Oil & Energy
States Can’t Generate Power – Lawmaker
The Chairman, House Committee on Power, Patrick Ikhariale, has expressed pessimism over the ability of states to generate power through investment in the energy sector.
Ikhariale, who was reacting to a report that the 36 state governments would be given statutory rights to generate and distribute power as from January 2012, told The Tide that this was, however, a good development.
The legislator, who spoke in Ibadan commended Lagos and Rivers States which had invested in energy projects adding that some states were already generating and contributing to the national grid.
Ikhariale said if other states had the financial muscle like Lagos and Rivers, they would not have problems in investing in the energy sector.
“It is not those state governments that are finding it difficult to pay salaries of workers now that will want to spread their hands over and above their capacity. Otherwise, it will amount to being penny-wise and pound-foolish,’’ he said.
Ikhariale, however, urged states interested in the power sector to do their home work before getting involved because of the huge financial commitment, adding that it would cost billions of naira to generate just one megawatt of electricity.
“The power business must be left to those who have the financial muscle to do what they want to do; those who have the knowledge, commitment and sense of purpose. It must not be for the fun of it. It must not be for political gains. It must not be for mere political sloganeering or media hype of some sort,’’ he said.
Ikhariale noted that his committee would be willing to access the details of state governments interested in the energy sector to see how far they meant business, as well as consider how to encourage them and warned that there was no room for cutting corners in the energy sector.
“You can not generate 10 megawatts and expect the reward of somebody that is generating 200 megawatts. So, it is not a tea party,” Ikhariale said.
The Chairman of the Nigeria Electricity Regulatory Commission(NERC), Dr Sam Amadi, had in Abuja announced that states would be allowed to generate power from January 2012.
Amadi said it would become a reality when the commission’s new set of regulations on Independent Electricity Distribution Network Operators and Power Generators become operational.
Although power is presently on the concurrent list, the Federal government has the exclusive right of power generation and distribution for commercial purposes, except for some companies which NERC licensed to produce limited power for their industrial applications.
Oil & Energy
‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’
Oil & Energy
The Race To Cut Methane Emissions Is Exposing A Global Divide
By Felicity Bradstock for Oilprice.com 16
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.
-
News1 day ago
RSG Reaffirms Commitment To STEM Education, Technological Advancement
-
Business1 day ago
‘NUJ, NPA’s Partnership Would Boost Port Producrivity, Economic Growth’
-
News1 day agoIGP Warns Police Officers Against Partisanship …Directs Regular Engagement With Journalists
-
Business1 day ago
Fire Threat Interrupts Asaba Air Peace Flight
-
News1 day agoCustoms To Deploy AI, Scanners Against Snuggling
-
Business1 day ago
Fish Production Deficit, A Major Investment Opportunity – Minister
-
Business1 day ago
NCDMB, NLNG Unveil $9m For Professorial Endowment Research Chairs In Six Varsities
-
Politics1 day ago2027: INEC Begins Deployment Of Non-Sensitive Materials
