Power supply gets major boost worth N701 billion

Power supply, which stands at 4,000 megawatts, is set for a major boost.

The Federal Executive Council (FEC) yesterday approved N701 billion Power Assurance Guarantee for the Nigeria Bulk Electricity Trading (NBET)—to ensure a better supply of gas to the power plants. This will in turn improve power supply.

One of the major problems of the sector has been the lack of gas for power plants and the complaints about access to funding by the Generating Companies.

Minister of Power, Works and Housing Babatunde Fashola announced the FEC approval after yesterday’s meeting chaired by Acting President Yemi Osinbajo.

With him at the briefing were Minister of Information Lai Mohammed and Minister of Agriculture Audu Ogbeh.

Fashola said the Central Bank of Nigeria (CBN) facility will guarantee payment for the evacuation of power produced by Generating Companies (GenCos) for the national grid.

It will be drawn monthly to tackle the GenCos liquidity challenges.

NBET will pay GenCos, which have been unable to pay their gas suppliers, in arrears of electricity generated as a deliberate step to boost their confidence and that of intending investors in the sector.

Fashola said: “You will recall that a few weeks back we announced the approval of council for early works for the second Niger Bridge. That bridge at some time was part of a PPP initiative. You will also recall that at the same time, some private agreements were signed to build the Lagos-Ibadan express way.

“The first memo is to brief council on the PPP status of those infrastructure projects and present options to government, which was essentially that where those PPPs are having problems, government must lead and finance the infrastructure while continuing to engage the private sector. Government remains committed to ?having private participation in infrastructure renewal.

“But government, as a matter of strategy; thinks that it can continue until financial closures, agreements and all of that are put in place when PPPs become ready and viable to help deliver. So, it was a strategy memorandum, the conclusion essentially which is that government is committed to doing short financing as much as possible and encouraging PPP as much as possible.

“The second memorandum is in another area of critical importance, which is power?. Part of the challenges there were addressed in the memo that was presented to Council to solve some of the liquidity problems, especially as it relates to NBET.

“NBET as you know, is the government’s own company, that is the Bulk ?Trader Electricity which buys power from the GenCos. The liquidity problems that have characterized the market have affected NBET’s ability to deliver on its PPP obligations through the GenCos.

“So, going forward, in order to strengthen NBET, CBN is proving a payment assurance guarantee for any energy produced by any GenCos, so that the Gencos can pay their gas suppliers when they get paid. So that the hydros can continue to operate.

“What we seek to achieve here is to bring some stability to the production side of the power value chain and also give confidence to investors who want to come in, who are concerned about how to recover their money. Payment assurance and also people who are planning to invest in the gas sector, which is being championed by the Ministry of Petroleum, also are saying the same thing in terms of payment for gas produced.

“So, the approval of Council was to provide this guarantee for NBET, which is a 100 per cent government owned company to pay on a monthly basis its obligations for energy actually produced on to the grid to the GenCos that are its customers,” he said.

Fashola said the government was expanding transmission capacity regularly because it wanted to generate more power.

He said: “I have been here to announce to you transmission projects that have been approved by council and over the last one year plus the transmission capacity has grown to almost 7,000 from 5,000 and is continuing to grow with every project.

“So, it is not the problem of taking power; it is actually a problem of getting power from generation. If you recall just about a few weeks ago, you were reporting that power supply had dropped to a little over 2000mw. It’s back now at over 4000mw.

“We have solved the transmission problem in Ikot Ekpene largely, to evacuate over a thousand. But the gas suppliers were being owed so they were not supplying gas for the power producers.

“As to the quantum of the guarantee, it is for two years from January this year right through to December 2018. It is capped at a maximum of N701 billion but it is to be drawn monthly. It is possible it may not reach that. But we are projected on the total cost that NBET will likely to pay. And that is why it is for power generated onto the grid only.

“So, if the power generated does not meet that cost, we don’t pay for it. It is paid in arrears at the end of the month not in advance. So, it is for actually what gets onto the grid. And this is part of the reforms that we have briefed you about that we were planning to undertake.”

Fashola said he briefed the cabinet on the Public-Private Partnership (PPP) status of the Second Niger Bridge and Lagos-Ibadan Expressway.

Ogbeh said the FEC approved N263 million for three research institutions to produce gum arabic seedlings for farmers and for export.

He said Nigeria earned as much as $43 million from export of gum arabic last year, and that more will be earned with increased production, more so as the commodity is in high demand in 17 countries.

Lagos Residents Express Satisfaction With Power Supply

Some residents of Lagos have commended the Power Holding Company of Nigeria (PHCN) and the Minister of Power, Works and Housing, Mr. Babatunde Fashola, for improved power supply.

The residents gave the commendation in separate interviews with the News Agency of Nigeria (NAN) on Friday in Lagos.

A resident of Abesan Estate, Ipaja, Mr. Bola Ogun, said that the improvement in power supply had created comfort.
“It is obvious that power supply in this area has really improved and we are happy.

“You know, when there is constant power supply, life becomes much more comfortable because now we can sleep comfortably at night and artisans now depend less on generating sets,’’ he said.

A resident of Ojo, Mr Tajudeen Idowu,was also excited about the improved power situation.

“In recent times, we have been enjoying improved power supply and we are happy about that.

“Though it is not yet 24 hours uninterrupted power supply but it has remarkably improved and I commend PHCN and Mr. Babatunde Fashola, the minister in charge of power for a job well done.

“We can only hope that the improvement will continue after the rainy season because some people are saying that it is because of the rains,’’ Idowu said.

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Fashola Promises Uninterrupted Power Supply

Former governor of Lagos State and minister of power, housing and infrastructure, Babatunde Raji Fashola has said the problem of Nigeria’s power sector is man-made and that he is determined to make sure the sector works, promising to deliver on uninterrupted power supply.

Fashola, who is one of the speakers at the maiden edition of Made in Nigeria Festival taking place at Eko Atlantic, Lagos, presented a 3-phase blue-print of power-generation, steady supply of power and uninterrupted power supply.

Speaking on the challenges, Fashola said ‘”we had an issue some time ago during an electrification project; we got to this expanse of land and we were told that the land where we need to lay electricity cable belongs to ‘spirits’. The indigenes of that area scared the contractors away by invoking a curse on the project. I was briefed about this and we entered negotiations with them. You won’t believe this, but by the time we finished the negotiation, the ‘spirits’ collected money and we were able to continue with our project.

“Another instance was where we had a telecommunication mast obstructing electrification of a village. The former regime and the telecommunication company were exchanging letters; all I did was call Otunba Mike Adenuga and the mast was removed in a week.

‘The power challenges are not impossible [to fix], most of them are man-made. I am determined to ensure we get to the point where Nigeria has uninterrupted power supply.”

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Egbin Power Plant May be Shut Over Rising Debt – MD

The nation’s electricity woes may worsen in the coming weeks as liquidity and gas supply issues are threatening the operation of its biggest power station, Egbin.

The Managing Director and Chief Executive Officer, Egbin Power Plc, Mr. Dallas Peavey Jr., said in an interview that the owners of the plant might be forced to consider shutting it down if the challenges remain unresolved.

Egbin, which is located in Lagos, was acquired in 2013 by Kepco Energy Resource Limited in collaboration with its technical partner, Korea Electric Power Corporation, during the privatisation of the successor companies carved out of the defunct Power Holding Company of Nigeria.

Asked if the company had any challenge in paying gas suppliers, he said, “We do because we are owed N86bn and we in turn owe the gas suppliers approximately N30bn. We are working on payment plans.

“We think if this is not addressed in the next couple of weeks, we are going to take the hard look at shutting down, because we can’t afford running it any longer. That’s a dire prediction.”

Peavey said the company owed banks $325m as it had to borrow to overhaul the plant after it was acquired to enable it to operate at its installed capacity of 1,320 megawatts.

Generation from Egbin was said to be limited to 383MW on Wednesday due to gas constraints, compared to 1,085MW on March 15, according to industry data obtained by our correspondent. The plant hit a record low of 246MW on last Saturday from 425MW on Friday.

Its unit ST1 was said to have tripped on generator CB trouble; ST2, 3 and 5 not on spinning reserve due to Egbin G/S management decision, while the ST4 was out due to gas constraints.

“Right now, because of gas and transmission issues, we only have three of our six units running. Each one of our units can produce 220MW. For a megawatt, that is about 100,000 people that it provides power for,” Peavey said.

The Egbin CEO, who spoke with our correspondent shortly before the nation recorded its latest total system collapse on September 16, said, “We are helping to stabilise the national grid. If you notice, over the last six weeks, we haven’t had a grid failure or system collapse because of Egbin.

“Egbin is the sole reason there has not been a total system collapse in the nation, because we regulate everything coming to Lagos all the way to Abuja and farther north.”

Out of the six power stations meant to provide spinning reserves, only one had actual reserve of 9.4MW as of 6am on Wednesday, September 21, down from 17.4MW on Sunday and 30.4MW on September 10.

The power stations are Egbin, Kainji, Delta, Olorunsogo II, Geregu II and Omotosho II, with a combined reserve capacity of 235MW.

The reserve capacities and actual reserve of Egbin and Kainji stood at zero as of Wednesday, while those of Delta were 80MW and zero, respectively.

This year, the nation’s power grid has so far recorded 22 collapses – 16 total and five partial – up from 13 and 10 in the whole of 2014 and 2015, respectively.

Power Supply Drops To 2,665MW Due To Explosions, Gas Constraint

Inadequate supply of gas to the power station and explosions at transmission lines in the Lagos area and Jebba have resulted in a drop in electricity generation to 2,665MW.

With this development, the Transmission Company of Nigeria (TCN) has directed the 11 distribution companies (Discos) nationwide “not to pick loads to avoid a system collapse”.

Data obtained from a source at TCN on the “Daily Load Analysis and Day Ahead Consumption” for yesterday showed that between 1 am and 6 am on Saturday, generation fell to 2,500MW.

However, between 6 am and 11.59 pm, the hourly dispatch to the Discos rose to 2,721.20MW, thus averaging 2,665.90MW for the whole day.

The chief executive of one of the Discos, who did not want to be named said yesterday that with the abysmally low level of generation, TCN directed the Discos not to pick loads to forestall a system collapse.

“When generation is very low like this, TCN tries to stabilise it and the only way to stabilise it is to balance the load. Right now, we can’t pick any load, otherwise there will be a system collapse,” he said.

TCN had at the beginning of this month announced for the first time that the country generated about 5,074.7MW of electricity.

The attainment of the new record peak generation as well as the highest maximum daily energy of 109,372 megawatts hour (MWH) was recorded on February 2, 2016.

Credit: Thisday

Ambode Inaugurates C’ttee To Boost Power Supply

Governor Akinwunmi Ambode,Thursday, inaugurates committee to boost household and business power supply, with a charge on them to work assiduously to create an enabling environment that will ensure 24-hour power supply to residents in the state.

The Governor who spoke at the Lagos House, Ikeja while inaugurating the Power Committee said it was a common knowledge that power supply is a major challenge, adding that it must be addressed in order to achieve sustainable economic growth and development in Nigeria and Lagos State in particular.

He said that in view of the importance of the Lagos economy to the nation and the concerns that have been expressed particularly by the business community, his administration has considered it expedient to constitute an advisory committee on power, adding that no state in the federation is more affected by the state of the power sector than Lagos.

The Governor said that Lagos State accounts for over 60 percent of the industrial and commercial activities in Nigeria, emphasizing that the energy requirement for the state is estimated at about 5,000 Mega Watts of which only about 1000 Mega Watts is currently being supplied; hence the need to inaugurate a committee that would ensure the power need of the people is met.

He said members of the Committee consist of representatives from the State Government and industry experts from the private sector urging them to provide a sustainable guide in the development of a roadmap for reliable power supply in the state, foster collaboration and develop a congress or platform for all major power stakeholders in the state and the private sector.

Members of the Committee include the Deputy Governor of Lagos State, Dr. Mrs. Oluranti Adebule, the Commissioner for Energy and Mineral Resources, Mr. Wale Oluwo, the Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem and the Commissioner for Information and Strategy, Mr. Steve Ayorinde.

Other members of the committee include representatives of Ikeja Electricity Distribution Company, Eko Electricity Distribution Company, Transmission Company of Nigeria, Gaslink Nigeria Limited, Falcon Corporation Limited and Egbin Power Plc.

Governor Ambode, shortly after the inauguration tasked the committee to make electricity available to Lagosians for both business and domestic use, just as he expressed confidence that they would not disappoint Lagosians.

The Governor also hinted that in order to underscore his administration’s commitment to security of the lives and property, his administration has embarked on an aggressive programme of lighting up Lagos and explained that major highways and streets are being connected from point to point using Independent Power Projects (IPPs) and other means effectively.

He also encouraged individuals, private homes and corporate organizations to take up streets or roads of their choice and light them up with connections to their meters and generators, assuring that the state government will reciprocate the gesture by giving concessions to them in the payment of their annual Land Use Charges.

“In addition, they shall receive Special Commendation letters from the Governor. Such projects will also be commissioned by government officials and Community Development Associations. We believe that this initiative will promote a new culture of co-operation and ownership”, he said.

Earlier, Commissioner for Energy, Mr. Wale Oluwo said with the success of the IPPs, the state which provides 24-hour power supply to public facilities, the state government is working towards ensuring that residents in the state can enjoy regular power supply in their homes.


Credit : Vanguard

Power Supply Expected To Rise By 2,000mw In Months– Fashola

Based on the availability of adequate gas supply and subject to sufficient budgetary funding, the minister of power, works and housing, Babatunde Raji Fashola, has said that power supply could rise by 2,000 megawatts (mw) in the next 12 to 15 months.

He stated that the Ministry of Petroleum Resources will build some critical infrastructure, subject to budgetary funding, to transport gas to the power plant that will add the 2,000mw to grid supply in the coming months.

Disclosing this at his inaugural media briefing in Abuja, Fashola said that apart from the availability of gas infrastructure other issues like environmental concerns and appropriate pricing for gas have had negative impact on power supply.

He noted, however, that the recent review of gas from $1.30 per unit to $3.30, although still below the $4.00 International market price will help bridge the availability gap.

On transmission network, he said, “Today’s reality is that available power is slightly larger than the capacity which it can support else we will experience persistent system collapse. So government, through the Transmission Company of Nigeria (TCN), has identified a total of 142 critical projects of which 45 are at 50 per cent and above level of completion. Of this lot a further 22 projects can be completed within a year.

“With budgetary provision, government intends to aggressively pursue completion to increase the carrying capacity of the generation companies to the distribution companies from which the transmission carrying capacity must expand well ahead of the generating capacity that will take care of future expansion in power generation,” he said

Credit: Leadership

Why Power Supply Is Not Improving As Expected- Buhari

President Muhammadu Buhari says that sabotage and theft of gas are undermining the efforts of the government to increase power supply in the country.

The President, who said this in a question and answer interaction with the Nigerian community in Tehran, the Islamic Republic of Iran, noted that “although some improvement in power had been recorded in the recent period,” sabotage of pipeline installations continues to be a problem.

He told his audience that Nigeria had everything it takes to generate enough power. “Power is a running battle because the saboteurs are still there. We have the potential. We have gas, we have qualified people but we are contending with a lot of saboteurs who go and blow up installations. When gas is pumped to Egbin and such other power stations, thieves and saboteurs such as the militants cut those supplies.”

He also cited another factor as the reduced role of the government in the sector due to the privatization of the institutions under the Power Holding Company of Nigeria, PHCN in the process of which, he said, the facilities “have been sold to a number of interest groups.”

He gave the assurance that the Military task-forces with representation from the Army, Navy, Air Force, the Police and the secret services will be reconstituted to secure the pipelines. “Supplies will become steady; there will be less sabotage as we secure the pipelines,” he said.

Credit: ChannelsTV

CBN To Channel Funds To Boost Power Supply

Central Bank of Nigeria, CBN, said its N213bn Nigeria Electricity Market Stabilisation Facility, NEMSF, would improve generation, distribution and transmission of power in the country.

Special Assistant to CBN Governor on Energy Sector, Mr. Yinka Balogun, said this in Abuja on Monday at a roundtable on “Releasing Private Sector Capital for Investment in the Power Sector”.

He said the intervention fund would ensure that the power sector delivered tangible improvement in power supply for the benefit of all Nigerians.

“CBN will disburse these funds in partnership with “deposit money banks” to address the shortfalls in revenue for operators to boost power supply and settle legacy gas debt.

“We believe that once the power sector issues are fixed, Nigeria will return to the path of sustainability at other sectors,” he said.

Read More: nationalmirroronline

Why Power Supply Has Improved Significantly

The Permanent Secretary in the ministry of power, Amb. Godknows Igali, has disclosed that the steady increase in power supply recently experienced in the country is occasioned by the charge of President Muhammadu Buhari to power sector operators to redouble their efforts in the quest of ensuring uninterrupted power supply to Nigerians during his tenure.

Igali made the disclosure while signing Memoranda of Understanding (MoU) with two indigenous investors in the power sector namely Messrs. New Horizons Energy Resources and Quaint Global Energy Solutions. The firms are interested in renewable projects, especially solar, biomass and thermal plant respectively.

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Buhari Promises Improved Power Supply

President Muhammadu Buhari on Monday promised that his administration would give the highest possible priority to the rapid improvement of power supply across the country.

According to a statement by his Special Adviser on Media and Publicity, Mr. Femi Adesina, the President spoke while granting audience to officials of CGGC, the Chinese construction company working on the Mambilla Power Project.

Adesina quoted the President as saying that it was quite regrettable that power generation in the country had failed to keep pace with national needs over the years.

To salvage the situation, Buhari said his administration would ensure that the Mambilla project and other unfinished hydro-power projects in the country were completed expeditiously in order to boost electricity supply in the country.

He was quoted as saying, “I am very much interested in Mambilla and other hydro-power projects, not only for the improvement of power, but also for irrigation, as both power and irrigation projects will help to improve the lives of Nigerians.

“I am going to ask for details of the Mambilla hydro-power project and others. Very soon, we will get together and redefine the project agreements for faster results.”

The Managing Director, CGGC, Mr. Zhang Heng, who led his company’s delegation, was also reported to have told the President that work on the Mambilla project was being delayed by the failure of previous administrations to provide the counterpart funding specified in the agreement with the Chinese government.

The CGGC delegation was accompanied to the Presidential Villa by Governor Abdulaziz Yari of Zamfara State.


FG Raises Alarm Over Dwindling Electricity Supply, Power Plants Shutdown

The Federal Government on Friday in Abuja raised alarm over dwindling and epileptic electricity supply across the country.
The Permanent Secretary, Ministry of Power, Mr Godknows Igali, made this known after a meeting with Vice-President Namadi Sambo to State House correspondents in Abuja.
Igali, and Prof. Chinedu Nebo, Minister of Power, had briefed Sambo on the state of power generation, transmission and distribution in the country.
He said the ongoing strike by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas had further worsened the power supply situation.

The workers were protesting the transfer of the operatorship of the Oil Mining Lease (OML) 42 to two indigenous companies, claiming the move would affect the fortunes of NPDC and its staff.

“With the strike which has gone on for one or two days there is dramatic turn as of this afternoon we have gone down for the all time low to 1,327 megawatts.

“So, if you look at it from 4,800 there is dramatic turn, the loss is terrible,’’ Igali said.

He said as at 12 noon May 22, 2015, Utorogu, CHEVRON ORE DO, OB EN gas plants were all shutdown while UGHELI and CNL ESCRAVOS were already isolated.

He said, “on the eastern axis Shell Gas, ALAKIRI has also been shutdown. This has led to the several power plants being stranded and shutdown.

“This includes EGBIN, OLORUNSHOGO I & 11, OMOTOSHO 1& 11, GEREGU I & 11, IHONVOR and SAPELE (NIPP) on the western axis and ALAOJI on the eastern end.’’

According to him, besides, pipeline vandalism which has continued to have very negative impact on the power supply situation in the country, the ongoing strike by the labour unions in the oil and gas sector has added additional toll.

“The overall effect is that power supply which had started picking up steadily since the beginning of the week following repairs of various vandalised portions of the ELP Line and the Trans-Forcados Gas Pipelines, has fallen to all-time-unprecedented low of 1,327m was at 1.00 p.m. May22, 2015.

He, therefore, warned that “situation could get worse if the strike continues’’.
Igali expressed the hope that the ongoing discussion between the Federal Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation and, the labour unions, would end amicably.

“Indeed, it is hoped the labour unions will help restore supply of gas to the power plants even while negotiation are ongoing.’’(NAN)

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Tell Nigerians Why They Are Still in Darkness, Buhari Challenges Jonathan

All Progressives Congress (APC) presidential candidate, General Mohammadu Buhari, at the weekend, challenged President Goodluck Jonathan to explain to Nigerians why they are still living in darkness, despite several promises he made in the past.

The APC presidential candidate, in a statement issued by Buhari Support Organisations (BSO), maintained that President Jonathan, before now, had promised that “if voted  into power, within the next four years, the issue of power will become a thing of the past.

“Four years is enough for anyone in power to make significant improvement and if I can’t improve on power within this period, it then means I cannot do anything, even if I am there for another four years.”

The statement, signed by Dr Chidia Maduekwe, said “the ordinary Nigerian on  the street knows that  he or she is not  better off today with stable electricity as against four years ago when Jonathan mounted the saddle.

“Most people will admit that they had better stable supply of electricity four years ago.The Jonathan-led administration  had projected that 10,000MW should be generated before now. While the CPC manifesto promised Nigerians 15,000MW if Buhari was voted into power in 2011.

“General Buhari and, indeed, the Nigeria public has right to question why they are still in this epileptic mess of electricity supply, after sinking well over $20 billion into the power sector over the period in question.

“On per capita consumption basis, Nigeria is ranked 178th position with consumption of 106.21KWh per person, this is well behind Gabon with 900,000 population consuming 283.6 KWh; Cameroon 176.0KWh and Kenya 128.68KWh,” the statement read.

Credit: 247nigerianewsupdate.co