What are the impacts of foreign exchange volatility on the renewable sector?

How do I explain this? It’s actually such a dynamic issue, even though FX was going up, the cost of solar was going down. Maybe we were lucky; the cost of solar panels was faster than the devaluation of the naira. So, the fall in solar panel prices was more than the rise in the naira versus the dollar. Overall, the cost still ended up coming down and becoming more competitive. So, we’re lucky in that sense, from the middle of 2020, July 2023 to December 2024.

And this year, if we look at the first few months, the naira has appreciated quite significantly. I think we’ve gone from about $1,700 to about $1,500 or so. Even with that, it’s still going to become more competitive this year.


https://punchng.com/solar-cheaper-than-band-a-tariff-royal-power-ceo-odugbesan/