Cummins alternative solution raises fresh hope for power generation

 

 

Cummins Cogeneration (the parent investor company for Powergas) says the establishment of a strong, credible track record in the captive gas fired power market through Cummins gas engines solution will improve power generation option for Nigerians.

The company observe that as the quantity of power generated decreased and demand increase, the need to switch to natural gas becomes expedient and timely as this will reduce dependency on back up diesel generation, which is significantly more expensive than grid fired power as well as the strain on the foreign exchange markets for US dollars to import Fuel.

Deepak Khilnani, Chairman, Cummins Cogeneration, said the company has been heavily investing in their service capabilities in Nigeria in order to deliver reliable power.

Khilnani speaking on the company’s power generation capability said Cummins gas engines are particularly suited to ‘island mode’ applications (off grid) as they can handle variable loads better than competitor generators. “The engines are also some of the most efficient on the global market offering significant savings compared to diesel generators,” he said.

“We have established a strong, credible track record in the captive gas fired power market. Having built the strongest gas service and aftermarket capability in Nigeria through our sister company, Cummins Energy Solutions Nigeria. Cummins has a very strong track record and customer satisfaction rate” he said

In view of this fact, the Buhari lead administration is also prioritising gas fired power generation, which is significantly cleaner and cheaper than diesel. For example, carbon dioxide emissions are up to 50 percent less than diesel and gas emits near zero particle emissions.

Although the Federal Government of Nigeria is committed to increasing domestic natural gas utilisation rather than importing expensive and polluting diesel, there is a need for domestic and foreign investors to take keen participation in the Nigerian power sector.

The government’s investment and support in the power and natural gas industry will have many positive spillover benefits such as employment opportunities and GDP growth.

Currently over 95 percent  private industries in Nigeria today depend on at least one generator which either operate on Premium Motor Spirit (PMS) or Diesel  for their power requirements due to the inadequate supply from electricity distribution companies (DISCO) in the country which relatively comes at a cost.

Some companies even rely on 100 percent diesel generation. As the blended tariff incorporates a higher DISCO percentage, total residential, commercial and industrial electricity costs will fall.

 

KELECHI EWUZIE