Power Sector News And Other Related Stories For Tuesday 26th July 2022

Posted by News Room July 26, 2022

Ikeja Electric Restores Billing, Vending Channels

Ikeja Electricity Distribution Company (Ikeja Electric), on Wednesday, said it has completed the system upgrade on its billing and vending infrastructure and consequently restored suspended services.

In a public notice by Ikeja Electric to its customers on Wednesday, July 2022, it acknowledged that its customers experienced some difficulties in purchasing energy tokens through the Quickteller payment channel and advised them to use other payment channels and agents.

It said: “Ikeja Electric wishes to notify its esteemed customers that the system upgrades on our billing and vending infrastructure have been completed and suspended services have been restored.

“However, for customers who may still be experiencing difficulties in purchasing energy tokens through the Quickteller payment channel, we advise you to use all other payment channels and agents. We will notify you once this channel is fully restored.



Discos’ Revenues Hit N562.5bn in Nine Months Amid Marginal Rise in Collection Efficiency

The electricity Distribution Companies (Discos) recorded a total of N562.55 billion in revenues in the first nine months of 2021, with a marginal increase in collection efficiency in the Nigerian Electricity Supply Industry (NESI), THISDAY has learnt.

The latest report from the Nigerian Electricity Regulatory Commission (NERC), covering its activities for the period indicated that while the power distributors collected about N183.73 billion in Q1, they raked in N185.29 billion in Q2 and N193.53 billion in Q3.

Collection efficiency is an indicator of the proportion of an amount that has been collected from customers relative to the amount billed to them by the Discos.

The report is coming in the midst of continuing complaints of illiquidity by the operators and alleged inability of some of the Discos to carry out their obligations to their creditors and eventual takeover by the banks.

Earlier this month the banks in consultation with the Nigerian authorities took over the Benin, Kaduna and Kano Discos and appointed new boards to run the Port Harcourt and Ibadan Discos. Abuja Discos had earlier been taken over by the United Bank for Africa (UBA).



NERC, NOA Sign Deal to Educate Nigerians on Power Sector

The Nigerian Electricity Regulatory Commission (NERC) and the National Orientation Agency (NOA) have signed an agreement to partner in enlightening Nigerians on the working of the power sector.

Speaking at the event in Abuja, NERC Chairman Sanusi Garba explained that the development had become essential for consumers to know their rights and obligations in the sector. The Memorandum of Understanding (MoU), Garba noted, was critical because the commission was mandated by the power sector law to protect consumers in the electricity industry.

Represented by the Commissioner, Legal, Licensing and Compliance, Mr Dafe Akpeneye, the NERC Chairman, stated that as a very technical sector, consumers must understand how it is managed.

“Our sector requires a lot of sensitisation, and we are meeting with NOA because we know we cannot do the sensitisation on our own. We have a very large country with a population of over 200 million people in 774 local government areas.



Electricity, Bank, Aviation Workers Join NLC Nationwide Protest

The National Union of Banks, Insurance and Financial Institutions Employees, the National Union of Electricity Employees, the Association of Nigeria Aviation Professionals and the Air Transport Employees (NUATE) have resolved to join the nationwide protest of the Nigeria Labour Congress (NLC) taking place today and tomorrow in solidarity with the striking Academic Staff Union of Universities.

ASUU had, on February 14, embarked on a strike demanding implementation of the October 2009 ASUU/FGN agreement.

The Minister of Information, Lai Mohammed, had, last week, described the proposed protest as “unconstitutional” and a recipe for anarchy.

The Minister of Labour and Employment, Chris Ngige, had also warned the NLC against the protest, saying a security report from the Department of State Service did not favour it.

In an interview with Daily Trust Monday, NLC President, Ayuba Wabba, said the labour had informed the police about the protest.



FG Moves to Reposition Power Sector

After about five years of inaction, largely borne out of the fear of starting a protracted legal battle in international courts of arbitration for breach of contract, the Federal Government has finally moved to repossess the 11 electricity distribution companies (Discos) operating in the country, Business Hallmark can reveal.

The 11 dicos and five gencos, it would be recalled, were carved out of the defunct Power Holding Company of Nigeria (PHCN) and were handed over to private investors on November 1, 2013 by the administration of former President Goodluck Jonathan.

While Kann Consortium emerged as the new owner of Abuja Distribution Company (AEDC); Interstate Electrics got Enugu Disco; West Power and Gas got Eko Disco; Integrated Energy Distribution and Marketing Limited secured Yola Disco and EDC/KEPCO Consortium emerged the new owner of Ikeja Disco.

Other are Integrated Energy Distribution and Marketing Limited, Ibadan Disco; Vigeo Power Consortium, Benin Disco; Sahelian Power Limited, Kano Disco; Aura Energy Limited; Jos Disco; 4Power Consortium; Port Harcourt Disco and the Northwest Power Limited (NPL), Kaduna Electricity Distribution Company.



Power Purchase: Special, International Customers Fail to Remit N64million, $5.3million to FG

Special and foreign customers failed to remit a total of N64 million and $5.3million to the Federal Government(FG) for power purchased, an industry report has revealed.

The Nigerian Bulk Exchange Trading PLC NBET and the Market Operator had in the 2021 third quarter, issued N52million and N12million invoices to Ajaokuta Steel Company Limited respectively but the company had remitted nothing.

According to the 2021 third-quarter report released by the Nigerian Electricity Regulatory Commission (NERC), during the period, the Market Operator also issued an invoice of $11.52 million to bilateral customers Paras-SBEE, TRANSCORP-SBEE, Mainstream-NIGELEC & Odukpani-CEET but only $6.22 million was remitted.

It states that Ajaokuta had also failed to remit its invoice in 2021 Q2 stressing the need for MO and NBET to activate the safeguards against continued non-settlement of market obligations by market participants.



Nigeria to Attain 30 GW by 2030

Minister of State for Power reaffirms FG’s commitment to an increasing power supply.

Goddy Jedy-Agba, Minister of State for Power, reiterated the Federal Government’s target for 2030. He gave the assurance at the seventh Nigeria Energy Forum, NEF, 2022, on Monday in Lagos. According to the minister, the country had a sustainable electricity vision of achieving 30 GW by 2030 with 30 per cent renewable energy.

The forum theme was: “Energising Economic Growth and Sustainability.”

The minister, represented by his Special Technical Assistant, Gabriel Lorsase, said the ministry had ongoing renewable energy programmes and initiatives to achieve the target. “We are in collaboration with the German Agency for International Cooperation (GIZ) under the Nigerian Energy Support Programme (NESP) funded by European Union. This body conceived and developed the Nigeria renewable vision platform.

“This serves as a hub for data-driven electrification planning and implementation. The project aims to enable and foster investments in renewable energy, energy efficiency and data-driven electrification planning and implementation while sustainably increasing energy access.”



Renewable Energy Policy and Regulation In Nigeria

The policy and regulatory framework reflects the legal and theoretical outlook of the Nigerian government on the implementation of renewable energy. Although administrative bureaucracies and inefficiencies hinder swift progress, there has been a slow and steady advancement, particularly noticeable in the increased use of solar-powered energy sources in homes, institutions and offices in Nigeria.12

i The policy background

The key documents and projects that the government has embarked upon in collaboration with stakeholders are outlined below.

National Electric Power Implementation Policy 2001

Although electric power was generated by the British colonial government in Ijora Lagos in 1896, since the 1960s, there have been constant power outages in Nigeria. The erratic, unreliable supply had become widespread and disruptive. In 2000, the federal government set up the Electric Power Implementation Committee to advise on reform of the electric power sector and the committee’s efforts yielded the National Electric Power Implementation Policy 2001 (NEPIP).



Edo Electricity Bill: State Govt’ll Get Legal Rights to Stablish State Electricity Regulatory Commission

The Managing Director/CEO, New Hampshire Capital Limited and Technical Consultant on Power Sector for the Nigerian Governors Forum Secretariat, Mr. Odion Omonfoman, weekend, said the passage of Edo Electricity Bill would arm the state with the constitutional and legal rights to play active roles in the power sector.

The Edo State House of Assembly recently passed a Bill for a law to make provision for electricity generation, transmission and distribution for the residents of the State.

The bill, submitted to the State House of Assembly as an executive bill by the Edo State Government, also makes provision for the creation of an Edo State electricity market.

However, in a statement obtained by Energy Vanguard, Mr. Omonfoman, stated: “I hereby commend the Edo State House of Assembly for its timely passage of this very important bill. The bill is in line with the recent constitutional alteration which alters the electricity provisions in section 14(b) of the concurrent legislative list within the 1999 Constitution (as amended) to give State Houses of Assembly the right to make laws for electricity and electricity generation, transmission and distribution within a state.



TotalEnergies Commences Production from Nigerian Offshore Oil Field

TotalEnergies and NNPC have announced the commencement of production from the Ikike field in production licence 99 (OML 99) in Nigeria. The company operates the OML99 licence with a 40 per cent stake, while the Nigerian National Petroleum Corporation (NNPC) owns the remaining 60 per cent interest.

Situated 20km off the coast and at a water depth of approximately 20m, the Ikike platform is tied back through a 14km multiphase pipeline to the existing Amenam offshore facilities. The field is projected to reach a peak production capacity of 50,000 barrels of oil equivalent per day (boepd) by the end of this year.

According to TotalEnergies, the project uses existing facilities to reduce costs. It is also designed to reduce greenhouse gas emissions.

TotalEnergies Africa exploration and production senior vice-president Henri-Max Ndong-Nzue stated, “TotalEnergies is pleased to start production at Ikike, which was launched a few months before the Covid pandemic, and whose success owes a lot to the full mobilisation of the teams. By tapping discoveries close to existing facilities, this project fits the company’s focus on low-cost and low-emission oil projects.”

TotalEnergies has been present in Nigeria for more than 60 years and employs over 1,800 people across different business segments.



AU Adopts African Common Position on Energy Access

The African Union Executive Council has adopted the African Common Position on Energy Access and Just Transition as a comprehensive approach that charts the continent’s short, medium, and long-term energy development pathways.

It is to accelerate universal energy access and transition without compromising development imperatives.

The African Union Commission (AUC), in collaboration with other Pan-African institutions, adopted the Common Position during the AU-Mid-Year Coordination Meeting on the fringes of the 41st Ordinary Session of the Executive Council at Lusaka, Zambia on July 15th, 2022.

The Common Position stipulates that Africa will continue to deploy all forms of its abundant energy resources, including renewable and non-renewable energy, to address energy demand, a copy of the document made available to the Ghana News Agency in Tema has stated.

According to the Common Position agreement, natural gas, green and low carbon hydrogen, and nuclear energy will be expected to play a crucial role in expanding modern energy access in the short to medium term while enhancing the uptake of renewables in the long term for low carbon and climate-resilient trajectory.



D.Light Acquires $50m to Deploy SHS in Africa

D.light, a clean energy solutions provider, is set to receive new funding for its expansion in Africa. The finance a $50 million line of credit opened by a consortium of lenders, including Mirova SunFunder, the Trade and Development Bank (TDB), a trade and development financial institution operating in East and Southern Africa, and the Netherlands Development Finance Company (FMO).

According to a report by Afrik Africa, the credit line is one of a series of financings acquired by d.light in recent months. In June 2022, the company secured $238 million in par value receivables financing over a two-year commitment period as part of Brighter Life Kenya 2 Limited (BLK2), a local currency solar home systems financing facility to benefit Kenya and other East African countries.

D.light distributes solar-powered lighting equipment ranging from solar home systems to solar lanterns. The company, co-founded by Ned Tozun, and Sam Goldman, combines its lighting kits with other equipment such as TVs and mobile phones. The equipment is distributed through a pay-as-you-go system widely used by African solar kit providers.



Ghana Saves $13.2bn on Renegotiated Power Deal

Ghana’s Finance Minister, Ken Ofori-Atta, has announced that the country has saved USD 13.2 billion from renegotiated power deals with six Independent Power Producers (IPPs). In his announcement, the IPPs included Karpower, Cenpower, Early Power, Twin City Energy (formerly Amandi), AKSA Energy and Cenit.

“These renegotiated agreements are expected to have savings estimated at $13.2 billion over the life of the PPAs through a combination of reduced capacity and energy charges. In other words, we are saving the Ghanaian taxpayer $13.2 billion from power contracts signed by the previous administration,” Mr Ofori-Atta explained at parliament on Monday during the Mid-Year Budget presentation.

He maintained that the renegotiated deal provides balanced, sustainable energy partnerships that have led to affordable power for industrial, commercial and residential use.

Speaking on occurrences in the energy sector, Mr Ofori-Atta said the raft of sanctions imposed on Russia is tightening supply conditions for energy products. In response, he stated that the government is closely monitoring the stock of products at all depots.



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