Oil & Energy
FG Signs MoU With Chinese Firms …Terminates Manitoba’s Hydro Power Contract
In a bid to boost the nation’s power situation, the federal government has signed a Memorandum of Understanding (MoU) with two Chinese firms to build two hydro-power stations in the country.
The Chinese firms, Sinohydro Corporation and China National Electrical Equipment Corporation which are to invest a total of N146.466 billion would through its Export-Import Bank provide 75 per cent of required funds to build a 700 mega watt hydro power station on the Northern Zungeru River while Nigeria will provide the 25 per cent balance of the fund put at N48.88 billion. During the signing ceremony in Abuja recently, the Minister of State for Power, Mrs Zainab Kuchi said the companies would be a 3,050 MW station in Mambila Taraba and a 700MW station in Zungeru, Niger and added that Sinohydro would build the plant at its expense and operate it for nine years before handing over its ownership to Nigeria.
She explained that the Mambilla project was planned since 1985 to produce 260 MW but was reviewed for the plant to produce 260MW, but was reviewed for the plant to produce 3,050MW and to be implemented within five years.
President Goodluck Jonathan was reported as saying that the nation was fully committed to achieving the set target of sustainable power by the year 2020 in less than a decade saying that all the tiers of government were being mobilized to play their roles to ensure that Nigeria attains its targets.
On alternative sources of power he said his administration was highly committed to strengthening the power sector so that it can efficiently deliver adequate, qualitative, reliable and affordable power in a deregulated market and the launch of the roadmap for the reform of the power sector two years ago brings into practical effect the 2005 Electric Power Sector Reform Act, and the hydro power generation sourceswere eing exploited.
President Jonathan explained that “Hydro power generation sources are being exploited. Only yesterday we had our initial meeting with the consultants and contractors for the construction of the large Mambilla Hydro-Power Plant that will produce 3050MW.
“The processes for the construction of Zungeru 700MW hydro power plant have reached an advanced stage. Several Small and Medium Hydropower projects are also in progress as well as Solar Power Projects. A MoU has already been signed with Seimens of Germany for the production of 450MW (with States as first place).
Bauchi State has taken off already. Thirty Mega Watts coal to power is being pursued under Public Private Partnership (PPP) arrangement as well as a pilot wind power scheme in Katsina with 10MW. Waste-to-power schemes are also being implemented in various States.”
In another development a $24 million electricity contract with Canada’s State-Owned Manitoba Hydro has been abolished by the Federal government.
The spokesman of Presidency, Reuben Abati who made the disclosure said the power ministry would make a statement on the move later.
According to him, “Mr. President has cancelled the Manitoba power contract with immediate effect.”
Industry experts saw the hiring of Manitoba to manage the national power transmission network as a major step to move the reform process.
Manitoba was to start work at the beginning of September but government still controls transmission.
The head of the Manitoba-run Transmission Company of Nigeria, Don Priestman expressing his disappointment said: “We had a clear contract and we were meant to be given delegation of authority … but that didn’t happen.”
He added that there were forces working against the power reform in the country as a similar contract which Manitoba has in Kenya was working well.
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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