Concerns exist regarding the power sector’s future this year as industry participants closely monitor developments and how they may impact the sector’s performance in light of growing expectations for a possible change in government policy.
They contend that the industry faces evident difficulties and necessitates a thorough comprehension of the changing dynamics of supply and demand. In response to the worries, Minister of Power Adebayo Adelabu has unveiled a comprehensive plan aimed at improving the sector’s performance this year.
The first three months of the minister’s plan are dedicated to diagnosis, stakeholder consultation, and strategy formulation. He asserted that the ministry was prepared to carry out decisive actions with a particular focus on expanding distribution and transmission, citing a well-documented implementation plan.
In response to the ongoing issue of inadequate liquidity in the energy market, the minister stated that the government’s commitment to providing subsidies to economically disadvantaged groups and the continuous evaluation of the use of a cost-reflective tariff continue to be major priorities.
The minister emphasized the impetus created by programs like the government metering effort and the World Bank program. He continued by saying that the ministry planned to assist localities in receiving transformers and to make changes to distribution infrastructure without placing an excessive financial burden on the populace.
Adelabu emphasized the need to increase installed capacity in government-owned facilities and to attract investment from the private sector. She also pointed out that the focus on distributed generation and off-grid/off-grid power and the use of renewable energy sources are signs of a strategic commitment to diversify the energy mix.
“We have restarted the Siemens Project (Presidential Power Initiative) to strengthen the national grid and improve transmission infrastructure. To enhance the supply of electricity to demand centers, the Eastern and Western super grid projects will also be put into action.”
“Transmission services will be isolated from system/market activities when the Transmission Company of Nigeria is reconstituted in the near future. Regional grids would be built for efficient management in the medium to long term,” he stated. Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Protection Forum, put out a novel plan in which the government would give the lowest possible priority to lowering the cost of equipment, especially solar panels and related components.
According to him, the innovation would provide a competitive alternative to traditional sources of power and ease the limits faced by current power generation systems.
“Since he started working here, the minister of power has only made one policy announcement: he wants to give new investors the government’s 40% stake in the company. I don’t trust this current government to accomplish anything unless I see clear-cut policies aimed at improving the performance of the power sector and expanding megawatt generation.
All that’s been witnessed thus far is what Buhari accomplished with Germany, primarily the tripartite agreement with Siemens,” he declared.
To increase access to renewable energy, especially in places where conventional power supplies are inadequate, he urged the government to enact waivers and reductions in duties on goods used in the generation of renewable energy.
