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By Chinwendu Obienyi and Chukwuma Umeorah
In its bid to address the challenges bedeviling the power sector, the Federal Government, has set a 3-year 20,000 MegaWatts (MW) target of storage capacity for generation companies (Gencos) in the country.
This commitment, the FG stated, aligns with its plan to invest $20 billion in advancing the power sector and introducing competition and private sector involvement in the electricity market.
The Minister of Power, Adebayo Adelabu, stated this at the ‘Nigeria Energy Exhibition and Conference’ in Lagos organised by Informa Markets, which brought together stakeholders from both public and private sectors aimed at proffering solutions to the current challenges in the power sector.
Emphasising the paramount importance of power and energy in driving economic growth and industrial development, Adelabu, noted that although the country is currently struggling to sustain a 4,000mw electricity generation, it has mapped out strategic plans to address the challenges. He stated that the leadership of President Bola Tinubu is set to increase the storage capacity for generation companies (GenCos) to at least 20,000mw.
“In setting targets for ourselves, we also need to set short-term targets. My own vision is for us to increase the stored capacity of our generation to at least 20,000 megawatts in the next three years. We should also be able to evacuate and transport this power at the minimum of 80 per cent of the stored capacity to the end users of electricity,” he said.
He noted that beyond improving the country’s transmission and distribution infrastructures, it is imperative for the country to invest in metering technology.
“Today we have over 8 million metering gap in Nigeria. We must reduce or eliminate this gap and come up with technology to ensure that connections are monitored and we are able to collect not less than 90 per cent of power distributed”, Adelabu said.
Whilst emphasizing strongly on the need for liquidity in the sector, the Minister called on investors to recognize the medium to long-term nature of the power sector and assured them that with sustained investment, the industry would yield substantial returns. This is even as he advised that need for increased attention towards exploring renewable sources like solar, hydro, and wind, will not only reduce carbon emissions but also spur economic growth and job creation.
He thereafter expressed confidence that the current narrative in the power sector will change soon while adding that the Ministry is focused on the balanced energy development that drives socio-economic transformation which will in turn satisfy the future utility and sustainable development nexus of energy security, sustainability and affordability. According to him, strategic collaborations such as the conference organized by Informa markets will help shape the energy landscape in Nigeria.
Earlier in his opening remarks, the Exhibition Director, Nigeria Energy, Ade Yesufu, stated that the $20 billion investment plan will pave the way for the establishment of new power plants and transmission lines which will in turn boost electricity generation and grid stability.
