Capex: Renewables Suffer Low Penetration Despite Opportunities

Peter Uzoho

Nigeria’s quest to solve the age-long energy access gap in the country through the adoption of renewable energy sources has been impacted negatively due to the high capital expenditure (Capex) involved in acquiring solar home systems and other alternative solutions.

This is happening despite the huge opportunities presented to the renewable energy players and consumers by the soaring petrol and diesel costs as well as the epileptic electricity supply from the national power grid.

According to the Chief Executive Officer of SolarCentric, a commercial and industrial sector-focused solar company, Mr. Adetunji Iromini, the high foreign exchange rate and its unavailability has made it difficult for more solar offtakers to spring up in Nigeria despite the absence of maintenance cost in renewables unlike fossil fuels.

With the current sharp increase in the pump prices of fuel and diesel, coupled with the lack of improvement in the electricity from the grid, Iromini told THISDAY that the only option available to Nigerians both for home and industrial uses was to consider adopting alternative energy.

He argued that the high fuel and diesel cost as well as the poor power supply from the national grid have opened huge opportunities to the renewable energy sector, adding that the high Capex and lack of enabling business environment were hampering the growth and penetration of renewables in the country.