Experts advocate local solar panel assembly, commit $1.5 million
01 October 2020 |
3:00 am
In efforts to boost the renewable energy sector in Nigeria, Shell Petroleum Development Company, (SPDC) has committed to a $1.5 million investment deal with Auxano Solar
In efforts to boost the renewable energy sector in Nigeria, Shell Petroleum Development Company, (SPDC) has committed to a $1.5 million investment deal with Auxano Solar to scale up operations over the next five years.
The investment, which is spearheaded by All On, a Shell-funded investment company will fast-track locally made materials for solar projects, thereby making it affordable to Nigerians.
Programmes and Investment Manager, All On, Afolabi Akinrogunde, said the investment is aimed at expanding Auxano’s solar panel assembly capacity by over 50 per cent and a great win for local content.
He added that the solar company’s success story, as the first private assembler of solar panels, should inspire other players in the renewable energy sector.
Akinrogunde noted that All On’s contribution is a blend of equity and debt investments that will facilitate the increase of Auxano’s capacity utilisation by funding its expansion plans, covering facility relocation and meeting the working capital financing the needs of the company.
“The investment will also enhance the company’s services such as after-sales installation, management, and maintenance services of renewable power solutions to its customers.
“The All On Hub will also provide development support, including functional and innovation support, business opportunity development and investor/donor engagement.”
Chief Operating Officer, Auxano Solar, Chuks Umezulora, said the support is in response to an increase in demand of goods and services and an indication that Nigerians are accepting solar as an alternative to on-grid energy and diesel generators.
“Most significantly, the current COVID-19 crisis has caused severe disruptions in the importation of solar panel parts. Having an operational in-country assembly plant will be an industry saver. The solar panel assembly sector has been able to survive and customers have been able to purchase goods in Naira rather than foreign currency, a trend Auxano’s expansion will make it more viable.”
On his part, Managing Director, Rural Electrification Agency, Ahmad Salihijo Ahmad, said the support is in line with the company’s policy objective of driving economic development.
“This support is coming during a great economic downturn. As such, the funding will inject significant capital that will scale Auxano’s solar panel assembly operations at a time when localising supply chains is more critical than ever. We hope that this investment will encourage many more investors to see that Nigeria’s renewable energy sector is still very much open for business.”
Chief Executive Officer, All On, Dr. Wiebe Boer, added that the current supply chain disruptions and market volatility demonstrate the importance of local assembly for the development of the renewable energy sector in Nigeria.
“Auxano Solar Nigeria is a textbook example of what is possible even in times of crisis when we promote local content and invest in capacity-building. This is a company that has demonstrated the entrepreneurial spirit and execution focus we know Nigerian companies are capable of.”
Auxano is one of the four companies selected by All On to partner in the COVID-19 Solar Relief Fund in April 2020 for the deployment of power to emergency health care and emergency response centres in Nigeria. The company deployed the solar power solution at the COVID-19 isolation ward at the National Orthopaedic Hospital, Igbobi, Lagos.
Related
20 hours ago
The Managing Director of Nigeria Breweries Plc, Hans Essaadi, said the fact that the naira has shown some appreciation against the dollar in recent weeks has had little or no impact on input cost.
20 hours ago
The Ooni of Ife, Oba Adeyeye Enitan Ogunwusi, Ojaja II, said the recently-launched Tingo Cola and Tingo Electric energy drink would not only deepen local content principles and compete locally with other exportable brands but would also provide employment to hundreds of youths in the country.
20 hours ago
Despite the abundance of raw materials needed for self-sufficiency and the production of pulp and paper in the country, Nigeria is still missing out on the massive income to be made on the production, sale and export valued at $360 billion.
20 hours ago
The Chartered Institute of Taxation of Nigeria (CITN) has warned political leaders against abuse of taxpayers' money, stating that collecting tax revenue from taxpayers without using it judiciously weakens the country's taxation system.
20 hours ago
To halt the fresh panic building over the fate of the naira, the Central Bank of Nigeria (CBN) is set to disburse another tranche of liquidity intervention to 1,583 Bureau de Change operators.
20 hours ago
Oil-producing communities in Niger Delta have called for transparency and accountability in the ongoing divestment of oil and gas assets in the region.
20 hours ago
With a headline inflation rate of 33.2 per cent and food inflation of 40.01 per cent, chiefly blamed on the high cost of transportation, which has continued to rise, it might take a while for respite to come.
20 hours ago
Following the recent appointment of new management and board for the Securities and Exchange Commission (SEC), shareholders have stressed the need for the members to accelerate the development of the capital market by improving the response time to complaints and monitoring listed firms' compliance with extant rules.
1 day ago
The price of Liquefied Petroleum Gas (LPG), also known as cooking gas, has continued its upward swing rising by 7.1 per cent in the last month, thus making life more difficult for Nigerians who are struggling with food inflation.
1 day ago
Various fibre cuts may have cost affected telecoms operators, especially MTN and Airtel, about N27 billion ($23 million) in repairs last year. To reduce the cost of the operations of the firms, the Federal Government through the Ministry of Works
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.