Oil & Energy
Osibanjo Urges African Nations To Invest In Renewable Energy
The Vice President, Prof.
Yemi Osinbajo, has urged African nations to focus greater attention on development of renewable energy as major source of electricity.
He also called for the reduction of bureaucracy and tariffs in order to make the business environment on the continent both attractive and profitable.
The advice was contained in his speech at the maiden meeting of the African Energy Leaders’ Group held in Cote D’Ivoire on Tuesday.
The vice president said “although solar power is expensive now, but with all the investments in the world and creativity coming into it, it is becoming cheaper and cheaper.
“So, it represents for us a major source of power and renewable energy anywhere is a win-win situation.
“There is no reason at all why renewable energy should not be our focus in Africa, in west Africa, in the next few years.’’
He said there was so much to do in that regard and so much to be discussed with the private sector about what to do in that particular area.
Osibanjo also decried the level of bureaucracy in the continent which although intended to boost investments, it rather slowed it down.
“I think there is need for us to reduce the bureaucracy involved in doing business in our different environment, first of all for local investments and then for international investments of any kind.
“There is a great need for freeing up the environment; there are just too many bureaucratic bottlenecks, too many stops, too many places you need to go to for approvals.
The vice president decried the situation in Nigeria’s power sector, and noted that the administration is trying to unravel it.
He said, “so many of them trying to get a power purchase agreement takes so many months, sometimes years.
“And part of the reason is that we set up structures which we assume will make business easier but coming to grips with some of them involve so much time and energy.
“We have so many structures set up and these are standard structures all over the world but the truth is that they take far too much time.
“It is possible for us to have one-stop agency for a lot of bureaucracies that attend to getting approvals doing business in the environment,’’ he added.
Osibanjo further called for the reduction in electricity tariffs to attract both foreign and local investors as well as accommodate the needs of consumers.
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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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