Energy-as-a-Service with renewable solutions to transform manufacturing landscape in Nigeria
By pre-financing electricity asset and leveraging microgrid / distributed energy resources, EaaS is steadily charting new business cases which could help to improve energy management service delivery and efficiency. Given the increasing demand for ancillary products and services including cost risk management and energy management solutions among electricity customers especially across commercial and industrial (C & I) market segments, traditional energy industry is gradually shifting from on-grid to decentralised system designs and product offerings. This evolving trend is anticipated to spur a huge demand for third party vendor-based energy-as-a-service (EaaS) solutions in the near future.
While speaking in Lagos at the 20th edition of the seminar series on Renewable Energy Potentials in Nigeria themed “Energy-as-a-Service”, the Deputy Consul General of the Federal Republic of Germany Lagos, Alexandra Herr lauded the impact of the series on renewable energy promotion at scale in Nigeria since inception in 2014. “It’s five (5) years now and this is a very special occasion for us. We are proud of the successes recorded through these series so far which among others include building local capacity, providing networking opportunities for stakeholders, advocacy and last but not the least, connecting businesses and developers on both technical and project partnership basis. Today, it is crystal clear that renewables have good prospects for C & I users, and could be the future for achieving universal energy access in Nigeria”, she concluded.
Considering that EaaS offers not only full-range service packages and embedded financial instruments with customers only paying monthly subscription or leasing fee, more importantly, it is highly flexible and dynamic in nature. “This sort of flexibility allows vendors / providers the avenue to redeploy the system to another client in the event of an outright contract failure”, said Godwin Aigbokhan, Head of the Energy and Environment Desk, Delegation of German Industry and Commerce in Nigeria. He further on stressed that EaaS with renewables offers cost-reflective, 24/7 and carbon neutral power supply for businesses and residential estates. “I think that it is rather a creative solution for both parties (buyer and seller) in that it has system efficiency and optimization weaved into the entire process from start to finish”, said Mr. Aigbokhan as he introduced the topic.
Furthermore, EaaS is a disruptive business model which demystifies the electricity supply and demand value chain from a business-to-consumer (B2C) perspective by passing on these burdens ―design, procurement, implementation, maintenance and services― to the service provider without the customer taking on additional overhead energy cost.
“As a facility manager and business owner, one of the last things you want to really worry about for your daily business operation is electricity. EaaS with renewable solutions (Solar PV) is more attractive, sustainable and even adequate for sustainability goals in contrast to conventional (fossil-fuel based) power purchase agreements,” said Helmut Kulitz, Deputy Head of Mission, German Embassy Abuja while delivering his welcome address in Abuja. Because EaaS carves open opportunities for liberalised retail electricity brokerage services ― a willing buyer, willing seller scenario―; monopoly is mitigated with better options for buyers and a healthy competition among service providers.
Financed by the Foreign Energy Policy Fund of the German Ministry of Foreign Affairs (AA), the seminars were facilitated by the Consulate General of the Federal Republic of Germany in Lagos, Delegation of German Industry and Commerce in Nigeria and the German Embassy Abuja.
The two-part seminars held in Lagos on Wednesday 20th November 2019, at Sheraton Hotel, Ikeja, Lagos with the Oyo State Commissioner for Energy and Mineral Resources, Barr. Temilolu N. O. Ashamu; and on Friday 22nd November 2019 at the Envoy Hotel in Abuja.
Both sessions were moderated by Olabode Sowumi, CEO, Cabtree Ltd. And speakers were Alexandros Papachristou, Country Coordinator Nigeria, Soventix GmbH; Kolawole Akinboye, Vice-President, Projects (Rensource Distributed Energy Ltd); Ayodeji Ayegbajeje and Benjamin Bako, Private Sector Development Specialists, GIZ Nigeria; and Lawrence Edeke, Country Director-Nigeria, Bettervest GmbH.