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| Managing Director, Consistent Energy, Mr. Segun Adaju |
The Managing Director
of Consistent Energy Mr. Segun Adaju who is also the President of Renewable
Energy Association of Nigeria (REAN) in this exclusive interview with BRANDINFO
Editor, OLUWAGBENGA BANKOLE speaks on how Federal Government can encourage the
usage of solar power in Nigeria, the main purpose of setting up REAN and how
the association can collaborate with electricity distribution companies in
Nigeria in order for the country to have uninterrupted power supply. EXCERPT !
Tell us briefly about
Consistent Energy
Consistent Energy started business about two years ago
principally as a roof top solar energy company. Our ultimate goal is to displace
small and medium size generators for small businesses, households, schools,
hospitals and rural electrification.
Since the last two
years you would have done a lot of jobs. Tell us some of these jobs
We have so far been involved in powering Small and Medium-sized Enterprises (SMEs). We have done a lot of
installation for schools, houses, hospitals etc. Where we are presently is
powered by solar and a lot of houses around here are also powered by solar
which was installed by Consistent Energy. You cannot find or hear the sound of
generator here and have been running this system in this place for four years
even without relying on the national grid. We have done same thing all over
Nigeria. We have been involved in powering barber shops. Most barber shops in
Nigeria use a generator popularly known as “I better pass my neighbor.” We
realized that they spend a lot of money buying fuel almost on daily basis. The
amount they spend on fuel on yearly basis is very huge. Because of this we came
up with an initiative of designing a solar solution that will have the same
capacity as their small generators and that we can install in their shops. I
can categorically tell you that we have install for close to 250 barbers all
over Nigeria (Lagos, Abuja,Kaduna, Kogi, Delta, Rivers, Calabar state etc.). We noticed that a barber might not have the
initial capital to adopt solar because the least price for the installation we
do for them is about N310,000. We know it is expensive for them because they
are used to buying a small generator at the rate of maybe N30,000 and buying
N1000 fuel probably on daily basis. We know that the best way we can make
barbers to adopt our system is to introduce what we called leasing, rent-to-own
or pay-as-you-go and that is what we have deployed for them. We don’t deal with
individual barber, but through the association of barbers. The association
nominates the beneficiaries and helps us monitor the payment. In the long run
it is win-win situation. We create energy for their businesses, make profit for
our own company and reduce the pollution that goes into the atmosphere by their
generators. We noticed that the first barber we gave the solution to now has
three shops. When we met him he had only one shop and three staff. Today, ‘Efe’
in Magodo Isheri has three shops and has employed 12 people. This is because
the amount he spent on electricity has reduced compare to when he was using
generators.
What is the capacity
of Consistent Energy?
We have built capacity over the years. We have developed our
capacity in terms of staffing. We have installers in the entire 6 geopolitical
zone in Nigeria. Right now we cover about 10 states and it spreads across the 6
geopolitical zone including Borno state.
Do you think solar
power is the solution to epileptic power supply in Nigeria?
I will say yes, but I must also say that is not the only
solution. I am an advocate of what is called energy mix. That is using
different technology and option to generate electricity. It is not good to put
all your eggs in one basket. In the energy sector, Nigeria has been putting all
her eggs in one basket that is why we have unstable power supply. 80 percent of
our energy is powered by gas and when there is no gas supply or Niger Delta is
boiling we won’t have power. I am advocating for an energy mix that will
include solar and renewable energy as a whole. I also know that Federal
Government strongly believe in it that is why they have what is called vision
30,30,30. The government wants to generate 30000megawatt by year 2030. 30
percent of which should be renewable energy. Solar is the one of the solution
that will help Nigeria to achieve the energy level that we require.
I have interviewed so
many Managing Directors of solar power companies and have been able to know
that these companies have great plans when it comes to electricity Nigeria. But
why is it that solar power companies are not working hand-in-hand with
electricity distribution companies in Nigeria?
There are three ways solar energy can be used to reduce our
energy shortage.
Number one is what is called the ‘off-grid.’ Consistent Energy
function strongly in the off-grid. We provide energy for communities through ‘stand
alone systems’. For such system we don’t need to work with DISCOs. All we need
is to ensure that when we are connecting anybody the person can still get light
also from the Discos. For that we don’t need to work with the Discos. If we are
doing 100kilowatt and we are not distributing, selling or transmitting we don’t
need to work with the DISCOs.
Secondly, if we want to sell electricity that is above 100 kilowatt,
do a mini-grid or captive power we will need to sit down with the Discos and
discourse. Captive Power is a kind of power that is done for a whole community
(like an estate) which would be routed through the network of electricity
distribution company. To do a captive
power we would need to sit down and discourse with the Disco.
Thirdly, setting up of solar farm. If we want to do that we will need to go to somewhere in Kogi state and look for 100 hackers of land. After getting that land, we will mount solar panels and connect it directly to the grid. If we want to do that we must get power purchase agreement from Nigeria Bulk Electricity Trading Company and relate with GENCOs and DISCOs around that community.
For the first method we don’t need DISCOs, but for the other
two methods we need to work with them. Most DISCOs in Nigeria see solar power
companies as their competitors. DISCOs think we want to take their business. We
can’t take their business because they are not even supplying enough power and
it should not be so. We need to come together and collaborate. The way out of
the current unstable power supply we are facing in the country is for us to
collaborate. There is a new mini-grid policy that is coming up now that
structure how we would deal with the DISCOs. The collaboration between us and
the DISCOs will be a welcome development to increase the energy that is
generated in Nigeria.
How do you think
government can encourage the usage of solar power in Nigeria?
As the President of the Renewable Energy Association of
Nigeria (REAN), we are happy that in the last two or three year we have been
working with various partners in the country like the Nigeria Economic Summit
group, Power-for-all and others. We are doing all these in order for government
to understand the power of renewable energy and I think we are making progress.
Recently the renewable energy roundtable was launched at the state house with
Acting President Yemi Osinbajo in attendance. We tabled everything that needed
to be done as far as renewable energy is concern because we see renewable
energy as the solution that will help Nigeria to add to its energy generation.
Government can encourage the usage of renewable energy in
Nigeria by providing the right framework and adequate policies. We need
policies for incentives. In countries like Kenya, Bangladesh etc. there are
incentives for renewable energy companies. We also need tax holidays, custom
duties concession, VAT waivers and pioneer status.
Our second challenge is the issue of access to finance.
Finance has been the major challenge hindering Nigerians from adopting solar
power at the rate at which it should be. Consistent Energy came up with an
innovation that made close to 250 barbers to adopt solar power. If we didn’t adopt that solution a single barber would not adopt solar power because he/she
cannot afford to pay us N310,000. The government needs to create an innovative
solution in terms of intervention fund. Solar energy companies like Consistent
Energy, Solynta Energy and others can access finance and then lend this finance
to end users. We need access to finance through Bank of Industry,
Infrastructure Bank, New Development Bank of Nigeria and Central Bank of Nigeria
among others.
Our third challenge is the outrageous substandard solar
panels in the country. People smuggled substandard solar panels into the
country through the borders. Government need to set a standard. There are some
solar panels that should not be allowed into the country if they are below a
particular standard set by the government. Some countries in Africa have done
so, but the perpetrators have seen Nigeria as dumping ground. It affects our
business and makes some people believe solar power is not working or not the
solution. Government must ensure our borders are not porous, but very tight.
Standard Organisation of Nigeria (SON) must ensure that the right products come
into the country.
As the President of
Renewable Energy Association of Nigeria (REAN), tell us about the association?
Renewable Energy Association of Nigeria (REAN) was
officially launched in November 26th 2016 with the support of
several partners which include Nigeria Economic Summit group, Power-for-all and
several others. The idea of forming the association is to get all players in
the industry to work together and have a body that we can use to create advocacy.
Through that body we engage with government to tell them what we need and how
the power sector in Nigeria can move forward. Our mission is that we want to
achieve vision 30,30,40. The federal government vision is 30,30,30. We want
renewable energy to provide the 40 percent of the 30000megawatt the federal
government want to achieve by year 2030. We have solar power organizations that
have join us across the country. We want to be doing advocacy, find poll of
finance that people can access and set standard for our members. For example as
a member of REAN, there is a minimum standard the association expects me to
have. If I do an installation that is below that standard I can get sanctioned.
REAN is like Nigeria Bar Association (NBA) or Institute of Chartered Accountant
of Nigeria (ICAN). Part of our plans is for solar power companies in Nigeria to
have labels with codes which they will put on every of their installation or
work. This is in order to checkmate ourselves in terms of quality services. In
the last eight month that we have started it has indeed helped the industry. We
are not competing with one another. The market is too big for everyone. We have
members in Kaduna, Abuja and other part of the country. The association cut
across five technologies. We have solar, wind, small hydro, biomass and
geothermal.
What are the few
plans of Consistent Energy?
Base on the finance we are going to raise which we are
making good progress, by the end of this year we hope to have powered 1000
SMEs, especially the barber shops in Nigeria. Our vision is to displaced
1million small generators that SMEs use by year 2030.
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