Expert canvasses long-term financing for renewable energy

Energy expert and Chairman of AO Demarg – an indigenous solar power generating company has called on the need for government to provide long term financing for firms engaged in renewable energy in the country.

General Ademola Fadunsi (rtd) made the call while speaking to journalists in Abuja on the sideline of the annual thanksgiving of the solar energy giant, AO Demarg.

Fadunsi expressed concern over the reluctance of local banks to provide loans to the solar energy sub-sector even as many people are now embracing solar as alternative and reliable source of energy.

He however commended the Federal Government’s intervention through the Bank of Industry, which has made N2 billion available to enhance solar energy.

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According to him, one of the challenges facing the solar sector in Nigeria today is finance.

“In Nigeria today, the local banks are not giving loan to anybody, but as God will have it, with the interest the Federal Government is putting in solar business, bank of Industry has released two billion naira solar fund for investors, individuals and banks to access for the purpose of solar. I think is a good start,” Fadunsi added.

The energy expert noted that the FG’s initiative of connecting remote communities with solar mini grid will go a long way in addressing energy needs of the people and reduce pressure on the national grid.

He said, “The Federal Government has started doing something with solar in the sense that it is considering powering some remote communities with solar mini grid in partnership with the private sector and the World Bank. It is a step in the right direction to power rural communities with solar.’’

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Speaking further, he commended the government on its policy on energy generation adding, “the government is providing a level playing ground for all players in the solar industry.

“Many people are becoming aware of solar energy and are embracing it too. Meanwhile, the government is giving every player in the industry level playing ground depending on your capability, your technical knowhow and you financial mark up too.

If the government is giving out fund, you as a vendor, you must contribute some percentage. You must show that commitment so that you won’t see the money given to you as free money.”

AO Demarg is a solar power generating company that specializes in the design, supply, installation and servicing of solar energy equipment.

Mathew Dadiya, Abuja