21 November 2017

Nigeria: Govt Plans Minimum Baseline Power Supply of 4500MW in 2018

Abuja — The federal government has said that starting from 2018, it hopes to ensure that the minimum amount of electricity that would be generated and supplied to homes and offices across Nigeria everyday would not be less than 4500 megawatts (MW).

This, it said, was one of the action plans it has included in the new Power Sector Recovery Programme (PSRP) it developed with the World Bank to revive Nigeria's electricity industry from its declining status.

The World Bank had reportedly pledged to support Nigeria in making the programme work creditably with almost $2.5billion.

A copy of the detailed plan of the government for the power sector in the PSRP was provided by the ministry of power during a recent workshop to educate media houses in the country on how the recovery document would be implemented by the government over a period that would extend into 2021.

In it, the government said it would prioritise operational and technical interventions that would stabilise supply of electricity to Nigerians.

It said: "Under the programme, the minimum baseline power supply of 4500MW will be guaranteed and distributed daily from 2018."

To accomplish this, the government explained in the document that key actions would be implemented, including completing select power plants, transmission and distribution systems that are under the National Integrated Power Projects (NIPPs) by the Niger Delta Power Holding Company Ltd (NDPHC).

The government equally noted that, "to facilitate the execution of a tariff trajectory that ensures sustainable and appropriate tariffs within the next five years," it was necessary to, "improve customers' perception of service delivery by ensuring a minimum of 4500MW generation supply is available daily from 2018 to ensure grid stability."

Of the action steps to be taken, it said it would specifically support four NIPP plants - Omoku, Egbema, Alaoji, and Gbarain, as well as distribution and transmission projects to help it achieve this plan.

It equally added that: "The performance of distribution companies will also be improved by, among other strategies like customer enumeration, ensuring their financial restructuring and recapitalisation, establishing a metering programme, implementing credible business continuity plans and expanding the distribution networks."

To ensure that fuel to power generation plants to sustain this minimum generation plan was available, the government noted that it would, "project manage the delivery of key gas pipeline infrastructure including the OB-OB pipeline, in order to ensure that gas is readily available where it is needed."

Other measures it said it would take to meet up with the baseline supply plan include a phased activation of the power purchase agreements (PPAs) and gas supply agreements (GSAs) that have been signed in the sector, as well as full activation of the vesting contracts the electricity distribution companies (Discos) signed with the Nigerian Bulk Electricity Trading Plc (NBET).


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