Amidst President Bola Tinubu's directive to remove the fuel subsidy, there are concerns and discussions about investing the retrieved funds. GSAG Geothermal Energy shares its potential as an alternative energy source in Nigeria while suggesting it could help mitigate the impacts of subsidy removal.
What is Geothermal Energy?
Geothermal power plants - Energy Education
Geothermal energy is a form of renewable energy that comes from the heat within the Earth's crust. This heat is generated by the decay of radioactive elements and the initial formation of the planet. Temperatures exceeding 4000°C create magma, heating rocks and water to around 370°C, providing accessible thermal energy from shallow to deep depths. Geothermal energy uses heat to generate steam that powers turbines for electricity production. It can be used immediately or sold to the grid and directly for various purposes. Over 80 countries had embraced geothermal energy by 2015 due to its vast benefits.
Position On Subsidy Removal
Subsidy Removal and its discontents, By Sam Amadi
Fuel subsidy removal in Nigeria is a major policy shift, affecting inflation, transportation, and people's livelihoods. It causes worries about daily life, bringing up concerns that include but are not limited to affordability, hunger, and unemployment, with no mitigation plans in view.
However, we believe that fuel subsidy removal offers green economy opportunities, encouraging renewable energy and sustainable transportation.
But inadequate public transport may harm air quality.
Why Should Government Reinvest Subsidy Funds in Geothermal Energy?
Amid climate change and rising energy demands, geothermal emerges as a promising renewable resource for a greener and more secure energy future. Redirecting subsidies can unlock its potential and accelerate the transition to sustainability, supported by compelling reasons such as:
Environmental Sustainability: Geothermal energy is clean and sustainable, utilizing Earth's natural heat. Power plants produce minimal emissions, vital in fighting climate change. Investing in geothermal shows commitment to the environment and reducing carbon footprints.
Energy Security and Independence: Geothermal energy's key advantage is domestic availability globally. Utilizing local resources reduces reliance on imported fossil fuels, enhancing energy security and stability. Governments can invest in geothermal to achieve energy independence and ensure a reliable future supply.
Job Creation and Economic Growth: Reinvesting subsidies in geothermal energy stimulates job creation in construction, research, and related sectors. This fosters economic growth, supports local economies, and promotes sustainable development.
Long-Term Cost Savings: Geothermal energy has high initial costs but low long-term expenses. Established power plants rely on a steady heat source, leading to reduced operational costs. Governments can support geothermal for a stable and cost-efficient energy market, potentially lowering electricity prices for consumers.
Diversification of the Energy Portfolio: Diverse energy sources, like geothermal, complement intermittent renewables, ensuring energy resilience and flexibility in response to changing demand and supply.
Research and Innovation: Reinvesting subsidies in geothermal research fosters innovation, efficiency, and broader scientific progress. This ripple effect extends to sustainable technologies beyond the energy industry.
Potential Limitations of Geothermal Energy
Geographical Constraints:
Geothermal energy is concentrated in regions with volcanoes, tectonic plate boundaries, and hotspots, limiting its global accessibility.
High Initial Investment:
Geothermal power plant setup requires a substantial upfront investment, including drilling and infrastructure costs. This may deter investors and reduce competitiveness in certain regions.
Environmental Considerations:
Geothermal energy is relatively clean but not entirely impact-free. Construction and drilling can cause surface disturbances, and fluid extraction may release greenhouse gases and pollutants. Responsible planning and implementation are crucial to mitigate these effects.
Earthquake Risk:
Geothermal power plant construction involves drilling deep, causing underground instability, which can lead to earthquakes and land subsidence as reservoirs deplete.
Transmission and Distribution Challenges:
Geothermal plants are often remotely situated, requiring extensive transmission infrastructure to deliver electricity to populated areas, demanding substantial investments.
In summary, redirecting subsidies towards geothermal energy represents a significant and resolute move towards ensuring a sustainable, clean, and secure energy future. Governments play a critical role in driving the transition to renewable energy sources, and geothermal energy offers a host of benefits, including environmental sustainability, energy security, job creation, and long-term cost savings.
References
Consequences of fuel subsidy removal on Nigeria's balance of trade
EXPLAINER: How fuel subsidy removal affects you - Nairametrics
Geothermal energy | Description, Uses, History, & Pros and Cons | Britannica
Geothermal Energy Basics | NREL
Nigeria: Removal of fuel subsidy must not exacerbate poverty - Amnesty International
Subsidy Removal and its discontents, By Sam Amadi
What is Geothermal Energy? How Does it Work? - TWI
Group Members
Solomon Ekundayo (GSAM)
Zipporah Emilomo Omage (Member)
Osunsami Philip Olugbenga (Member)
Abijo Seun Tobiloba (Member)
Osimho Alex (Member)
Adebambo Williams (Member
Babalola Precious (Member)
Animashaun Abeeb (Member)
Omita Segun Yemi (Member)
Salaudeen Alimot (Member)
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