The co-founder of renewable energy startup, Taranis Novus, Fabian Lojede, has said that the Nigerian government will need to develop a policy on carbon credits as this is key to stimulating the adoption and growth of renewable energy in the country.
Lojede stated this in a chat with Nairametrics in Lagos. According to him, a carbon credits policy will encourage more companies to embrace and invest in renewable energy as the credits from the government would serve as an incentive for people to use alternative energy sources.
He added that this policy would help Nigeria achieve its target under the Renewable Energy Master Plan (REMP).
In the plan, Nigeria targets to increase the supply of renewable electricity from 13% of total electricity generation in 2015 to 23% in 2025 and 36% by 2030.
Still at the nascent stage
While noting that renewable energy is still in its nascent form in Nigeria with solar being the most widely available energy resource, he said:
- “A clear policy from the government as to how those within this renewable energy sector can claim carbon credits will drive growth.
- The government also needs to the process quite easy to understand and also easy to access in terms of what needs to be done by local companies who are in the renewable energy sector.”
He added that tariff reduction on imported renewable energy equipment would also encourage more companies to invest in renewable energy in Nigeria.
Renewable energy revolution
Lojede noted that with the recent removal of fuel subsidies and the high cost of fuel, a revolution comparable to the GSM revolution is starting in the renewable energy industry in Nigeria.
- “Nigeria is at the precipice of a renewable energy revolution and this is based on the cost of energy, generally, across Africa and particularly in Nigeria, and the fact that renewable energy like solar and other renewable energy platforms have really improved in technology, and also in accessibility.
- We’re almost at that stage that we were when GSM came and I think the next kind of technological revolution that will take place is the adoption of renewable energy platforms and formats,” he said.
Energy costs for business
He stated that Taranis Novus as a tech startup focusing on different sectors of the economy including renewable energy, is aiming to curb energy costs for businesses in Nigeria.
He said this was why the company recently signed a new partnership with LithTech, a leading renewable energy solutions company with its R&D base in Germany and a production line in Shenzhen, China.
- “Given the recent subsidy removal, we aim to reduce the cost of energy solutions for businesses.
- In the health sector where we also provide solutions, we intend to bring down the energy cost of hospitals so that any Nigerian can afford good health,” he said.
Lojede observed that the costs of many products and services in Nigeria are going up because of the increasing energy costs, which are being passed to the consumers.
He, however, noted that embracing renewable energy solutions could help businesses cut energy costs by 50%.