FG’ll explore regional potentials to address power crisis, says Adelabu

… As Power Correspondents’ advocate holistic review of power sector privatization

By Chris Ochayi

The Federal Government has said it will explore regional energy potentials aimed to address electricity supply challenge confronting the country.

Minister of Power, Chief Adebayo Adelabu, disclosed this on Thursday in Abuja during the 3rd series of annual workshop organized by the Power Correspondents Association of Nigeria, PCAN.

He said the government will focus on solar energy in the North, mini hydro power plants in the Middle belt and the Southwest, hybridized with solar while the coastal States will be identified for wind energy utilization.

Speaking further as Special Guest of honour at the workshop with theme : “Resolving nigeria’s power crisis: the implication of the electricity act 2023”, Adelabu however, added that PCAN is one of the key stakeholders and partner in the administration of President Bola Ahmed Tinubu’s desire to provide reliable, regular supply of electricity to households and businesses in the country.

According to him, “Taking all the above into consideration, especially with the liberalization of the sector, Nigerians will soon start to experience the objective that led to the Act which is improved power supply across the country.”

“I would like to emphasize the role of the Media in terms of communication and advocacy. For the sector to progress we must advocate against power theft, vandalization and educate consumers against sabotage.

“The financial liquidity in the NESI is dependent on customers paying for electricity consumed.”

The minister recalled earlier that the theme of the workshop is quite apt, considering the President’s avowed desire to provide regular supply of electricity across the country by liberalizing the power sector through the enactment of the 2023 Electricity Act.

According to him, “I want to put it on record that the 2023 Electricity Act is a significant part of our country’s energy roadmap as it clearly signifies the present administration’s commitment to the transformation of the power sector as clearly stated in the agenda of Mr President as contained in the Renewed Hope Agenda.

“As you are aware, the Electricity Act has liberalized electricity generation, transmission and distribution. It has also empowered States, Organisations and even individuals to generate , transmit and distribute electricity.

“Under this Act, State government can issue licenses to private investors to operate power plants and mini grids, within the States. Private investors can also obtain licenses for generation, transmission, system operations, trading, distribution and supply.

“The Act also encourages the integration of renewable energy technologies into the existing grid system while licensees are expected to meet renewable energy obligations as stipulated by the Nigerian Electricity Regulatory Commission, NERC.

“Among others, the Act also introduced mechanism for incentives for investment in the sector. Such incentives include feed-in-tariffs which guarantees a fixed price for renewable energy fed into the grid and tax incentives for investors.

“In order to ensure a level playing field for all players in the sector and prevent anti-competitive practices, the Act also provides clear guidelines for the licensing , monitoring and supervision for market participants.

“Furthermore, the Act guarantees assets protection by allowing investors to sell or transfer their undertakings in the event of revocation of licenses or compensation in the event of takeover of such undertakings.

“Therefore, when we consider the totality of the re-enacted electricity Act, it has changed the entire landscape of the power sector.

“What this implies is that everyone involved in the power sector value chain must contribute meaningfully in ensuring the successes that is envisaged by the enactment of the Act.

“The different agencies such as NERC, the Nigerian Electricity Management Services ( NEMSA), Transmission Company of Nigeria (TCN), Nigerian Bulk Electricity Trading Company (NBET), Rural Electrification Agency (REA), Nigerian Electricity Liability Management Company (NELMCO) and even the National Power Training Institute (NAPTIN), must continue to be up and doing, in the different responsibilities that they have been saddled with as contained in the laws setting them up .

“A key part of the 2023 Electricity Act is the development of the Integrated National Electricity Policy and Strategic Implementation Plan. On this, we are working with the National Council on Power (NCP) to develop and send the implementation strategy to the Federal Executive Council (FEC) for approval.

“Also, part of the strategy in our road map is the emphasis on the bottom-up approach, unlike the top-down approach of the past. The implication, with the bottom-up approach is that we will prioritize Metering, Distribution and Transmission infrastructure.

“We will focus on Customers down to distribution and transmission infrastructure in the short term, this is to ensure that a significant portion of what is generated currently gets to the end users.

“We will also pay attention to the generation segment particularly in areas of distributed (embedded) power from renewable energy sources, while at the same time, advancing base load power through thermal and hydro plants in the medium to long term. ”

Mr. Obas Esiedesa
Chairman, PCAN
In his open address, the Chairman of the Power Correspondents Association of Nigeria, PCAN, Mr. Obas Esiedesa called on the Federal Government to take a holistic review of the entire Power sector privatization.

Mr. Esiedesa, who said the call was not necessarily to take away the assets from operators, lamented that ten years down the line, the power privitasation has not met the desired target.

He argued the call for review is to finding solutions to the huge challenges facing the industry.

He said the Electricity Act 2023, has prescribed far-reaching changes to how the sector has been governed in the past, especially the devolution of power to the states.

According to him, “We believe that the current position of the Act requires strong regulatory bodies to ensure safety and efficient management of the industry.

“On November 1, 2013, the Federal Government handed over the distribution and most generation assets to the private sector, marking the beginning of private investment into the Nigerian Electricity Supply Industry. Since then, expectations raised by the entrance of private entrepreneurs into the sector have largely remained unmet.

“Ten years down the line, the time has come for the Federal Government to take a holistic review of the entire Power sector privatization. Not necessarily taking away the assets from operators, but finding solutions to the huge challenges facing the industry.

“It is worrying to note that with over 13,000 megawatts of installed capacity, the industry is still struggling to deliver 4,000MW of electricity on a consistent basis.

“That is why as a group, we welcome the new initiative by the Honourable Minister of Power, Chief Adebayo Adelabu, that has specifically targeted the distribution sector and the consumers.

“We believe that transmission and distribution networks remain the biggest obstacles to efficiency and effective electricity supply in the country.

“We call for sincerity on the part of the government in the implementation of this new initiative unlike what we have seen in the Siemens project and quite a handful of other projects.”