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FG: We Need $36bn for Power

Posted by From Onyebuchi Ezigbo in Abuja on 2006/07/03 | Views: 319 |

FG: We Need $36bn for Power


The Federal Government has said the country would require an investment of $36 billion on Power Sector projects between now and 2015 to able meet the energy requirement target of the Millennium Development Goals (MDGs).....

The Federal Government has said the country would require an investment of $36 billion on Power Sector projects between now and 2015 to able meet the energy requirement target of the Millennium Development Goals (MDGs).
It said for this dream target to be realised, the nation would have to move her power generating capacity from its present 4000MW to 26,000MW.

The Special Adviser to the President on Energy Matters and Chairman, World Bank Assisted Gas to Power Project (G2P), Prof. Anthony Adegbulugbe, disclosed this while addressing the just concluded Nigerian Energy Congress in Port Harcourt.
According to Adegbulugbe, the nation would need to progressively raise its generating capacity by adding 2200 MW electricity annually in the next ten years.

Speaking on “Gas to Power Projects – a Framework for Energy Sector Development in Nigeria”, Adegbulugbe said based this scenario, it has become imperative that massive private sector investment from both foreign and local investors, be encouraged if the nation is to meet this energy requirement.
He said the present administration has improved the energy profile from its rudimentary level in 1999, adding that access to electricity supply has moved from 34 per cent in 1998 to 45 per cent in 2004; while available power generation moved from 2,633 MW in 1998 to 3,991 in 2004.
A statement signed by Mr. Segun Ilori, the Special Assistant on Media and Strategy to the Presidential Adviser, quoted the Adegbulugbe as saying that the country's “Per capita electricity consumption moved from 93 Kwh/cap to 158 Kwh/cap in 2004”.

The Presidential adviser who estimated that the natural gas contribution to power generation presently is at 54 per cent also projected that gas utilisation would increase to 70 per cent in the next few years.

Given the role of natural gas in electricity generation, industrial development for gas based industries and fuel industrial process heat, he said there is need for integrated approach to gas to power development issues.
He added that the setting up of the World Bank Assisted Gas to Power Project (G2P) was based on the need to provide the framework for encouraging Independent Power Producers (IPPs) to develop gas supply infrastructure all over the country.

According to him, other areas to be addressed in the initiative are the optimisation of infrastructure needed for gas and power development, citing of gas to power projects in central and northern part of the country and, development of model for gas and power pricing issues to avoid the present lopsided Power Purchase Agreements (PPA) in future contracts.

Giving further details on government's strategy, Adegbulugbe said the project has been divided into 3 components with the first phase of the project involving the engineering study, energy pricing and legal advisory service issues as they relate to IPP developments while the second phase, will involve investment banking services leading to promotion of IPPs, in the country.

The project will be developed into a four level optimisation to save cost of energy supply through spatial optimisation of where to site power plants relative to load centres, transmission networks to evacuate power generated, optimisation of gas utilizing industries either as feedstock and optimisation of gas pipeline networks.

He said the framework, when fully developed will eliminate the present avoidable high cost of the entire energy supply system by developing appropriate models for gas and power pricing in the country to eliminate the present inefficient pricing models.

The adviser also said the nation hopes to also optimise the contribution of other energy sources such as hydro, gas, nuclear and coal to balance the electricity generation mix.

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.