What subsidy removal has done for renewable energy – Expert

A renewable energy expert, Mr Uka Ibe, has described the removal of fuel subsidy as a good economic decision which favours the demand for renewable energy in Nigeria.

Ibe stated this while speaking on the acceptability of green energy regarding climate change advocacy with the News Agency of Nigeria (NAN) in Ibadan on Wednesday.

The Chief Executive Officer of Nexgen Energy and Allied Services Limited stated that there was a need for the implementation of government policies to tackle issues of climate change.

He said there had been more consideration for renewable energy products from his company, as informed by their distribution frequency.

“Yes, there has been an increasing uptake in the demand for renewable energy sources, in particular the solar hybrid systems, since the removal of fuel subsidy, which is a good economic decision,” Ibe said.

He, however, said the demand would have been more if the prices of green alternatives had not been affected by the removal of multiple exchange rates.

Ibe said the cost of importation has led to the increase in prices of solar power systems because Nigerian companies have challenges accessing foreign exchange to import production inputs.