German Experts Advocate for Policy Shift to Monetize West Africa's Green Energy
German experts have urged a strategic shift in Nigeria and West Africa's energy transition approach, moving beyond basic electricity access to focus on converting green and renewable energy into sustainable livelihoods and investable assets. They emphasized that while electrification is often symbolized by a single light bulb in homes, the real impact lies in powering businesses, agriculture, and industries that generate income and employment for communities.
Key Insights from the WACEE Conference
These recommendations were presented at the 14th edition of the West Africa Clean Energy and Environment (WACEE) Trade Fair and Conference, held in Lagos from March 17-18, under the theme, 'Accelerating West Africa's Green Transition: Innovation, Policy and Investment'. The event brought together industry leaders to discuss innovative solutions for the region's energy challenges.
Economic Impact of Unreliable Energy
Ulf Brackmann, CEO of EnergiseImpact Group and keynote speaker, highlighted that unreliable energy supply is not merely an electricity issue but a broader economic problem affecting jobs, productivity, competitiveness, and prosperity. He described how rural and semi-urban economies suffer from power outages, leading to agro-processing mills shutting down, cold storage failures, and small businesses losing income due to high diesel costs.
Brackmann stressed that reliable and affordable renewable sources, such as solar and wind, could transform these communities by enabling small businesses to operate longer hours, preserving agricultural produce, and boosting incomes for farmers and entrepreneurs.
Addressing the Financing Gap
On financing, Brackmann noted that while significant global capital is available for green investments, many energy projects in Africa fail to attract funding because they are not structured as scalable and bankable ventures. He pointed out that renewable technologies like solar, wind, hydrogen, and mini-grids are already proven in countries like Nigeria and Ghana, but projects often remain small, fragmented, and inconsistent, making them unattractive to institutional investors.
To overcome this, he advocated for aggregating smaller energy projects into larger, standardized portfolios that meet the investment criteria of global financiers. Brackmann explained that bundling multiple projects into Special Purpose Vehicles (SPVs) would help diversify risks, standardize contracts, and create investment opportunities that institutional investors can support.
Policy Recommendations for Stability
Brackmann called on West African governments to establish stable and transparent regulatory frameworks, including predictable tariffs and investor-friendly policies that reduce risks and encourage long-term investments. Daniel Krull, Consul General of Germany in Nigeria, echoed this sentiment, urging policymakers and business leaders to prioritize policy consistency, innovation, and collaboration to address climate change and rising energy demand.
Krull cautioned that frequent policy changes deter investment, stating, 'You cannot change policy every three to four years and expect investors to commit. Regional leaders need to create stable and transparent frameworks that will encourage both local and foreign investment.' He emphasized that reliability and predictability in government policies are critical for attracting long-term green investment.
Collaboration and Future Prospects
In his opening remarks, Bastian Lidzba, a delegate of AHK Nigeria, stressed the importance of stronger collaboration between Nigeria and Germany to transform environmental challenges into viable economic opportunities. He highlighted areas such as sustainable infrastructure, climate resilience, and green finance, noting that deeper private sector engagement, enabling policy frameworks, and innovative financing mechanisms are essential.
Lidzba added that mobilizing green finance is a fundamental driver for scaling sustainable investments, and the transition to a green economy is no longer an aspiration but an economic necessity for long-term growth and urban productivity. He concluded that sustainable mobility systems and green infrastructure will play a defining role in enhancing the livability and productivity of cities as urban populations continue to expand.
