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FG to inject additional $800m in electricity distribution infrastructure – Minister

 

…decries the dilapidated state of electricity infrastructure

BY SAM OTUONYE and MYKE UZENDUĀ 

The Federal Government is set to release another $800m for the construction of substations and distribution networks as part of the Presidential Power Initiative (PPI), Adebayo Adelabu, minister of power has disclosed.

The minister said that in 1984, Nigeria was able to generate about 2,000 but lamented that it took about 35 years to add an additional 2,000 megawatts to be generated by the country.

Adelabu said the administration of President Bola Ahmed Tinubu is determined to transform the power sector adding that a lot of activities have started that are gradually bringing back confidence in the sector and among the power sector consumers especially the industries.

The investment, according to Adelabu, will be divided into two lots: $400m for Lot 2, covering Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and $400m for Lot 3, covering Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.

On a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China, Adelabu said Nigeriaā€™s electricity generation peaked at 5,170 megawatts, unfortunately, it had to be ramped down by 1,400 megawatts due to inability of the DisCoā€™s to pick the supply.

ā€œThis is regrettable considering that the government is on course to increase generation to 6,000 megawatts by the end of the year,ā€ Adelabu said.

This was as Adelabu said, ā€œthis has led to the historical epileptic supply of power to households, industries, and businesses.ā€
Adelabu highlighted that more than 59 per cent of industries in Nigeria are off the grid, operating their own captive, self-generated power due to the unreliability of the national grid.
“They do not consider the national grid reliable and dependable. As a result, many now operate their own captive, self-generated power.ā€
According to the minister, despite efforts to increase power generation, the sectorā€™s infrastructure limitations hinder its ability to transmit and distribute electricity efficiently.
He said power generation peaked at 5,170 megawatts on Friday, 30th August, but had to be reduced by 1,400 megawatts due to the Distribution Companiesā€™(DISCOs) inability to take up the supply.

According to him, more than 59 percent of industries in Nigeria are off the grid.

ā€œThey did not see the national grid as reliable. So, a lot of them now operate their own captive, self-generated power,ā€ Adelabu said.

ā€œWhen this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable,ā€ Adelabu said.

He added, ā€œOur plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydroelectric power plants and our gas-fired power plant. We are also targeting 30 gigawatts of Power to be generated, transmitted and distributed by year 2030 out of which 30 percent would be renewable energyā€.

The minister said the renewable energy segment will come from a combination of hydroelectric power from small dams, solar energy sources and wind farms from onshore and offshore winds.

On the issue of the construction of the super grid, the Minister said the national grid in its present state cannot support the vision for the power sector.

ā€œIf we look at the strength, the capacity and the age of our existing network on the National grid, it cannot really support our vision for the power sector hence the need for the construction of the Western and Eastern super grid. Though we have been on this since my resumption, I can also tell you that the President is in full support of this because this will improve our transmission network, stabilise the grid and expand the capacity and the flexibility of the national gridā€.

Speaking earlier, Huang Hanjie, president of TBEA assured of the organisationā€™s continued support for Nigeriaā€™s government vision for the power sector.

He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy. He said TBEA is not new in Nigeria adding that the company is presently working with the Omotosho, power plant, Ondo State owned by the Niger Delta Power Holding (NDPHC).

Adelabu emphasised that the administration of President Bola Ahmed Tinubu is determined to transform the power sector, noting that several initiatives have commenced that are gradually restoring confidence in the sector and among power sector consumers, particularly industries.