BPE DG Alex Okoh, while speaking during the presentation of certificates to participants in a workshop on anti-bribery and anti-corruption held recently, said the FG is looking at several options to revamp the ailing power sector
He said the government is considering to dilute the investment of the current core investors in the power firms by bringing in new investors as well as raising tariffs to make the operators recoup the investment in the new equipment.
“It is one of the options (new investors). It is not the only option we are considering; we don’t believe that is the only solution, if you bring in new investors and you don’t correct the market distortions, it will still be the same result.
“The options include setting the right cost or price framework for the market. If a market cannot guarantee price recovery; as an investor, you come into a business and you cannot recover the cost of doing that business, the likelihood is that you will not do the business in the first place.” he said.
Source: Concise News
High initial cost of inputs retards solar power utilisation in Nigeria-Business Day
Off-grid and solar home systems can improve access to electricity but Nigerians avoid solar power utilisation because of the high cost of initial capital outlay required.
The cost of purchasing a solar power system varies by the capacity of each component, and also the location. A 200-watt solar panel costs between N38,000 – N95,000, while 300 watt costs between N62,000 -N200,000.
Although, the initial cost of purchase is high, benefits derived from using a solar system such as low operational cost, reduced, no electricity bills for consumers and solar panels durability of 30 years with minimal maintenance cost are factors worth considering.
“The cost is too high and I cannot afford it. It is a very good solution for the electricity challenge in Nigeria, but if only solar companies can reduce their prices,” John Okafor, a Lagos-based businessman, said. This was a similar complaint received from eight out of 10 people who would want to purchase solar panels but may not have the capacity.
However, analysis shows that with an average of N12,000 spent on fuel for a big generator monthly, about N144,000 is used yearly. this amount will most likely cover the cost of a solar system, of which the individual would not need to indulge in monthly spending all through the year as compared to that of generators.