Abuja energy storage subsidy

Will Nigeria's fuel subsidy end a shift to solar?

Ending Nigeria’s fuel subsidy pushes a shift to solar. Without a climate plan, progress is at risk Solar panels on the rooftop of a house in Abuja Abuja, Nigeria. Saturday June 17, 2023. Nigeria’s removal of a subsidy that helped reduce the price of gasoline has increased costs for people already struggling with high inflation.

Will a Nigerian subsidy help reduce gas prices?

Solar panels on the rooftop of a house in Abuja Abuja, Nigeria. Saturday June 17, 2023. Nigeria’s removal of a subsidy that helped reduce the price of gasoline has increased costs for people already struggling with high inflation. But it also potentially accelerates progress toward reducing emissions in Africa’s largest economy.

Will Nigeria's removal of a fuel subsidy help reduce emissions?

Nigeria’s removal of a subsidy that helped reduce the price of gasoline has increased costs for people already struggling with high inflation. But it also potentially accelerates progress toward reducing emissions in Africa’s largest economy. (AP Photo/Olamikan Gbemiga) A man displays a solar panel for sale at a shop Abuja, Nigeria.

How much money does Nigeria spend on fuel subsidy?

Reducing fuel costs was a popular but environmentally and economically costly system. The state petroleum company, NNPC, says Nigeria spent 4.39 trillion naira ($9.7 billion) on the subsidy last year, leaving the government struggling to finance infrastructure projects, including rail systems that could help reduce emissions from vehicles.

Should Nigeria implement a net metering policy?

“Nigeria also needs to implement its net metering policy to allow solar owners to sell excess power to the grid during the day and reduce their net electricity bills. This would reduce the need for battery storage,” said Oluwatola, CEO of TAO Energy in Abuja. The cost is holding back Ifeanyi Ogbonna.

Should Ifeanyi Ogbonna use solar energy?

The cost is holding back Ifeanyi Ogbonna. He owns a pharmacy in Abuja and would prefer to use solar energy but said installing the system would be costly given that his business needs a refrigerator and air conditioner. That means he will stick with his gas-powered generator.