Government incentives, partnerships, patronage, demand aggregation, advocacy and capacity development are some of the other strategies that can be employed to help solar energy companies to enjoy the economies of scale, bring down the cost of their products and become more competitive. While the focus in Nigeria seems to be on solar, we must not lose sight of other renewable energy solutions like wind farms, off-grid hydroelectric power and biofuels.
Aside from its positive impact on the environment, the bottom lines of businesses and the disposable incomes of households, transitioning to renewable energy can also have a positive macroeconomic monetary impact. Between 30% and 40% of the country’s scarce FX is spent on the importation of petroleum products like gasoline (petrol) and diesel annually, according to the Central Bank of Nigeria. Adopting renewable energy solutions can curb the demand for and importation of these petroleum products and go a long way in stabilizing the country’s exchange rate.
Chinedu George Nnawetanma is a strategy and economic development professional. He can be reached via the email address [email protected].