EnerixOne, a power solutions company, has partnered with the Niger Delta Power Holding Company Limited (NDPHC) to provide stable and reliable on-grid power to meet the needs of factories and consumers at targeted parts of Ibadan Electricity Distribution Company (IBEDC) reach.
The project framework agreement was signed at a light event on Wednesday, October 4, 2023.
This partnership aims to leverage NDPHC’s stranded capacity for the benefit of the end users who for years have been underserved and may have resorted to self-generation and diesel generators which are less economical than on-grid generation.
According to the partners, the operating stakeholders on the project are the IBEDC as the incumbent electricity distribution company in the Industrial Clusters; EnerixOne Limited as the private sector project developer set up to develop, finance and operate the project; and the Transmission Company of Nigeria as the owner, operator of the Nigerian power grid.
The project directly optimises investments of more than $5.6 billion in NDPHC’s power generation assets and mobilises capital to ensure that safe, reliable and cost-effective electricity is provided to industrial customers under technically and financially viable agreements.
Speaking at the event, Bayo Adesina, CEO of EnerixOne, said that energy partnerships such as this one with NDPHC will drive economic development via power cost optimisation for industries by up to 30 percent.
“Other advantages are human capital and infrastructural enhancement across the entire grid-power value chain,” he said.
According to the partners, this partnership also lends credence to the NDPHC as a fast-track government-funded initiative to stabilise Nigeria’s power sector.
“Conceived by the Federal Government of Nigeria in 2004, the NDPHC was originally designed around seven (7) plants located in the gas-rich Niger Delta area but later expanded to ten (10) power plants.
“With 10 major gas-fired power stations (8 operational), NDPHC controls Nigeria’s largest power generation portfolio.”
EnerixOne has pioneered key projects, through its affiliate company Millwater, to deliver round-the-clock, uninterrupted power supply to key industrial customers in Agbara, Ogun State, another in Lekki (potential power demand of 200MW) and to high volume users in Ikoyi, Lagos State.