Home Business Nigeria can generate 30,000MW of electricity by 2030, say GenCos | The Guardian Nigeria News

Nigeria can generate 30,000MW of electricity by 2030, say GenCos | The Guardian Nigeria News

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No policy direction to boost power in 2021, GenCos warnBusiness — The Guardian Nigeria News – Nigeria and World News


Electricity Generation Companies in the country (GenCos) have said Nigeria can generate 30,000 megawatts of electricity, meeting an earlier target set by the Federal Government.

The projection could however remain elusive without pragmatic framework, which must be implemented commercially and politically. Seven years after the electricity sector was privatized average generation has been dismal, hovering around 3,500WM although available capacity stands at about 8,000WM as at 2020.

The Executive Secretary of the Association of Power Generation Companies (APGC), Joy Ogaji, said progress would be made if policymakers, regulators and relevant stakeholders join hands in recognising and paying for available capacity, going by extant pacts between GenCos investors and the Federal Government.

She said there was need to jettison the practice of variabilising power generated as the basis for power delivery invoice, adding that quality data ownership both by the regulator and operators remained critical key.

Ogaji equally noted the need for customer population, metered customers, independent classification of customers as well as collection efficiency details, tariff performance, validation and independent assessment of market performance.

The companies also called for the urgent review of the Electric Power Sector Reforms Act (EPSRA), the Multi-Year Tariff Order, Orders made by Nigerian Electricity Regulatory Commission (NERC) as well as policies, market rules and other governance documents in the Nigerian Electricity Supply Industry.

Ojagi added that there was also need to conduct a viable and independent stress test on the Generation, Distribution and Transmission capacities to enable proactive planning and building of the sector.

They also called for immediate separation and unbundling of the Independent System Operator (ISO) and Transmission as well as an empirical method of proving claims.

Ogaji also called for revamping of agencies and imbuing into them fresh and vibrant commercially minded and progressive business wise capacity with the ability to engage with and influence project and service providers including utilities companies.

According to her, this will improve their ability to coordinate with and facilitate activities linked to the scaling up of the goals and objectives of the reform and the ability to work collaboratively with multiple government agencies and others.

“Seven years post privatisation, it is imperative for the sector to rejig the existing structures and imbue private sector partnerships. Existing institutions prior to the reform has remained the same notwithstanding the fact that the market is largely private sector driven with 100 per cent ownership of the Generation and 60 per cent ownership of the distribution assets.”

“Conduct a viable and independent stress test on the Generation, Distribution and Transmission capacities to enable us plan proactively and build the sector. Ensure that there is transparency in the billing, collection and remittance as well as develop a viable metering framework to improve collection efficiencies. Liberalise the market to create confidence and ensure the viability and credit worthiness of the power sector,” Ogaji said.



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