Solar Energy business in Somalia

[Michael Blackson]

Somalia has one of the highest cost per kW. Electricity is 100 times more expensive than the US for example. Add to that the demand and virtually no competition. Shouldn't this be a great business opportunity for small-scale solar modules?


What am I missing here because if solar can be a feasible option for people in the US who are already connected to a grid it should be a huge success and the margins should be insane in Somalia?

 

[Cotton Eyed Joe]

It's already happening here's some threads

https://www.somalispot.com/threads/...-sun-energy-didnt-know-it-was-this-big.36416/
https://www.somalispot.com/threads/...r-wind-power-is-operational-in-garoowe.19921/
https://www.somalispot.com/threads/these-wind-turbines-are-being-set-up-in-outside-garowe.35687/

 

[DR OSMAN]

It's already happening here's some threads

https://www.somalispot.com/threads/...-sun-energy-didnt-know-it-was-this-big.36416/
https://www.somalispot.com/threads/...r-wind-power-is-operational-in-garoowe.19921/
https://www.somalispot.com/threads/these-wind-turbines-are-being-set-up-in-outside-garowe.35687/

It's the reliability factor and cost of investment and no sort of incentive or reward to switch to clean energy. They already have something that works and is reliable, when u have diesel engines, you can put more oil in there and it's guaranteed to generate electricity, you have better control cause your in 'charge' basically, same with coal, if it runs out you go and add more coal or any sort of natural resource u control it and add or decrease it, it's subject to you and you only. To me anyways, I feel it a part of it also comes down to who is in charge and reliability why fossil fuels are still popular. I also think there is an economic reason, they already invested heaps into this sector, to ask them to re-route to a highly fluctuating source(sun, wind and not many suppliers) plus ask them to direct capital investment is a hard selling point. Even if they do go, their is hardly any suppliers and it hasn't evolved yet like the natural resources where you can just switch suppliers any-time and it's competitive in the natural resources sector, you will find it hard to do that with clean energy as the suppliers are limited. So there is economic reasons behind it.

I mean solar, wind, all are great but we all forget that we are not in charge of wind and the sun so reliability comes into question, clean energy nature controls it we can't make wind come or the sun rise and predict it, it's highly unpredictable. We have no 'input' and are at it's mercy and that means it can fluctuate and not provide energy at any time. People don't like that sort of risk, business wise and customer wise!!! They want guaranteed safe bets. Solar-Wind and all these will remain small projects individuals do who want to try it out for difference, nothing the big natural resource boys are going to touch. The only difference I can see is if the govt 'forces' it on them through laws and bars fossil fuels or makes it highly unattractive with 'penalties' that affect their bottom line and this requires bi-partisan support across both parties in democracies or else the natural resource boys will just fund a party to get rid of those laws that is hurting them. People don't change if they don't have a reason or pressure too, it's an evolutionary concept and I highly agree with that. The big corps will change only if it's 'forced' either thru penalties for using those undesirable energy sources or if there is laws out there that says it's illegal and so forth.

That's my best guess, I am not a climate change person but just know how evolution works and it works across not just animal life but even in social life.

 

[Michael Blackson]

It's already happening here's some threads

https://www.somalispot.com/threads/...-sun-energy-didnt-know-it-was-this-big.36416/
https://www.somalispot.com/threads/...r-wind-power-is-operational-in-garoowe.19921/
https://www.somalispot.com/threads/these-wind-turbines-are-being-set-up-in-outside-garowe.35687/

Good to see the development. I was more talking about small-scale modules for individual households. These cost under 100 dollars and have a average lifespan of 6+ years. Of course a large-scale grid solution makes more sense in densly populated inner cities.

It's the reliability factor and cost of investment and no sort of incentive or reward to switch to clean energy. They already have something that works and is reliable, when u have diesel engines, you can put more oil in there and it's guaranteed to generate electricity, you have better control cause your in 'charge' basically, same with coal, if it runs out you go and add more coal. To me anyways, I feel it comes down to who is in charge and reliability why fossil fuels are still popular. I also think there is an economic reason also, they already invested heaps into this sector, to ask them to re-route to a highly fluctuating source plus the capital investment required is a hard selling point.

I mean solar, wind, all are great but we all forget that we are not in charge of wind and the sun, it controls itself, nature controls it, we have no 'input' and are at it's mercy brother and that means it can fluctuate and not provide energy at any time. People don't like that sort of risk, business wise and customer wise!!! They want guaranteed safe bets basically. Solar-Wind and all these will remain small projects individuals do who want to try it out for difference nothing the big natural resource boys are going to touch. The only difference is if the govt 'forces' it on them through laws and barrs fossil fuels or makes it highly unattractive with 'penalties' that affect their bottom line. People don't change if they don't have a reason or pressure too, it's an evolutionary concept and I highly agree with that. The big corps will change only if it's 'forced' either thru penalties for using those undesirable energy sources or through if there is laws out there that says it's illegal and so forth.

That's my best guess, I am not a climate change person but just know how evolution works and it works across not just animal life but even in social life.

This won't be a choice to switch to clean energy. It's mainly an upgrade from a very inefficient method (diesel generators) or getting electricity for the first time.
As for controlling charge, true. This is the upside of diesel but there are batteries included in the system and it should cover your normal 24h use.
Of coure the bottom line must make sense for the consumer but if you can persuade people that in the long run you'll pay less since you don't buy diesel. Matter of fact even the initial cost might be lower, I doubt a diesel generator cost less per kW. We have one of the highest number of sun-hours and irridiance a year. Especially in the PL region where I'm interested in there's practically no clouds

 

[DR OSMAN]

Good to see the development. I was more talking about small-scale modules for individual households. These cost under 100 dollars and have a average lifespan of 6+ years. Of course a large-scale grid solution makes more sense in densly populated inner cities.



This won't be a choice to switch to clean energy. It's mainly an upgrade from a very inefficient method (diesel generators) or getting electricity for the first time.
As for controlling charge, true. This is the upside of diesel but there are batteries included in the system and it should cover your normal 24h use.
Of coure the bottom line must make sense for the consumer but if you can persuade people that in the long run you'll pay less since you don't buy diesel. Matter of fact even the initial cost might be lower, I doubt a diesel generator cost less per kW. We have one of the highest number of sun-hours and irridiance a year. Especially in the PL region where I'm interested in there's practically no clouds

A diesel generator may or may not be cheaper but it's proven. Solar-Wind isn't proven and highly unreliable compared to diesel where u can add more oil and control what comes out. Can I make the sun rise or the wind blow? I am hostage to clean energy, there is no denying that or getting around it. I am not hostage to diesel, coal, nuclear as these are in the ground and I can pick it up and add more as I need it hence ensuring reliability cause I am in control. Be fair in your assessment of these two options and don't run onto the clean energy gravy train. Cost wise, The infrastructure is already in place for natural resources, they are not adding anything. The drills, equipments, the transporters, the refineries, etc are already there, how are u going to be cheaper to something that is already there in the initial stages? You said 'initial' not 'long term operating'.