senegal | aug-16 | consistent energy : water, food & energy nexus
TRANSCRIPT
Water, Food & Energy Nexus
Lessons from West Africa
Segun AdajuCEO, Consistent Energy
Lagos Nigeria
Introduction
• Company started operations in 2012 as BlueOcean Energy distributing pico solar technologies• Refocused and restructured in 2015 to provide stand-alone, roof top
solar energy for productive uses• Vision is to be the topmost solar finance and leasing company for
productive use in the region• Business model is providing energy form SMEs on a rent-to-own or
Pay-As-You-Go basis for productive uses• Strategic intent is creating access to clean energy for 1 million
small businesses by year 2030 in contribution to Goal 7 of the SDGs• Provided solar energy for barber shops, mobile phone charging,
solar drying, solar irrigation for agriculture etc
The Problem• 55% of the population in Nigeria have no access to
the grid• 96% of businesses are micro, small and medium
enterprises yet account for only 46% of National GDP due to energy challenges
• Small businesses are the worse hit. Spend 40% of expenditure on energy
• SMEs resort to inefficient, expensive and polluting generators to power business
• Cost of inefficient fossil fuel on the increase with removal of subsidy
• Low capacity to finance initial capital outlay of adopting solar
• Limited access to finance and high cost of solar energy technologies are the leading constraint to adoption
MSMEs In Nigeria
At 96% More than 9 out of 10 Nigerian Businesses are MSMEs
MSMEs make up90% of Manufacturing and Industrial Sectors
98% of MSMEs are Micro
MSMEs make up46% of National GDP
Energy Access and MSMEs
Percentage of MSMEs Utilising Alternative Sources of Power – in the form of diesel and petrol electricity generators(NBS & SMEDAN, 2010: Survey Report on MSMEs in Nigeria)
13.00%
40.00%35.00%
12.00%
Alternative Power Usage by MSMEs (in hours per day)
n/a1-5 hrs 6-10 hrs16-20 hrs
Energy Access and MSMEs
‘I beta pass my neighbour’ – a necessary evil
Courtesy of: Oluwatobi Bolashodun
N796.4bspent on fuelling generators annually as of 2012
As of 2014 that figure could be as high as N3.5trillion
Why Not RENEWABLES?
Barriers to Off-Grid Renewable Energy Uptake Globally (IRENA, 2014)
- Ernesto Macias(President, Alliance for Rural Electrification)
“Providing light is not enough… whether energy is used for income generation, health, education or any other activities, we have to ensure that those uses are there so that people will actually benefit from it.”
Productive Use of DRE
The Solutions• Distributed Renewable Energy (DRE)
approach through stand-alone, roof top Pay-As-You-Go Solar PV
• Creating access to energy for productive use through rent-to-own or leasing mechanism
• This allows rapid uptake of solar as beneficiaries can adopt with a low entry down payment and instalmental payments
• Adopting digital finance via mobile money to de-risk investments with over 100% mobile penetration
• Increases productivity, creates more employment and reduces negative impact on climate change
• Pay-As-You-Go solar creates more opportunity for small businesses as data collection aids further opportunities
Barber Shop/Salons
Courtesy of: PowerGen Renewable Energy
Solar Powered Irrigation
Solar Powered Dryers
Solar Powered Grinding Machine
Barriers/Challenges
• Policy • Implementation• Investments• Reactive responses to emergency• Poor planning• Population growth• Urbanisation• Conflict of interests
