Power Sector And Other Related News Stories For Tuesday October 10th 2023
Energizing The Power Sector With AfDB’s $250m Loan
As another official attempt to resuscitate a vital but critically ailing sector of the Nigerian economy, a plan by the Africa Development Bank (AfDB) to disburse $250 million into Nigeria’s off-grid energy sector to boost electricity supply could not have come at a better time. The power situation in the country has remained for decades an embarrassment to all.
For a country that claims to be the most populous in Africa, with over 200 million citizens, an average daily wheeling capacity of 4,100 megawatts (MW), according to recent data from the Transmission Company of Nigeria (TCN), is abysmal. That output cannot even meet the social needs of the people.
Stakeholders Must Drive Investment to Bridge Nigeria’s 195,400 MW Energy Deficits — Abdul
For Nigerians to enjoy constant electricity supply, there is need for more investments in the sector that will culminate in the country being able to generate 200,000 MegaWatts (MW). This implies Nigeria needs additional 195,400 megawatts to meet its electricity needs, because it currently generates an average of 4,600MW for a population of 200 million people.
The Group Managing Director, Mojec International Limited, Chantelle Abdul, who disclosed this at the yearly strategic international conference of the Association of Energy Correspondents of Nigeria (NAEC), in Lagos, said that low energy generation is responsible for frequent blackouts being experienced in the country.
The Electricity Act 2023 as a Catalyst for The development and Utilization of Renewable Electricity in Nigeria
The stratospheric negative ramifications attached to climate change have led to the critical drive for developing countries such as Nigeria, to curtail greenhouse gas (GHGs) emissions by transitioning from the use of carbon-intensive fossil fuel energy to renewable energy options.
The Electricity Act 2023 (‘The Act’ or ‘The Electricity Act’), as signed into law by President Bola Ahmed Tinubu on the 9th of June 2023, proves capable of fostering renewable electricity in Nigeria.
ARMHIF Invests $18.75 Million in Elektron Power
ARM-Harith Infrastructure Fund (ARMHIF) has announced an investment of $18.75 million into Elektron Power Infracom (EPI). EPI is a Mauritius-incorporated decentralised energy platform that delivers hybrid energy solutions across West Africa, anchored with existing assets in Nigeria. Elektron Energy Development Strategies Limited (Elektron) sponsors EPI, comprising brownfield and greenfield power assets. Through these power assets, EPI supplies power to commercial and industrial customers. They also supply directly to broad-based consumers under Nigeria’s embedded energy framework for power delivery.
The role of ARM-Harith in the project includes providing late-stage project development advisory and structuring support. This is to deliver a precedent-setting bankability framework for power projects under Nigeria’s decentralised embedded energy framework. The firm invested through equity, shareholder loans, and loan notes. Legal advisers for the transaction were Templars and Trinity International LLP.
Zungeru Hydropower Project to Generate 2.64bn kWh Electricity Annually – Chinese Consortium
The Zungeru hydropower project will generate 2.64 billion kWh of electricity annually.
A Chinese consortium comprising China National Electric Engineering Company, CNEEC, and Sinohydro, made this known in a statement in Abuja.
The consortium said that the project will make a significant contributions to Nigeria’s power generation capacity.
The Zungeru hydropower project, the consortium said is proof of the China-Nigeria partnership at its best.
”The project will provide flood-control, irrigation, water-supply and fish-breeding facilities; although construction works on the power plant started in May 2013, it was expected to take 60-months for completion with initial completion date of 2018
‘Drive Investment to Bridge Nigeria’s 195,400Mw Energy Deficits’
For Nigerians to enjoy constant electricity supply, there is the need for more investments in the sector that will culminate in the country being able to generate 200,000 MegaWatts (MW).
This implies Nigeria needs additional 195,400 megawatts to meet its electricity needs, because it generates an average of 4,600MW for a population of 200 million.
The Group Managing Director, Mojec International Limited, Chantelle Abdul, stated this at the yearly international conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.