5 January 2009
The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Ransome Owan has assured that Nigeria will achieve 10,000 megawatts of power supply by 2010.
Owan, who spoke in Lagos, said the Federal government is expediting actions on some power plants capable of buoying up power supply to 10,00MW next year. The current power supply is estimated to be in the region of 2, 000MW.
The NERC boss spoke on the recent power drop saying the development was caused by inadequate gas supply.
"Some of these gas turbines and power plants have been made ready. However, we do not have adequate gas supply to feed them.
"Needless to say there have been some issues surrounding these feedstock supply. And even in those cases like Egbin Power Plant that sometimes have gas, if there is disturbance in the supply of one source, we get what is called wet gas."
Speaking on the 15 private Independent Power Plant companies recently given operating licences by the commission, Owan said it is not true that the companies are not doing anything with the licences.
According to him, power business is a capital intensive and has a longer gestation period.
He said: "Usually the one and two years they used to secure licence are used to enter into other commercial agreements. They have to buy the equipment, enter into technical agreement with maintenance and operators. They have to sign field agreements and go into bankability issues with their financiers. So, it takes a little bit of time to do our home work before you can actually go into groundbreaking."
Ransome however said the commission has milestone within which licensees are expected to work on their plant explaining that there is no general milestone for all applicants.
"It is not universal. For example, if you are building a coal power plant, your milestone will be different from hydro plant. So, we look at a particular product that somebody is wishing to engage himself and then we state the appropriate timeline and milestone."
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