Expert seeks Tax-Breaks for Renewable Energy Producers

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Sunday Ehigiator

Public affairs analyst and the CEO of Rianol Energy, Mark Obisesan has implored the Federal Government to of Nigeria to consider tax-breaks for Nigerian companies involved in the manufacture and/or importation of renewable energy components.

In a statement signed over the weekend, while speaking on the need to adopt renewable energy in Nigeria, Obiesesan referenced a quote from the International Energy Agency’s (IEA) 2011 World Energy Outlook (WEO) which warned that ‘the world is in danger of locking itself into an unsustainable future unless major changes are made by the energy sector to limit the global temperature increase to 2°C above the pre-industrial level.’

He said the report should have been a clarion call for Nigeria to adopt cheaper, cleaner and more sustainable energy solution which the renewable energy components offered.

“Today, nine years after, there are far more warnings documented which continuously urge the world to prioritise sustainable energy by working towards the achievement of three critical goals by 2030.

“These goals are universal access to electricity and clean cooking fuels, doubling the share of the world’s energy supplied by renewable sources from 15 to 30 per cent, and doubling the rate of gain in energy efficiency.

“The development and adoption of home-grown technology should also be encouraged through funding and international collaboration.”

He advised Nigeria to begin to explore the use of ethanol as a cheaper, greener and much safer domestic fuel in place of kerosene and cooking gas.

Obisesan noted that while ethanol burnt cleanly and did not produce any smoke or smell when blown out, kerosene produced more carbon and greenhouse gases than ethanol and also produced an unpleasant smell when blown out.

He said, “though the use of ethanol as a fuel may be slightly more expensive, with the rising crude oil prices and the search for alternatives to contemporary cooking fuels, it can still be seen as a viable alternative in the near future.

“Specially, tax-breaks should be granted to Nigerian companies involved in the manufacturing and/or importation of renewable energy components.

“The development and adoption of home-grown technology should also be encouraged through funding and international collaboration.”