INDICATIONS are that the negative economic myth about renewable, acts as a permanent excuse not to adopt a grand strategy to actively deploy renewable energy in the country.

The Managing Director, PSC industrial limited, said this in a statement delivered recently to Vanguard in Lagos on the case of government policy for increased investment in renewable as a source of energy in Nigeria.

Meanwhile, in developing economies as Nigeria, where after investments of several billions of dollars  have been made for over 50 years, he said  we only have about 2000MW of Electricity generated per year for a country of about 140 million people or more.

Owelle, noted that when speaking about renewable energies, the argument always arises like a pavlovian reflex on the issue of high costs. But the basic not critically analysed, assumption still predominates that renewable are not affordable in comparison with conventional energy sources.

According to him, we have continued to hear fleeting statement that the time for renewable has not yet come, but we will argue that time for renewable is certainly now and this computes to about 14Watts of electricity per person per year or less than one 40W light bulb for 1hour per person for each year.

In his words, “This is not only scandalous but should be unacceptable to the most wretched of societies on earth.

The earlier computation and analysis simply underscores and makes the case for a complete rethink on our dependence on the same old traditional fossil fuels for energy generation and demands immediate exploring of alternative sources.

Traditional fossil fuels and conventional power generation methods have failed us in Africa or Africa has failed the traditional and conventional power generation methods, it is now time to do something else; namely deploying and integrating power from renewable sources like Solar, Wind and Biomass in to the national power Grids.”

“The arguments that the time for renewable have not come and are highly expensive are not only short-sighted, but superficial and highly misleading.

They are short sighted because they ignore the fundamentally different economic prospects of conventional energies on the one hand and renewable on the other.” he said.

He further added that it is obvious that conventional Energies will become more and more expensive over time, whereas the costs for renewable will steadily decrease.

“Ten to fifteen years ago, the cost of crude oil was between $18 to25 dollars per barrel and today it is nearly $90 and increasing daily. Within this period, the cost of Solar power was $5/Wp and today it is $180/wp  and decreasing daily.

I will speculate that with deregulation and removal of subsidies by government of Nigeria that fuel cost will triple and Quadruple in a few years and will be out of reach to the average Nigerian worker.”

“Rising fuel costs from depleting conventional sources (oil and natural gas, coal, uranium etc) inevitably will result in increasing costs for conventional energy supply. Extraction costs for conventional energy sources will rise because the remaining resources become more difficult to extract, necessitating more complex and advanced technical efforts a’ la the tar sands of Canada”

“Over and beyond the above, due to the depletion of conventional energy resources, the fuel supply is coming from  fewer and fewer sources in an ever-decreasing number of countries which will then lead to Monopolisation of resources.

This will then give the suppliers of conventional fuels gain more and more opportunities to raise prices. At present- in the year 2010- we are in a down ward trending oil prices compared to the year 2008, but this is resulting from the critical global economic situation triggered by the global financial meltdown.

These comparatively low fuel prices – approximately $90/barrel are only short lived, as the mid-term trend of conventional fuel prices is undoubtedly pointing North (upwards).” noted.

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