Charles Nwaoguji
Nigerian consumers have continued to bear the brunt of rising production cost in the manufacturing industry. But in order to reduce his spending the same consumers now go for the cheaper options, which are usually imported into the country.
This is often preferred because when the cost of energy is factored into production cost, it becomes very high for anyone to bear. It is against this background that manufacturers are now being encouraged to look inward by investing in renewable energy, so as to reduce cost of production.
The manufacturing process generally uses a substantial amount of electricity, which makes a manufacturer an excellent candidate for solar energy. In addition, manufacturers typically operate in large buildings with a lot of roof space for a solar system. Solar energy will save a manufacturer thousands of naira over time in electricity costs and provide a hedge against energy price increases which will make him more competitive.
The global energy demand continues to rise driven by emerging economies, total worldwide energy usage is expected to grow by nearly 40 per cent over the next 20 years. That will require a staggering amount of coal, oil and gas.
But it’s not just fossil fuels that will get the nod. The demand for renewable energy sources is exploding and, according to a new study, we haven’t seen anything yet in terms of spending on solar, wind and other green energy projects. For investors, that spending could lead to some serious portfolio green as well.
How can an environment be sustainable, healthy and the people living in it be healthier? One sure way is when countries or governments begin to harness natural resources like renewable energy as an alternative means of energy generation to cushion the effects of pollution and climate change, a global challenge that is affecting the environment and health of man. Renewable energy is energy gained from natural resources such as sunlight, wind, rain, tides, waves and geothermal heat, which cannot be exhausted but replenished.
According to experts, it could also replace conventional fuels in four distinct areas like electricity generation, air and water heating/cooling, motor fuel and rural (off-grid) energy services. Renewable energy technologies range from solar power, wind power, hydroelectricity/micro hydro, biomass and biofuels for transportation.
Current projections from the International Renewable Energy Agency (IRENA) show that at least 70 per cent of Africa’s 600 million people are not connected to the electricity grid. Instead, most are forced to rely on inefficient, expensive and polluting energy sources to power their homes and businesses.
Investigations shows that in Africa, Kenya, Ethiopia and South Africa are leading in the renewable energy revolution. The advantages of renewable energy utilisation cannot be overemphasised, especially to a developing country like Nigeria where population growth is high with an increase in industrial activities, which results into environmental pollution and economic difficulties from more consumption.
Other industries that can benefit from solar energy apart from manufacturing include:
Agricultural
Agricultural operations, such as poultry and dairy farms, also use a lot of electricity and typically have lots of sun and available roof space. For example, a chicken farm requires electricity to run fans and must maintain a consistent temperature throughout the year. A roof mounted solar system allows the business to switch from electricity generated by the utility company, to clean electricity generated on site.
Commercial
A commercial business, such as an office building or department store, will see a similar return on investment as a manufacturer or farmer. If you have available roof space and would like to take control of your electricity costs, you are a perfect candidate for solar energy.
How it works
Nigerian manufacturers have the potential to exploit its abundant solar energy resources considering its geographic location around the equatorial sun-belt – receiving abundant sunshine all-year-round, ranging from 6.70kwh/m2/day in Borno State to roughly 4.06kwh/m2/d to 5.86kwh/m2/d in locations such as Calabar in Cross River State. In states like Katsina, Zamfara and Sokoto, the abundant natural winds can be trapped into windmills to generate energy.
Nigeria is endowed with an annual daily sunshine that is averagely 6.25 hours, which is ranging between about 3.5 hours at the coastal areas of the northern boundary of the nation and also has an annual average daily solar radiation of about 3.5 KWm2/day in the coastal area, which is in the southern part, and 7.0 KWm2/day at the northern boundary.
Nigeria receives about 4909.212 kWh of energy from the sun, which is equivalent to about 1.082 million tonnes of oil; this is about 4000 times the current crude oil production per day, and also put at about 13,000 times of daily natural gas production based on energy unit.
It is estimated that when 1 per cent of Nigeria’s land area is covered with a solar technology of 5 per cent efficiency, about 333,480mw of electricity may be produced at about 26 per cent capacity factor. This electricity generation capacity will be more than enough for the country, up to year 2050, that will conveniently support 11 per cent – 13 per cent economic growth rates, as envisioned by Vision 20:2020.
This level of solar radiation across the country can support huge deployment of solar and wind power infrastructure designed to primarily feed into the regional power distribution entities, which would add up to the national grid, offering a much more affordable, practical and healthy solution that could boost the economy and enhance healthy environment.
Most renewable energy comes either directly or indirectly from the sun. Sunlight – or solar energy – can be used directly for heating and lighting homes and other buildings, for generating electricity, and for hot water heating, solar cooling, and a variety of commercial and industrial uses as well as be valuable for rural usage where supplying electricity from utility line could be expensive.
The sun’s heat also drives the winds, whose energy is captured with wind turbines. Then the winds and the sun’s heat cause water to evaporate. When this water vapour turns into rain or snow and flows downhill into rivers or streams, its energy can be captured using hydroelectric power.