Power Sector News And Other Related Stories For Friday 26th August 2022

Posted by News Room August 26, 2022

Gencos Debt Profile Rises to N2trn

The Association of Power Generation Companies (APGC) has raised the alarm over the spike of  its members indebtedness now estimated at  about N2 trillion by the Nigerian Bulk Electricity Trading (NBET) PlC.

Executive Secretary of APGC, Dr. Joy Ogaji, stated this yesterday, at the power session of the 2022 Association of Energy Correspondents of Nigeria (NAEC) Strategic Conference.

In March this year, Ogaji had said that NBET was indebted to APGC to the tune of N1644 trillion, a figure that has grown to N2 trillion as at August 2022.

Ogaji  gave a breakdown of the debts to include N214.93 billion in 2015; N273.32 billion in 2016; N236.47 in 2017, N264.08 billion in 2018, and N256.97 billion, N266.01 billion and N120.25 billion in 2019,2020 and 2021 respectively. She said of the N2 trillion owed GenCos, N1 trillion of the amount is to be paid to gas suppliers.

The APGC boss said the inability of the transmission arm of the power sector value chain to transmit power generated by the sector was a major disservice to the industry.



Discos’ Debt to Gencos Hits N2tn – Group

Power generation companies have blamed low power generation for the inability of the utility firms, also known as the DisCos, to pay up the N2trn debt owed them.

This was revealed by the Executive Secretary, Association of Power Generation Companies, Dr Joy Ogaji, at the Association of Energy Correspondents of Nigeria annual conference held in Lagos on Thursday.

While speaking during the ‘Power Sector Dilemma: Issues, Challenges, Opportunities And Strategic Key Solutions’, she argued that the GenCos were not owed N500bn as being reported but N2trn.

“GenCos are not owed N500bn as accepted by NBET. We are owed N2 trillion, while we owe suppliers N1trn,” she said.

She further explained that the GenCos had not been able to make power available due to the huge debts being owed them by the Nigerian Bulk Electricity Trading Plc.

NBET is the manager and administrator of the electricity pool in the Nigerian electricity supply industry, NESI. It collects tariffs on behalf of the market – DisCos, DisCos and the TCN.



IBEDC, USAID Collaborate On Empowering Women in Power Sector

The Ibadan Electricity Distribution Company (IBEDC) is collaborating with the United States Agency for International Development (USAID) to promote gender equality and empower women in the power sector.

The News Agency of Nigeria reports that this was the focus of ” IBEDC 2022 DISCO for Women Conference” held in Ibadan on Thursday.

The conference had the theme, “Breaking the Glass Ceiling”.

Speaking at the event,Mr Kingsley Achife, Managing Director and Chief Executive Officer, IBEDC, said that the power industry had long been seen as the domain of the male gender.

He said this was the reason for the terminologies used in the industry such as linesmen, draftsmen, among others.

Achife, who was represented by Mr Iranola Ayodeji, Chief Business Transformation and Strategy Officer, IBEDC, said the company had changed the narrative by being the first Disco to adopt more gender-friendly nomenclatures such as lines worker.

He expressed the hope that other Discos will follow suit.



Experts Insist CBN’s Backing of Takeover of Selected Discos Saved Banks, Power Sector

Some analysts have hailed the support of the Central Bank of Nigeria (CBN) for the recent takeover of selected electricity Distribution Companies (Discos) by some banks, saying that it saved the country the financial institutions and the power sector from an imminent collapse.

The affected distribution firms which included Ibadan, Kano, Kaduna and the Benin Discos had been at loggerheads with the Nigerian Electricity Regulatory Commission (NERC) and Bureau of Public Enterprises (BPE).

A number of respondents maintained that the move by the apex bank to ensure the shares are successfully transferred to new investors remained critical to the survival of both the banks and the Discos.

A power sector analyst, Adetayo Adegbemle noted that the CBN’s role in protecting the banks involved in funding the purchase of the power sector loans was important, since according to him, the indebtedness of the power sector to the financial institutions would have led to the collapse of banks.

“I love the fact that CBN came into the power sector, not just to save the power sector. Don’t forget even though they have roles to play in the sector, they also came in to save their own banking sector.

“The loans that the power sector took from the banks have become bad and if you do not do anything, it is going to be in the books of the banks. So CBN backing the banks to take over the shares is a good thing for CBN,” he argued.



Electricity: Substandard inputs, components, others affect renewable sector — Experts

THE Executive director, Gennex Technologies, Mrs. Toyin Ilo, has identified substandard inputs and incompetent installers, and others as the main challenges facing the renewable sector in Nigeria.

She said the problems were very negatively impacting, thus eroding the confidence of customers in the renewable sector.

Speaking at the just-concluded Colloquium 2022 in Lagos, she said: “One of the major challenges confronting our sectors is how to properly size and design solar solutions to make them more cost-effective and at the same time durable. At Gennex, we have blazed the trail by coming up with innovative approaches to tackling this problem, but the situation in the entire industry is not helped by the proliferation of inexperienced and unqualified “solar installers” who advise commercial, industrial and even residential customers on solutions design and sizing, and choice of inputs.

“Secondly, the industry is still grappling with the challenge of sub-standard inputs and components, which has the capacity to erode the confidence of customers in their journey to transition to renewable energy.



Digest from the 73rd Power Dialogue

The partial privatisation of the Nigerian power sector in 2013 aimed to tackle the energy deficit and create an efficient and competitive electricity market. However, almost a decade later, Distribution Companies are being restructured for unpaid loans.

On Wednesday, 24th August 2022, The Electricity Hub (TEH), a subsidiary of The Nextier Group, organised its 73rd Power Dialogue to discuss the implications of the recent restructuring of DisCos on service delivery to electricity consumers.

The privatisation, which saw the establishment of six Generation Companies (GenCos), the Transmission Company of Nigeria (TCN) and 11 Distribution Companies (DisCos), was expected to bring succour to the country’s meagre state of power supply. Though some progress has been recorded, the assets are yet to attain optimal levels of service delivery. Thus, the Nigerian economy and the populace still suffer from the inadequate electricity supply.



FG Launches Energy Transition Plan

The federal government has launched Nigeria’s energy transition plan as a significant path to achieving universal energy access by 2030 and a carbon-neutral economy by 2060. At the global launch, which was held on Wednesday, Vice-President Yemi Osinbajo noted that the plan was designed to tackle energy poverty and climate change crisis and deliver sustainable development goal seven (SDG7) by 2030 and net zero by 2060.

He said the plan would, among other things, lift 100 million people out of poverty, reduce Nigeria’s carbon footprint, drive economic growth and create jobs. Adding that it was time for Nigeria and the African continent to take ownership of transition pathways and design climate-sensitive strategies that address peculiar growth objectives.

“There is a clear need for African nations to engage more critically and vocally in conversations on our global climate future,” he said.



 Wisolar Launches Hybrid Prepaid Solar Electricity Platform “Wigo” for Nigeria and South Africa

South Africa-based renewable energy company, WiSolar, has announced the launch of WiGo, its Android and iOS hybrid prepaid solar electricity app for Nigeria and South Africa customers.

WiGo is a hybrid prepaid solar electricity app that enables users to register and sign in to buy prepaid solar electricity tokens, recharge remotely, view electricity top-up history and view solar performance.

Individuals and companies can also partner with WiSolar to earn commissions on packages sold. Partner installers, on the other hand, earn on installations and maintenance.

Another perk offered by WiGo is that partner developers and property owners will be able to view customers, earn commissions on prepaid tariffs, and determine prepaid tariffs for tenant solar usage. WiSolar claims that developers and property owners can get improved cash flow by having electricity used through the prepaid metre paid back to the owner.



Bui Power Authority to Deploy Solar Power Plant in Ghana

Bui Power Authority (BPA) has announced plans to develop a 50MW solar plant in Yendi. Samuel Kofi Dzamesi, Chief Executive Officer (CEO) of the BPA, disclosed this in a speech at a two-day Energy Commission’s Senior High School Energy and Renewable Challenge.

According to him, the contract has been signed, and the project will commence soon. At the Bui enclave, the Authority has also started installing a 250MW peak solar plant to hybridise the 404MW hydropower plant, to enhance power generating in the country.

According to Dzamesi, “we are vigorously pursuing the acquisition of about eight-suitable solar sites spread throughout the country and the development of those sites. Our goal is to support socio-economic development by utilising natural resources for energy generation in a safe, reliable, and cost-effective manner”.



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