International key players in renewable energy, at a seminar tagged, ‘Financing Renewable Energy’ in Lagos State have identified adequate financing as a major factor militating against technological advancement in the sector.
Speaking at the forum, Bearbel Freyer and Micheal Neulinger, heads, Energy Desks, Delegations of German Industry and Commerce in Nigeria and Ghana respectively, observed that project financing still constitutes the highest hurdle in realising Renewable Energy projects-Favour is given mostly to large size projects.
At a joint presentation at the seminar, Freyer and Neulinger stressed that lack of know-how remains a stumbling block in financing renewable energy projects in Africa.
In his own assertion, Segun Adaju, Chief Executive Officer, Consistent Energy, said: “Any new technology comes at higher price or initial cost of pricing challenges, over time the price comes down.”
According to him,” the price of solar energy devices had been dropping every day, except for the present foreign exchange issues in Nigeria.”
While making a case for new technology, Adaju said it is cost-effective to the end users unlike combustion energy.
He cited the example of Pay as You Go Business Model designed for a group of barbers to prove that the technology is now more affordable and more people are now accessing it.
He said, in the plan, each of them was made to pay N45,000 initial deposit and N5,000 installment for a period of 18 to 24 months.