Opinion: PowerUp Electric Power Outlook for 2015 @NERCNG

Nigeria have spent the last one year experiencing the Electric Power sector under the rudder of inexperienced administrators in the shape of private companies, thereby causing lots of storm in the course of the journey.

The electric Power regulators (Ministry of Power and NERC) have spent the whole time also dancing to the tune of the new administrators by making sure customers are being continuously “skimmed and scammed” with no recourse to the Bible that governs the Electric Power Sector Reform, (Electric Power Sector Reform Act 2005 & 2007).

There have been two upward electricity price reviews which has no basis, and there has been (and there will always be) calls and protests for the removal of nebulous ‘Fixed Charge’ being levied on Customers, whether they get electricity supply or not. It is apparent that throwing more money at the private companies is not enough incentive for better service.

Apparently, there is great need for improvement down the whole value chain of Power Generation, Transmission and Distribution, but making customers pay for more darkness before this is achieved is no way to make privatization successful.

The Federal Government also made available Metering Fund Intervention in 2009(about N9b) which nobody has been able to account for, and nobody has been charged for.

Going forward in 2015, because it takes a range of between 9 and 18months for any Electric power sector project to come mainstream, we should be seeing many of the projects embarked upon by the private companies coming alive, but this is still no reason to believe that there will be more electric supply in 2015.

Availability of gas, and regulation of prices, would play a pivotal role in getting more electricity generation into the national grid, and also in powering up cell sites in the form of Distributed Energy Generation.

The Transmission Company of Nigeria would have to hurry up in improving the Power Transmission Grid, and closing up the open loop Grid to reduce the present 50% loss in Electric Power as presently experienced.

The Distribution companies and the NERC would also have to show more commitment to getting customers metered and the reducing attendant losses in the present distribution grid, by upgrading networks and transformers to enable efficient use of the meager resource.

PowerUp also foresee a 2015 where the Metering industry would be deregulated by NERC, where Customers can go directly to Licensed Metering companies to have their meters installed without having to wait for approval, or supply from a Distribution company.

Some experts have noted that it will take about 2years for any major effect to be felt in the privatization process, and a year is gone already, not much should be expected therefore in 2015 from the Electric Power sector.

However, we are seeing more activities and drum beating from the Renewable Energy sector, with the German government funding so many seminars through the Civil Society groups. The last Power Nigeria Seminar and Exhibition also focuses largely on the opportunities and the viability of the Renewable Energy.

We are seeing State governments developing and using Solar paneled streetlights as seen on newly constructed Lamingo/Dam road in Jos, Plateau State. Other Solar farms generating up to 100MW in another Northern Nigeria state. More of these projects will become popular as the national grid gets to grab with itself.

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Article written by Adetayo Adegbemle for PowerUp

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