Renewable Energy Dev: Expert Harps On Favourable Policies

An Abuja-based energy analyst, Mrs Halima Sarki, said that Nigeria lacked sufficient policies and conditions that could support the proper development of the country’s renewable  energy sector.
She stated  this in an interview with  journalists in Abuja,  the Federal Capital Territory.
Sarki explained that the unfavourable  policies  discouraged potential investors  from  contributing to the development of the industry in the country.
“The renewable  energy industry in Nigeria lacks  the necessary incentives to support the development  of the industry which would have served  as a backup for the current   deficiency in power supply.
“Incentives like suitable tax holidays  for renewable  energy companies  would be beneficial in the growth of the industry as investors won’t be worried  about  having large portions of their  revenue taken by government.
“Since we are unable to manufacture the necessary technologies and machinery used in the renewable energy industry and we depend on  importation, it makes sense to have importation waivers on such technologies imported.
” Investors and developers are faced  with issues  of two  tariffs, high interest rates, high costs  of development and operations, coupled with short debt repayment periods which cause  returns  to be  substantially poor.
“We also can’t neglect the troubling  fact that  many Nigerians do not   pay for  the electricity that  they use which has caused the generators and distributors  to lose  out on their expected revenue.
“Although the renewable energy industry is quite  young in Nigeria, government has to research  on what it entails to develop energy project in  order to create  policies  that meet the requirements for effective operations”, she  advised.