Nigeria’s ongoing power crisis is creating new opportunities for decentralised solar as businesses search for alternatives to expensive diesel and petrol generators.
Unreliable grid electricity continues to disrupt operations and increase costs for businesses across the country. PowerGen is betting that solar systems and mini-grids can offer a more reliable solution at scale.
Speaking to Business Africa, Connor Shine, Director at Delphos, discussed whether commercial solar can now compete with traditional generators and how financing structures can help overcome some of the challenges facing clean-energy investment.
One of the biggest hurdles is currency volatility. Local currency depreciation can increase the cost of imported solar equipment while making dollar-denominated financing more difficult to manage.
Delphos structured its financing for the PowerGen deal with these currency risks in mind, highlighting the importance of innovative financing as Africa works to expand decentralised energy.
The model could potentially be replicated in markets such as Kenya, Ghana and the Democratic Republic of Congo, where businesses and communities are also looking for more reliable electricity.
For Nigeria, the growing solar market could signal a gradual shift away from generator dependence while helping businesses manage one of their biggest operating costs.
Main Image: dw.com
