Nigeria Requires N73bn Investment to Offtake 2,000MW Stranded Power

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Enterprise Television- Nigeria Requires N73bn Investment to Offtake 2,000MW Stranded Power

The Federal Government has stated that N73.1 billion would be required to install a number of 33/11/0.415 kilovolts (kV) electricity distribution facilities in the 11 distribution networks to enable them take up the 2,000 megawatts of power that are currently stranded with the generation companies.

This is coming as the Nigerian Bulk Electricity Trading Plc (NBET) has disclosed that only six out of the 11 Discos now meet up to 30% of their monthly financial remittances for power sold to them in the market.
The minutes of the monthly meeting held in Lafia Nasarawa State by operators in the power sector indicated that a draft of the investment plan had been submitted to the Minister of Power, Works and Housing, Mr. Babatunde Fashola, for consideration.

The minutes quoted the Director of Distribution Systems in the power ministry, Mrs. Briskilla Sapke as saying that N73 billion was the total amount of financial investment required to ensure that the unutilised volume of power could be taken by the distribution networks to homes and industries within their franchise areas.

Out of this amount, Sapke, explained that N57.9 billion would be needed to procure equipment while N15.2 billion will be used up to cover for transportation and logistics costs.
She also noted that a meeting would be held with the Discos to discuss the implementation of power-related constituency projects proposed by members of the National Assembly.

Fashola recently said that, a policy was being developed by the government to help the 11 Discos expand the capacities of their distribution network to take additional power from the grid, adding that the policy was almost ready.

“The distribution expansion programme aims to rapidly construct 2500MVA of dedicated 33kV lines and packaged substations to deliver

unutilised power to target consumers and Discos. It is our hope that we will all put our heads together to serve the public effectively,” the minister stated last week at the February 2018 monthly meeting of the power sector.

Also in the Lafia meeting, the Nigerian Bulk Electricity Trading Plc (NBET) informed that only six out of the 11 Discos now meet up to 30% of their monthly financial remittances to it for power procured and sold to them in the market.

The NBET according to the minutes, also categorised the Discos into five groups in terms of prompt remittances, and noted that Eko and Benin Discos belonged to the first group that promptly remit their monthly dues to it.

Source- ThisDay