Solar power: Kano DisCo targets 60MW with 41 new mini-grids
…Seeks peaceful resolution with aggrieved manufacturers
The Kano Electricity Distribution Company has partnered with different renewable companies to build solar mini-grids of 60 megawatts in 41 locations across Kano, Katsina and Jigawa States, in a bid to reduce power outages in its franchise areas.
According to Kano DisCo, the allocation of 41 prioritised sites to 31 renewable and off-grid companies in Nigeria to accelerate improvement in energy supply to its customers.
Tagged KEDCO Utility 2.0 Project, the distribution company said the initiative sought to enhance energy security within the KEDCO network, by unlocking renewable energy potential in the area and aligning with the Federal Government’s energy transition plan.
“KEDCO has advanced in engaging with relevant stakeholders, especially the governments of the tri-state of Kano, Katsina, and Jigawa, for input and support toward the success of these projects,” Kano DisCos’s spokesman, Bala Sani, explained.
According to Sani, 41 sites were selected across the three states for the development of interconnected mini-grids and embedded generation projects to augment grid supply and improve reliability in the network.
“To reduce losses, all projects include network infrastructure upgrades similar to the $2m Zawaciki Solar Power Plant developed by KEDCO’s core investor, Future Energies Africa, as a pilot for KEDCO Utility 2.0,” he disclosed.
He disclosed that sites for the mini solar grid included Tokarawa Industrial Area, Amana and Kwankwasiyya Cities in Kano, Charanchi, Malumfashi, and Barhim Estate in Katsina, Kafin Hausa and Gumel towns, both in Jigawa State and others.
He added that some of the renewable companies that had indicated interest in working with KEDCO on phase 1 of the project were Axxela, PowerGen, DayStar, Elektron, Bagaja, ProServe, Husk, Pam Africa, Westa and others.
“After a comprehensive procurement process, the pre-qualified developers were grouped into two categories: Tier 1 (one-megawatt sites or greater); Tier 2 (lower than 1MW), and selected proposed sites were duly allocated.
“Pre-qualified developers are required to register, pay fees and security deposits, complete an initial site assessment, and sign agreements within this month to move to the site within Q3 2024. An estimated 60MW is being apportioned to developers that will handle the construction of solar power plants, partner with KEDCO on the upgrade of distribution infrastructure in the communities, and provide metering infrastructure.
“Tokarawa, Challawa, and some of the proposed sites are designed to be embedded generation projects modelled as a bilateral contracting agreement between KEDCO and the developers,” the statement read further.
Utility 2.0 is the programme that KEDCO’s core investor, Future Energies Africa, is championing to make the company the first green utility in Africa.
According to its spokesman, KEDCO is approaching off-grid as an opportunity and not a threat to its business, by partnering with developers.
KEDCO’s Chief Strategy Officer, Hussaini Sadiq, was quoted as saying, “I believe KEDCO has great potential for investment and partnerships, particularly aligning with our host state governments in reviving agro-industrial and commercial hubs, towards the re-industrialisation and socio-economic empowerment of our communities.
“The proposed sites under the KEDCO Utility 2.0 have underserved customers with a high unsuppressed load, which makes it a great opportunity for all stakeholders.”
Also, KEDCO’s Chairman, Adamu Gumel, stated, “We are keen to explore all available solutions towards resolving energy deficiency in our network, thus, Utility 2.0 will continue to grow and evolve. We are already working on Phase 2 as 60MW is just a small portion of the energy gap we need to cover. We hope to continue to work with developers that excel in this first phase into the future.”
The Electricity Act 2023 allows the construction of mini-grids to generate power through renewable sources.
Meanwhile, in a press statement made available to journalists in Kano by the Head of KEDCO’S corporate communications, Sani Bala, the DISCO pleaded with its entire customers to express some understanding, pointing out that it operates under strict regulations and promised to remain customer-centric at all times.
The statement partly reads, “KEDCO is calling for a round-table reconciliation with the aggrieved parties after its triumph in court against MAN, Nigeria Association of Small-Scale Industrialists (Kano State Chapter), Tofa Textile Limited, Dala Foods Nig. Ltd., Mama Sannu Ind. Ltd., BBY Super Sack Ltd., and Super Sack Co. Ltd. which filed a lawsuit in May 2024, seeking to halt the implementation of April 2024 Supplementary Order on Band A tariff increase.”
However, a Federal High Court of Nigeria, Kano Judicial Division, sitting in Kano, had on Friday, July 19, quashed the enforcement of the judgement because the suit lacked merit and therefore dismissed it without any cost.
The presiding Judge, Hon. Justice Simon Amobeda in his judgement, also ordered that the three questions endorsed on the plaintiffs’ originating summons, challenging the credibility, validity, and legality of the April 2024 Supplementary Order are resolved in the negative and against the plaintiffs.
Furthermore, he upheld that contrary to the arguments of the plaintiffs, the April 2024 Supplementary Order was validly made pursuant to the Multi-Year Tariff Order 2024, which was made after stringent compliance with the provisions of section 116 (6), (7), (8), (9), and 10 of the Electricity Act.
Amobeda said, “The plaintiff failed to produce any cogent, credible, and convincing evidence before the Court that shows Band A customers were treated worse than other categories, therefore, it is only justifiable that Band A users pay more than another category of customers, being the ones entitled to more electricity supply per day.
“I therefore dismiss the plaintiffs’ claim that the April 2024 Supplementary Order to the MYTO 2024 was discriminatory, unlawful, and unconstitutional.”
The KEDCO Board and Management noted that manufacturers are very important, affirming that they will continue to support manufacturers with improved cost-efficient supply in the Kano DISCO franchise area.
