Sterling Bank advocates energy sector reform

Sterling Bank Plc recently supported the 4th Nigeria Energy Forum themed “Upscaling Clean Energy for Sustainable Development” as part of its commitment to the HEART of Sterling initiative to invest in five key sectors of the Nigerian economy namely Health, Education, Agriculture, Renewable Energy and Transportation.

Speaking as a panellist at the event, Adesola Alli, Head of Renewable Energy Unit of the bank, noted that global industry overview of renewable energy which stood at $1.4 trillion is expected to grow to a projected value of $2.5 trillion by 2025. She added that about $531 billion investment in energy supply and technology is required yearly between now and 2050.

She listed some of the industry’s major challenges as supply and demand gap, access to finance and inadequate investment as well as trust and product standardisation.

Alli said there was a need to create conditions for investment through policy and institutional reforms as well as to develop plans and targets for renewable energy while also ensuring that laws supporting investment in low-carbon energy are enacted.

She also called for the creation of favourable conditions for investment, improvement in project developers’ capacity to develop bankable projects, strengthening of the financial sector’s capacity to invest in the industry and to build technical and engineering capacity.

Alli said international support should focus on identifying and targeting critical sectors such as project bankability, equipment financing, feasibility studies and project assessment, adding that some public goods must be provided through public funding.

She called for the strengthening of awareness and capacity within industry as imperative for the adoption of low-carbon energy, noting that putting the right policies in place is crucial to attracting investment into the sector.