The Federal Government’s goal of achieving 30 per cent renewable energy by 2030 may be threatened by the new import duties introduced by the Nigerian Customs Service (NCS), the President Renewable Energy Association of Energy (REAN), Mr SegunAdaju, has said.
The government, he said, may not meet its target of producing 30 per cent of national electricity requirement through renewable energy sources if it fails to review its duties on solar energy panels and accessories.
According to him, solar generates more electricity than bio-mass and other renewable energy sources, adding that his members have been finding it difficult to survive since February this year, when the NCS introduced 10 per cent tariff increase on solar panels and other equipment brought into the country.
In a telephone interview with The Nation, he said the development was posing grave consequence to the solar electricity providers as well as the Federal Government, which intends to achieve 30 per cent of electricity through solar and other renewable means by 2030.
Adaju said: “Hitherto, solar energy providers were enjoying zero import duties on their equipment. But that has changed since February 2018, when the Customs started implementing 10 per cent tariff on solar panels and other equipment used by the producers of such electricity.”
According to him, Customs are charging five per cent import duties on solar panels and another five per cent on materials used to produce solar power. He said the government would not be able to achieve its goal of improving electricity supply through renewables until it ensures a downward review of duties charged on renewable energy materials.
“The government should stop deceiving itself that it would achieve 30 per cent renewable electricity by 2030 on the back of increased tariff on some power equipment. The producers of renewable energies are bemoaning their fate, as well as gradually exiting the business. Out of the three renewable energy sources, solar is cheaper and more reliable. Solar produces more electricitythan biomass,” he added.
He blamed the government for introducing energy mix in order to enable the country generate electricity through both off-grid and on-grid means.
The government, he said, should have put in place a structure that is solid and friendly for the production of renewables since it realises that production of electricity through gas and hydro means is no enough in both developed and developing countries.
The government, he said, has further worsened the electricity problems in the country by introducing new import duties for producers of renewable energy.
He noted that the body, in conjunction with other stakeholders, is organising a conference with the theme: “Solar Future Nigeria”, in May this year, as part of efforts to create awareness for the production of solar and other renewable energy sources.
He urged companies to put production of renewable energies, especially solar in their plans, adding that reliance on thermal and hydro electricity generation is evidently not enough to improve activities in countries across the world.
The post New import duty threatens 30% renewable energy target by 2030 appeared first on The Nation Nigeria.