The Eko Electricity Distribution Company may have begun the process of actualising its planned 1,000 megawatts output through embedded power generation projects following the shortlisting of 43 companies out of the 100 that put up bids for the project, BusinessDay investigations have revealed.
Some analysts said last night, that the development may bring the company closer to its promise of producing 1,000 megawatts in good time.
The embedded generation project is an arrangement whereby bulk electricity energy is generated outside the national grid through a bilateral agreement between a distribution company on the one hand, and the generator- that is the company that generates the power within the coverage area of the distribution company, on the other hand.
The company has planned to grow generation by 20 percent each year to 1,000 megawatts (MW) for its electricity networks by 2020. A substantial part of this generation is going to be through embedded power generation.
The 43 successful companies have already been handed a list of requirements that they are expected to meet before EKEDC can enter into any contractual agreement with them.
A source close to EKEDC told BusinessDay that the company wants to ensure a transparent transaction in the whole process, so that it would be seen as being fair to all those that are participating in the exercise .
Part of the requirements, according to sources, would be robust resources to engage in this type of business, office accommodation, the necessary equipment for power generation and technical skills, among others.
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The EKEDC would however give supply to only those customers willing and able to pay the set price which is likely to be between N24 and N30 per kilowatt hour, an informed industry source told BusinessDay.
Some stakeholders, however, say the 1,000mw in six years is still below the required energy for the economic growth of Lagos State, which already requires 10,000 MW of energy for its economy.
The generated power would come through a series of arrangements facilitated by the embedded power generation scheme being put in place by the company.
Eko distribution network, which has the capacity to take in over 1,000 MW, is currently getting supplies of between 200 or 300 MW on a daily basis from the national grid because of lack of gas to generate sufficient electricity in power plants across the country.
The first phase of the projects which plans for six’ facilities has been developed and agreed upon with the National Electricity Regulatory Commission (NERC), while draft request for proposal documents for the six lots has been sent to NERC for approval.
The projects are in phases, said a source, with Phase 1 coming up in 2015, Phase 2 in 2016, and Phase 3 from 2017 to 2020.
Ramesh ,deputy managing director of the EKEDC company, said the massive response to the prequalification advertisement for the project was enough proof of the fact that the country has all it takes for the total positive turnaround of the electricity power industry.
Narayanan told BusinessDay that by March 6, all the bids are expected to be submitted ,while the evaluation of the bids would take place in April, and early in May 2015 all the contracts would have be finalised.
The DISCO would strategically position larger power plants for the long-term purpose to form the anchor of its embedded power generation scheme. The smaller plants are adjudged to be less efficient and would be phased out within five to seven years of operation.
The breakdown of some of the projects expected to be hooked to the electricity network includes a 60-MW plant currently in Orile, while Kirikiri would get a 20-MW plant, Agbara 50 MW, and Apapa 20 MW. There are also proposals for 10 MW each for Lekki and Victoria Island, bringing the total figure for this phase of the projects to about 170 MW.
The company would however, strategically position larger power plants for the long-term purpose to form the anchor of its embedded power generation scheme.
Participants at the pre-bid conference lauded the initiative of EKEDC and have indicated their readiness to partner with the company to evolve new ways of enhancing improved power supply to its customers. They expressed confidence in the viability of the project, adding that the quest for stable and affordable electricity power in Nigeria would receive a big boost when the project comes into fruition.
