Power Sector News And Other Related Stories For Wednesday 6th July 2022.
FG Announces Restructuring of Five Electricity Distribution Companies
The Nigerian government has announced the restructuring of five electricity distribution companies, also known as DISCOs, in the country.
This was contained in a statement jointly signed on Tuesday by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh.
According to them, the affected companies are Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).
Garba and Okoh explained that the announcement followed Fidelity Bank’s activation of the call on the collaterised shares of KEDCO, BDEC, and Kaduna Electric over their inability to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise.
FG, Fidelity Bank, AMCON Take Over 5 Discos Over Debts
The Nigerian government in conjunction with Fidelity Bank and AMCON have taken over the affairs of five electricity distribution companies, also known as DISCOs, over debts owed to Fidelity Bank.
Government took the step to save the companies from insolvency, among other reasons.
The affected companies are Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).
The announcement was precipitated by Fidelity Bank’s activation of the call on the collaterised shares of KEDCO, BDEC, and Kaduna Electric.
The companies have failed to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise.
The statement announcing the restructuring was signed on Tuesday by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh.
Nigerian University Hospital Imposes N1,000 Daily Electricity Bill on Admitted Patients
The management of the University College Hospital (UCH), Ibadan, Oyo State, has confirmed the addition of N1,000 daily electricity fee to the service charge of every admitted patient in the hospital.
The hospital, in a circular obtained by PREMIUM TIMES, disclosed that the new development was prompted by the high cost of electricity tariffs and diesel.
The circular was signed by the UCH administrator, Wole Oyeyemi, on behalf of the chairman of the medical advisory committee and chief medical director.
It reads in part, “Following the recurring power outage in the hospital, high cost of electricity tariff and inflation in the price of diesel which have impeded stable power supply, management has decided to consider measures that can help to facilitate flawless service delivery in the hospital.
“To this end, I write to convey the management’s approval for the mandatory payment of utility fee of N1,000.00 (one thousand naira only) daily by every patient accessing care in this hospital.
Access to Digital Data, Key to Increasing Electrification – Minister
The Minister of Power, Mr Abubakar Aliyu, on Tuesday in Abuja said that access to digital, ground-truth data would increase the electrification planning rate in Nigeria.
The minister said this at the official inauguration of the upgrade of Nigeria Sustainable Energy for All (Nigeria SE4ALL) platform version 3.0 (https://nigeriase4all.gov.ng), with extended datasets from field data collection and brand new web apps.
The News Agency of Nigeria (NAN) reports that the initiative is under the Nigeria Energy Support Programme which is a technical assistance programme.
It is also co-founded by the European Union (EU), BMZ, and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Gmbh in collaboration Federal Ministry Power.
Aliyu, speaking at the cutting of the ribbon ceremony of the new web platform, said that “access to digital, ground true data is key to increase the electrification rate in Nigeria.
“That is why the ministry under the umbrella of the nationwide SE4ALL initiative has developed this platform, which will serve as the go-to platform for data-driven electrification planning to achieve Nigeria’s Vision 30:30:30,’’ he said.
Electricity Liability Management Company Gets Governing Board
The Federal Government has approved a governing board for the Nigeria Electricity Liability Management Company Limited.
Announcing this in a statement issued in Abuja on Monday, by the Head, Public Communications, Bureau of Public Enterprises (BPE), Ibeh Chidi, the Government said the Council on Privatisation has approved composition of the Board.
“The National Council on Privatisation has approved the immediate composition and the proposed governance framework for the sustainable management and payment of post-privatisation liabilities of the power sector transferred to NELMCO which hitherto was without a board.
“This was one of the major decisions taken by the Council at its third meeting for 2022 held at the Presidential Villa, Abuja, on June 30, 2022, and presided over by the Vice President, Prof. Yemi Osinbajo”, the statement said.
The BPE named the head of the new board as the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Seplat, NLNG Proffer Solutions to Nigeria’s Gas Crisis
Stakeholders in the gas sector on Tuesday called for a holistic approach in fixing Nigeria’s gas crisis, especially with the lingering supply shortage and price increment.
The stakeholders identified insecurity, naira depreciation and lack of a workable pricing template as some of the factors affecting the development of Nigeria’s gas sector.
They spoke during a panel session with the topic:” Harnessing the Opportunities in the Nigerian Gas Sector,” at the 2022 Nigerian Oil and Gas (NOG) conference in Abuja.
The News Agency of Nigeria (NAN) reports that those who spoke included Mr Roger Brown, the Chief Executive Officer, Seplat Energy Plc, Mr Phillip Mshelbila, Chief Executive Officer, Nigeria LNG Ltd. and Mr Ed Ubong, President, Nigerian Gas Association ( NGA).
Brown said Nigeria was blessed with abundant gas resources but needed the right investments to maximise opportunities in the sector.
He said: “There’s a wall of money ready to come into this country; but they look at barriers to it and one of the biggest barrier is the currency.
Namibia to Install New Desalination Plant With 5MW Solar Park
The French nuclear giant Orano has announced its plans to install a 5 MWp solar photovoltaic plant in Egypt’s Erongo seawater desalination plant. The firm has signed a power purchase agreement (PPA) with InInnoSun for the construction and operation of the project.
The solar power plant will be built on the coast 35 km north of Swakopmund, the main town in the Erongo region. The electricity produced will be sold to Orano for ten years, starting from the commissioning of the solar power plant scheduled for the end of 2023. Work will begin on the project site in the second half of 2022.
“This project is part of Orano Group’s policy to reduce its carbon footprint and increase the share of low-carbon electricity at its operating sites worldwide,” the group led by Philippe Knoche stated.
MIGA to Provide $98m to Support Six Solar Farms in Egypt
The Multilateral Investment Guarantee Agency (MIGA) is set to provide $98.3 million to refinance six solar photovoltaic plants in Egypt. Scatec and Africa50 own the plants on the Benban complex.
Virtuo Finance, which issues green bonds, will manage the finance. The European Bank supports the transaction for Reconstruction and Development (EBRD), which lent part of the funds needed to construct the renewable energy plants. According to Miga, refinancing the solar plants will reduce financial costs, improve overall financial viability, and generate cost savings that will be shared with the Egyptian government.
“This innovative climate-certified bond, supported by MIGA and the EBRD, catalyses opportunities for institutional investors from emerging markets and developing economies,” says Junaid Ahmad, MIGA’s vice president of operations. The bond was divided into two tranches. The first tranche of $250 million is split between the EBRD and other development finance institutions. The second tranche of $84.5 million was distributed to international private institutional investors.