Power Sector And Other Related News Stories For Thursday December 22nd 2022
FG Approves N123.4 Billion Electricity, Remediation of Ogoni Land
The Federal Executive Council (FEC) has approved N123.4 billion for remediation and execution of power projects in Ogoni land, Rivers state.
Minister of Environment, Mr Mohammed Abdullahi, disclosed this while briefing State House correspondents at the end of the weekly FEC meeting chaired by President Muhammadu Buhari.
“On behalf of the Ministry of Environment I presented two memos to do with remediation and the power project in Ogoni land. These two projects actually resonate with the Nigerian government and the United Nations’ Environment Programme’s objective of providing succour to the Ogoni people particularly in the areas of livelihood and remediation.
“The first memo is on the remediation of simple hydro-carbon impacted sites in Ogoni land to be carried out by 35 different contractors, with a completion period of 24 months. The cumulative value of the contract is N95, 908, 284, 450.91 billion.
“The second memo also touches on the livelihood of the Ogoni people is the construction of 132 KV 16 kilometres of transmission lines and 260 MVA Power Substations in the phase I of the Ogoni Power Project, approved for N27, 585, 539, 410.13 and it has a completion period of 12 months,” he said.
NLC Demands Reversal of Privatisation of Electricity Sector, Rejects Water Bill
The Nigerian Labour Congress (NLC) has called for the reversal of private ownership and control of the electricity sector.
The trade union also kicked against the privatisation of water resources as proposed in the National Water Resources bill currently before the National assembly.
The union stated its positions during a meeting at the National Union of Electricity Employees (NUEE) in Yaba area of Lagos on Tuesday.
The National Water Resources bill which was introduced in the 8th Assembly was reintroduced in June.
The bill had caused outrage among many Nigerians who perceived it as a power grab by the federal government.
Private operators took over Nigeria’s power sector from the Power Holding Company of Nigeria (PHCN) in 2013.
The privatisation of the power sector was meant to break the control of electricity generation and distribution by the government, to ensure adequate, regular and stable supply of electricity to consumers at a reasonable cost.
Find Solution to Electricity Problem, Benin Monarch Takes Discos
Benin monarch, Oba Ewuare II, has challenged electricity Distribution Companies (DISCOs) in Nigeria to strengthen their Research and Development (R&D) capacity in order to arrive at a solution to the various problems associated with the power sector value chain.
He gave the charge while playing host to the new management of Benin Electricity Distribution Company (BEDC) in Benin City.
The traditional ruler said the country’s electricity problem can be ameliorate if players in the industry are solution-driven.
The first class traditional ruler explained that the economic uncertainty caused by the free fall of the country’s currency (naira) to the dollar, as well as the high cost of diesel is taking a toll on businesses and manufacturing sector in Nigeria, thereby pushing citizens, especially the downtrodden to the extreme.
He said: “You have association of DISCOs in Nigeria, get them together and have conferences, retreats and find out what to do to improve the power Distribution problems because it is enormous.
“We appeal to you to do your homework. If you have research and development department, engage them to do more research so as to find out what the problem is.
Eleven Electrocuted in Zaria, Many Injured
Tragedy struck in Zaria, Kaduna State when an electric power accident killed no fewer than 11 people, while many were injured on Wednesday.
The Kaduna Electric Company said the incident was a result of a High Tension line snap on the low tension line, which resulted in a voltage supply outside limits.
While confirming the incident; the Zaria office of the Kaduna State Fire Service said the 11 people who died were from communities around the Gwargwaje area of Zaria Local Government Area, adding that a house was burnt and some business premises were destroyed in the fire incident which occurred around 1 am on Wednesday
Leader of the community, Alhaji Bature Aliyu told journalists that the fire affected all the houses in the 3 communities, the Police Barracks, the New Layout Unguwar Major Aliyu and the New Kauran Juli layout.
According to him, ” electricity was restored late in the night with full force, which caught fire that spread to the communities. All the transformers, high tension and service lines were on fire. Anywhere you touched was shocking until when the power was cut off from the source.”
Shell Acquires Nigerian Solar Firm
The renewable energy arm of London-based Energy giant Shell has fully acquired Daystar Power, a Nigerian solar firm, to help it expand its operations across the African continent.
Daystar Power aims to increase its installed solar capacity to 400MW by 2025.
CEO and Co-founder of Daystar Power, Jasper Graf von Hardenberg, stated that the company is thrilled about completing this significant milestone.
He added, “given the urgency of the energy crisis and the pressure on businesses across Africa, we are deeply committed to our mission to reduce energy costs and carbon emissions. As part of Shell, we can grow faster in delivering clean and affordable energy to our customers.”
Eko Electricity and Its Customers
What exactly were Nigerians supposed to gain from the privatization of the power sector? What, for instance, made the new power distribution companies (DISCOs) preferable to the much despised and now defunct NEPA or PHCN? Or was the privatization programme just another scheme to put power supply in different (preferred) hands, and nothing more? A key issue with the new arrangement is that the citizens are still denied the option of choice. In the telecommunications sector, once you lose interest in one service provider, you can simply throw away its SIM card and obtain that of another. But in the case of the power sector, you are perpetually stuck with the particular DISCO under whose fiefdom you fall into by virtue of where your accommodation is located. And so, even if you are not happy with their dismal and excruciating style of operations, you cannot leave them, and you have no one to run to for help.
And what is worse, Nigerians are still trapped in the same notoriously poor power supply system under which NEPA/PHCN made them to pay heavily for thick darkness. Knowing therefore that there is no way of escaping their vice grip unless the person packs out of their fiefdom (a very unlikely occurrence given the high cost of changing accommodations in Lagos, for instance), the DICOS have devised several methods for extorting and oppressing their victims – who, in the present circumstance, can only suffer in silence. The aim of this preliminary comment is to offer customers few suggestions on how to minimize their suffering in the hands of these mindless shylocks.
AfDB to Finance Ivorian 44MW Hydropower Project
The African Development Bank Group will act as mandated lead arranger on the financing for the Singrobo-Ahouaty 44MW hydropower project in Côte d’Ivoire and other Ivorian energy sector infrastructure expansion projects.
The Singrobo-Ahouaty financing package is made up of €40 million from the AfDB, with additional financing from the Africa Finance Corporation, the German Investment Corporation (Deutsche Investitions-und Entwicklungsgesellschaft—DEG), and the Emerging Africa Infrastructure Fund (EAIF).
Singrobo-Ahouaty is the first hydro-independent power producer project developed by a local sponsor in Côte d’Ivoire. It is developed by the AFC, project developer Themis and local sponsor Ivoire Hydro Energy Holding.
The plant, located on the Bandama River, 150 kilometres from Abidjan, will connect rural inhabitants in the surrounding villages to the national grid. As a result, it will improve power supply reliability and reduce dependence on fossil fuels during peak demand periods.
The project, which aligns with the AfDB’s New Deal on Energy for Africa, will increase energy access for the population and the share of renewables in Côte d’Ivoire’s energy mix.
Alderney Set to Raise Electricity Price Cap
Electricity prices in Alderney could go up in 2023, depending on market volatility for diesel which the island’s generators use, the States has warned.
The Policy and Finance Committee has agreed to raise the price cap from 50p to 60p per unit.
The cap sets a maximum price Alderney Electricity Ltd (AEL) can charge for each kilowatt hour of electricity.
The increase is subject to approval by the full States of Alderney next year.
AEL raised its prices earlier this year, but also introduced a cost relief for customers for three months from 1 May.
The draft Ordinance to be placed on the Billet does not commit to an increase in electricity prices, but allows AEL the flexibility to quickly respond to market forces, within the constraints of the revised cap.
The States of Alderney said if activated in full, the measure could lead to an increase on typical domestic electricity bills of about 20% during 2023 – less than £25 per month for most households.
Under the existing 50p price cap and rising world fuel prices, AEL would be unable to meet financial expectations and maintain its current infrastructure, the States said.
It said improved network efficiency and station upgrades had helped to keep prices down.
Finnish Government Details Plan to Compensate for Electricity Costs
THE FINNISH GOVERNMENT on Wednesday shed further light on its proposals to help households to weather the high electricity prices of this winter.
The Ministry of Economic Affairs and Employment confirmed that the government will compensate households bills for electricity costs incurred during the four winter months. The lump-sum compensation will be based on monthly electricity costs in excess of 100 euros in November and December.
The compensation also has a monthly maximum limit of 700 euros. It is to be disbursed to households through their electricity bills early next spring.
No agreement was apparently reached on the share of costs to be compensated, but the tentative calculations that served as the starting point for the government negotiations set the share at 50–80 per cent. The Ministry of Economic Affairs and Employment did state, though, that the scheme would cost at most 400 million euros.
Prime Minister Sanna Marin (SDP) on Wednesday said Members of the Parliament will receive the proposal at the start of the spring term, according to YLE.
The Finnish government also agreed to move forward with legislation that enables extending the payment terms of the electricity bills of both businesses and consumers. It will also devise its proposal for a cap on electricity prices early next year, but estimates suggest that the cap will enter into effect at the earliest in March or April.