Mondiu Jaiyesimi: Solar Energy in Nigeria – Time to get down to business (Y! Policy Hub)

by Mondiu Jaiyesimi

Mondiu Jaiyesimi (Y! Policy Hub)

It is of great importance that we speedily tap into alternative energy sources that are cleaner and safer due to the country’s vulnerability to climate change.

Many Nigerians believe the only way to solve the agelong electricity crisis in the country is through independent power generation, as they have since lost faith in the government’s ability to decisively solve this problem that has significantly stunted the growth of the Nigerian economy for years now. Well it will be difficult to blame people trying to meet basic electricity supply needs and also keep businesses running without much hassle.

As we now know the environmental threats and inconveniences power generators cause, it is quite encouraging to see some effort from the government, research institutes and private stakeholders on the development of alternative energy sources for power generation. Solar energy, which is the most abundant of all the available renewable energy sources, has been making raves of late and I believe it is about time we started taking the prospects of this energy source more seriously.

Considering the current issues with unbundling the power sector, deregulation and increase in generating capacity, we can begin to pick some positives from the evident change in approach by some factions of the government regarding solar energy. Do not get me wrong, Nigeria’s interest in solar energy dates back to decades ago but the subsequent effect before now has been drastically minimal.

ENCOURAGING PROSPECTS

Besides the abundant oil and gas resources that we currently hold, Nigeria is still fortunate to be situated in Sub-Saharan Africa, a region described by the International Council for Science as having the world’s best solar resources.  Nigeria has 485.1million MWh/day of solar energy in natural units and we enjoy an average of 6.2 hours of daily sunshine. Despite this, approximately over 60% of Nigeria’s 170 million people lack access to electricity supply. Our main sources of electricity come from hydro and gas and we currently have an installed capacity of 5,600MW of electricity but generate less than 5000MW due to a myriad of issues.

The use of solar electricity systems aids the capture of solar energy using photovoltaic (PV) cells which convert the sunlight into electricity. This resource has been found to have the capability of providing more power than all the fossil fuels we currently hold if properly harnessed and used to generate green and cheap electricity. Eventually, it can play a part in reducing our huge dependence on fossil fuels like crude and gas for power generation.

CRITICAL CHALLENGES         

According to the United Nations, rural-urban migration in Sub-Saharan Africa will have increased by 87% in 2030 from the 1950s. Putting Nigeria in mind, this will definitely mount more pressure on the existing electricity infrastructure which has not been significantly improved for decades now despite the government’s target to generate 297, 900MW in the year 2030.

One of the key challenges in investing in solar energy is the initial capital outlay which is high. According to reports, solar panels are expensive to install and maintain. Dr Aliyu Modibbo Umar, the former FCT minister was quoted as saying it costs up to N500, 000 per panel and another source says it costs up to N200, 000 to maintain. Nonetheless, more recently, the cost of solar technology has reduced by 40% in the last two years.  Our neighbours Ghana last December announced plans to build the biggest PV solar power plant in Africa generating 155MW and will increase its generating capacity by 6%.  According to Blue Energy, the UK firm behind this deal, the reduction in costs and an enabling feed-in tariff policy played a key role in helping the project kick off.

Another challenge being faced in the use of this energy source is the maintenance and day to day running of the solar infrastructure. There appears to be insufficient personnel with the technical wherewithal to manage these facilities and ensure they are running up to speed.  In 2005, there was a remarkable feat achieved by the Lagos State government in solar energy installations when a rural solar electrification project was launched at Onisowo Village in the Amuwo –Odofin Local government Area- a village that was cut off from the national grid.  In the past two decades, states like Zamfara, Bauchi, Benue, Bayelsa and Rivers have also partnered with the World Bank and the Energy Commission of Nigeria to carry out similar projects in rural communities across the country.  Despite the complaints on the efficiency and maintenance of these facilities, we have seen that we have the capability to put these structures in place which we can pick positives from and definitely build on.

RECOMMENDATIONS

It is of great importance that we speedily tap into alternative energy sources that are cleaner and safer due to the country’s vulnerability to climate change. Since we have established existing and growing interest in this technology, the government needs to assist significantly in funding domestic solar energy research in research institutes and universities.  Government subsidies will also be helpful in the importation of solar panels and other equipments that cannot be manufactured locally. This will support independent investors and individuals who have interest in the energy source.

Borrowing from the UK’s feed-in tariff concept, the government can also encourage independent electricity generation through solar panels by providing more incentives for consumers and suppliers who choose to invest in this source. It will always be soothing to the ear when you know you will get rewarded for generating your own electricity.  Installing and understanding this infrastructure is still considered by many as technical and expensive, but through extensive awareness programmes and public and private sector initiatives, this process can be simplified and will eventually become cheaper to install and use in the long run.

Finally, on affordability, Nigerians have shown that they can invest money on power generation when presented with a better alternative.  We can see the percentage of people using power generators and inverters in both rural and urban cities in Nigeria which gives us a picture of how they will handle the prospect of solar energy if the installation process is simplified and equipments are cheaper and readily available.

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Mondiu Jaiyesimi is an Energy Economist passionate about energy and public policy, empirical research and energy finance. He studied Energy Economics and Policy at the University of Surrey and has done extensive research work in Liquefied Natural Gas markets, UK energy markets, shale gas revolution and energy demand in developed countries.

He currently engages in independent energy consulting focusing on energy modelling, climate change and trends in oil and gas supply in Africa and other emerging markets. He is a member of the International Agency for Energy Economics and the British Institute of Energy Economics. He currently works with Deloitte, London.

 

Op-ed pieces and contributions are the opinions of the writers only and do not represent the opinions of Y!/YNaija.

Comments (4)

  1. Very interesting. Pls impact your energy knowledge and expertise to
    Nigerians. We desire to give Nigeria enough power through renewables especially solar. Contact through email is desired.

  2. Your research and write up here is commendable, I should be able to do research here in Nigeria about alternative power sources such as Wind, Solar, coal and any other type comprehensive enough to provide information for people, groups, communities and local governments who desire to carry out independent projects (including cost and possibly difficulty that could be faced in the near future and more). But if you have anything as such and you are willing to share I will be happy to have it.

  3. We have to start somewhere. We(sub-saharan africa) have to be leading in research efforts. I believe all the aforementioned issues would have somehow been handled if the West had this solar energy we take here for granted. On the other hand, if we simply begin to invest in this through direct purchase for projects across our land, we would be contributing and subsequently benefit from the price drop. It’s worth it either way. How much is it compared to what we spend hosting national parties? They can at least make it appealing as buying a generator and that way, the pv panels would just be an item when house roofing is concerned.

  4. Solar PV is a viable generating technology and I’m glad you’ve touched on the cost and competence issues it brings with it. Of all the renewable energy sources today, offshore wind power presents the most practical economic returns with ample electricity generation. However, a back of the envelope calculation of our energy demand would show that renewables can do only very little to support the demand deficit.

    I am of the opinion that if we are to supply the demand deficit, we need to encourage an energy mix where renewables will play a small role, gradually increasing on the long run when things are nearing stability. I also think that if we are going to invest in renewable technology, then we should invest in mature technology. Onshore wind, offshore wind across our coastal regions and Solar thermal plants in the north east can also be very viable options.

    Very good article, I hope our policy makers are reading things like these, the options are endless is we embrace a sustainable energy mix. And if they do, please remind them to tackle transmission and distribution infrastructure. Increasing generating capacity is only a part of the battle. Transmission is like a funnel, whatever comes out is almost independent of the source of the water.

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