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 Energy and its Impact on Developing Economies

Introduction

Research Question

Objective

Research Gap

Research Question

Methodology

Approach.

Summary

Introduction:

Research Question

How is transformation in the energy sector going to impact future renewable energy supplies to developing economies i.e. Nigeria?

Objective

 Energy and its Impact on Developing Economies, The objective of the research is to highlight the transformation in energy markets and to understand how growth and innovation in the energy sector, specially development of renewable energy resources going to affect supply of resources to developing economies i.e. Nigeria.

Background and Context:

The continuous economic development globally increases the need to focus on role of energy in economic growth. Energy industry of an economy is important for the steady growth of economy. Energy can be considered as a fuel to economy. The importance of energy for an economy is put in following words by Peter Voser, “The economic progress of past decades has seen hundreds of millions of people enjoy major improvements in their material well-being, and these changes have been particularly noteworthy in the emerging economies” (Peter Voser, 2012).  The major focus globally is usually on globalisation and market liberalization, Energy and its Impact on Developing Economies but it is important to not undermine the important role that energy plays in economic growth of a country.

Considering the importance of energy sector, and crucial role of energy resources in economic growth, the research focuses on transformation in the energy markets and its impact on future renewable energy supplies in a developing economies i.e. Nigeria. It is important to understand that resource development and growth because of energy is only possible if there is availability of resources. If a country faces any constraints such as fiscal, regulatory, scarcity then it can lead to a poor economic growth. With the constant development globally, not only market structures, economies and trade patterns have changed, but the energy sector is constantly developing. Currently the energy sector depends mostly on traditional energy sources however the push for growth and innovation in the energy sector, especially renewable sector will alter the degree of the dependency.

In order to understand the importance of this research and how renewable energy is going to impact developing economies, it is important to understand the development in renewable energy sector. According to a global status report 2011, renewable energy delivers 20% of global electricity, 80% of hydropower is renewable power and 16% of global power is renewable energy.

United Nations Development program is planning to launch a renewable energy development program in Nigeria. The program will focus on promoting clean technologies and renewable energy in the country. According to a research Nigeria is endowed with sufficient energy resources to meet its development requirement, thus United Nations program will help in building the economy. The following table shows renewable energy resources and their estimated reserve in Nigeria.

As mentioned earlier according to research Nigeria has enough reserves to fulfil her economic needs. However some research show that in order for the project to be success investments from private sector are required. Thus, the idea of the development of renewable energy sources might not be very feasible for developing economies. The purpose of the research is to analyse the effect of energy transformation on developing economies such as Nigeria. The main reason for the research is to interpret how feasible is the idea of utilising renewable energy resources is for developing economies.

 

The research will help in answering the question of feasibility of the utilisation of renewable resources in developing world. Moreover it might also help in analysing how successful Nigeria’s renewable energy source program will be and how will it affect the economy…