Some politicians calling for the implementation of the
recommendation of the 2014 National Conference
might not actually be clamoring for some of
conference’s recommendations such as the creation
of 18 more states, asking churches and mosques to
pay taxes and that all members of the legislative arm
should serve on a part-time basis.

They could have their eyes on the conference
recommendation which talks about resource control –
probably the local control of massive reserves of oil
and gas in the south. Unfortunately, no single source
of energy can guarantee energy security and
prosperity.

The surest route to economic prosperity is through
manufacturing, which is powered by energy. China is
a good example of a country which has taken this
route.

With the abundant sunlight in northern Nigeria and the
recent power purchase agreements (PPAs) signed with
solar energy providers, Nigeria seems to be expanding
its energy mix.

Northern Nigeria has a great role to play in
guaranteeing Nigeria’s energy security. Nigeria
receives an average radiation of 7 kWh/m2 per day in
the far north and about 3.5 kWh/m2 in the coastal
latitudes. Interestingly, there are also large expanse of
lands in northern Nigeria to lay massive lengths of
solar panels. It is not surprising that private capital is
coming into the north for the construction of solar
power plants.

With the signing of a number of PPAs with solar energy
firms, states like Katsina, Kaduna, Sokoto and Bauchi
could add over 1000 megawatts (MW) of power to the
national grid, a third of Nigeria’s current generation, in
the coming months and years.

And with the right policies, these megawatts could
increase. After all, the US has a solar capacity of 10
gigawatts (GW).

To guarantee prosperity, Nigeria needs to start
thinking like other oil-rich nations. For example, UAE
plans to produce 44% of its electricity from renewable
(solar and wind), 38% from gas, 12 percent from fossil
fuel and 6 % from nuclear in 2050. The Gulf state is
investing $163 billion in its ambitious plan on
renewables.

UAE’s decision is good economics. Investment in
solar energy guarantees a long-term, stable and
inflation-protected return. Unlike gas-fired power
plants which need gas supply from oil companies,
solar plants need virtually nothing. The price of gas in
the global market has no effect in the supply of
electricity from solar plants. Also, in terms of risk, solar
power plants are not connected to pipelines, which are
prone to vandalism.

There are other good news in terms of economics. The
price of solar electricity, after factoring in the cost of
plant construction, is now coming down. Thanks to
technology. Last year, a solar firm, Solarpack,
contracted to sell solar electricity in Chile at just $29.1
per megawatt hour, almost half of the price of
electricity from gas-fired power plants in Chile.

Comparing the current pricing in Chile to Nigeria’s tariff
system, would amount to paying just N10.6 per
kilowatt hour. This means in the long term, there is a
possibility of producing very cheap electricity from
solar plants currently built in northern Nigeria. Cheap
electricity will turn around the fortunes of Nigeria.

With massive supply of solar electricity to the national
grid, gas-fired power plants in the south could adjust
its supply to capture cheap solar electricity. For
instance, Nigeria could have a scenario where it is
cheaper to use electricity during the day, when solar
plants are supplying electricity, and slightly costlier to
use at night, when gas-fired plants are supplying.

Health wise, more gigawatts can be added to Nigeria’s
energy mix without fear of noise and air pollution. This
means Nigeria could industrialize without harming its
environment.

There are other indirect benefits of constructing solar
plants. The construction of solar power plants creates
more jobs than any other power plant construction.

Unlike the construction of gas fired power plants which
consist of complex machinery, the bulk of the cost of
building solar plants goes to solar panels. It would be
easier to manufacture solar panels in Nigeria than to
manufacture gas turbines, whose engines are similar
to aircraft engines.

As a nation, we need the sunlight and vast expanse of
land in north. The south and north need each other.

TheCable