Power Sector And Other Related News Stories For Wednesday November 8th 2023
Niger Demands 13% Derivation From Hydro Electricity
Niger State governor, Mohammed Umaru Bago, has called on the federal government to pay 13 per cent derivation to Niger State for power generated and supplied to Nigerians through the four hydropower generating dams situated in the state.
The governor stated this when the Federal Commissioner, of the National Commission for Refugees, Migrants and Internally Displaced Persons, Tijjani Aliyu Ahmed, led other principal officials of the commission on a courtesy visit to the governor at the Government House, Minna.
Bago decried the rate at which Nigerlites have been ravaged and displaced every year due to overflow of water as absurd.
He suggested a round table discussion on the way out or the state might cut off the supply of power from the hydro dams until its demands are met.
Between Increase in Electricity Tariff and Improved Service Delivery
The Nigerian Electricity Regulatory Commission (NERC), in its second quarter report for 2023 showed that the Federal Government paid N135.23 billion to subsidise electricity consumption between April and June this year.
The tariff shortfall in that period went up by N99.21 billion, representing 275 per cent compared to the N36 billion it paid in the first quarter of 2023.
The power sector was privatised by the Federal Government on November 1, 2013, with the expectation that supply to homes and industries would by now not only exceed 40, 000 megawatts but that the sector would have been self-sustaining. But the reverse is the situation as the liquidity crisis continues to hold the sector to ransom. The poor performance of the sector also affected every aspect of the nation’s economy as some banks have faced liquidation over the debt of the sector.
Nigeria’s Power Generation Affected By Soaring Natural Gas Prices — Minister
The Minister of Power, Adebayo Adelabu, has stated that the recent rise in natural gas prices has had a significant impact on Nigeria’s ability to generate sufficient power.
He made this known during the closing session of the African Natural Resource and Energy Investment Summit held in Abuja on Thursday.
Adelabu noted that the increased production costs have resulted in reduced foreign investments, decreased reliability, and heightened environmental concerns.
This was as he sought continued cooperation and collaboration to help implement government policies and programmes in the energy sector for the well-being of Nigerians and the country’s economic development.
Nigeria Achieves 5,060MW, Highest Power Generation Peak Since September 2022
Nigeria achieved highest power generation peak of 5,096.8 MW and 5,060 MW on November 5 and 6, 2023, respectively, the highest peak since September 1, 2022, when the country’s generation peaked at 5,043.4 MW.
This was revealed through data obtained from the System Operation (SO), a semi-autonomous sector under the Transmission Company of Nigeria (TCN) on Monday.
The trend for the period in view showed that generation increased from 4.951MW achieved on Saturday, November 4, and crossed the 5000MW threshold after 14 months.
EnergyDay gathered that this is not the first time such would be achieved, the industry trend showed that these peaks are not sustained in the long run due to many challenges, including gas shortages, poor infrastructure, and low investment, which have contributed to the low levels of electricity generation.
Dr. Joy Ogaji, Executive Secretary, Association of Power Generation Companies (APGC), an umbrella body of the Gencos, reacting to the latest development bemoaned Nigeria’s poor electricity generation metrics.
ARM-Harith, AD Power HoldCo Unveil Renewable Equity Financing Initiative
ARM-Harith Infrastructure Fund has established a distributed renewable energy equity financing platform in AD Power HoldCo, focused on off-grid and interconnected mini-grids as well as captive commercial projects sized at less than 1MW in Nigeria.
The vehicle invests equity and quasi-equity instruments into companies holding projects with small to medium-sized renewable energy off-grid projects, interconnected mini-grids and commercial and industrial projects of less than 1MW in Nigeria.
In a statement seen by BusinessDay, it also seeks to mobilise affordable, long term, local currency debt financing through an investable balance sheet to enable the delivery of commercial debt and debt capital from domestic financial institutions.
Minister Seeks Private Sector Collaboration to Deepen LPG Utilisation
As the energy transition project gathers steam, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo has solicited the cooperation of private sector investors in deepening the utilisation of Liquefied Petroleum Gas (LPG) in Nigeria, being a cleaner and cheaper source of energy.
The minister stated this at the 13th Nigeria Liquefied Petroleum Gas Association (NLPGA) Conference and Exhibition in Abuja on Tuesday, where he tasked investors and relevant stakeholders in the industry to bridge the energy transition gap with a sense of urgency and strategic direction.
The minister lauded the NLPGA for demonstrating unwavering dedication to the promotion of LPG as a catalyst for socio-economic transformation.
Ekpo also pledged the commitment of the Federal Government in creating a conducive environment to support investments and innovations in the LPG sector.