs with excellent business ideas establish their business in the energy industry with little or no initial start-up capital?

There are grants and loans available from the international communities for people with excellent business ideas. If the idea is scalable and sustainable, there is a probability of being funded. Entrepreneurs should develop financial management skills to be able to access some of these grants and funding.It is worthy of note that these grants are called seed capital, hence they have to be watered–without a financial plan, the project is as good as dead. I believe in collaboration a lot; young entrepreneurs should try never to operate in isolation and should have partnerships with other entrepreneurs. I do not believe the government has to do everything for us, but it plays a huge role in creating the environment for businesses to thrive and policies to spur investments that create opportunities in the entire value chain.

What is your advice to other entrepreneurs?

Start where you are and be consistent, then there will be room to upscale in the future.