There is a global shift from fossil-based electricity generation to renewable energy to attain global goals of net zero emission by 2050. This energy transition is essential and has a direct positive impact on the economy of any country. For example, Nigeria, an oil-rich nation, has had to build its economy around oil and is in the transition phase to renewable energy.
Renewable energy and energy efficiency can help attain 90% CO2 reductions, given that Nigeria has abundant renewable and non-renewable energy resources. Amid this abundance, electricity consumption is still deficient in Nigeria. Therefore, there is a need to increase energy access, and renewables have the potential to close the energy access gap in Nigeria. However, several challenges have hindered this technology’s seamless adoption and integration. These barriers can be broadly categorised into technological, regulatory, social, and economical.
Technological barriers
Technological barriers limit the development of renewable energy. Technical complexity refers to understanding the technology behind the energy generation and preferring or recommending suitable technology adaptable to a clime. Storage is a major global challenge in renewable energy technology space due to the intermittency of renewable energy sources-hydro, solar and wind. In energy systems, storage amounts to 50% to 60% of the total energy cost per kilowatt-hour in PV energy generation. This results in increased costs of the technology.
Research and development play a strategic role in technological improvements that suits effective technology application. In Nigeria, the government has been laid back in sponsoring research and development engagement for the improvement and development of renewable energy technology that will suit the Nigerian market. This has affected the adaptation of technology across the country.
Furthermore, the renewable energy sector, particularly Solar PV, is still a very open market without regulations, allowing proficient and untrained technicians to deliver on installations without being properly trained on the technology. This results in many substandard installations of untrained technical personnel causing renewable energy technologies, particularly Solar PV technology, to lose public credibility.
Regulatory barriers
In Nigeria, the import tax on renewable energy equipment contributes to the high cost of renewable energy components. There are no regulations for professional practitioners in the sector to boost credibility and increase adaptation of the technology. To enhance professionalism, the renewable energy sector needs standards and regulations for practice, including certificates and licensing.
Social barriers
There has been public resistance to renewable energy technology, particularly due to many failed renewable energy projects from street lighting, which was a foolproof way to project this renewable energy technology (Solar PV). This created resistance based on the preconceived fact from failed projects that solar PV technology does not work and is not a durable project. The impact of this mental conception has limited the adaptation of the technology. Another social barrier is that of space; a solar PV system of 20 kW requires more space than a 20-kilowatt generator set. This has resulted in converting land for agriculture, building, road construction or any other purpose to support renewable energy power generation.
Economic barriers
The high initial cost of renewable energy technology, particularly solar PV, has resulted in lower adaptation on the consumer side as it is perceived to be very expensive. However, compared to fossil fuel alternatives, renewable energy technology has a better cost advantage when the CAPEX is spread over time. There are a few investors and financing organisations that fund renewable energy projects. Therefore, the producers and developers are not left out of the impact of high CAPEX as renewable energy projects have lower, longer payback which causes the projects to become unviable. Financing renewable energy projects are challenging due to the longer payback period and the risky nature of the business.
To tackle these challenges and encourage the growth and development of renewable energy technology, the following needs to be considered;
(i) Government and energy companies need to deliberately invest in research and development of renewable energy technologies to suit the Nigerian market.
(ii) Installers and technicians need to be properly trained and certified and the database made available to the public to ensure that only competent hands are engaged; this will increase the credibility of this technology.
(iii) Attention must be given to the operation and maintenance of renewable energy technologies to ensure effective and efficient energy delivery.
(iv) Improved fiscal regulation in the renewable energy space will allow for better cost and widespread technology.
(v) Regulations for technical personnel, including certifications and licensing, should be considered to ensure standard best practices of the technology across the country.
(vi) Sensitisation of the public on the importance of renewable energy technology over non-renewable energy; why to adapt and how to adopt should be carried out across the country.
(vii) Utilising more roof spaces and practising crop integration on solar farms will ensure maximum utilisation of land space.
(viii) Introduction of Pay-as-you-go Systems will make it easier for consumers to adopt this technology. This approach takes off the pressure of the high initial cost spreading it over some time.
(ix) Introducing subsidies for renewable energy technology will help increase the spread of the technology and reduce the cost drastically.