Financing Green Energy Growth

I grew up as one of the lucky 250,000 Nigerians that had a NITEL land line before the advent of GSM and cell phones in Nigeria. Today, everyone who can put N2,000 together can get a line and a cell phone.

The Obasanjo administration deregulated the telecommunications industry and Nigeria is now awash with telecommunication companies, a booming industry and happy citizens who can now 'complain' about poor service. We need to achieve the same growth and liberalization for the energy sector, particularly electricity. It appears that anything that can be 'pay-as-you-go' would scale in Nigeria.

To translate this to electricity and clean electricity at that; we can achieve scale with the right government policy. A first step would be to allow anyone to generate and sell electricity as long as the source of generation is 'clean'. This way we could have neighbourhood estates and villages generating solar power (using concentrated solar panel technology) or wind power to produce energy at source with minimal transmission losses and plant maintenance costs.

A second step and one that could create huge demand and a new industry would be the creating of a legislation that would treat green energy home improvements as a mortgage. If there is a government policy is instituted that would allow citizens or businesses that install solar generation or wind generation systems to get tax credits at a better rate than current mortgage tax credit, we would immediately unlock bank funds and harvest the low hanging fruits of rich people who currently use N2-N3M silent generators. By providing financing and tax credits, these customers will be the early adopters of the technology on a large scale and progressively wean us off fossil fuel generating sets.

It will like the mobile phone business create new companies, jobs, innovations, businesses and added services that we do not have now because electricity does not exist. The cost for early adopters will be high but as the technology and services become more available, we will naturally follow Moore's law; the same way mobile phones followed Moore's law, service and phones became twice better but cost twice cheaper every 18-24 months.

If we can make it relatively 'painless' for early adopters to afford green energy in Nigeria, then we will be well positioned to leapfrog to the new 'green' energy world and bring on board virtually all Nigerians to reliable, available energy in the next 10 years, the same way the mobile phone industry has provided communication to virtually all Nigerians within the same time frame.