The Minister of Power, Chief Adebayo Adelabu, has assured Nigerians that the country's power grid will achieve significant stability with the completion of phase one of the Presidential Power Initiative (PPI), also known as the Siemens project.
Speaking Wednesday after a close-door meeting with German officials during the visit of German President Frank-Walter Steinmeier to the State House, Abuja, the minister stressed the reasonable progress made under the bilateral energy partnership between Nigeria and Germany.
Adelabu disclosed that the pilot phase of the project, which started after the signing of an agreement at COP28 in Dubai in December 2023, is nearing completion.
According to him, 10 power transformers and 10 mobile substations have been imported, installed.and mostly inaugurated, adding 750 megawatts to the transmission grid's capacity.
Two remaining units are expected to be inaugurated before the end of 2024, further increasing the grid's capacity by an additional 150 megawatts.
The minister emphasized that the pilot phase's success has laid the groundwork for the commencement of phase one, which includes the rehabilitation of 14 existing substations and the establishment of 23 new substations across the country.
He explained that the commercial aspects of the initial batch of phase one have been finalized, pending a no-objection approval from the Bureau of Public Procurement (BPP) and subsequent presentation to the Federal Executive Council (FEC).
Adelabu stressed the importance of the Siemens project in addressing the fragility of Nigeria's outdated and dilapidated grid.
He was optimistic that the planned interventions would transform the grid, ensuring long-term stability and reliability in power supply.
His words: "The name of the game now is about cooperation, collaboration and partnership and the flagship of this bilateral relationship has to do with what we call the Siemens project, which is our Presidential Power Initiative, where Siemens is actually implementing the brownfield and greenfield transmission substations of the Presidential Power Initiative.
"Since the signing of the agreement in Dubai at COP 28 in December 2023, we have made significant progress. We have completed the pilot phase of this project, up to 80%.
"This involves the importation, the installation and commissioning of 10 power transformers and 10 powermobile substations; they've been imported, they've been installed, and lots of them have been commissioned. We have just about two left to be commissioned before the end of the year.
"The positive impact of this is that it has added nothing less than 750 megawatts to our transmission grid capacity, which is why the relative stability that we are seeing in the grid today is the direct positive impact of the pilot stage completion.
"We believe that before end of the year, additional 150 megawatts capacity is going to be added upon completion of the entire pilot phase.
"So we are officially entering into the phase one stage of this project, which involves rehabilitation of 14 brownfield existing substations and the establishment of 23 new greenfield stations across the length and breadth of this country.
"So the first stage or the Batch 1 of this phase one stage has already been concluded in terms of the commercials. What we're expecting now is a no-objection approval from the Bureau of Public Procurement, after which I'm going to present it at FEC.
"Once presented at FEC, and we will finalise the financing arrangement, enter into the phase one. We are quite confident from the satisfaction that we got from the completion of the pilot stage.
"When we are done with the phase one project in the transmission, the entire grid will not remain the same, and that's why we are telling Nigerians that this is a very old grid. It's quite fragile and it's dilapidating.
"We need to revamp the entire grid for us to be sure of stability going forward. That is the Presidential Power Initiative."
Adelabu further reaffirmed Nigeria's commitment to achieving net-zero emissions by 2060, emphasizing the role of renewable energy in the country's energy transition plan, highlighting Nigeria's renewable energy potential and ongoing collaboration with Germany.
He noted that Nigeria's abundant natural resources, including over 10 hours of daily sunshine across 30 states, desert and coastal winds, and more than 300 underutilized dams, present vast opportunities for renewable energy development.
The minister stressed that Germany's advanced technology, combined with Nigeria's natural advantages, provides a strong foundation for energy transformation.
Highlighting new infrastructure developments such as the Lagos-Calabar coastal highway and the Badagry-Sokoto road, Adelabu explained that these projects would enhance access to renewable energy resources, including offshore wind and hydroelectric power from previously inaccessible dams.
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He also outlined plans to implement a distributed power model, which would enable each of Nigeria's 36 states and the Federal Capital Territory (FCT) to have localized power generation.
This approach, the minister said, would shield states from disruptions on the national grid, while ensuring expanded energy access, particularly in rural areas and isolated institutions such as schools and hospitals.
Adelabu acknowledged the ongoing support from Germany through its international development agency, GIZ, which has been instrumental in grid extension and renewable energy projects.
He also noted significant interest from German private investors in Nigeria's solar, wind and hydroelectric sectors.
While no new agreements were signed during the meeting, the minister said discussions focused on accelerating the implementation of existing agreements under the bilateral energy partnership.
Adelabu expressed optimism that these collaborations would drive progress towards Nigeria's renewable energy goals and provide sustainable power solutions for the country.
