Nigeria’s Journey Towards Sustainability: How Businesses Can Adopt Energy Efficient Solutions
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Energy is one of the most important valuable resources on Earth. Every individual, residence, business, and organization depends on energy availability to improve their operational efficiency.
Research by the Nigerian Power Sector recovery program currently shows that around 80% of Nigerian businesses cite electrification challenges as the most significant obstacle to doing business. The erratic power situation in the country has resulted in $25 billion in annual losses to the economy and has paralyzed the industrial and commercial activities for the past two decades leading companies to provide their own power-generating sets as sources of electricity resulting in huge transfer costs on their products and services. Fortunately, Nigeria is blessed with abundant renewable energy resources such as solar, wind, biomass, and small hydropower potentials yet have not performed well over the years in terms of sustainable energy practices. The logical solution is the increased penetration of renewables into the energy supply mix and the need for businesses to adopt solutions that are energy efficient
Although Government participation in the Nigerian renewable energy market has been minimal, here are some policies that provide a broad outline of the legal framework for Nigeria’s renewable energy market.
Environmental Impact Assessment Act (federal enactment, 1992): Makes it mandatory for an EIA to be conducted for projects that are likely to have significant effects on the environment
Renewable Energy Policy Guidelines (Ministry of Power, 2006): Provides cost-effective measures to accelerate renewable projects and the development of off-grid independent renewables systems.
NERC Renewable Energy Feed-in Tariff Regulations (2015): Support greater private sector participation in power generation from renewable energy technologies.
What exactly is energy efficiency or energy-efficient solutions?
According to Wikipedia, “Energy efficiency is the goal to reduce the amount of energy required to provide products and services” while some energy-efficient solutions include — building insulation to maintain a comfortable temperature, Installing LED lighting, or natural skylight windows to using clean cooking stoves for restaurants. According to the International Energy Agency (IEA), improved energy efficiency in buildings, industrial processes and transportation could reduce the world’s energy needs in 2050 by one third, and help to control global emissions of greenhouse gases.
Benefits of Energy Efficient Solutions to Nigerian businesses
Lower Energy and Operational Costs: A company can cut around a third of its energy costs by investing in energy efficiency. While the idea may be scary due to up-front costs, they are more cost-effective and offer a higher return on investment.
Increased Market Value of Property: A growth in demand for green-energy spaces is expected to be a long-term cost-benefit if businesses adopt these solutions. Businesses with more efficient buildings tend to have higher occupancy rates and increased asset value compared to typical buildings.
Improvement in Marketing and Public Relations: Consumers are likely to patronize a business when they adopt energy-efficient solutions in their operations, thereby improving marketing.
Comfortable and Healthier Employees: Good air-quality in the work environment can improve employee health and potentially reduce the costs of medical and health benefits. A report by Cone Communications shows that employees are more loyal to companies that contribute to sustainable development thereby making them more comfortable at work.
How Businesses in Nigeria Can Adopt Energy Efficient Solutions
Re-Strategizing and developing a clean energy strategy for the business: A clean energy strategy will help companies to understand their energy profile, develop a roadmap to improve competitiveness, and reduce costs. To develop a clean energy strategy, companies will need the service of sustainability experts to set clean energy targets, continuously review and improve the strategy and advice for investments in renewables.
Green Procurement: This is one of the best ways to make a business more environmentally-friendly. This involves sourcing goods and services that are produced and supplied sustainably. For example, buying A-rated energy-efficient products can save a business money in the long-run.
Investing in energy-efficient technologies: Investing in energy-efficient technologies will help reduce the amount of energy required to provide products and services. For example, incorporating innovative technologies, such as 3D printing, into manufacturing processes to reduce waste from long-run production and prototyping.
Analytics and artificial intelligence (AI) systems for intelligent operations: Businesses should integrate smart analytics systems into their operations to generate greater returns, for themselves, and increase energy efficiency.
With all been said, businesses must adopt Energy Efficient solutions and be quick to adapt to the disruption going on.
Reach out to the Team on LinkedIn: Bright Nwaneri (Partnership Lead at GKN), Blessing Ojo (Research Analyst at GKN), Joseph Olaide (Research Analyst at GKN) and Kafilah Abisola (Research Analyst at GKN)
References:
• Energy Efficiency & Renewable Energy — Commercial Buildings Integration https://www.energy.gov/eere/office-energy-efficiency-renewable-energy
- The Renewable Energy Law Review — Edition 2 https://thelawreviews.co.uk/edition/the-renewable-energy-law-review-edition 2/1196444/nigeria
- Benefits of Making Your Business Energy Efficient https://www.igs.com/energy-resorce-center/energy-101/4-hidden-benefits-of-making-your-business-energy-efficient
- Renewable Energy Potential in Nigeria by Chris Newsom, Stakeholder Democracy Network https://pubs.iied.org/G03512/
- Efficient Energy Use https://en.wikipedia.org/wiki/Efficient_energy_use
- Here’s How Energy Efficiency Can Benefit Your Business https://energyrates.ca/heres-how-energy-efficiency-can-benefit-your-business/
- SMEs and Alternative Power for Nigeria https://www.stearsng.com/article/smes-and-alternative-power-for-nigeria
