• Saturday, March 02, 2024
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World Bank to attract $100m clean technology fund for Nigeria


The World Bank in collaboration with the Federal Ministry of Environment is working to attract  a 100 million dollar clean technology fund to boost renewable energy in Nigeria.

World Bank’s Lead Energy Specialist, Mr Erik Fernstrom, said this during an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday.

Fernstrom said that the fund would be a concessional loan with low interest rate targeting a grid connected solar plant (PV) in some states in the country.

He said that the fund would specifically target a grid connected PV in some northern states where solar resources could be optimally used.

Fernstrom advised the Federal Government to invest in renewable energy in order to diversify its energy sources.

He said that it was a problem for the country to depend on one source of energy.

“Nigeria depends solely on gas (petroleum); we do not want the country to rely on only one source of energy, if that source has problem, the country will suffer.

“The issue is about diversification, diversify in energy resources that are affordable so that people can pay their bills.

“Solar is a very important complement and hydro is also a very important complement for Nigeria. Those sources need to be developed equally with gas,’’ he said.

Fernstrom said that many African countries had, in the past, struggled to sustain investment in the energy sector.

He said that diversification in the energy sector had helped to overcome this problem.

“Many governments have failed to manage, plan and finance the power sector efficiently as a result of lack of diversification of energy resources.

“So in Nigeria, we rely on two energy resources – gas and hydro, majorly on gas.

“You know very well that when you have some interruption, some gas pipeline sabotage or accident happen, you lose a lot of your power supply.

“The same thing with hydro; if you have dry year, all of a sudden, you have no power from your hydro power.

“Part of what you have seen across Africa is that you need diversification and we need to find and draw on all the natural resources that Africa has so much of,’’ he said.

Fernstrom expressed optimism that Nigeria could completely have renewable energy in the nearest future with the efforts of the Federal Government in reforming the power sector.