FG assures of enabling environment for renewable energy projects

The Federal Government says it is providing enabling environment for the development of solar projects both at utility scale and small solar to home solutions in order to address the shortfall in electricity generation.

On a utility scale, the government is in talks with different independent power projects (IPPs) operators to add over a thousand megawatts from solar power projects.

Vice President Yemi Osinbajo said this in a speech at the Nigerian Energy Forum (NEF 2016) through Chiedu Ugbo, senior special assistant on power privatisation, held in Lagos.

“For millions of Nigerians who lack access to electricity and use kerosene as the default energy source, especially in the rural areas, we will use solar power projects to address their challenges.

“This will also provide opportunities for private investors to invest in solar technologies and solar product manufacturing assembling and training.

“A large number of jobs can be created for young people as solar installers and engineers. Giving the huge demand for gas by the power plants there is a huge opportunity for private investments in the sector,” Osinbajo said.

He stated that the government was working hard towards ensuring availability and accessibility of energy and petroleum products.

NEF 2016 with the theme: Sustainable Energy for all Nigerians: Grand Challenges, Big Opportunities, featured panel discussions on Nigeria’s power challenges. It also featured exhibitions on solar technologies.

Matthew Burton, director of Economic Growth, USAID Nigeria, stated that ‘Power Africa’ was positioned to assist Nigeria tackle its energy challenges, saying, “Though the Power Africa act, we are working to assist reforms in Nigeria’s power sector. There is a lot of interest from US investors in coming to Nigeria. Power Africa is here to support and guide such investments.”

Nigeria with a peak electricity demand of 13000MW has an installed on-grid generation capacity of 7500MW, of which only 4000MW is operable, leaving about 50 percent of its citizens without electricity can be addressed using solar, experts say.

Yusuf Sulaiman, MD/CEO, Blue Camel Energy, proposed removing duties on solar energy components to ensure sustainable energy, noting, “Batteries are the more expensive component of every solar installation but batteries attract 20 percent custom duties while solar panel at 5 percent. If energy is critical to the nation why don’t we make it all zero percent?”

Different panel discussions highlighted the challenges in the power sector and came to the conclusion that weak transmission lines, gas to power challenges, poor regulatory framework, vandalism all make a case for diversification of Nigeria’s energy source.