Ifeanyi Ukwuoma, founder of Powerfull Technology Limited, is driving a transformative agenda to close Nigeria’s energy gap through innovative solar financing. Based in Nigeria, Powerfull focuses on providing data-driven solar financing solutions to make sustainable energy accessible.
Ukwuoma, in this interview with The Guardian, discussed his journey and his vision for democratising access to renewable energy across Nigeria and beyond.
How do you perceive the current state of power supply in Nigeria, particularly regarding its impact on SMEs and manufacturing firms?
The current state of power supply in Nigeria is characterized by inconsistency and unreliability, posing significant challenges for SMEs and manufacturing firms. According to the World Bank, Nigeria experiences frequent power outages, with businesses losing an average of 10.1% of their sales due to power cuts. For SMEs and manufacturing firms, this translates to increased operational costs, reduced productivity, and decreased competitiveness in the global market. Moreover, the reliance on diesel generators as alternative power sources further exacerbates the financial burden on businesses, contributing to environmental pollution and health hazards. Therefore, addressing the shortcomings of the power supply is crucial for fostering economic growth and sustainability in Nigeria.
What are the key challenges you see in the current power distribution system in Nigeria?
The key challenges in Nigeria’s power distribution system stem from infrastructural deficiencies, inadequate investment, and operational inefficiencies. Despite efforts to privatize the sector, many Distribution Companies (DISCOs) face financial constraints, leading to limited capacity expansion and maintenance of existing infrastructure. Additionally, technical losses and commercial losses, including electricity theft and non-payment of bills, further strain the distribution system’s viability. Furthermore, the lack of transparency and accountability in tariff setting and revenue collection processes hinders the DISCOs’ ability to operate effectively. Addressing these challenges requires comprehensive reforms, including investment in infrastructure upgrades, regulatory enforcement, and improved governance practices.
Considering the reported issues with electricity distribution companies (DISCOs) like IBEDC and BEDC, what improvements do you believe are necessary to ensure reliable and consistent power supply?
To ensure reliable and consistent power supply, improvements in transparency, accountability, and operational efficiency within DISCOs are imperative. This includes implementing stringent regulatory oversight mechanisms to monitor performance, revenue collection, and service delivery standards. Additionally, investing in smart grid technologies and infrastructure upgrades can enhance system reliability and reduce technical losses. Furthermore, promoting consumer education and engagement initiatives can foster a culture of energy conservation and responsible usage, contributing to improved distribution system efficiency and customer satisfaction.
From your perspective, what role can independent power projects play in addressing the shortcomings of the current electricity distribution system?
Independent power projects (IPPs) can play a crucial role in addressing the shortcomings of the current electricity distribution system by supplementing grid supply with reliable and cost-effective alternative sources of energy. By diversifying the energy mix and reducing dependency on centralized distribution networks, IPPs can enhance system resilience and mitigate the impact of power outages on businesses and households. Additionally, IPPs can attract private investment, stimulate economic growth, and create job opportunities in the renewable energy sector, thereby contributing to Nigeria’s sustainable development goals.
Given the prevalent use of generators due to unreliable power supply, how can renewable energy solutions like solar power be effectively integrated into Nigeria’s energy mix?
Renewable energy solutions like solar power can be effectively integrated into Nigeria’s energy mix through a combination of policy incentives, regulatory frameworks, and public-private partnerships. This includes providing subsidies and tax incentives for solar energy investments, streamlining the permitting process for renewable energy projects, and establishing net metering policies to incentivise rooftop solar installations. Additionally, promoting consumer awareness and education campaigns can increase adoption rates and foster a culture of renewable energy usage. Furthermore, investing in research and development initiatives to enhance solar technology efficiency and reduce costs can make renewable energy solutions more competitive and accessible to a wider range of consumers.
With the recent increase in electricity tariffs and its adverse effects on businesses, what strategies do you think can be implemented to ensure affordable and sustainable power for SMEs?
To ensure affordable and sustainable power for SMEs, implementing targeted subsidy programs, tariff rationalisation measures, and energy efficiency incentives are essential. This includes providing financial assistance and grants to SMEs for adopting energy-efficient technologies and renewable energy solutions, such as solar panels and energy-efficient appliances. Additionally, implementing demand-side management strategies, such as time-of-use pricing and peak load shaving, can help reduce electricity costs for SMEs while optimising energy consumption. Furthermore, fostering competition in the energy market through deregulation and liberalisation measures can drive down prices and improve service quality, benefiting SMEs and consumers alike.
How can innovative finance solutions contribute to making renewable energy technologies more accessible to businesses and individuals in Nigeria?
Innovative finance solutions, such as Power Purchase Agreements (PPAs), lease-to-own arrangements, and crowd-funding platforms, can significantly lower the barrier to entry for businesses and individuals seeking to invest in renewable energy technologies in Nigeria. By providing flexible payment options, reducing upfront capital requirements, and mitigating financial risks, these finance solutions enable businesses and individuals to access affordable and reliable renewable energy solutions without bearing the full burden of upfront costs. Additionally, innovative finance models can attract private investment, stimulate market competition, and drive technological innovation in the renewable energy sector, thereby accelerating the transition towards a sustainable and resilient energy future.
In your opinion, what are the most promising renewable energy technologies for Nigeria’s context, considering factors like affordability, scalability, and reliability?
In Nigeria’s context, renewable energy technologies such as solar photovoltaic (PV) systems, wind turbines, and biomass power plants hold promise due to their affordability, scalability, and reliability. Solar PV systems, in particular, are well-suited for Nigeria’s abundant sunshine and can be deployed at various scales, from rooftop installations to utility-scale solar farms. Wind turbines offer another viable option, especially in coastal regions with consistent wind patterns. Additionally, biomass power plants utilising agricultural and organic waste can provide decentralized energy solutions while promoting sustainable agricultural practices. By leveraging these renewable energy technologies in combination with innovative financing mechanisms, Nigeria can diversify its energy mix, improve energy security, and reduce greenhouse gas emissions.
Regarding peer-to-peer energy trading, what opportunities do you see for its implementation in Nigeria, and how can it benefit both consumers and energy producers?
Peer-to-peer energy trading presents significant opportunities for decentralised energy generation, demand response management, and community empowerment in Nigeria. By leveraging blockchain technology and smart grid infrastructure, consumers can directly buy and sell excess energy to their neighbors, creating a more efficient and transparent energy market. This not only enables consumers to monetize their renewable energy investments but also fosters community resilience and self-sufficiency during power outages or grid disruptions. Additionally, peer-to-peer energy trading can incentivise energy producers to invest in distributed generation technologies, such as rooftop solar panels and microgrids, thereby reducing reliance on centralised power plants and improving grid stability. Overall, peer-to-peer energy trading has the potential to democratise energy access, promote renewable energy adoption, and empower communities to participate in the transition towards a more sustainable energy future.
What measures should be taken to address the issues of vandalism and theft of electricity infrastructure, which significantly contribute to power supply disruptions?
Addressing the issues of vandalism and theft of electricity infrastructure requires a multi-faceted approach involving collaboration between government agencies, law enforcement authorities, and community stakeholders. This includes implementing stricter penalties and enforcement measures for perpetrators of vandalism and theft, such as increased surveillance, patrols, and prosecution of offenders. Additionally, raising public awareness about the negative consequences of electricity theft and vandalism through education campaigns and community engagement initiatives can.
