… Experts say not possible unless transmission challenges are resolved
Babatunde Fashola, minister of state for Power, Works and Housing has said that Nigeria could raise power supply to 6,000mw if gas pipelines destroyed by vandals are back on stream.
Fashola said this on yesterday at the 12th Monthly Power Sector and Stakeholders’ Meeting in Ibadan hosted by Ibadan Electricity Distribution Company.
“The 3,500MW to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and add 3,000MW to it. That means we will be able to deliver well over 6,000MW if the gas pipelines are safe.”
Meanwhile, some power sector experts told BusinessDay that Nigeria will not witness appreciable change in the current epileptic power supply unless the failing transmission infrastructure is replaced.
Fashola told the operators that the sabotage of oil and gas assets has also created debt and liquidity problems, shortfall in power expectation, and in revenue recovery by power distribution firms.
“Consumers are more resistant to payment when they don’t have electricity, and I will be, too, and you will be too,” he told the power investors and other stakeholders at the meeting.
“We see that they (consumers) pay more when the power is more stable. Of course, there are issues also at the retail end – metering, estimated bills.”
According to O’neal Lajuwomi, chief executive of Wavelength Integrated Power Solutions, a renewable energy firm, challenges with the transmission lines will scuttle any serious efforts at ramping up power generation.
“Nigeria is still using the long grid which was modelled after the British system. It is now antiquated and further investments into improving the grid will not solve electricity losses,”
Lajuwomi further said, “The solution is to break apart the grid, and invest in micro grids so that power generated from any source within a location can be delivered to people within that location.”
Wesley Omonfoman, an energy consultant, and CEO at Global Metering Services International said: “The question really is about the management of the transmission grid. Should we have one transmission company as-is currently or are we going to have several regional transmission companies? Or several regional transmission management companies to operate these regional grids?
“I would recommend one transmission company (TCN) and several regional transmission services providers (TSP) in charge of the regional grids under a concession and service arrangement with TCN. The NCC in Osogbo would still be under TCN. Under the concession arrangement, new transmission lines can be built under a Build, Operate and Transfer (BOT) model with investors, where investors can recoup their investment via a wheeling charge over a certain period of time, and hand over the asset to TCN upon full recovery of investment.
The key to concession of TCN is the evaluation and selection process adopted in selecting the regional service providers. Technical capabilities and more importantly, financial ability of the service providers will rank as top evaluation criteria.
