Energy
Embedded power plant remains best option, reliable source — EKEDC boss
The Chairman, Eko Electricity Distribution Company (EKEDC), Mr Oritsedere Otubu has said that embedded power project remains the best option for sustainable and reliable power in Lagos.
Otubu said this at the Ground Breaking ceremony of a 30- megawatt embedded Independent Power Plant in Victoria Island on Tuesday in Lagos.
He said the project would lead to more power supply to Lagos at cost reflective tarrif.
Otubu said that the project marked a significant milestone, especially with the partnership between Eko DisCo and Elektron Energy toward effective power supply for residents of Victoria Island and its environs.
Otubu said that the construction of the 30 megawatts power plant would also revolutionise the energy landscape in the state, generally.
He said that the need to deliver optimal power supply to Lagosians led to the conversations on the embedded generation in 2015 when Eko DisCo pioneered the project.
He said that the gap in generation, which has been a lingering issue impacting service delivery in value chain, particularly, the ability of DisCos to meet with its service level commitment to customers, led to the project.
“Currently, the industry still records about over 4,000 megawatts as its peak generation of which studies has shown that the same is not enough to service Lagos State estimated as having a population over 27 million people, let alone the country.
“These real issues contributed to the discussions that culminated into the project,” he said.
Otubu said that the project effectively took off with the invitation of tenders from prospective bidders and Elektron Energy qualified as the preferred bidder for the project.
“The emergence of Elektron Energy birthed the partnership between it and Eko DisCo and that has, over these past years, led to the unlocking of premium power access to Lagosians within Eko DisCo’s franchise network.
“That we are here today is a testament to the immense work put in from all quarters.
“I must commend the articulate leadership and firm guidance of the respective Boards and Management teams of Eko DisCo and Elektron Energy, for their vision towards the realisation of this Project,” the EKEDC boss said.
He also said that the investors and financiers had been collaborative from the inception of the project, while appreciating their commitment to join in the partnership to bring additional capacity to Lagosians.
According to him, electricity is the lifeblood of modern society, driving economic progress, empowering industries, and improving the quality of life for citizens.
“However, we still struggle with its challenges.
“Today, we rise to those challenges and embark on a transformative path towards a brighter future through this ground-breaking ceremony that will see to the building of a 30 MW Power Plant to deliver more capacity to Lagosians.
“This Power Plant will employ cutting-edge technologies, ensuring efficiency, reliability, and reduced environmental impact.
“The power generated here will not only meet the current energy demands but also anticipate and accommodate the future needs of Lagosians.
“In addition, the Power Plant will generate countless job opportunities, driving economic growth, and empowering our communities.
“As the construction progresses, we will create employment for local workers, stimulate local businesses, and foster a spirit of empowerment and inclusivity,” he explained.
Otubu said that the project was not only for the communities and stakeholders, but also the gains the project equally extends to the partners.
He said that with a Multi Year Tariff Order (MYTO) load allocation of 513 MW, an addition of 30 MW edges Eko DisCo toward meeting its demand requirement to its customers and with an increased capacity.
Otubu noted that there was an incentive to surpass the demand soon, saying gains which the project presents were humongous with efficient and reliable supply to customers.
Mr Tola Talabi, Chief Executive Officer, Elektron Energy Development Strategies Ltd., said that the the project is a natural gas fired embedded generation plants developed through the collaborative effort of Elektron and EKEDC.
Talabi said that the embedded IPP would supply uninterrupted electricity through dedicated 33KV and 11KV distribution network, exclusively to identified customers.
He said that the project is the first of its kind, where a natural gas IPP would be directly embedded into a Disco’s distribution network for supply to identified end-user customers.
According to him, the 18- months project, when completed, will ensure reliable, affordable electricity to customers.
“The 50 million dollars investment project will demonstrate the viability and accessibility of power supply in Lagos,” he said.
Gov. Babajide Sanwo-Olu of Lagos commended the companies for the bold step to provide uninterrupted power supply in Lagos.
Sanwo-Olu was represented by Ms Shola Shasore, Permanent Secretary, Lagos State Ministry of Energy and Mineral Resources, said that the project was a welcoming development and urged other companies to follow suit.
He said that, “This is what we love to see and we hope it will continue in the state because we desire an affordable power supply.”
Mr Tayo Aduloju, the Chief Executive Officer (CEO), Nigerian Economic Summit Group (NESG), says with targeted approaches, Nigeria can still meet some of the Sustainable Development Goals (SDGs) indicators.
Aduloju said this on Friday in Abuja, at a news conference to announce the Policy Innovation Center’s (PIC) annual Gender and Inclusion Summit.
According to him, though Nigeria is not on course to meet the SDGs target set for 2030, there are few indicators it can reach because as there are 17 SDGs with 169 targets and indicators.
“I would say right now we are not on course to reach anyone, but we can still achieve some milestone going forward.
“For example, we can turn around birth registration in 12 months; there are a few other indicators that I think Nigeria can reach.
“We have recommended a mother and child compact between the Federal Government and the Minister of Health and Social Welfare seems willing to push it.
“This is because we think that if we met those ones, some of the SDGs will be met automatically,” he added.
According to Aduloju, there is a parallel relationship between multi-dimensional poverty and gender inequality, with countries performing poorly on the Global Gender Report also exhibiting high severe multi-dimensional poverty.
He said that multi-dimensional poverty encompasses deprivations in health, education and living standards.
“The World Bank points out significant gender disparities in labour participation in Nigeria, with about 65.5 per cent of men participating compared to around 52.1 per cent of women.
“The National Bureau of Statistics indicates that about two-thirds of Nigerians are multi-dimensionally poor, lacking income and basic amenities like healthcare, education, and clean cooking fuels,” he said.
He added that conflict, climate change, inflation, and increasing food prices were among the pathways contributing to the rise in high food insecurity and malnutrition rates.
He, however, said that the solution remains a collective effort by all stakeholders to tackle the issues as it could no longer be achieved by government alone.
On her part, the Executive Director, PIC, Mrs Osasuyi Dirisu, said that Nigeria was facing unprecedented times owing to a weak and non-inclusive economy, volatile macro-economic environment, security challenges and weak economic competitiveness.
She, however, said that addressing poverty in Nigeria could not be business as usual.
“Ending poverty and reducing inequality are part of the SDGs and a wide range of approaches have been identified to reduce poverty and inequities.
“To design effective poverty reduction programs, it is important to understand pathways to poverty, evidence based approaches that work and linkages to multi-sectorial inequities.
“We need to identify what works for poverty reduction in Nigeria and sustain the commitment to poverty reduction by intentionally designing and implementing contextually relevant solutions driven by a policy enabling environment,” Dirisu said.
Speaking about the summit, she said that it would hold from Sept. 4 to Sept. 5 with “Reimagining Gender-Inclusive Pathways and Partnerships for Poverty Reduction” as theme.
She said that the summit was expected to explore the impacts of multi-dimensional deprivations on health, education, livelihood, and living standards.
Conceptualised in 2022, the summit is an annual event to provide an inclusive platform to explore transformative ways to advance gender equity, inclusion and gender-responsive governance in Africa.
The 2024 summit is expected to leverage the collective power of government, development partners, civil society, academia, and the private sector, highlighting the importance of strategic partnerships for inclusive development.
PIC, an initiative of NESG is an institutionalised behavioural initiative in Africa supporting the delivery of better policies and innovative solutions for social impact.
Chevron Nigeria Ltd. has restated commitment to its partnership with Nigeria in ensuring safe, reliable, and efficient operations in the country.
Chevron’s General Manager, Policy, Government and Public Affairs, Mr Esimaje Brikinn, made this known in a statement on Friday.
Brikinn said also that the company remained committed to delivering affordable, reliable, ever cleaner energy supply that was critical to the development of the Nigerian economy.
“At Chevron, we believe oil and gas will remain a viable component of the energy mix.
“The company believes that the future of energy is lower carbon even as it continues to add incremental volumes to its oil production, and support gas development in a clean manner, “ he said.
The manager said that over the years, Chevron had encouraged the participation of Nigerian companies in the oil and gas industry.
He said that the company, working with the Nigerian Content Development and Monitoring Board, continued to foster competence and competitiveness among Nigerian indigenous contractors and suppliers.
According to him, the company does this by adopting the participatory-partnership model.
“Chevron Nigeria believes that by investing in local communities, we can create a sustainable future for all.
“Our local content strategy is focused on three key pillars: capacity building (training, mentoring among others), local procurement, and social investment (community development projects mainly in health, education and economic development), “ he said.
Recently , the company was awarded the Best Exhibitor award at the 2024 edition of the Nigerian Oil and Gas Energy Week conferences and exhibition held on July 3 in Abuja.
Nigeria’s debt to petrol traders has surpassed $6 billion, doubling since early April, as the state oil firm, Nigerian National Petroleum Corporation (NNPC), struggles to cover the gap between fixed pump prices and international fuel costs, according to six industry sources.
This is according to a report by Reuters on Thursday, which tracks data on international petrol prices.
Sources confirmed to the American media outlet that NNPC has capped the pump prices of petrol shortly after the removal of subsidy in May 29, 2023.
The cap on fuel prices has resulted in stability at the pump despite increases in international crude oil prices and the devaluation of the naira against the dollar.
This situation has led many to speculate that the government might have reinstated some form of petrol subsidy, given the discrepancy between market prices and the steady price of the commodity.
According to data from Reuters, NNPC began facing difficulties early this year when late gasoline payments exceeded $3 billion.
The company has yet to pay for some January imports, with traders stating that the late payments now amount to between $4 billion and $5 billion.
Under the terms of their contracts, NNPC is required to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
At least two suppliers have already stopped participating in recent tenders after reaching their self-imposed debt exposure limits to Nigeria, the sources said.
This means they will not send more gasoline until they receive payments.
The tension to reconcile the international landing cost of petrol and the fixed price of N617 has deepened the debt of NNPC to the traders, the sources confirmed.
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