Carbon credits policy vital for Nigerian renewable energy growth

Fabian Lojede, the co-founder of Taranis Novus, a renewable energy startup, emphasized the necessity for the Nigerian government to establish a comprehensive policy framework regarding carbon credits. This policy, he argued, is instrumental in fostering the adoption and proliferation of renewable energy solutions within the country.

In a conversation with Infostride News in Lagos, Lojede stressed that a well-defined carbon credits policy would serve as a powerful incentive for companies to embrace and invest in renewable energy, contributing significantly to Nigeria’s pursuit of its goals outlined in the Renewable Energy Master Plan (REMP).

As outlined in the REMP, Nigeria has set ambitious targets for the development of renewable energy sources. The plan aims to increase the share of renewable electricity in the country’s total electricity generation from 13% in 2015 to 23% by 2025, and eventually reach 36% by 2030. These targets are critical in reducing the nation’s reliance on fossil fuels and mitigating the environmental impact of energy production.

Currently, the renewable energy sector in Nigeria is still in its early stages, with solar energy being the most widely accessible and utilized resource. According to Lojede, the government’s establishment of a clear and accessible policy for claiming carbon credits in the renewable energy sector is vital for its growth. Such a policy would not only provide guidance on how stakeholders in the industry can access carbon credits but also make it easier for local companies engaged in renewable energy to navigate the process. Additionally, Lojede recommended tariff reductions on imported renewable energy equipment as another way to incentivize and attract more companies to invest in renewable energy projects in Nigeria.

In light of recent developments, including the removal of fuel subsidies and the escalating costs of traditional fossil fuels, Nigeria stands at the threshold of a renewable energy revolution. Lojede drew a parallel with the GSM revolution, highlighting that the increasing cost of energy across Africa and specifically in Nigeria is propelling the adoption of renewable energy sources. The advancements in renewable energy technology, particularly in the field of solar energy, have made these solutions more accessible and efficient. He stated, “We’re almost at that stage that we were when GSM came, and I think the next kind of technological revolution that will take place is the adoption of renewable energy platforms and formats.”

Taranis Novus, a tech startup with a diverse portfolio encompassing various sectors of the economy, including renewable energy, is committed to curbing energy costs for businesses in Nigeria. In response to the recent fuel subsidy removal, the company has solidified its mission to reduce energy-related expenditures for businesses. One of their strategic moves in this direction was the establishment of a partnership with LithTech, a leading renewable energy solutions company with its research and development base in Germany and a production line in Shenzhen, China.

Lojede emphasized that Taranis Novus intends to alleviate the energy costs incurred by businesses, especially in the healthcare sector. By providing energy-efficient solutions for hospitals, the company aims to make quality healthcare more affordable and accessible to Nigerians. He acknowledged that the rising energy costs have a cascading effect on the prices of various products and services in Nigeria, leading to increased expenses for consumers. Embracing renewable energy solutions, Lojede argued, could help businesses reduce their energy costs by up to 50%, which would not only benefit the economy but also improve the quality of life for many Nigerians.

In conclusion, the Nigerian government’s adoption of a well-structured carbon credits policy, coupled with tariff reductions on imported renewable energy equipment, could be pivotal in driving the growth of the renewable energy sector. As the cost of traditional energy sources rises, the country is on the cusp of a renewable energy revolution, with the potential to significantly reduce energy costs for businesses and consumers alike. Taranis Novus, through its innovative approaches, exemplifies the potential for tech startups to play a vital role in reshaping Nigeria’s energy landscape and fostering sustainable development.