Goli Innocent
Lagos — The Managing Director of Dangote Refinery, David Bird, has cautioned that solar power is far more expensive than widely portrayed when its full lifecycle, storage and backup costs are properly considered.
Speaking at the Nigerian Association for Energy Economics conference in Lagos, Bird said the global energy debate has become too narrowly focused on renewables, often at the expense of economic realities, energy reliability and industrial competitiveness.
“Solar power is expensive when fully costed,” he said, arguing that public discussions frequently overlook the significant costs required to ensure uninterrupted electricity supply from weather-dependent sources.
According to him, the true cost of solar extends well beyond installation. It includes battery storage, backup generation, grid integration and eventual replacement or disposal of ageing equipment. Without these additions, he said, comparisons between renewable and conventional power sources remain incomplete.
Bird questioned the economics of intermittent energy systems, noting that solar and wind generation are inherently dependent on weather conditions. Ensuring round-the-clock supply, he argued, requires substantial backup infrastructure that is expensive to build and often underutilised.
“The more solar and wind, the costlier it becomes because you pay twice once for the renewable system and again for full backup capacity,” he said.
He also raised concerns about the equity of renewable subsidy programmes, particularly in developed economies where incentives often favour middle- and upper-income homeowners who can afford the upfront investment. Lower-income households, especially renters, are frequently excluded from these benefits.
Beyond cost, Bird highlighted the growing issue of end-of-life waste. Solar panels and wind turbines, despite being labelled renewable, have finite operating lives. He said governments and investors must begin to account for the environmental and financial costs of disposal, recycling and replacement.
For countries like Nigeria, Bird argued that energy policy must prioritise reliability, affordability and industrial growth. While renewables have an important role to play, he warned against adopting a one-size-fits-all approach that could undermine energy security or weaken local industrial capacity.
His remarks underscore a broader reality for emerging economies: the energy transition must be practical, balanced and tailored to domestic needs. For Nigeria, that means building an energy mix that supports industrialisation, expands access and delivers reliable power at the lowest possible cost.
