TheNewsGuru

Tag: Electricity

  • 80 million Nigerians lack access to electricity – World Bank

    About 80 million Nigerians living in 8000 villages across the country lack access to electricity, the World Bank has said.

    World Bank Global Lead, Energy Access, Mr. Mac Cosgrove-Davies, said this during the opening ceremony of the “Fourth Mini Grid Action Learning Event: titled, ‘Up scaling Mini Grids for Low-Cost and Timely Access to Electricity’ in Abuja on Tuesday.

    Cosgrove-Davies said six out of ten people without access to electricity in the world were resident in Africa.

    He also disclosed that the Federal Government had requested the World Bank’s assistance for off-grip power projects that could extend access to Nigerians living without electricity.

    The World Bank executive said, “We know what is at stake: globally, more than one billion people still lack access to electricity; Sub Saharan Africa is home to about 600 million of these.

    “In Nigeria, 80 million people are without access, and millions more suffer from poor service. Rural Electrification Agency expects mini grids to fill a substantial portion of that gap covering up to 8000 villages nationwide.

    “This is not a job for any one of us alone. The government of Nigeria is pushing hard toward universal electrification.”

    He added, “The Nigerian government has asked the World Bank’s support for a National Electrification Project that focuses on off-grid opportunities including mini grids and the World Bank is delighted to respond to this request.

    “We know that our development partners – many in this room – are also standing shoulder-to-shoulder with government on this effort.

    “For the World Bank’s part, the National Electrification Project fits well into a broader energy portfolio in Nigeria which aims to holistically support sector development. Together with all of you, we are seeking to help our Nigerian colleagues make the most of international expertise and experience as it fits the Nigerian setting.”

    Cosgrove-Davies urged all stakeholders to contribute their quotas towards the success of the projects.

  • KEDCO promise better services in Jigawa, Kano, Katsina

    The Kano Electricity Distribution Company (KEDCO) has promised its customers in Jigawa, Kano and Katsina states improved services to boost commercial activities in the areas.

    The company’s Managing Director, Dr Jamilu Gwamna, made the promise at the first KEDCO Managing Director’s Award Night in Kano.

    He said the company was committed to improve its operations to ensure effective service delivery and at the same time distribute the energy to the satisfaction of its numerous customers in the three states.

    “We are committed more than ever before to improve our operation to ensure effective and efficient service delivery to our customers across our coverage areas,” he said.

    He said the company found it necessary to honour its dedicated, committed and hardworking staff, to boost their morale.

    “It came as a board’s decision to recognise dedicated, hardworking and committed staff as part of effort to encourage them to do more,” Gwamna said.

    The managing director, who commended the staff of the company for their individual contributions to its development and success, noted that this was the first time the company collected over N2 billion in one month as revenue.

    “We are here today to appreciate you and those who invested in the company will continue to give you the necessary support to move the it to the next level,” he said.

    It is reported that the awards, which were in four categories, were presented to deserving staff from the three states.

    The high-point of the event includes drama and comedy performance as well as cultural dance by the popular Kano State Cultural Troupe, known as Yan’Koroso.

  • Epileptic Power Supply: FG to increase electricity tariff nationwide

    Indications emerge on Monday that the Federal Government may increase electricity tariff in the country.

    TheNewsGuru.com reports that the electricity distribution companies (DisCos) have been mounting pressure on the Minister of Power, Works and Housing, Babatunde Raji Fashola to approve the increase as that remains the only way to improve the sector.

    The Permanent Secretary, Ministry of Power, Louise Edozien, who spoke in Jos, lamented that low tariffs remained a stumbling block on the way of developing the power sector.

    He spoke during the opening ceremony of the third National Council on Power (NACOP) meeting held at Crest Hotel and Garden Jos.

    The theme of the meeting is: Completing power sector reforms.

    He said: “I will like to focus on two major challenges of the sector. The first one is how to deliver available power on the grid to consumers, and the second is the problem of debts and other related issues of collection and tariffs.

    “The tariff is too low, and some consumers still don’t pay their bills, in part because the DisCos have not metered them; so they are not sure they are paying for only what they have consumed. So, the DisCos do not pay Nigeria Bulk Electricity Trading (NBET) its full invoice. NBET in turn defaults in payment to the generation companies (GenCos).”

    Meanwhile, the GenCos yesterday urged the Nigeria Electricity Regulatory Commission (NERC) to classify the stranded 2,000Megawatts (Mw) as part of the available generation capacity in the Nigerian Electricity Supply Industry (NESI).

    The Commission, according to its presentation on the review of the Multi-Year Tariff Order (MYTO) methodology by Senior Manager, Market and Rate, Abbah Tera, takes generation capacity as one of the criteria for review of tariff.

    Responding, the Executive Secretary, Association of Power Generation Companies (APGC), Mrs. Joy Ogaji, said the fact that the stranded capacity is not utilised does not mean that it is not produced by the GenCos.

    She noted that there is enough gas but the only constraint its cost, stressing that the GenCos should not suffer owing to the stranded power.

    She said: “We are not saying we don’t have enough generation. The only constraint that Nigeria is having is the cost of gas. We have over 2,000Mw sitting. The over 2,000Mw should be treated; it is available; GenCos should not suffer for it . In line with the review NERC should capture the stranded capacity.”

    Some of the stakeholders urged the commission to privatise the Transmission Company of Nigeria (TCN) since it is obvious that the Federal Government which operates it has proven inefficient.

    The Commissioner of Engineering Performance and Monitoring, Prof. Frank Okafor, however explained that the cost of funding the transmission network is too enormous for a private company to raise for the operation of the system.

    “It will be difficult to get investors that will fund the TCN,” he said.

    Besides, he said it might be difficult to secure the right of way for the network since it transverse so many states of the federation.

    According to him, government is borrowing from multilateral financial agencies to expand the grid since the amount of power delivery is not sufficient to raise the required revenue.

    The commission maintained that it has met with the TCN and DisCos in order to deliver the stranded power to consumers.

    But for the commission to get stakeholders’ inputs on (the frequency of the review) how often the review should be carried out.

    The stakeholders were also divided on whether the tariff should be reviewed bi-annually, monthly or yearly.

    NERC carries out a major tariff review every five years and minor review every six months.

    But speaking, representative of Mainstream Energy Solutions Limited, Musa Abba Bajoga, urged the commission to follow the global practice to “do what is done universally.”

    The President Hotel Owners Association of Nigeria, Dr. Ezeh Udeh told the commission to consider a yearly review since hotel rates are not reviewed monthly and that any price that rises in the country hardly falls.

    Network of Electricity Consumers Advocacy of Nigeria (NECAN), Tommy Akingbogun, told the commission not to use its rate to kill investors.

    Edozien said: “Government, as part of the power sector recovery programme approved a N701.9 billion payment assurance guarantee to ensure NBET discharges its obligation to the GenCos.

    “Government has also audited the N27 billion debts owed by Federal Government ministries, department and agencies (MDAs) to the DisCos and is taking steps to pay it.

    “NACOP 2017 is taking place at an important moment in the journey. Our objectives are not met, so much remain to be done. NACOP 2017 is the appropriate forum to access our progress, reaffirm our commitment, examine the challenges of the moment and take decisions to overcome them to ensure this journey achieves the desired outcome.”

    Plateau State Commissioner for Water Resources and Energy, Jafaru Wuyep in his goodwill message on the occasion expressed delight on the proposed Infrastructure Marshall of the Federal Government for the protection of public facilities from vandals.

     

  • Nigeria now generating 6,803MW of electricity – Fashola

    Nigeria now generating 6,803MW of electricity – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola, on Monday said power generation and transmission in the country had improved.

    A communique issued at the 18th monthly power sector and stakeholders meeting in Kano, chaired by Mr. Fashola, said power generation improved beyond what was recorded in 2016.

    “As at August 10, 2017, 6803MW was recorded as the current available generating capability, with a wheeling capacity of 6700MW by TCN, currently constrained by DisCos inability to take load,” the communique read.

    “This is in line with incremental power policy with improvements from TCN improving the wheeling capacity from 5000MW to 6700MW.”

    Commenting further, the minister said the Federal Government was doing its best to ensure improvement in electricity supply.

    “Government has embarked on serious expansion of transmission capacity with some power plants already completed, while others have reached advance stages of completion,” he said.

    He also assured support for any state willing to be involved in generation and distribution of electricity, adding that there was no monopoly in the business of electricity generation and distribution and that state governments and big companies could also involve in the business.

    “Large power consumers like government and big manufacturing companies can engage in power supply business. All they need to do is to secure permit from the Nigerian Electricity Regulatory Commission (NERC),” he explained.

    Speaking further, he noted that: “The Discos have the obligation to meter their customers, but that they must provide them with meters for effective metering before charging them.”

    The meeting also noted that meter provision is not a monopoly of DisCos but is open and regulated by NERC and NEMSA, adding that the democratisation of meter provision is intended to reduce conflict between customers and DisCo and reduce losses in the sector.

    According to the communique, in line with efforts to reduce energy theft in the country, Ibadan DisCo announced arrest of an ex-staff by EFCC for meter infiltration and the meeting lauded the support of security agencies in the efforts to reduced financial losses in the sector.

    Meanwhile, it was announced at the meeting that the best performing DisCo of first quarter 2017 was Ikeja DisCo and the best performing GenCo was Omotosho I.

  • Electricity: FG commences payment of N701bn assurance system to boost supply

    The Federal Government has approved the payment of assurance system of N701 billion to break the liquidity of the entire electricity value chain in the country, the Acting President, Prof. Yemi Osinbajo, has said.

    Osinbajo made the fact known at a roundtable on Nigerian Renewable Energy in Abuja on Tuesday, adding that part of the amount which was approved by the Federal Executive Council had been released.

    He said the second payment of the assurance system would soon be made to further boost electricity supply.

    “We have mentioned several of the plans, the power sector plans and so many of those initiatives.

    “The latest is to break the gridlock in the liquidity of the entire electricity value chain and so our payment assurance system of over N701 billion has been approved by the Federal Executive Council and in fact the first payment has been made. We are onto make up the second payment.

    “We hope that we free up that value chain which has created several problems of its own and we hope that this injection will help.

    “We are also looking at several other reforms in the sector hoping that the market can become self-sustaining, independent and run on its own and free up all of the private sector energy that is waiting to come into the market,’’ he added.

    Osinbajo noted that, as a multi-stakeholder platform, the Nigerian Renewable Energy Roundtable should champion the new vision for renewable energy and ensure that they could translate theory to practice for the greater good of the people.

    In his remarks, the Minister of Science and Technology, Dr Ogbonnaya Onu, said the ministry had been resolute in pursuing alternative energy sources.

    According to him, focus on renewable energy will benefit the rural areas and help to create jobs as stated in the government’s Economic Recovery Growth Plan.

    He said that diversification could only be successful in an environment of renewable energy system.

    Majority of Nigerians lack access to electricity and where it is available supply is irregular.

    The interest in renewal energy is expected to accelerate electricity generation and supply to the populace. (NAN)

     

  • Senate to grill Fashola over Kaduna power plant

    The Senate on Thursday mandated its Committee on Power, Steel Development and Metallurgy and Committee on Gas to investigate the Kaduna 215-megawatts Power Plant’s failure to generate electricity.

    This followed a motion by the Chairman, Committee on Gas, Sen. Bassey Akpan, who said at plenary, that there was an urgent need to save the plant.

    He said that the problem at the plant had led to protracted power shortage in the northern part of the country, leading to the shutdown of the industrial sector in the region.

    He said that the failure of the plant was due to lack of pipelines from the southern part of the country to the northern part.

    “It is surprising that the Federal Ministry of Power, Works and Housing appears to have jettisoned the use of gas to power the Kaduna power plant.

    “Instead, it opted for the construction of Automobile Gas Oil (diesel) tanks for the use of diesel, which is 60 per cent higher in cost when compared with gas.

    “It is further surprising that in the Federal Tenders Journal of May 28 to June 11, 2017, the Federal Ministry of Power, Works and Housing advertised for the supply of AGO instead of gas to power the Kaduna power plant,’’ he said.

    He therefore called for an alternative gas supply mode to the plant to get it working.

    Contributing, senators supported the motion, noting that 215mw was not a small amount of power that should be toiled with, particularly with the epileptic power supply in the country.

    They commended the sponsor of the bill and asked that something urgent be done to tackle the problem.

    In his remarks, the President of the Senate, Dr Bukola Saraki, called on the committees to carry out the investigation and get back to the senate.

    He said, ‘’the committee must take this matter with the seriousness it deserves and quickly come back to us.

    “Clearly, there is an issue here. Obviously, there are people who are looking at personal interest as against the interest of the people.

    “There is no doubt about it; alternative option of gas is the way forward. To say now that it is diesel, I really cannot fathom,’’ he said.

    Saraki assured that the senate would take a firm decision on the development.

     

  • Electricity: We’ll achieve 10GW operational capacity by 2020 — FG

    The Federal Government has reiterated its commitment to achieve a 10 Gigawatts of electricity operational capacity by the year 2020.

    The Minister of Budget and National Planning, Dr Udoma Udo Udoma, said this in a keynote address at the second Kano Economic and Investment Summit in Kano on Tuesday.

    TheNewsGuru.com reports that the summit is part of activities organised by Kano State Government to commemorate the 50th anniversary of the creation of the state.

    Udoma said the Federal Government had also planned to improve the power sector through the renewable energy sources.

    According to him, the government is committed to reviving the manufacturing sector, to achieve an annual growth of 8.5 per cent to meet 10.6 per cent growth rate by 2020.

    “We also intend to achieve self-sufficiency in petroleum products during the period.

    “We also want to be exporter of some key agricultural products such as rice, groundnut, cassava and vegetable oil, among others.

    He said the Federal Government intended to create no fewer than 15 million jobs for the unemployed persons in the country as part of efforts to fight poverty particularly among the youth.

    He said based on the plan, 3.7 million jobs would be created annually to address the unemployment challenges in the country.

    “If you get people out of poverty, you must provide them with jobs, hence our commitment to provide jobs,” he said.

    He disclosed that the Federal Government had set aside certain amount of money in this year’s budget to provide infrastructure for the revival of the free trade zone in Kano.

    He said this would give exporters in Kano the opportunity to take advantage of the funds.

    The minister, who commended Kano State Government for initiating the summit, said the Federal Government would continue to support such giant strides aimed at promoting economic growth in the country.

    “Federal Government is encouraged by the effort of many states for the progress they are making in agricultural sector of the economy.

    “I am confident the summit will promote investment opportunities in the state and the country at large,” he said.

    Some of the prominent personalities that attended the summit include; the Minister of Interior, Gen. Abdurahman Danbaba, Gov. Aminu Tambuwal of Sokoto State and Deputy Governor of Zamfara, Malam Ibrahim Wakala.

    The summit was themed “Transforming the Kano Economy:Turning Challenges into Opportunities”.

     

     

     

    NAN

  • Economic Recovery Plan will provide 15m jobs, 10 gigawatt of electricity – FG

    Economic Recovery Plan will provide 15m jobs, 10 gigawatt of electricity – FG

    The Federal Government on Tuesday assured Nigerians that the recently launched Economic Recovery and Growth Plan (ERGP) will provide at least 15 million jobs by the year 2020.

    The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, revealed this at a news conference on ERGP in Abuja.

    Udoma said that the implementation of the plan would deliver some key outcomes including generation of at least 10 gigawatt of electricity by 2020.

    “We want to bring down the rate of unemployment by creating over 15 million direct jobs by 2020 in agriculture, manufacturing, construction, services and particularly among the youth.

    “We want the manufacturing sector to grow at average of 8.5 per cent, peaking 10.6 per cent by 2020.

    “We want agriculture to also grow by 6.9 per cent over the Plan period; we want self-sufficiency in rice and wheat in 2018 and 2020 at the end of the plan period.

    “We want 60 per cent reduction in imports of refined petroleum products by 2018 and to become a net exporter of refined crude by 2020.

    “We expect an average of 4.6 per cent average real GDP (Gross Domestic Growth) growth rate over the Plan period with 7 per cent by 2020; we want to achieve single digit inflation rate by 2020.

    “We want to increase crude oil output from 2.2 million barrel per day (mbpd) to 2.5 mbpd by 2020.

    “We want to achieve at 10 gigawatt of operational electricity capacity by 2020.’’

    Udoma said that the ERGP evolved from the Strategic Implementation Plan (SIP) which government had been implementing since 2016.

    “Already, following the implementation of the SIP, the economy has shown signs of early recovery in the 4th quarter of 2016 as indicated in the recent report released by the National Bureau of Statistics (NBS).

    “We need to build on that momentum.

    “This Plan, which succeeds the SIP, sets out Government’s economic programmes and strategic interventions over the next four years (2017-2020).

    “When implemented, it will put Nigeria back on the path of diversified, inclusive, sustained growth. This is therefore, our blueprint for economic recovery and growth.’’

    Udoma further said that the plan would tackle the fundamental problems that held back the progress of the country in the past.

    He said the future prosperity rests upon collective support towards effective implementation of the Plan over the next four years.

     

     

  • Consumers have right to resist payment when there’s no electricity – Fashola

    …says I’ll resist too

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said electricity consumers in the country have right to refuse paying bills when they are not supplied.

    TheNewsGuru.com reports that the minister said this on Monday at the 12th Monthly Power Sector and Stakeholders’ Meeting in Ibadan hosted by Ibadan Electricity Distribution Company.

    Power generation in the country has worsened in recent weeks after hitting the 4,000 megawatts mark in December last year, with many consumers without prepaid meters complaining about over-estimated bills despite the dip in supply.

    The minister said vandalism of gas pipelines and other important assests in the Niger Delta has led to a drastic fall in the supply of the gas needed to improve power supply.

    In his words: “The 3,500MW to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and add 3,000MW to it. That means we will be able to deliver well over 6,000MW if the gas pipelines are safe.”

    The minister explained further that the sabotage had also created debt and liquidity problems, shortfall in power expectation, and in revenue recovery by power distribution firms.

    “Consumers are more resistant to payment when they don’t have electricity, and I will be, too, and you will be too,” he told the power investors and other stakeholders at the meeting.

    “We see that they (consumers) pay more when the power is more stable. Of course, there are issues also at the retail end – metering, estimated bills.”

    Noting that all stakeholders have different roles to play in solving the problems, the minister said, “You will see that government has begun to act. The Vice President, representing the President, is going round those Niger Delta communities, engaging them more openly, more robustly.

    “The idea is to bring them to the table to stop the vandalism while the issues that agitate them can be treated and resolved. I believe that if we are successful as we expect to be, we should be able to, sometimes, this year recover all the 3,000MW that has been lost to gas pipeline outages,” the minister said.

  • Buhari’s govt signs Joint Development Agreement, to boost power supply

    The government of President Muhammadu Buhari has yesterday signed a Joint Development Agreement (JDA) with key investors with the view to securing investment into the 100 MW (DC) Nova Scotia Power plant located in Dutse in the Northern Nigerian state of Jigawa.

    Signing the agreement, the stakeholders said the project has the potential to significantly contribute to the plan of the authorities of the State of Jigawa to attract USD 2 billion of investments into Jigawa and implement President Buhari’s plans to provide jobs and economic opportunities especially for the nation’s youth.

    The signing ceremony of the JDA was held in the presence of the deputy governor of Jigawa state, Ibrahim Hassan Hadejia; Borge Brende, the visiting Norwegian Foreign Minister, Akinwumi Adesina, president of the African Development Bank (AfDB) and Chairman of Africa50’s Board of Directors as well as officials from the Nigerian Bulk Electricity Trading among others.

    The JDA which was signed with Africa50, an African Infrastructure Fund sponsored by AfDB and more than 20 African States; Norfund, the Norwegian Investment Fund for Development Countries, and Scatec Solar, the deputy governor of Jigawa said, “New local power generation capacity is a key element to attract sizeable investment into the State and region, especially into new industries such as light manufacturing and agricultural processing”.

    Recently, the AfDB appointed MCB Investment Management (MCBIM), a subsidiary of MCB Capital Markets, as fund manager for its first multi-jurisdictional Fixed Income Exchange Traded Fund (ETF) in Africa.

    Speaking at the ceremony, Akinwumi Adesina, president of the AfDB and Chairman of Africa50’s Board of Directors, said “I am pleased that Africa50 is already making its first investment, which fits in squarely with our priority to light up and power Africa,” adding that “Africa50 has been created by African governments, including Nigeria, the AfDB and institutional investors to mobilize private sector for funding infrastructure projects in Africa”.

    Apart from the three equity investors, the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the AfDB are expected to be senior debt providers for the project.

    With an estimated investment of USD 150 million, a production of 200,000 MWh of electricity per year and 120,000 tons of CO2 emissions avoided annually, the stakeholders said “the Nova Scotia solar plant will help Nigeria rapidly increase its generation capacity, provide economic opportunities, fight desertification caused by climate change, and contribute to fulfilling Buhari’s commitments to develop renewable energy as part of the Paris Climate Change Agreement.