Renewable energy timely option to resolving Nigeria’s Electricity Supply
The World Bank in a recent report indicated that of the 1.5 billion people across the world who lack electricity supply, Nigeria accounts for 90 million of such people.
From all indication, Nigeria continues to grapple with the challenge of high-energy loss due to the physical deterioration of the transmission and distribution facilities, an inadequate metering system and an increase in the incidence of power theft through illegal connections.
This situation industry experts observe can be traced to the absence of any strategic government policy to harness the various energy sources in abundance which implies that the country cannot meet her energy needs and failed to generate sufficient energy for local use.
It is against the backdrop of Nigeria’s shortfalls in electricity supply that Babatunde Fashola, minister of Power Works and Housing at different energy fora insists that to make electricity available to all Nigerians, efforts must be concentrated to develop renewable energy along with conventional power plants to maintain a balanced energy in the short, medium and long-term.
Fashola opine that the huge energy deficit and the negative environmental impact of using fossil fuel for energy generation, as well as the falling costs of renewable energy technologies like solar power, are driving the current energy transition towards renewable energy as being witnessed across the world.
He observed that renewables are the fastest power plants that can be deployed as the technologies required are compatible with what he described as the nations decentralized, stand-alone ideal for local, rural communities.
The minister in his key note speech at the Centre for Petroleum, Energy Economics and Law (CPEEL) with the theme Developing Renewable Energy in Africa: The Interplay of Technology, Economics and Law said the Federal government is implementing off-grid renewable energy solutions such as rural mini-grids, standalone home solutions, IPP for Federal Universities, Teaching Hospitals and large-scale solar PV projects such as the Jigawa solar city.
“In 2018, we are making efforts to complete and commission the following renewable energy projects: 10 MW Katsina wind farm, 30MW Gurara Hydro Power, 29MW Dadin Kowa Hydropower and 40MW Kashimbila HydroPower, 700MW Zungeru Hydro Power and the 14 Solar IPP are expected to come on stream soon”.
Those who know in the power sector industry insist that Nigeria need to be able to leverage on investment in huge renewable energy sources which are in abundance in several regions of the country, stressing that by so doing, the country can create opportunities that will in turn reduce cost and improve power generation.
Analysts observe that Nigeria, with population of over 180 million people is playing catch up with $1.75 billion investment on solar energy compared to Morocco’s $9 billion solar energy investment.
They said that while Nigeria targets 30 percent of its energy requirement from solar power by 2030 with 1,125 megawatts, Morocco is targeting 2,000 megawatts and 52 percent of its energy from solar power.
Funding renewable energy technologies is also driven by a range of commercial and structural dynamics in energy markets broadly. Critical considerations are feed-in- Tariffs (FITs) which go a long way in providing investment security, as they guarantee payments to project developers for the electricity they produce.
Industry experts opine that given the level of innovation now trailing renewable energy projects globally, it has become pertinent to develop creative funding structures too. The best models adapted today are focused on building scale around projects both in terms of the funding structures and in terms of the target assets.
KELECHI EWUZIE