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Nigeria: Gas Independence Cannot Solve Existing Electricity Challenges
FRIDAY EKEOBA
The Federal Government has said that the sole-reliance on gas cannot solve the country’s existing electricity challenges.
Acting Chairman of Niger Delta Power Holding Company (NDPHC), Chinedu Ugbo, on behalf of the Minister of Power, Works And Housing, Babatunde Raji Fashola, made this statement during a conference in Lagos State.
According to Ugbo, efforts are being concentrated to upgrade existing generation infrastructure rather than impetus placed on the current dependency on gas-to-power.
Ugbo said that distribution companies need to invest in embedded generation within their areas of jurisdiction, while adding that a significant portion of coal should be part of the country’s future generation mix, media reported.
Ugbo noted: “I am pleased to say that the Nigerian Bulk Electricity Trading, NBET, is working on a suitable tariff for coal-to-power that will form the basis of a Power Purchase Agreement.
“Although you may not see it, but it is at the point of negotiating tariff with power providers that Government, through NBET and Nigeria Electricity Regulation Commission, NERC, begins to protect the interest of consumers.”
He added: “Gas is our most reliable source of power, yes, but it is only one solution among many other under-utilised solutions.”
According to him, the media hard it that Nigeria currently has no coal-fired power plants and negligible coal production, despite it having reserves in Kogi, Benue and Enugu states.
It would be recalled that the government projected that coal is expected to generate 1,000MW, of power by 2020 to supplement other fuels currently used in power generation.”
The acting chairman noted: “Mambila Power Station, for example, is likely to be our most defining in the road to incremental power. Situated in Taraba State, it will potentially add 3,000MW to the grid and yet this is a hydro- electric project, not gas.”
