by
Tom Lam
The US-Iran conflict, alongside subsequent oil price spikes, is forcing developing countries like Nigeria and Sri Lanka to rapidly overhaul their energy strategies.
Both nations are increasingly leaning on solar power despite significant financing and infrastructure hurdles, according to reports by Bloomberg and Agence France-Presse.
In Nigeria, small-scale solar capacity has surpassed the electricity delivered by the national grid, Bloomberg reports. High fossil fuel prices and an influx of affordable Chinese solar technologies have accelerated a mass shift away from traditional petrol and diesel generators.
At the Alaba International Market in Lagos, West Africa's largest electronics bazaar, solar panels and lithium batteries have replaced generators as the dominant storefront items. 
However, the green transition is stymied by a massive financing gap. Equipping a three-person household costs roughly US$4,500 (HK$35,100) which is about seven times the price of a new petrol generator. 
Also, local borrowing rates hover around 27 to 36 percent, locking many lower-income households out of the renewable boom and forcing consumers to adopt a gradual "fuel stacking" approach, where they keep their generators while transitioning to solar.
The bulk of the US$8.5 billion spent on small-scale solar across sub-Saharan Africa last year was paid upfront.
Meanwhile, Sri Lanka, which imports all its oil and gas, has been hit hard by shipping disruptions in the Strait of Hormuz. AFP reports that the government has at times spent up to 30 percent of its foreign exchange reserves in a month on fossil fuel imports.
To mitigate this financial bleeding, energy minister Anura Karunathilaka told AFP that Sri Lanka aims to generate over 70 percent of its electricity from renewables by 2030, targeting a 388 percent jump in solar capacity by 2029. 
Yet, this aggressive push requires heavy infrastructure investment that the fragile economy struggles to support, as the state seeks crucial investments to build five major transmission lines and expand battery storage to stabilize the national grid.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
 
 
 

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