Power, especially power that does not harm the environment is what the world needs today. As the global population increases, the world is becoming more aware of global warming and climate change and continue to take progressive efforts towards curbing the use of fossil fuels. One of such efforts is the adoption of reusable non-fossil fuels.
Renewable energy has been in existence for so many years in many different ways. An example is how the early men used the application of wind for sailing. The same method is now used for electricity generation in the world today. A lot of people have now embraced wind energy. Like solar energy, wind energy is cost-effective, and future-conscious business investors are taking interest in it. As of 2019, the global wind energy industry was worth US$93 billion, and it has been projected to grow at an 8.4% CAGR from 2020 to 2026. Countries with the highest contributions to this value include China, the United States, Germany, India and Spain.
Nigeria generates energy from different hydro-power and thermal power stations. The significant seasons are rainy and dry. Various research carried out identified that an excellent future exists for wind energy as a means of power generation, especially in the windy coastal regions. Offshore areas such as Lagos, Ondo, Delta, Rivers, Bayelsa and Akwa-Ibom States were reported to have potentialities for intense wind. Onshore, the wind was reported strongest in the hilly regions of the North. At the same time, the mountainous terrains of the middle belt and northern fringes demonstrated high potential for excellent wind energy harvest.
As the wind energy industry continues to experience growth, it will provide many opportunities for those in search of new careers. With the crisis of global warming, now is the time to start looking for ways to help solve the world’s energy problems and, still make money doing it. If you have made up your mind about starting a lucrative wind energy business, here is a step-by-step guide to help you through.
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What Is Wind Energy?
Wind energy is a form of renewable energy that uses the wind to generate electricity. Wind turbines (the machines responsible for generating electricity) are usually about 120 metres high, and their blades are about 45 metres. A single wind turbine can generate electricity for a home, while many turbines lined up together on wind farms can generate electricity for a whole community. The wind turns the blades of a wind turbine that is connected to a generator, and the generator converts the wind’s kinetic energy to electricity.
What Is A Wind Energy Business?
A wind energy business describes the process and stages involved in converting wind into a renewable energy source and distributing to residential and industrial buildings for day-to-day operations.
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Business Opportunities In Wind Energy Business In Nigeria And Across The World
1). Installation Services:
Installing wind turbines is a service that requires the expertise of professional engineers. Wind turbines are complicated devices with about five different components that lots of technicians and engineers in business.
2). Energy Auditing:
The role of an energy auditor is to inspect homes or business premises that use renewable energy sources and to offer professional tips on how best to optimize energy resources.
3). Repair And Maintenance Services:
Devices and machines used in the wind energy systems are likely to break down from time to time, so they need routine checks and repair.
Facts And Benefits Of Wind Energy
- Wind energy requires no fossil or biofuels or water components in operation.
- It doesn’t pollute the air
- It’s cost-effective.
- It can run smoothly for years
- No fluctuations in the price of wind-generated electricity
- Wind energy creates lots of business and job opportunities for people across the globe.
- Wind is a clean source of energy which poses no harms or dangers to the environment.
- China, the United States, Germany, India and Spain are countries with the biggest markets for wind energy across the world.
- Wind turbines can be installed on ranches and farms.
- In Nigeria, wind energy is better harnessed in areas such as Lagos, Ondo, Delta, Rivers, Bayelsa and Akwa-Ibom States as well as the Northern region of the country.
- Wind turbines were first used in Ancient China.
- The biggest turbine in the world is as tall as a 20-story building.
- The blades of wind turbines can whirl at about 200mph.
- In Denmark, wind energy accounts for over 20% of the energy generation and supply.
- Small wind turbines can serve as backup power sources for ships, business offices, construction sites, etc.
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How To Start A Wind Energy Business In Nigeria: A Step-By-Step Guide
1). Conduct A Feasibility Study:
Starting a wind energy business requires several factors in place, including the demand for wind energy, the presence of large-scale industrial businesses in the environment, as well as the necessary weather factors. The investor or entrepreneur has to study the possibility of success in the selected area.
2). Draft A Business Plan:
After deciding on where to set up the wind energy business, draft a comprehensive business plan that includes all plans, steps, actionable plans, budget, business timeline, as well as other necessary decisions vital to the success of the business.
3). Set Up A Wind Farm:
This is a highly intensive stage, as far as capital is concerned. Large-scale investors could choose to set up their own wind farms. Setting up a wind farm involves securing a large expanse of land for the wind farm, purchasing and installing the wind turbine(s) and other necessary equipment as well as securing transmission capacity. Businesspersons and investors who cannot afford to set up their wind farm can network with existing wind farm operators. When planning the wind farm, the owner enters into a contract, known as a power purchase agreement, with the utility company in the area. Wind turbines functions as a power plant and the energy it produces are gathered in substations where they are converted into usable electricity. Electricians build the electricity distribution system and connect the turbines to the power grid.
4). Register Your Wind Energy Business And Purchase Insurance Policies:
Proper registrations and legal permits are necessary to make any business a legal entity. The same applies to an energy business. Necessary documents and licenses include operational permit, insurance, as well as registration with the Corporate Affairs Commission (CAC).
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Challenges Of A Wind Energy Business In Nigeria
- High startup cost
- Difficulty in maintaining transportation and logistical costs.
- Unfavourable government policies
- Natural disasters
- Cost of maintenance and repairs of wind turbines and other equipment
- Economic fluctuations
- Competition from already established wind farm companies
- Weather changes
- Difficulty in getting good sites for wind farms.
- Competition with the conventional utility grid.
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To Sum It Up
Renewable energy is the future. In addition to being the only available solution to global warming and climate change, it holds lots of business prospect for entrepreneurs and investors in Nigeria and other parts of Africa. The wind energy business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide network. If you’re looking for a lucrative business to venture into, the wind energy business in Nigeria is a great option to explore.
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