Power Sector News And Other Related Stories For Friday 1st July 2022.
Electricity Output Plan Kicks Off Today on 5,505mw FG, GenCos Deal
The Federal Government has activated a partial Power Purchase Agreement, PPA, with electricity generation companies, GenCos, for the supply of 5,505 Megawatts (mw) of electricity for peak generation and a base load of 4,893mw.
The move, which is part of efforts by the government to improve electricity supply, takes effect from today, July 1, 2022. The agreement was reached on Tuesday with the operators.
The agreement guarantees payment for gas supplied to the GenCos by gas companies and also ensures that the generation companies are paid for power supplied to the national grid.
With the new agreements it means all the 25 power generation plants on the grid now have an agreement in place to generate a certain amount of power and get paid for it.
The Chairman of the Nigerian Electricity Regulatory Commission, NERC, had earlier in June assured consumers that the sector would generate about 5,000mw from July 1, 2022.
Deliver on Energy Commitments or Face a Penalty
Electricity operators who fail to deliver on set targets will face penalties, the government of Nigeria has promised.
The Nigerian government has said that electricity companies that fail to deliver assigned volumes will face penalties under newly agreed contracts. The step will be taken as part of measures to boost power supply in the country, and explains the government’s recent assurance that supply will improve from July, Power Minister Abubakar Aliyu said.
Power operators, including generating firms (Gencos), the Transmission Company of Nigeria and those distributing (DISCOs), signed contracts with the government recently, outlining specific amounts of electricity they will offer customers.
Terrorists Sabotaging Power Supply in North East
The Federal Government has said terrorists are sabotaging efforts to provide steady and reliable power supply to Nigerians, especially in the North East region.
The Minister of Power, Abubakar Aliyu, said this at the end of the Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo, at the Presidential Villa, Abuja.
He spoke as FEC approved various contracts in the power and water resources sectors, totaling N23,047,974,090.
The minister, who cited the case of the North East, North West and North Central, said after power infrastructure were brought down by vandals and restored, they were again vandalised.
He said government has now been compelled to design alternative, but less efficient ways to supply electricity to areas affected particularly Maiduguri in Borno State through Damaturu substation.
“But currently, we have returned the contractor to restore the main 330 that was vandalized some time back. So, in order to have enough electricity for Damaturu and environs, from that substation in Damaturu, and take some to Maiduguri, this project seeks to boost the capacity of Damaturu substation,” he explained.
FG Blames Terrorists for Power Problems in the Country
The Federal Government has blamed the frequent power outages in the country on the activities of the terrorists who vandalize power infrastructures in different parts of the country.
The Minister of Power, Abubakar Aliyu, stated this while speaking with newsmen after the weekly Federal Executive Council (FEC) chaired by Vice President Yemi- Osinbajo at the Presidential Villa on Wednesday, June 29.
Aliyu expressed regrets that terrorists’ continued vandalism of power infrastructure was seriously affecting the capacity to deliver electricity to consumers. He specifically spoke about cases in the North East, North West, and North Central, where he said power infrastructures were being consistently attacked by terrorists after repeated repairs
“We have vandalism on our lines, vandalism on our stations, substations; we have those that affect us indirectly, and those directly affecting us but the infrastructure is not directly our own.
Like vandalism around oil pipelines which affects gas and once you don’t get gas to power, you don’t get the megawatts; once there is no power coming from the generators, you know what that means.
Grid Collapse: FG Working to Restore Regular Power Supply Nationwide –Aliyu
The Federal Government has said efforts to ensure a steady power supply nationwide are being frustrated by terrorists who are vandalising critical power infrastructure in hard-to-reach areas, especially the North-East.
Minister of Power, Abubakar Aliyu, disclosed this to State House correspondents while briefing on the outcome of the Federal Executive Council meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja on Wednesday.
During the briefing, the minister also says that 10 mobile substations and 10 power transformers have been purchased and will be installed in strategic parts of the country to improve electricity supply nationwide.
Save Mambilla Project
Penultimate Saturday, we reported that surveyors had abandoned the assumed site of the 3,050 megawatts (MW) Mambilla hydropower project in yet another blow to the execution of the all-important national project. This also affected other aspects of the project including payment of compensation to residents whose buildings had been marked.
The hydroelectric facility, located on the Dongo River near Baruf, in Kakara Village of Taraba State, was originally conceived in 1972, when the first preliminary feasibility study was carried out. But it could advance only after 35 years when China’s Gezhouba Group was awarded the contract to develop the project with 2,600MW installed capacity, in 2007.
The ground survey was completed in August 2010 and environmental approval was received in December 2011. The capacity of the project was increased to 3,050MW in 2012 but stalled due to administrative bottlenecks until it received further government approval in 2016.
On August 30, 2017, the Federal Executive Council (FEC) approved the contract for the construction to a consortium of China Gezhouba Group, a subsidiary of the state-owned China Civil Engineering Construction Corporation (CCECC), Sinohydro and CGCOC Group.
How Africa can Achieve Universal Access to Electricity by 2030
The International Energy Agency (IEA), in its 2022 Africa energy outlook report, has proposed certain measures for more Africans to have access to electricity by 2030.
The report provides an analysis of how African policy-makers can make informed long‐term decisions to achieve better power supply, which will also involve global support.
“This Outlook explores a Sustainable Africa Scenario (SAS) in which Africa rides these shifting tides to achieve all African energy‐related development goals on time and in full. This includes universal access to modern energy services by 2030 and the full implementation of all African climate pledges,” the report reads.
“Realising all of these goals is a formidable undertaking. African countries need to take the lead with clear strategies and policies, while international institutions must reinforce their commitment to significantly increase their levels of support.”
Africa Energy Investment Needs Shift from Generation to Transmission
Energy investment in Africa needs to give transmission networks a higher priority and avoid concentrating solely on power generation, Chris Flavin, head of business development at Gridworks in the UK, tells The Africa Report.
A heavy focus on generation in energy investments on the continent is a sign of “multiple policy failures,” Flavin says. Generation investments are “pointless” without equivalent investment in transmission.
Investment in African electricity transmission is largely to get off the ground. According to the World Bank, between 2010 and 2020, only 7.5% of electricity infrastructure investment went to sub-Saharan Africa. From that amount, 98.2% was for electricity generation projects, and less than 0.3% for transmission. That leaves transmission in sub-Saharan Africa with a negligible share of global electricity infrastructure investment over the 10-year period.
5 Barriers Hindering Renewable Energy Expansion in South Africa
Despite efforts by South Africa to accelerate renewable energy penetration through a series of policy reforms and programs such as the Renewable Energy Independent Power Producer Procurement (REIPPP) program, a wide range of political, technical, social and economic barriers continue to hinder rollout.
For South Africa to meet targets of expanding the share of renewables in its energy mix to 41% by 2030, the following challenges need to be addressed.
According to a report released by the University of Johannesburg, the centralized decision-making structure with a top-down approach in South Africa restricts national utility, Eskom, from accelerating renewables rollout and deters the increased participation of the private sector in mobilizing funds and technologies required for the country to become a green energy hub. Despite the provision of a number of roadmaps for clean energy adoption in South Africa – notably, through the introduction of the Hydrogen Society Roadmap; the Integrated Resources Plan (IRP) of 2019; and the REIPPP -, more needs to be done, both from an execution and incentivizing standpoint. By opening up the market and encouraging private sector participation, South Africa can accelerate renewable deployment.
IAEA and South Africa Open Third School of Nuclear Energy Management in Africa
Forty-one participants from 14 African countries are meeting this week in Pretoria, South Africa at the School of Nuclear Energy Management (NEM) to learn more about every aspect of nuclear power production, from energy planning and nuclear law to safety, security and radioactive waste management. The two-week training course — the third of its kind in Africa — opened on 20 June, with the support of IAEA experts, guest lecturers and contributors from the Nuclear Energy Corporation of South Africa (NECSA), the Department of Mineral Resources (DMRE) and the National Nuclear Regulator (NNR).
“As the third NEM School hosted in Africa, the School has continued to grow in stature and in attendance,” said Katse Maphoto, Deputy Director General of Nuclear Energy Regulation at the DMRE. “This is testament to the fact that Africa remains a key destination for the expansion of nuclear applications and for training in nuclear technologies.”
Zest WEG Poised for African Growth
After a decade-long expansion of its manufacturing capabilities in South Africa, Zest WEG, the South African subsidiary of Brazil’s WEG Group, is well placed to extend its already extensive footprint in the African market.
“We now have six manufacturing facilities in Gauteng and Cape Town, producing a wide range of equipment including gensets, transformers, electrical panels, E-Houses, MCCs and mini sub-stations,” says Zest WEG’s outgoing CEO, Juliano Vargas. “This ability to manufacture locally gives us a huge advantage in the African market, as we can produce economically and deliver promptly to countries throughout the sub-Saharan region.”
Vargas’s successor as CEO of Zest WEG is Eduardo Werninghaus, who has been with WEG for more than 15 years and who comes to South Africa from WEG’s USA subsidiary. “I’ve been briefed to build on the very firm base created by Juliano and his predecessors,” he says. “WEG is not a company that is fixated on next quarter results only. It thinks and acts long term and considers Zest WEG as being crucial to its future, given Africa’s enormous growth prospects which include a need for massive investments in energy infrastructure.”
War-Torn Ukraine Exports Electricity to Europe
War-torn Ukraine has begun exporting electricity to Europe, Ukrainian Prime Minister Denys Shmyhal said.
“The long-awaited export of Ukrainian electricity to Europe has begun,” Shmyhal wrote on Telegram on Thursday.
Shmyhal said the first flows of Ukraine’s electricity went to Romania at an initial capacity of 100 megawatts.
In the future, Ukraine aims to increase the capacity of electricity flows to Europe to 2.5 gigawatts, he said.
According to Shmyhal, Ukraine has the potential to earn about 2.4 billion U.S. dollars per year from electricity exports to European countries.
In March, Ukraine’s electricity grid was synchronised with the European Network of Transmission System Operators for Electricity.
Apart from Romania, all the required Ukrainians lines are ready to export electricity to Hungary, Slovakia and Poland, said Lana Zerkal, an adviser to the energy minister.
How to Make Clean, Affordable Energy Available to Everyone
Hot on the heels of COVID-19, the world faces more turmoil. This year, Davos 2022 aptly focused on the tragic war in Ukraine and its ripple effect on global finance, food, and energy systems. The current state of the world reminds us to what degree energy underpins our aspirations for a more sustainable future for all – and how broken the global energy system is.
The energy sector accounts for three-quarters of human-caused greenhouse gas emissions, making it the leading driver of the climate crisis. The current geopolitical context is incentivizing some countries to revert to this dirty diet. Meanwhile, existing energy systems fail to deliver. Close to 1 in 10 people – 733 million people globally – still lack access to electricity, locking them into poverty and out of the opportunities it brings. One-third of the world still relies on polluting fuels for cooking and heating their homes at significant health costs. Unfortunately, the COVID-19 pandemic has slowed progress towards universal access to electricity. Without decisive action, 670 million people will remain without electricity by 2030 – 10 million more than projected last year.