Dangote Refinery MD flags high cost of solar power

The Punch newspaper highlights a critical perspective on renewable energy from David Bird, the Managing Director of Dangote Refinery. Bird challenges the prevailing narrative around solar power, asserting that its true cost is often underestimated when the full spectrum of lifecycle and system expenses, particularly those related to reliability and backup supply, are not adequately factored in. Speaking at the Nigerian Association for Energy Economics conference, he advocated for a pragmatic and balanced approach to Africa's energy mix, moving beyond a singular focus on specific technologies.

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Solar power is expensive when fully costed.

Bird's argument centers on the inherent unreliability of intermittent energy sources like solar and wind. He points out that the significant costs associated with ensuring a consistent power supply—such as large-scale battery storage—are frequently overlooked in public discourse. From a Nigerian standpoint, where energy reliability is paramount for industrialization and economic development, Bird's emphasis on 'on-demand energy' and the economic viability of infrastructure is particularly relevant. He questions the justification of capital-intensive projects if they are subject to the vagaries of weather and cannot guarantee consistent output.

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I still struggle to understand the economics of intermittent weather-dependent energy.

Furthermore, Bird touches upon the issue of subsidies, noting that current support mechanisms for renewable energy can disproportionately benefit wealthier households capable of affording the initial capital outlay. This perspective resonates within Nigeria, where equitable access to energy and resources is a significant concern. The Dangote Refinery boss's call for 'energy freedom' and a thorough evaluation based on utilization and reliability offers a counterpoint to the global push for renewables, urging a more nuanced and economically grounded discussion about Africa's energy future. The Punch frames this as a vital contribution to the ongoing debate on how best to power the continent's growth.

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The more solar and wind, the costlier it becomes because solar and wind are worthless when not sunny and windy. You pay twice for unreliable green energy and for a full backup electricity system. No cheap green electricity.