Solar Energy A Source of Renewable Energy and a Disruptive Innovation Creating Business Opportunities in Nigeria
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Published:
Sep 19, 2019
Keywords:
Solar energy, disruptive innovation, business opportunities
Main Article Content
Abstract
One of the limitations for entrepreneurs and businesses in Africa, including Nigeria, is having access to a stable energy source. The World Bank Group has encouraged off-grid power solutions to address this issue. Qualitative exploratory research of readily available literature was undertaken, supplemented by in-depth interviews. The findings were that an overhaul of existing systems needs to take place, and a huge market is available for exploitation by multinational corporations, small to medium enterprises, entrepreneurs, and investors. Finally, new business models are needed from entrepreneurs and businesses venturing into the power sector in order to disrupt the energy sector and alter the power supply, which was previously solely government owned. Privatization of the power supply by the government would bring more efficiency into the energy sector through disruptive solar technology.
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Research Articles
Copyright: Asia-Pacific International University reserve exclusive rights to publish, reproduce and distribute the manuscript and all contents therein.
References
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Andrade, C. (2009). Photovoltaic system for electrical power generation in remote rural areas of the Brazilian Amazon. Paper presented at RIO 9 – World Climate and Energy Event, Rio de Janeiro, Brazil, 17–19 March 2009.
Backhaus, J. (2006). Joseph Alois Schumpeter: Entrepreneurship, style and vision (1st ed.). New York: Springer US.
Bloom, D., & Sachs, J. (1998). Geography, demography, and economic growth in Africa. Brookings papers on economic activity, 2(2), 207-295. Retrieved from https://www.brookings.edu/wp-content/uploads/1998/06/1998b_bpea_bloom_sachs_collier_udry.pdf
Cao, X., Liu, Y., & Cao, C. (2014). Institutional entrepreneurs on opportunity formation and exploitation in strategic new industry: Two cases of solar energy industry development in China. International Journal of Emerging Markets, 9(3), 439–458.
Charitou, C., & Markides, C. (2003). Reponses to disruptive strategic innovation. MIT Sloan Management Review, 44(2), 55–64.
Chaurey, A., & Kandpal, T. (2009). Carbon abatement potential of solar home systems in India and their cost reduction due to carbon finance. Energy Policy, 37(1), 115–125.
Christensen, C. (2006). The ongoing process of building a theory of disruption. Journal of Product Innovation Management, 23(1), 39–55.
Christensen, C., & Bower, J. (1996). Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17(3), 197–218.
Danneels, E. (2004). Disruptive technology reconsidered: A critique and research agenda. Journal of Product Innovation Management, 21(4), 246–258.
Davidson, O., & Mwakasonda, S. (2004). Electricity access for the poor: A study of South Africa and Zimbabwe. Energy for Sustainable Development, 8(4), 26–40.
Duffie, J., & Beckman, W. (2013). Solar engineering of thermal processes (4th ed.) Hoboken, NJ: John Wiley & Sons, Inc.
Emodi, N., & Ebele, N. (2016). Policies enhancing renewable energy development and implications for Nigeria. Sustainable Energy, 4(1), 7–16.
Ezennaya, O. S., Isaac, O. E., Okolie, U. O., & Ezeanyim, O. I. C. (2014). Analysis of Nigeria’s national electricity demand forecast (2013–2030). International Journal of Science and Technology Research, 3(3).
Frederick, D., & Selase, A. (2014). The effect of electric power fluctuations on the profitability and competitiveness of SMEs: A study of SMEs within the Accra Business District of Ghana. Journal of Competitiveness, 6(3), 32–48.
Garcia-Valverde, C., Miguel, C., Martinez-Bejar, R., & Urbina, A. (2009). Life cycle assessment study of a 4.2kWp stand-alone photovoltaic system. Solar Energy, 83(9), 1434–1445.
George, G., Corbishley, C., Khayesi, J., Haas, M., & Tihanyi, L. (2016). Bringing Africa in: Promising directions for management research. Academy of Management Journal, 59(2), 377–393.
Goldemberg, J., Rovere, E., & Coelho, S. (2004). Expanding electricity access to Brazil. Energy for Sustainable Development, 8(4), 86–94.
Haldar, S. (2019). Green entrepreneurship in the renewable energy sector–a case study of Gujarat. Journal of Science and Technology Policy Management, 10(1), 234-250.
Hasnain, S., Alawaji, S., & Elani, U. (1998). Solar energy education - a viable pathway for sustainable development. Renewable Energy, 14(1–4), 387–392.
Hemphill, T. (2010). The “creative capitalism” corporate governance model: How radical an approach to modern capitalism? International Journal of Law and Management, 52(2), 110–123.
Indjikian, R., & Siegel, D. (2005). The impact of investment in IT on economic performance: Implications for developing countries. World Development, 33(5), 681–700.
Iwuoha, J. (2013). Solar energy is Africa’s next big thing! How entrepreneurs can exploit this lucrative but untapped opportunity. Retrieved from https://www.smallstarter.com/browse-ideas/potentials-of-solar-power-business-in-africa/
Iwuoha, J. (2017). Let there be light! Meet the top 11 solar businesses lighting up Africa. Retrieved from
https://www.smallstarter.com/get-inspired/the-top-11-solar-businesses-that-are-lighting-up-africa/
Jimba, S. (2000). Information technology and the dialectics of poverty in Africa. New Library World, 101(1158), 253–262.
Johnson, S. (2007). SC Johnson builds business at the base of the pyramid. Global Business and Organizational Excellence, 26(6), 6–17.
Ma, H., Oxley, L., Gibson, J., & Li, W. (2010). A survey of China’s renewable energy economy. Renewable and Sustainable Energy Reviews, 14(1), 438–45. Retrieved from https://paper.edu.cn/scholar/showpdf/ MUT2AN3IOTD0Ax4h
Malzbender, D. (2005). Domestic electricity provision in the democratic South Africa (Unpublished manuscript). Nordic Africa Institute’s Conflicting Forms of Citizenship Programme, University of Pretoria. Retrieved from www.acwr.co.za/pdf_files/01.pdf
Martinot, E., Cabraal, A., & Mathur, S. (2001). World bank/GEF solar home systems projects: Experiences and lessons learned 1999-2000. Renewable and Sustainable Energy Reviews, 5(1), 39–57.
Martinot, E., Chaurey, A., Lew, D., Moreira, J., & Wamukonya, N. (2002). Renewable energy markets in developing countries. Annual Review of Energy Environment, 27, 309–348.
Mkhwanazi, X. (2003). Power sector development in Africa. Paper presented at the Workshop for African Energy Experts on Operationalizing the NEPAD Energy Initiative, Novotel, Dakar, Senegal, Africa, 2–4 June 2003. Retrieved from https://sustainabledevelopment.un.org/content/documents/ nepadmkhwanazi.pdf
Mwahiva, N., & Mbise, H. (2003). Status of power sector reforms and promotion of renewable energy and energy efficiency in Tanzania. Paper presented at the Eastern Africa Renewable Energy and Efficiency Partnership Regional Consultation Meeting, Nairobi, Kenya, 9–10 June 2003. Retrieved from https://helio-international.org/wp-content/uploads/2013/12/Tanzania.En-2007.pdf
Nieuwenhout, F., de Villers, T., Mate, N., & Aguilera, M. (2004). Reliability of PV stand-alone systems for rural electrification: Tackling the Quality in Solar Rural Electrification (TaQSoLRe) – target action-C, Contract No. NNE5/2002/98, European Commission, Brussels, Belgium.
OPEC Fund for International Development (OFID). (2010). Energy poverty in Africa. Proceedings of a Workshop of OFID, Abuja, OFLD pamphlet series 39, 8–10 June 2010. Retrieved from https://searchworks. stanford.edu/view/8881350
Paksoy, H. (2010). Thermal energy storage technologies for solar applications. In Egrican, N. (Ed.), Solar Future 2010 Conference (pp. 97–102). Beşiktaş/İstanbul: Sektörel Fuarcılık Ltd. Şti. Retrieved from https://www.solar-santral.com/menuis/solar-future-2010181750.pdf
Paul, D., & Uhomoibhi, J. (2012). Solar power generation for ICT and sustainable development in emerging economies. Campus-Wide Information Systems, 29(4), 213–225.
Paul, D., & Uhomoibhi, J. (2014). Generating solar electricity by solar concentrators for web-based learning in rural areas in Tanzania: Issues of practice and impacts. Paper presented at 2014 International Conference on Interactive Collaborative Learning (ICL), Dubai, United Arab Emirates, 3–6 December 2014. doi: 10.1109/ICL.2014.7017919
Prahalad, C., & Hammond, A. (2002). Serving the world’s poor, profitably. Harvard Business Review, 80(9) 48–57.
Prahalad, C., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy þ Business Magazine, 26, 2–14. Retrieved from https://people.eecs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf
Rivera-Santos, M., Rufin, C., & Kolk, A. (2012). Bridging the institutional divide: Partnerships in subsistence markets. Journal of Business Research, 65(12), 1721–1727.
Rural Electrification Agency. (2018). Nigerian electrification project overview, August 2018. Retrieved fromhttps://rea.gov.ng/inc/uploads/2018/08/OVERVIEW-OF-THE-NIGERIA-ELECTRIFICATION-PROJECT-NEP.pdf
Schreyer, P. (2000). The contribution of information and communication technology to output growth: A study of the G7 countries. Organization for Economic Cooperation and Development (OECD) iLibrary Retrieved from https://www.oecd-ilibrary.org/docserver/151634666253.pdf?Expires =1548736932&id=id&accname=guest&checksum=41E5E942E20A4FC62C3DB45C431C0B8F
Schumpeter, J. (2017). Theory of economic development. Routledge.
Simanis, E., Hart, S., & Duke, D. (2008). The base of the pyramid protocol: Beyond “basic needs” business strategies. Innovations Technology Governance Globalization, 3(1), 57–84.
Stritih, U., Osterman, E., Evliya, H., Butala, V., & Paksoy, H. (2013). Exploiting solar energy potential through thermal energy storage in Slovenia and Turkey. Renewable and Sustainable Energy Reviews, 25, 442–461.
Stritih, U., Paksoy, H., Turgut, B., Osterman, E., Evliya, H., & Butala, V. (2015). Sustainable energy management: Solar energy and thermal storage technologies in two Mediterranean countries. Management of Environmental Quality: An International Journal, 26(5), 764–790.
Suanmali, S., Kokuenkan, K., Lohananthachai, N., Kumpong, N., & Suwatanapornchai, T. (2018). Factors affecting the willingness to pay for solar home systems: An empirical study in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan provinces, Thailand. AJMI-ASEAN Journal of Management & Innovation, 5(2), 63–76.
Theyel, G., Theyel, N., & Garnsey, E. (2013). Matching resources to opportunities for emerging technology ventures. Management Research Review, 36(10), 1011–1023.
United Nations Industrial Development Organization (UNIDO). (2009). Scaling up renewable energy in Africa. Vienna: United Nations Industrial Development Organization (UNIDO). Retrieved from https://www.uncclearn.org/sites/default/files/inventory/unido11.pdf
Walsh, S., & Linton, J. (2000). Infrastructure for emergent industries based on discontinuous innovations. Engineering Management Journal, 12(2), 23–32.
Wan, F., Williamson, P., & Yin, E. (2015). Antecedents and implications of disruptive innovation: Evidence from China. Technovation, 39, 94–104.
Yu, D., & Hang, C. (2010). A reflective review of disruptive innovation theory. International Journal of Management Reviews, 12(4), 435–452.
Adner, R. (2006). Match your innovation strategy to your innovation ecosystem. Harvard Business Review, 84(4), 98–107.
Africa Partnership Forum (APF). (2008). ICT in Africa: Boosting economic growth and poverty reduction. Paper presented at 10th Meeting on the Africa Partnership Forum, Tokyo, Japan, 7 – 8 April 2008. Retrieved from https://www.gersterconsulting.ch/docs/ICT-Africa_Report_final_engl.pdf
An African Energy Industry Report. (2018) Part of ispy publishing’s industry survey. Retrieved from https://www.futureenergyafrica.com/media/1751/1-mir-africa-mir-18-2-es_685804715-05-2018.pdf
Anderson, J., & Markides, C. (2007). Strategic innovation at the base of the pyramid. MIT Sloan Management Review, 49(1), 83–89.
Andrade, C. (2009). Photovoltaic system for electrical power generation in remote rural areas of the Brazilian Amazon. Paper presented at RIO 9 – World Climate and Energy Event, Rio de Janeiro, Brazil, 17–19 March 2009.
Backhaus, J. (2006). Joseph Alois Schumpeter: Entrepreneurship, style and vision (1st ed.). New York: Springer US.
Bloom, D., & Sachs, J. (1998). Geography, demography, and economic growth in Africa. Brookings papers on economic activity, 2(2), 207-295. Retrieved from https://www.brookings.edu/wp-content/uploads/1998/06/1998b_bpea_bloom_sachs_collier_udry.pdf
Cao, X., Liu, Y., & Cao, C. (2014). Institutional entrepreneurs on opportunity formation and exploitation in strategic new industry: Two cases of solar energy industry development in China. International Journal of Emerging Markets, 9(3), 439–458.
Charitou, C., & Markides, C. (2003). Reponses to disruptive strategic innovation. MIT Sloan Management Review, 44(2), 55–64.
Chaurey, A., & Kandpal, T. (2009). Carbon abatement potential of solar home systems in India and their cost reduction due to carbon finance. Energy Policy, 37(1), 115–125.
Christensen, C. (2006). The ongoing process of building a theory of disruption. Journal of Product Innovation Management, 23(1), 39–55.
Christensen, C., & Bower, J. (1996). Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17(3), 197–218.
Danneels, E. (2004). Disruptive technology reconsidered: A critique and research agenda. Journal of Product Innovation Management, 21(4), 246–258.
Davidson, O., & Mwakasonda, S. (2004). Electricity access for the poor: A study of South Africa and Zimbabwe. Energy for Sustainable Development, 8(4), 26–40.
Duffie, J., & Beckman, W. (2013). Solar engineering of thermal processes (4th ed.) Hoboken, NJ: John Wiley & Sons, Inc.
Emodi, N., & Ebele, N. (2016). Policies enhancing renewable energy development and implications for Nigeria. Sustainable Energy, 4(1), 7–16.
Ezennaya, O. S., Isaac, O. E., Okolie, U. O., & Ezeanyim, O. I. C. (2014). Analysis of Nigeria’s national electricity demand forecast (2013–2030). International Journal of Science and Technology Research, 3(3).
Frederick, D., & Selase, A. (2014). The effect of electric power fluctuations on the profitability and competitiveness of SMEs: A study of SMEs within the Accra Business District of Ghana. Journal of Competitiveness, 6(3), 32–48.
Garcia-Valverde, C., Miguel, C., Martinez-Bejar, R., & Urbina, A. (2009). Life cycle assessment study of a 4.2kWp stand-alone photovoltaic system. Solar Energy, 83(9), 1434–1445.
George, G., Corbishley, C., Khayesi, J., Haas, M., & Tihanyi, L. (2016). Bringing Africa in: Promising directions for management research. Academy of Management Journal, 59(2), 377–393.
Goldemberg, J., Rovere, E., & Coelho, S. (2004). Expanding electricity access to Brazil. Energy for Sustainable Development, 8(4), 86–94.
Haldar, S. (2019). Green entrepreneurship in the renewable energy sector–a case study of Gujarat. Journal of Science and Technology Policy Management, 10(1), 234-250.
Hasnain, S., Alawaji, S., & Elani, U. (1998). Solar energy education - a viable pathway for sustainable development. Renewable Energy, 14(1–4), 387–392.
Hemphill, T. (2010). The “creative capitalism” corporate governance model: How radical an approach to modern capitalism? International Journal of Law and Management, 52(2), 110–123.
Indjikian, R., & Siegel, D. (2005). The impact of investment in IT on economic performance: Implications for developing countries. World Development, 33(5), 681–700.
Iwuoha, J. (2013). Solar energy is Africa’s next big thing! How entrepreneurs can exploit this lucrative but untapped opportunity. Retrieved from https://www.smallstarter.com/browse-ideas/potentials-of-solar-power-business-in-africa/
Iwuoha, J. (2017). Let there be light! Meet the top 11 solar businesses lighting up Africa. Retrieved from
https://www.smallstarter.com/get-inspired/the-top-11-solar-businesses-that-are-lighting-up-africa/
Jimba, S. (2000). Information technology and the dialectics of poverty in Africa. New Library World, 101(1158), 253–262.
Johnson, S. (2007). SC Johnson builds business at the base of the pyramid. Global Business and Organizational Excellence, 26(6), 6–17.
Ma, H., Oxley, L., Gibson, J., & Li, W. (2010). A survey of China’s renewable energy economy. Renewable and Sustainable Energy Reviews, 14(1), 438–45. Retrieved from https://paper.edu.cn/scholar/showpdf/ MUT2AN3IOTD0Ax4h
Malzbender, D. (2005). Domestic electricity provision in the democratic South Africa (Unpublished manuscript). Nordic Africa Institute’s Conflicting Forms of Citizenship Programme, University of Pretoria. Retrieved from www.acwr.co.za/pdf_files/01.pdf
Martinot, E., Cabraal, A., & Mathur, S. (2001). World bank/GEF solar home systems projects: Experiences and lessons learned 1999-2000. Renewable and Sustainable Energy Reviews, 5(1), 39–57.
Martinot, E., Chaurey, A., Lew, D., Moreira, J., & Wamukonya, N. (2002). Renewable energy markets in developing countries. Annual Review of Energy Environment, 27, 309–348.
Mkhwanazi, X. (2003). Power sector development in Africa. Paper presented at the Workshop for African Energy Experts on Operationalizing the NEPAD Energy Initiative, Novotel, Dakar, Senegal, Africa, 2–4 June 2003. Retrieved from https://sustainabledevelopment.un.org/content/documents/ nepadmkhwanazi.pdf
Mwahiva, N., & Mbise, H. (2003). Status of power sector reforms and promotion of renewable energy and energy efficiency in Tanzania. Paper presented at the Eastern Africa Renewable Energy and Efficiency Partnership Regional Consultation Meeting, Nairobi, Kenya, 9–10 June 2003. Retrieved from https://helio-international.org/wp-content/uploads/2013/12/Tanzania.En-2007.pdf
Nieuwenhout, F., de Villers, T., Mate, N., & Aguilera, M. (2004). Reliability of PV stand-alone systems for rural electrification: Tackling the Quality in Solar Rural Electrification (TaQSoLRe) – target action-C, Contract No. NNE5/2002/98, European Commission, Brussels, Belgium.
OPEC Fund for International Development (OFID). (2010). Energy poverty in Africa. Proceedings of a Workshop of OFID, Abuja, OFLD pamphlet series 39, 8–10 June 2010. Retrieved from https://searchworks. stanford.edu/view/8881350
Paksoy, H. (2010). Thermal energy storage technologies for solar applications. In Egrican, N. (Ed.), Solar Future 2010 Conference (pp. 97–102). Beşiktaş/İstanbul: Sektörel Fuarcılık Ltd. Şti. Retrieved from https://www.solar-santral.com/menuis/solar-future-2010181750.pdf
Paul, D., & Uhomoibhi, J. (2012). Solar power generation for ICT and sustainable development in emerging economies. Campus-Wide Information Systems, 29(4), 213–225.
Paul, D., & Uhomoibhi, J. (2014). Generating solar electricity by solar concentrators for web-based learning in rural areas in Tanzania: Issues of practice and impacts. Paper presented at 2014 International Conference on Interactive Collaborative Learning (ICL), Dubai, United Arab Emirates, 3–6 December 2014. doi: 10.1109/ICL.2014.7017919
Prahalad, C., & Hammond, A. (2002). Serving the world’s poor, profitably. Harvard Business Review, 80(9) 48–57.
Prahalad, C., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy þ Business Magazine, 26, 2–14. Retrieved from https://people.eecs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf
Rivera-Santos, M., Rufin, C., & Kolk, A. (2012). Bridging the institutional divide: Partnerships in subsistence markets. Journal of Business Research, 65(12), 1721–1727.
Rural Electrification Agency. (2018). Nigerian electrification project overview, August 2018. Retrieved fromhttps://rea.gov.ng/inc/uploads/2018/08/OVERVIEW-OF-THE-NIGERIA-ELECTRIFICATION-PROJECT-NEP.pdf
Schreyer, P. (2000). The contribution of information and communication technology to output growth: A study of the G7 countries. Organization for Economic Cooperation and Development (OECD) iLibrary Retrieved from https://www.oecd-ilibrary.org/docserver/151634666253.pdf?Expires =1548736932&id=id&accname=guest&checksum=41E5E942E20A4FC62C3DB45C431C0B8F
Schumpeter, J. (2017). Theory of economic development. Routledge.
Simanis, E., Hart, S., & Duke, D. (2008). The base of the pyramid protocol: Beyond “basic needs” business strategies. Innovations Technology Governance Globalization, 3(1), 57–84.
Stritih, U., Osterman, E., Evliya, H., Butala, V., & Paksoy, H. (2013). Exploiting solar energy potential through thermal energy storage in Slovenia and Turkey. Renewable and Sustainable Energy Reviews, 25, 442–461.
Stritih, U., Paksoy, H., Turgut, B., Osterman, E., Evliya, H., & Butala, V. (2015). Sustainable energy management: Solar energy and thermal storage technologies in two Mediterranean countries. Management of Environmental Quality: An International Journal, 26(5), 764–790.
Suanmali, S., Kokuenkan, K., Lohananthachai, N., Kumpong, N., & Suwatanapornchai, T. (2018). Factors affecting the willingness to pay for solar home systems: An empirical study in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan provinces, Thailand. AJMI-ASEAN Journal of Management & Innovation, 5(2), 63–76.
Theyel, G., Theyel, N., & Garnsey, E. (2013). Matching resources to opportunities for emerging technology ventures. Management Research Review, 36(10), 1011–1023.
United Nations Industrial Development Organization (UNIDO). (2009). Scaling up renewable energy in Africa. Vienna: United Nations Industrial Development Organization (UNIDO). Retrieved from https://www.uncclearn.org/sites/default/files/inventory/unido11.pdf
Walsh, S., & Linton, J. (2000). Infrastructure for emergent industries based on discontinuous innovations. Engineering Management Journal, 12(2), 23–32.
Wan, F., Williamson, P., & Yin, E. (2015). Antecedents and implications of disruptive innovation: Evidence from China. Technovation, 39, 94–104.
Yu, D., & Hang, C. (2010). A reflective review of disruptive innovation theory. International Journal of Management Reviews, 12(4), 435–452.