• Monday, June 17, 2024
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Subsidy removal will heighten demand for renewable energy —- Expert

Paving the path to a sustainable future: The shift to renewable energy and decarbonisation

A renewable energy expert, Uka Ibe, has described the removal of fuel subsidy as a good economic decision which favours the demand for renewable energy in Nigeria.

Ibe stated this while speaking on the acceptability of green energy regarding climate change advocacy with the News Agency of Nigeria (NAN) in Ibadan on Wednesday.

The Chief Executive Officer of Nexgen Energy and Allied Services Limited stated that there was the need for the implementation of government policies to tackle issues of climate change.

He said there had been more consideration for renewable energy products from his company, as informed by their distribution frequency.

“Yes, there has been an increasing uptake in the demand for renewable energy sources, in particular the solar hybrid systems, since the removal of fuel subsidy, which is a good economic decision,” Ibe said.

He, however, said the demand would have been more if the prices of green alternatives had not been affected by the removal of multiple exchange rates.

Ibe said the cost of importation has led to the increase in prices of solar power systems because Nigerian companies have challenges in accessing foreign exchange to import production inputs.

Read also: Fuel subsidy removal: The wrong ‘courage’ possessed Tinubu

“Overall, I will say that in spite of this, there has been an uptake in the actual sales of solar power systems.

“It is now becoming the mainstream of energy deployment services in Nigeria, with about 10 per cent uptake recorded since the new administration took over,” he said.

Ibe added that in spite of the downward trend that usually come with seasonal changes, especially characterising the business during the rainy season, sales have continued to boom.

“Renewable energy products work for all categories of productive users, and there are no limitations as to what they can do.”

Ibe allayed the fear that solar systems were limited in their services, explaining that the sun with advanced technologies could serve human needs 10 times over.

He said the only limitation is the availability of funds to provide for the different needs of users.

“However, the good thing about solar systems is that they are scalable.

“When people start with what they can afford with the budget they have, they can increase the capacity with time as they have the resources.

“So, often times, the challenge is not what solar power system can do, but the finance to harness its potentials, which are unlimited,” Ibe said.