Power Sector And Other Related News Stories For Tuesday December 20th 2022
APC Failed on 40,000MW Promise, Rations 4,000MW
The state of the Nigerian power sector has degenerated to its worst level in the last seven years, as industries and homes ration less than 4,000 megawatts (MW) of electricity, despite promises made by the All Progressives Congress (APC) government to increase power generation to 40,000MW.
Despite indicators, such as regulations, metering, debt, corruption, corporate governance, generation capacity, grid performance, transmission, distribution capacity and sanctity of contract rated “poor” by industry stakeholders, the current administration may have spent above N1.7 trillion to intervene in the sector, while borrowing another $3 billion.
Stakeholders, who spoke with The Guardian in separate interviews, said most Nigerians are paying for darkness, adding that the sector has been abysmal under President Muhammadu, as three ministers brought in to manage the sector could not turn things around.
APC, during the 2015 election campaign, promised to increase electricity generation and distribution to 40,000MW between four and eight years.
“The APC government shall vigorously pursue the expansion of electricity generation and distribution of up to 40,000MW in four to eight years. The party will also work assiduously at making power available from renewable energy sources, such as coal, solar, hydro, wind and biomass for domestic and industrial use, wherever these prove viable,” the party’s manifesto had noted.
Only 10,692 Electricity Projects Fit for Use – FG
The Federal Government, through the Nigerian Electricity Management Services Agency, NEMSA, has said only 10,692 electricity projects out of 15,931 are certified as excellent and standardized in the country’s power industry.
NEMSA’s Managing Director, Aliyu Tahir disclosed this to DAILY POST on Sunday.
Tahir said the process of Inspection and certification is required to mitigate the hazards associated with the abuse of electricity, which can result in injuries, fatalities, and equipment damage.
According to him, the agency has monitored 12,114 power systems nationwide.
He said, “Inspection of over 15,931 electricity projects nationwide, out of which 10,692 have been certified fit for use by NEMSA.”
He added that NEMSA has inspected over 3,255 electrical installations at factories and hazardous buildings.
NEMSA Inspects 15,931 Power Projects, Certifies 10,692
The Nigerian Electricity Management Services Agency, a safety enforcement agency of the Federal Government, has certified 10,692 electricity projects as fit for use after inspecting a total of 15,931 projects across the country.
NEMSA’s Managing Director, Aliyu Tahir, said the inspection and certification became necessary to mitigate the hazards associated with the misuse/abuse of electricity, which could lead to a terrible price such as injuries, fatalities, equipment damage, and unscheduled downtime.
Speaking in Abuja on Sunday, Tahir stated that in furtherance of the agency’s key role in the Nigerian Electricity Supply Industry, it had carried out the “inspection of over 15,931 electricity projects across the country, out of which 10,692 have been certified fit for use by NEMSA.
“We have monitored 12,114 existing networks and power systems nationwide which is part of the agency’s mandate. Over 3,255 electrical installations at factories, hazardous installations have been inspected by NEMSA.
“There has been a significant increase in the total number of manufacturers of electric concrete poles certified in Nigeria. It has risen from 21 in 2016 to 143 in 2021.”
Tahir explained that for safe, reliable and sustainable electricity supply, it was paramount that the associated hazards were effectively mitigated.
No Political Will to Demolish 4,000 Structures Under Power Line – NEMSA
The Nigerian Electricity Management Services Agency (NEMSA) has decried that over 4,000 structured under electricity power lines, disconnect from supply by the agency are yet to be demolished.
Managing director, NEMSA, Engr. Aliyu Tahir Tukur, who made in Abuja over the weekend, said this is because of lack of political will by federal, states and local governments.
The NEMSA boss also confirmed that it will inspect and certify the 10 mobile transformers Siemens is importing into the country before their installation.
He stated: “From inception of this programme, NEMSA has been involved. We are part of the team that reviewed the technical specifications of these electrical materials and equipment before they are now allowed to be brought into the country.
“And we are also going to inspect them and certify them before they are finally energised across the country.”
The agency also revealed the plans to restrict 33KV line to substation because of their danger to lives and property outside the substations.
Nigeria, US Firm Sign Agreements on Clean, Reliable Electricity
Nigeria and a US firm have signed agreements on clean, reliable electricity, on the sidelines of the ongoing, US-Africa leadership summit.
A statement by Garba Shehu, the Presidential spokesman, said the agreement was signed at the US-Africa Business Forum (USABF) in Washington, D.C on Wednesday.
The project is expected to be constructed in different phases across the six geopolitical zones and will provide clean, reliable and affordable electricity to more than 30 million Nigerians.
The Federal Government signed the agreement with the U.S firm, Sun Africa LLC, the largest US renewable energy company operating in Africa.
He disclosed that the agreement is for the development and Engineering, Procurement and Construction (EPC) implementation framework for the construction of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants for up to $10 billion investment from the US government.
The agreement was signed by the Minister of Industry, Trade and Investment Adeniyi Adebayo who stood in for Nigeria and Adam Cortese, CEO for Sun Africa, for the implementing firm, in the presence of Amos Hochstein, President Joe Biden’s Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment.
Finland’s Electricity Support Measures Get Fairly Positive Reception from Experts
Juha Beurling-Pomoell, the secretary general at the Consumers’ Union of Finland, said to the newspaper that the government appears to have realised that consumers are genuinely finding it hard to cope with the energy crisis.
“The crisis is now, not just around the corner,” he said.
By offering both the lump-sum compensation and more flexible payment terms, the government should enable households to stay afloat until the longer-term remedy – the price cap – has been implemented, he gauged.
“It’s still unknown how long this crisis will last, a year or two. The price cap is one solution for the longer term,” said Berlinguer-Pomell.
Niku Määttänen, a professor of macroeconomics at the University of Helsinki, commended the decision to base the compensation on past rather than future consumption as it does not reduce the incentive to cut back on electricity consumption.
He drew attention to the varying situations of households: a person living in a flat is less likely to have struggled to pay their electricity bills than one living in an electricity-heated single-family home.
“I don’t fully understand why the government should be subsidising everyone’s electricity bills,” he said to Helsingin Sanomat.
Regulations Require More Renewable Electricity
Nova Scotia Power will be using more sustainably harvested biomass over the next three years under a new renewable electricity standard.
The new standard, in the Renewable Electricity Regulations under the Electricity Act, requires the utility to purchase 135,000 megawatt hours of readily available renewable energy in 2023, 2024 and 2025.
Biomass is likely to be the only readily available option during that time. It is available due to the closure of the Northern Pulp mill and damage from hurricane Fiona.
“Biomass is renewable, readily available and burns cleaner than coal,” said Tory Rushton, Minister of Natural Resources and Renewables. “Adding more sustainably harvested biomass for a few years is a small thing we can do in the short term to bring more renewables onto the grid while longer term solutions are built.”
The regulations prohibit cutting whole trees to generate electricity. They only allow biomass in the form of low-quality residual wood and chips that are leftover from sustainable timber harvesting and primary processing.
Suppliers will have increased costs for fuel or to restart operations. Therefore, the utility will be required to pay suppliers an additional $30 per megawatt hour beyond existing contracts. However, the utility has a limit of $4.05 million per year from 2023 to 2025 to avoid creating a burden for ratepayers as the Province encourages the use of more renewable energy.