BUSINESS PROSPECTS OF RENEWABLE ENERGY ADOPTION IN WEST AFRICA (A CASE STUDY OF NIGERIA)

 BUSINESS PROSPECTS OF RENEWABLE ENERGY ADOPTION IN WEST AFRICA (A CASE STUDY OF NIGERIA)

1    INTRODUCTION

Renewable energies represent a broad and diverse array of energy resources- biomass, hydro, geothermal, wind, solar and ocean energy- as well as range of conversion processes and application such as combustion, thermal, mechanical, photovoltaic processes, etc. Apart from obvious emission control advantages, renewable energy technologies can also make a significant contribution to domestic energy security and spur economic development (Sawin, Adib & Chawla 2012).

The year 2011 saw the reorientation of future energy policy in many countries in the wake of the tragic nuclear disaster in Fukushima, Japan. Despite the economic uncertainty of the present, global investment in renewable power and fuel has increased by 17% and renewable energy continues to grow strongly in all the end use sectors- power, heating, cooling, and transports.

Renewable energy support policies continue to be a driving force behind the increasing shares of renewable energy. As many as 118 countries, more than half of which are developing countries, have had renewable energy targets in place by early 2012, and 109 countries have had policies to support renewable in the power sector.

A main driver propelling policy forward is the potential of renewable energy to create jobs. Globally, an estimated 5 million people work directly or indirectly with renewable energy industries. More and more governments around the world acknowledge the benefits of renewable energy along with energy efficiency as central elements of any green energy economy strategy (Sawin et al. 2012, 37-39).

Renewable forms of energy are also increasingly viewed as critical for providing access to energy, particularly in rural areas of the developing world. Renewable energy is now seen as a viable option for providing millions of people with a better quality of life. Although there is a long way to go to provide energy for all, today more people than ever before derive energy from renewables as capacity continues to grow, prices continue to fall, and shares of global energy from renewables continue to increase (Sawin et al. 2012, 37-39).

The electrification levels of ECOWAS (Economic Community of West African States) countries are the lowest in the world, especially in rural areas, where tens of millions of people have no access to ‘modern’ energy; a fact behind the rural exodus and overcrowding of large cities. Furthermore, the lack of drinking water constitutes another emerging problem in these countries. ECOWAS needs sustainable solutions for development of these basic sectors. However, these solutions are not the same as those of industrialised regions: they must be adapted to their needs and are different for each area (rural, suburban and urban) (Izquierdo 2012).

West Africa is an asymmetrical group of states that includes big countries such as Nigeria, but also small ones such as Gambia, Guinea-Bissau or Liberia, with quite diverse and complex situations. These states are distributed from the Sahel region in the north to the humid area in the south, which accounts for the diversity of environments found in the region. In addition, the majority of these states are among the least developed countries in the world, with high levels of poverty both in urban and rural areas. In this context, energy plays an essential role in improving living conditions. This is especially true in z region with abundant energy resources, yet that continues to be highly dependent on fossil fuels.

The energy situation in West Africa, specifically in the area of renewable energy and human development, is highly diverse areas complex. Therefore, any initiative in the sector must start with a strong understanding of the region and its dynamics must also take into account different aspects of development, from the local to the regional level (Ferrenbach 2012)

For the ECOWAS region, 19% of the rural population have access, mainly the major rural centres and some localities under the lines. And 81% of their rural population are left without access. Six countries already have a significant national electricity access rate in 2009, greater than 30%. These are Cape Verde (87%), Ghana (66.7%), Nigeria (50%), Cote d’Ivoire (47.3%), and Senegal (42%). For these countries, 25.1 million urban people and 78.8 million rural populations had no access, only 18% of the population in average had access to electricity with most of them in urban areas (83%). 82% of the total population are without access with 80% living in rural areas (Elayo, Lugmayr, Vilar & Kappiah 2012).

 BUSINESS PROSPECTS OF RENEWABLE ENERGY ADOPTION IN WEST AFRICA (A CASE STUDY OF NIGERIA)