• Thursday, March 28, 2024
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Would technology solve Nigeria’s energy crisis?

Why off-grid operators are attracting serious investors

A few days ago, the federal government announced that it was launching the pilot phase of Solar Home Systems Programme (SHSP) in partnership with Azuri Technologies, a company that combines solar and mobile technology to bring power at scale to off-grid customers in emerging markets like Nigeria.

Many may see the announcement as a major shift as it portrays a government eager to embrace unique solutions – leveraging technology, to end the energy crisis in the country. The SHSP – when it is launched, will provide off-grid rural households in Nigeria with a lease-to-own solar power device.

A message on Azuri Technologies noted that the project will deliver affordable, clean energy to 20,000 rural households living without electricity.

“The Nigerian Government’s ambitious Renewable Energy Policy aims to increase energy production from renewable energy sources from 13% of total electricity generation in 2015, to 23% in 2025 and 36% in 2030. This includes the goal to increase the percentage contribution of solar energy in the total energy mix,” Azuri wrote.

The electricity crisis in Nigeria has been going from bad to worse with many parts of the country going on complete blackouts for weeks. On 22 January 2017, the Nigerian Electricity Supply Industry (NESI) disclosed that the power sector hit a peak generation of 4,959 megawatts but later dropped to 2,662.20 megawatts.

The picture does not improve from an entire African outlook. An African Development Bank (AfDB) report found in 2016 that the entire installed generation capacity of the 48 Sub-saharan countries is a mere 68 gigawatts (GW). To compound the situation, as much as one-quarter of that capacity is unavailable due to aging plants and poor maintenance.

For Nigeria with estimated population of about 180 million and requires about 160,000MW meeting sufficient national electricity needs, the current generation capacity is nothing but a tap in a mighty ocean. As humongous as the challenge may seem, nevertheless, many experts still believe it portends an enormous opportunity for any smart business or investor in the long term.

To be sure, government is not the only institution that has technology on its laser-like focus as viable alternative in solving the energy problems. Some big private organisations have already embraced the new innovations and have been working underground to generate their electricity from entire new sources.

A company like Shell for instance that is deeply invested in petroleum fuel, has long shifted its attention to technology in providing electricity for its communities. In 2016 the company opted for a unique power-producing footprint technology.

The technology sponsored by the oil giant produced the first human and solar powered football pitch based at Federal College of Education in Lagos. By placing electricity tiles underneath the artificial turf, the movement of the players was converted into electricity. UK-based start-up Pavegen, the company behind the electricity-generating flooring said a new version produces even 20 times more power per footsteps than its previous system.

“Anytime people walk, our technology captures the kinetic energy and turns it into electricity. The more people walk the more power we can create. We have operations in about 9 countries at the moment. We have installed in 200 sites in the world. That goes as far as in creating power for Kia Motor factories, in Nigeria soccer pitch. We’ve got great saturation globally and now focusing on core places that are going to give us growth,” said Laurence Kemball-Cook, founder of Pavegen.

Kemball-Cook revealed in January 2017 that the technology will soon include car and sit pressures. The company is planning to take the tiles beyond sidewalks to actual streets. For instance the tile when placed on streets where kinetic energy from vehicles driving over them, converts to electricity. Placing the tiles in offices also will mean people sitting in their chairs will turn up electricity.

Apart from private companies’ sponsored new energy solutions, there are indigenous start-ups who have over time proven their resourcefulness and could contribute immensely in reducing country’s dependence on traditional sources of power generation.

In 2016, the minister of power works and housing, Babatunde Fashola, disclosed that the federal government signed its first power purchase agreement (PPA) with a start-up named Pan Africa Solar to develop a 75 megawatts (MW) solar PV power project. The project will be located in Katsina and will cost $146 million.

The delivery date for the 75MW is 2017 and Pan Africa Solar said it is already developing a 1,000MW portfolio of solar projects in Nigeria and plans to bring more than $1 billion in investment over the next five years.

Those are just the few ways technology can help in solving Nigeria’s energy crisis. Solar power, wind power, hydroelectric power, nuclear power, hydrogen power, methane from organic material, and other renewable sources have been advocated by leading experts in viable alternatives. Most of these are resources that the country already posses in abundance, but may lack the technology to exploit them.

A source told BusinessDay that the cost of installing a wind power station is very huge, but in the long run the investment is worth it because the energy is coming from the wind which Nigeria has in abundance.

Government’s intervention in technology, while it is very commendable, should be continuous, sustainable and always ready to adapt new updates. Furthermore the government may need increase its cooperation with private sector to fully maximize the benefits of technology in the energy sector.  Technology is not static and at the moment it requires huge and sustained investment; hence a one-off intervention will not be enough.

In the meantime, the government’s partnership with Azuri for many technology experts is the right step and is likely to yield actual results as the Acting President, Yemi Osinbajo stated “Nigeria is committed to improve accessibility to power, especially solar power for the people.”