Renewable Energy Market-Entry in Developing Economies (Case: Nigeria)

Abstract

Finland is blessed with world-class renewable energy (RE) companies; most of which are small and medium sized (SMEs). Unfortunately, the Finnish market is getting saturated whilst there are huge untapped markets in developing countries. Many Finnish RE SMEs would like to enter these markets but they either lack the adequate resources to go or they don’t want to take the risk of going into a market they know little or nothing about.

This study, therefore proffered a unique market-entry mode for Finnish RE SMEs wishing to enter the Nigerian energy market which is one of the fastest growing developing countries. Although the Nigerian energy market is still emerging, but the population, the fast economic growth, the present purchasing power of the people and the favorable government policies make the country an appropriate choice destination for any Finnish RE SME ready to enlarge its coast.

Data needed to proffer this applicable and sustainable market-entry mode were gathered through personal meetings, phone calls, Skype calls and emails to 16 Finnish companies and 7 Nigerian companies. An online experience survey was also carried out among people living in different parts of Nigeria to ascertain their social acceptance of RE technology, and their willingness to pay more than their current energy expenditure for RE.

In the end, a qualitative research method was used for empirical analysis. Cooperative economics mode of entry was recommended for Finnish RE SMEs eager to launch into the Nigerian energy market or any other developing country geographically far away from Finland.