The globe has relied on nonrenewable energy business sources ranging from firewood to crude oil for thousands of years. However, given the world’s growing population and rising energy consumption, it’s becoming increasingly obvious that we’ll run out of energy supplies if we continue to rely only on wood and fossil fuels.
As a result, numerous countries throughout the world have begun to use energy derived from non-renewable natural resources such as wind, water, coal, oil, the sun, biomass, geothermal heat, and so on.
Renewable energy sources accounted for almost 19 percent of total world energy consumption in 2017, and their use has steadily increased since then. More countries throughout the world are increasingly using renewable energy in part or entirely.
Iceland and Norway currently rely entirely on renewable energy sources for their power. Renewable energy has a market worth of $928 billion and is expected to increase at a 6.1 percent compound annual growth rate (CAGR) to $1.5 trillion by 2025.
Several countries across the world have begun to generate renewable energy, mostly for domestic consumption. With a huge 19 TWh each year, Iceland is at the top of the list. They generate all of the energy they use from renewable sources. Norway, Kenya, Sweden, Germany, and China trail them.
Nigeria, on the other hand, continues to underutilize its renewable energy generation capability. Nigeria, being so close to the equator, has the potential to generate all of its electricity from solar energy alone.
However, the country’s renewable energy industry still has a lot of space for development. Solar energy is used to power streetlights in major Nigerian cities, including Port Harcourt, Lagos, Abuja, Calabar, Benin, and many others.
Many dwellings are also powered by solar energy. Nonetheless, solar energy is simply one of several types of renewable energy sources that may be explored in the country.
Interest in more renewable energy sources is likely to rise in the next years, especially given the unstable electrical system. As a result, renewable energy is a very profitable business endeavor for entrepreneurs and investors.
Here is a thorough step-by-step guide to help you build a profitable renewable energy business in Nigeria or Africa in general.
What Is Renewable Energy and How Does It Work?
Renewable energy is energy that comes from natural resources like sunshine, wind, water, geothermal heat, biomass, and so on. Because they are limitless and their sources are renewed by natural occurrences, they are referred to as “renewable.”
What Exactly Is A Renewable Energy Company?
A renewable energy business encompasses all of the possibilities for converting natural resources into electricity.
Renewable Energy Business Opportunities In Nigeria And Around The World
Production of Biofuel:
Biofuel manufacturing is a very profitable endeavor for anyone at any level. It entails creating fuels from recovered waste materials such as algae or sugarcane and other grain-derived ethanol.
In most industrialized nations, biofuel is in great demand, and it offers several benefits over fossil fuels.
Solar Panels for Sale:
The demand for solar panels and related equipment is increasing as the world moves away from the power grid and toward solar energy. This opens up chances for entrepreneurs interested in distribution.
Installing Solar Panels:
The installation of solar panels is another solar energy option. Installing a solar panel and connecting it to a power supply system in an apartment or a streetlight setup, for example, necessitates the assistance of qualified individuals.
Inverter, UPS, and Other Equipment Sales:
Selling energy generating or storage devices like inverters, panels, UPS, and other similar items is a fantastic way to get into the renewable energy sector.
Repair and maintenance services
Checking, maintaining, and repairing devices and machinery used in the production of renewable enterprises is a continual requirement. Engineers and technicians in the field will benefit from this.
Renewable Energy Facts And Benefits
- Renewable energy has no limits.
- It is secure and simple to use.
- Renewable energy emits extremely few greenhouse gases and is environmentally beneficial.
- It presents fewer health risks than other forms of energy.
- It generates numerous career possibilities for people all around the world.
- Pollution is avoided by using renewable energy.
- It is the engine that propels progress and economic prosperity.
- It entails a lot of recurring costs.
- It is really dependable.
- Given recent soaring demand and promising future possibilities, the renewable energy industry is very profitable.
- At the present, Iceland and Norway are by far the largest users of renewable energy.
- Solar power, hydropower, biofuel energy, and other sources of renewable energy exist.
- It promotes national economic independence and reduces reliance on imported fossil fuels.
Renewable Energy Types
The energy that comes from the sun is known as solar energy. It is the most widely available renewable energy source, and it is simple to harness for a variety of uses, including power generation, heating in cold periods, and so on. The most popular technology for converting sunlight into solar energy is the solar panel.
Water, like the sun, has been with mankind since the dawn of time. Through dams and reservoirs, hydropower is turned into energy. Hydropower is necessary for large-scale commercial manufacturing, and its energy can be stored and transported over long distances.
Biofuel energy is a fantastic technique to recycle organic waste for non-fossil fuel generation. Biofuel energy is a lucrative industry that anybody may enter, although it is best practiced on a big scale due to the tasking process.
Energy from Geothermal Sources:
Geothermal energy is the process of extracting heat from the earth and converting it into either pure heat or electricity. Geothermal energy is considerably easier to work within temperate climates than it is in colder climates.
The wind might be turned into energy and used to power a location using turbines. In industrialized countries, this is a widespread practice on farms. With the correct
In industrialized countries, this is a widespread practice on farms. Wind energy might be utilized to sufficiently power vast farms with the appropriate equipment and application.
This is a type of renewable energy that is generated by ocean waves. The tides’ currents are timed and turned into energy that may be used to generate power. Although sea tides are not always high enough to generate electricity, they are predictable, making it simple to time.
A Step-by-Step Instructional Guide
Make a decision on a niche:
Renewable energy is a very vast and varied industry. This means you must choose a certain sort of renewable energy to use.
Gather as much information as possible:
This is where you will study your chosen field of study. Examine the viability of the chosen energy source in your area, as well as the likelihood of such a firm succeeding.
Make Your Own Business Plan:
Every time you wish to establish a firm, the businessperson’s handbook, which includes a thorough business plan, comes in useful. Create a business plan that outlines all of the objectives, steps, and choices you intend to take at each stage of the company’s development.
Invest In Manpower And Tools:
Every type of renewable energy necessitates the use of tools, gadgets, and, in some cases, machinery. They also require the assistance of qualified professionals. Obtain the most basic tools and hire the necessary people.
Obtain a Business License:
Create a legal entity for your company and register it with the Corporate Affairs Commission and other state boards. To create energy on a significant scale, you’ll also require operating permissions.
Locate Your Clients:
You must first find your customers/clients before your firm can get up and running. Make your company known by using methods such as internet advertisements, networking with other businesses in the sector, and so on.
Nigeria’s Renewable Energy Business Challenges
- Young entrepreneurs may find renewable energy to be capital-intensive.
- It necessitates a significant amount of labor and machinery.
- The procedure might be taxing for some energy kinds.
- Food production is in competition.
- Weather conditions have an impact on several energy sources.
- Getting access to energy resources is difficult.
- Loans from banking institutions are difficult to come by.
- Renewable energy adoption is low, especially in poor nations.
- Renewable energy needs a significant amount of land.
- Machines have high maintenance expenses.
- Some types of energy need a lot of resources.
- Government assistance for renewable energy investors is limited.
Although the transition from fossil fuels to renewable energy will be slow, especially in Nigeria, it will eventually be complete. Given that the world is becoming increasingly aware of the need of protecting natural resources, renewable energy has a bright future.
Due to the enormous market need and your capacity to create a large network, the renewable energy company in Nigeria may be a lucrative and successful enterprise to start. If you’re searching for a profitable business to start, Nigeria’s renewable energy industry is a wonderful place to start.
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