Bullish investors are increasingly showing interest in solar energy, as Nigeria reiterates commitment to other forms of renewable energy as a way out of its power crisis.
The growing interest of investors in the power sector was revealed by Babatunde Fashola, minister of power, works and housing, in a conference held last week.
The minister said government was currently receiving proposals from investors who want to do solar and other forms of renewable energy, adding that the major incentive for the investment interest was the nation’s market.
“There is a big and extensive waiting market, perhaps, none of its type in Europe, a market with a promise of very rewarding returns on investment. That, in itself, is an investment incentive,” the minister said.
Despite having 485.1 million mega watt-hour per day of solar energy in natural units and enjoying an average of 6.2 hours of daily sunshine, approximately 60 percent of Nigeria’s estimated 180 million people lack access to electricity supply, thus attracting a good number of investors to leverage the power supply deficit in Africa’s largest economy.
Fashola recalled that he held a meeting last week with about 15 to 20 solar energy developers from which they ultimately rose with a resolution that the promoters should write business efficiency proposals to government, and he hoped to receive the proposals sometime this week.
He assured Nigerians of government’s commitment to incremental, steady and eventual uninterrupted power supply.
The energy deficit in sub-Saharan Africa is enormous. The total generation capacity of the whole sub-Saharan Africa is lower than that of 46.77 million Spain, which generates 54.1 giga-watts (gw).
Attributing the low power supply currently being experienced in the country to the vandalism of some gas pipelines across the country, Fashola said another way government could realise its programme of uninterrupted supply was to address pipeline vandalism.
“One of the things we should stop doing is to stop cutting gas pipelines and all of you (the media men and women) must sensitise all of those who are involved because that’s why supply is down,” he said.
The minister, who noted that 23 of the nation’s power plants are gas powered, added that it was important for those involved to stop vandalizing and cutting gas pipelines adding that it was also imperative that all those involved in the act be sensitized on the evil consequences of their nefarious act to the economy and the people of Nigeria.
He pleaded for patience and understanding from Nigerians arguing that if for 66 years up to 2013, when the Power sector was privatized, the various electricity agencies of government could not meter all Nigerians, it would only be reasonable to expect that it would take some time more than three years to do what has been impossible to do for 66 years.
“I think that is the context, but we are ramping up and the Discos are committing to a programme on metering”, the Minister said adding that the Discos are not only being monitored as to what they are doing but “they are under obligation to submit to us the list of people they have metered so that we can go and check.”
Describing the power process as a result driven business, Fashola said until every Nigerian got metered, government would not consider the job done adding, “I understand that and it will happen but be patient, be encouraging, be supportive and be understanding. It has taken this long and if we have waited for this long we won’t wait for that long again to complete it, we are setting targets and we want to be realistic too otherwise we will become incredible and unbelievable, we also want a system to evolve”.
The Minister called on the Discos to endeavour to be alert to the problems occurring in their jurisdictions adding that some of the complaints that come to him directly from consumers across the country should be theirs to resolve.
Calling for change also in the attitude of consumers, Fashola recalled some instances where distribution companies sent their staff out to go and collect bills and they were stabbed and matcheted, adding, “How do we in good conscience send out people to go and work in that community when we know they are going to be matcheted.”
“So, these are all the things that should change, there are a lot of problems but I am optimistic that they can be solved,” he said.
