Power Sector And Other Related News Stories For Monday March 20th 2023
Hope of Improved Power Supply Dashed as NERC, NBET’s 5000mw Deal with Gencos, Discos, TCN, Gas Suppliers Fails
The hope of an improved power supply in Nigeria may have dwindled following the failure of the anticipated minimum 5000 megawatts (mw) Power Purchase Agreement (PPA) activated by market participants in the second quarter of 2022 under the coordination of the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Bulk Electricity Trading Company (NBET).
NERC had on June 15, 2022, announced in Lagos, that market participants including Gencos, distribution companies (Discos), Transmission Company of Nigeria (TCN), gas suppliers and NBET had signed a contract that would ensure that at least 5000mw of power was generated, paid for 100 per cent and successfully delivered to consumers on a daily basis with effect from July 1, 2022.
Transcorp Power MD Seeks Incentives for Power Sector Investors
SERVICING equipment such as turbines outside the country is taking a toll on operating costs of power companies, the Managing Director/Chief Executive Officer (MD/CEO) of Transcorp Power Limited, Christopher Ezeafulukwe, has lamented.
According to him, the fact that these companies, operating in Nigeria, incur additional costs while servicing their turbines, remained a huge downside to the business.
Decentralisation of Electricity: Sambo, Ariyomo, Others Finally Win
It is no longer news that President Muhammadu Buhari has assented to the alteration of the constitution to move electricity from the exclusive legislative list to the concurrent legislative list, specifically to now empower states of the federation to license, generate, transmit and distribute power.
For millions of Nigerians, this is a cheering news. Rightly, appropriate commendations must be given to the legislators, in particular, the chairmen and members of the legislative committees on power of both the Senate and the House of Representatives as well as both the Speaker of the House of Representatives, Hon. Femi Gbajabiamila and the President of the Senate, Senator Ahmed Lawan.
What many Nigerians may however not know is that this is the cumulative output of nearly 17 years of concerted science and engineering driven legislative advocacy that was led by the Nigerian Society of Engineers (NSE), the National Development Initiative (NDi), the Electrical and Electronics Engineering Division of the Nigerian Society of Engineers, and recently, the Nigerian Institution of Power Engineers.
Naval Officers Storm PHED, Kidnap 15 Staff, Loot Offices Over N762m Debt
Officers of the Nigerian Navy – NNS Victory, in Calabar, the Cross River State capital, have allegedly kidnapped over 15 staff of the Port Harcourt Electricity Distribution (PHED) Plc in their regional office in Calabar, the capital city of Cross River State.
The incident was said to have occurred in the afternoon of March 11, 2023, when 10 men identified to be Naval officials stormed the company’s premises, fully armed and whisked away staff who were on duty.
The Naval officials, it was gathered, carried out the illegal operations at the command of Commodore Vincent Gbaranwi of the NNS Victory Command and Chief of Staff to the Flag Officer in the Command, Rear Admiral Mike Oamen.
The invading officers were said to have stormed the business premises of the electricity distribution company and kidnapped the staff, in protest over the disconnection of Akim Navy Barracks and Atimbo Barracks.
The Naval Command is alleged to be owing the Port Harcourt Electricity Distribution (PHED) Plc over N740million in unpaid electricity bills accumulated over the years, and an additional current monthly electricity bill charge of N22million.
Case for Investments in Nigeria’s Renewable Energy
It is estimated that about 92 million of the over 200 million people, that make up the entire population of Nigeria have no access to electricity. Where access to electricity is available, a full day of uninterrupted supply is not guaranteed. Despite the abundance of natural energy sources, Nigeria faces significant electricity supply challenges stifling industrial growth, limiting commercial ventures’ expansion and profitability, and the well-being of people. Presently, the primary energy sources are gas and hydroelectricity. Although the country is diversifying to renewables, progress is extremely slow. This article makes the case for investments in Nigeria’s renewable energy.
Why renewable energy?
According to the International Energy Agency (IEA) ‘Renewable 2020’ report, Renewable energy capacity is set to expand by 50% between 2019 and 2024, led by solar energy. Solar, wind, and hydropower projects are rolling out at their fastest rate in four years, making the argument that the future lies in using renewable energy. Energy security concerns caused by Russia’s invasion of Ukraine have motivated countries to increasingly turn to renewables such as solar and wind to reduce reliance on imported fossil fuels, whose prices have spiked dramatically.
Uganda to Scrap Take-Or-Pay Contracts in Electricity Industry
Uganda has scrapped take-or-pay contracts within its electricity industry, a business incentive that has been at the centre of attracting more than $5 billion in the country’s power generation segment over the last 15 years.
The take-or-pay model – a concept that allows a generator of electricity to be paid regardless of whether the electricity has been evacuated onto the grid or not – has come under heavy criticism in light of the huge amounts of money that the country is paying for the available power that has been generated but not consumed, otherwise known as ‘deemed energy’.
Patrick Tutembe, the chief economist, Pricing, at the Electricity Regulatory Authority (ERA), announced that “government has done away with the take-or-pay model” during the symposium on energy, oil and gas and minerals, organized by the Office of the Auditor General in Kampala, this week.
President Yoweri Museveni has been a vocal critic of some aspects of the electricity supply industry. He has increasingly grown frustrated over what he believes are high electricity tariffs and complaints of generated power not getting to consumers.
Massachusetts, National Grid Cuts Electricity Rates by Nearly 40%
National Grid’s customers will soon be getting a break on their utility bills with electricity rates set to drop by nearly 40%, the company said.
The utility, which serves about 1.2 million customers in Massachusetts, has asked the state Department of Public Utilities to approve new seasonal electric rates.
If approved, the monthly bill for a typical residential customer will fall by about 39%, or $115.39, from $297.22 to $181.83 beginning May 1, according to the company.
“We understand that high energy costs have been challenging for customers,” Helen Burt, National Grid’s chief customer officer, said in a statement. “We are pleased that these new summer rates will help bring down the overall cost of electricity starting in May.”
The company cautioned customers that even though rates will be lower in the summer months, the overall cost of electricity is higher than a year ago.
“A volatile energy market continues to contribute to a market price environment higher than we have experienced in recent years,” the company said. “National Grid is working with state officials to consider modifications to procurement processes to reduce price volatility for customers going forward.”
Brunei Plans to Build Waste-To-Electricity Incinerator Plant
Brunei plans to build a waste incineration plant that can process 800 to 1,000 tons of waste per day to generate electricity, said Dato Mohd Juanda, the country’s minister of development at the 19th Legislative Council meeting.
According to the local daily Borneo Bulletin on Sunday, the minister said during the elaboration of his ministry’s annual budget at the Legislative Council meeting that the waste incineration plant would achieve more resilient and efficient solid waste management and stress the need for a much smaller area for landfills.
“Problems such as odor and leachate that are usually associated with landfills can be avoided,” the minister was quoted as saying.
“With the incorporation of the latest solid waste management technologies, pollution problems such as gas emissions from incinerators can be dealt with as best as possible.
“This approach also ensures more effective waste management for the next 20 years.”
Brunei’s Sungai Paku Engineered Landfill site, which covers 104 hectares and receives 90 percent of the country’s waste, is expected to reach its capacity limit by 2030. – Xinhua.