Documents

Opportunities in the Power Sector in Nigeria

Description
Infrastructure development in the Energy Sector of the Nigerian Economy
Categories
Published
of 10
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
    Introduction To meet the targets set out in the programme Vision 20:2020 ; the Federal Government of Nigeria has set a generating target of 40,000 MW . Moreover, to reach this relatively modest ambition will require investments in power generating capacity alone will require at least USD$35 billion i.e. investing US$3.5 billion over a period of 10 years and an additional US$15 billion will be required in the other parts of the supply chain i.e. fuel-to-power infrastructure, and the power transmission and distribution networks. This comes to a total expected investment in the power sector to USD$50 billion over the next 10 years using conservative estimates. These required investments will not be funded and directed by the Federal Government hence, the need for private investment. Generation The National Council on Privatisation (NCP) and the Bureau of Public Enterprise (BPE) on behalf of the Federal Government have placed an advert for by core investors to expression their interest in the thermal power stations and as concessionaires for the hydro power stations through International Competitive Bidding (ICB). Transactions will include:    Ughelli Power Plc in Delta Area with capacity of 972 MW      Geregu Power Plc in Kogi State with capacity of 414 MW      Afam Power Plc in River State with capacity of 776 MW         Sapele Power Plc in Sapele, Delta State with capacity of 1020 MW  Transmission   The Government's target to raise transmission capacity from 330kv to 700kv is being aggressively pursued as it has made investment of USD $3.5 billion for construction of a 700kv super transmission grid that would enable power generation companies to transmit more than 6000MW of electricity by 2011. It is imperative that new investments are  pushed forward as rapidly as possible.  To this end, the Transmission Company of Nigeria (TCN), as management contractor, will be responsible for significant investments in the expansion, reliability and stability of the network infrastructure.  Distribution    The NCP and BPE on behalf of the Federal Government have placed an advert for expression of interest to privatise the Power Holding Company of Nigeria (PHCN) through an International Competitive Bidding (ICB) from December 14 2010.    The Federal Government is planning to use the Core Investor Sale Plan by relinquishing 51 per cent of its holdings in PHCN to core investors and the remaining may be thrown up for grabs by interested State Governments and Nigerian workers especially those in the power sector slated to take place between May and June 2011.        11 distribution companies to be privatised include Abuja, Benin, Eko, Ikeja, Kano and five others; all having coverage of the geographical zones in Nigeria.     The current infrastructure is made up of 60,000 km of 33 Kilovolts (KV), 11KV, 415 KV and 220 KV which aid the distribution process of electric power to the final consumers.    The immediate distribution target of the Government is to; Increase the capability of the distribution network by about 20%; Reduce aggregate distribution losses (technical and non-technical) by at least 5% by April 2011 Secure a noticeable increase in the average number of hours of electricity supplied to consumers by April 2011. Opportunities open to investors include the following:    Additional investment in distribution network to support generation and transmission plan    To be core investors in existing power generating companies Production and distribution of meters to meet demand of end-users This will result to improved revenue collection    Legal Framework Government has decided to follow through on the Electric Power Sector Reform Act (EPSRA) 2005 which already provides an enabling regulatory framework for private sector participation in the electricity industry. The Act gives legal authority and support to the restructuring of the sin   gle vertically-integrated, Government-owned, power sector utility. This has resulted in the subsequent initial unbundling of PHCN 1  into 18 successor companies and the partial transfer of the assets, liabilities and staff of PHCN; and 1   Power Holding Company of Nigeria- the power sector monopoly in Nigeria   the establishment of the National Electric Reforms Commission (NERC). Currently, the NERC is limited to licensing off grid producers that are permitted to establish mini power plants of less than 20MW. Where excess capacity is available, it can be transmitted through the national grid for onward sale in other parts of the country.   WHAT NEEDS TO BE DONE/CHALLENGES OUTSTANDING    The need for additional transmission lines and sub-station re-enforcement   in order to ease evacuation of energy especially in areas where the IPPs cluster as a result of proximity to energy sources.
Search
Tags
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x