Middle East

Nigerian companies are looking to solar energy sources amid high diesel costs.Energy news

The Nigerian Energy Commission states that Africa’s largest economy spends up to $ 22 billion annually on generator fuel.

Nigerian solar companies are in demand for mini-grids and equipment as Africa’s largest oil producers are looking for alternative power sources after diesel costs soar locally due to rising global oil prices. It is increasing rapidly.

However, supply constraints, some say they have begun to alienate customers because they are unable to meet demand, can hinder their ability to take advantage of trends.

Nigeria, Africa’s largest economy with an estimated population of 200 million, has an installed capacity of 12,500 MW, but the country’s grid supplies only 4,000 MW at peak times, so businesses and citizens rely heavily on diesel generators. I am.

The Nigerian Energy Commission says the country spends $ 22 billion annually on fueling generators.

The price of unsubsidized diesel, like gasoline, has almost tripled to 800 naira ($ 1.93) per liter. Most of the increase was triggered by Russia’s invasion of Ukraine.

Victor Ezenwoko, Chief Commercial Officer of Daystar Power, said:

Still, solar adoption is estimated to be less than 2%, and industry executives say some companies recognize solar power as unsuitable for large-scale use.

According to a survey earlier this year by Boston Consulting Group and Shell-funded company All-On, per capita solar panels installed in Nigeria are 1 watt, similar emergings such as South Africa. It averaged 8 watts on the market.

Prince Ojeabulu, CEO of Rensource Energy, is changing the situation as energy costs eat up corporate profits and companies are forced to actively consider solar, a clean form of energy.

In 2021, Rensource installed it under a 1 MW solar panel, but is now building a 6 MW plant.

“By the end of the year, given the trends so far, there should be more than 12 MW of solar power installed across Nigeria,” he said.

A Ministry of Power official said the number of approved solar minigrids servicing industrial users increased this year, but did not provide details.

However, the global supply chain turmoil caused by this year’s blockade of COVID-19 in China and the war in Ukraine has hampered optimism for growth. Delivery times for some devices have been extended from 3 months to 9 months.

“With the equipment, we can install 60 MW this year. We started to turn down customers … we made the people we work with (together) more selective,” said Daystar CEO and CEO. Co-founder Jasper Grafvon Hardenberg said.

Local funding is also difficult, executives said, but funding is coming from overseas development finance institutions that are considering investing in businesses focused on green energy.

https://www.aljazeera.com/economy/2022/7/12/nigerian-businesses-turn-to-solar-as-diesel-costs-bite Nigerian companies are looking to solar energy sources amid high diesel costs.Energy news

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