The Federal Government is set to release $800m for the construction of substations and distribution networks as part of the Presidential Power Initiative (PPI), Adebayo Adelabu, minister of power has said.
The investment, according to Adelabu, will be divided into two lots: $400m for Lot 2, covering Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and $400m for Lot 3, covering Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
During a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China, Adelabu said Nigeria’s electricity generation peaked at 5,170 megawatts, unfortunately, it had to be ramped down by 1,400 megawatts due to inability of the DisCo’s to pick the supply.
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“This is regrettable considering that the government is on course to increase generation to 6,000 megawatts by the end of the year,” Adelabu said.
Concerning problems in the power sector, Adelabu said this was due partly to the fragility of the Transmission and distribution infrastructure which has become old and dilapidated.
According to him, more than 59 percent of industries in Nigeria are off the grid.
“They did not see the national grid as reliable. So, a lot of them now operate their own captive, self-generated power,” Adelabu said.
Adelabu said the administration of President Bola Ahmed Tinubu is determined to transform the power sector adding that a lot of activities have started that is gradually bringing back confidence in the sector and among the power sector consumers especially the industries.
Adelabu went down memory lane in 1984, about 40 years ago Nigeria was able to generate 2,000 megawatts and it took us over 35 years to add an additional 2,000 megawatts.
“When this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable,” Adelabu said.
He added, “Our plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydroelectric power plants and our gas-fired power plant. We are also targeting 30 gigawatts of Power to be generated, transmitted and distributed by year 2030 out of which 30 percent would be renewable energy”.
The minister said the renewable energy segment will come from a combination of hydroelectric power from small dams, solar energy sources and wind farms from onshore and offshore winds.
On the issue of the construction of the super grid, the Minister said the national grid in its present state cannot support the vision for the power sector. “If we look at the strength, the capacity and the age of our existing network on the National grid, it cannot really support our vision for the power sector hence the need for the construction of the Western and Eastern super grid. Though we have been on this since my resumption, I can also tell you that the President is in full support of this because this will improve our transmission network, stabilise the grid and expand the capacity and the flexibility of the national grid”.
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He said 90 percent of the approval required is in place and would be concluded soon.
Speaking earlier, Huang Hanjie, president of TBEA assured of the organisation’s continued support for Nigeria’s government vision for the power sector.
He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy. He said TBEA is not new in Nigeria adding that the company is presently working with the Omotosho, power plant, Ondo State owned by the Niger Delta Power Holding (NDPHC).
