Small businesses are a powerful force in Nigeria, with the country’s informal market of around 40 million enterprises contributing over half of its GDP.
But in a country where less than 50% of the population has access to a regular power supply many of these businesses – traders, tailors, grocery stores, electronics shops and more – get their power from an expensive, dirty and inefficient energy source: petrol generators.
Not only is the cost of generator electricity substantially higher than from the grid, with users spending almost half of their monthly income on power. But they also have a negative impact on people and the planet. They release concentrations of harmful particulate matter higher than those recommended by the World Health Organization. And it is estimated that the annual CO2 emissions from generators in Lagos alone are equivalent to those of more than 326,000 passenger cars.
Nigerian entrepreneur Emmanuel Ekwueme, who moved back to the country after studying in the US, and two friends wanted to tackle the problem. They came up with what Ekwueme describes as “a new concept for deploying affordable clean energy solutions” for underserved businesses.
Solar microgrids
“From a young age, I had noticed how prominent clusters of small businesses were throughout Nigeria,” Ekwueme says. “A major source of economic activity, especially in peri-urban and rural areas, these commercial plazas inspired our targeted approach to deploying an affordable clean energy solution for emerging markets.”
Today, Ekwueme is co-founder and CEO of ICE Commercial Power, which connects businesses to clean, affordable electricity through solar-powered micro-utilities. Such solutions could have a vital role in expanding electricity access in Nigeria, according to the International Energy Agency (IEA).
With no upfront costs for customers, ICE’s rooftop solar energy systems – which consist of solar panels, smart inverters, battery storage technology and smart meters – allow local businesses to connect to clean energy on a pay-as-they-go basis. ICE works with landlords and property owners to install the systems, and individual businesses are connected via smart meter. Customers then manage their services through a mobile app.
Prospective project sites and target customers are identified by ICE’s young workforce. The company collaborates with local universities to provide the digital and market surveillance skills graduates need to do this work, as well as other relevant careers including solar installers and data analysts.
“This approach allows us to effectively develop strong pipelines of distributed solar projects that are ready for deployment, while simultaneously working to increase the employability of Nigerian youth,” Ekwueme says.
Off-grid solutions could play an important role in increasing electricity access in Nigeria, according to the IEA.Image: IEA Nigeria Energy Outlook
Expanding access to reliable electricity
Supported by partners including the US African Development Foundation and Microsoft, ICE has helped hundreds of businesses connect to reliable, clean energy that, according to Ekwueme, saves them up to 35% on energy costs.
The company plans to connect 10,000 small businesses in the Niger Delta region by next year, with a goal of reaching more than 100,000 small businesses in the next three years.
“In five years, we intend to have a presence in over five emerging markets in sub-Saharan Africa and connect over one million small businesses to clean energy,” Ekwueme adds.
Digital inclusion
Alongside these aims, the company is working to upskill thousands of young people across Nigeria for potential careers in renewable energy or technology. ICE’s partnership with companies including Microsoft is helping it achieve this, giving ICE access to cloud computing credits and technical and business development support.
It’s an example of how the private sector can create new partnerships to help support social innovation and an economy that benefits all people and the planet. The World Economic Forum’s Global Alliance for Social Entrepreneurship is working toward this goal, with a network of more than 100 investors, philanthropists, governments and more.
It says technology, including AI – which ICE uses to support maintenance and reduce costs – has shown “immense promise in helping organizations leapfrog social and environmental challenges”.
Transforming lives through technology is also a focus for the Forum’s EDISON Alliance, which convenes public and private sector leaders to prioritize digital inclusion through affordable access to digital solutions across healthcare, finance and education.
David Elliott is a senior writer at Forum Agenda
This article previously appeared in the World Economic Forum.