Meeting The 2030 Target For 30% Renewable Energy
MAC DURUGBO
Aside the global demand for alternative or renewable energy for obvious reasons, Nigeria today has a more compelling reason to pursue this alternative.
Her power sector is beset by the challenges of electricity supply to her ever growing population due largely to the insufficiency of gas to fire 23 out of her 26 power plants. Aside the fact that producers of the commodity prefer the international to the local gas market due to price disparity ($4.0 for export and $1.4 for domestic market), there is lack of efficient transportation infrastructure to convey the available gas to the power plants and the violent militancy in the Niger Delta, manifesting in the blowing up of oil and gas pipelines and Joint Venture platforms. All these have significantly deemed the strides being taken by the present administration to address the power supply problem in a more sustainable manner. Its attempt to address the price disparity through a tariff review is currently enmeshed in court injunction which has stalled implementation of the new Multi-Year Tariff Regime.
However, Government has taken significant steps to diversify the nation’s energy source with the aim of making her less dependent on gas. In line with that intention, the Ministry of Power Works and Housing has now developed an Energy Mix which was unveiled at the Power Council Executive Meeting held in Kaduna last year where a target to deliver 30 per cent of renewables to the National Grid by 2030 was set.
The intention is to take advantage of the country’s various energy sources-the sun, coal, water, biomass and wind among others. Perhaps, nothing could better demonstrate this intention than the signing, mid last year, of Power Purchase Agreements (PPAs) with 14 utility-sized solar power developers.
The project will add about 1,340 MW of solar capacity to the grid. Two of the developers, Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited, recently signed the Put/Call Option Agreement (PCOA), a key and finalization aspect of the PPA. Afrinegia will deliver 50MW while CT Cosmos will deliver 70MW to the Grid.
The signing of that PPA has also opened a door to other investors. A Dubai-based International solar developer, Phanes Group, has since announced that it has acquired, and would co-develop, three 100MW grid-connected solar PV plants in Nigeria.
The projects will be developed in three locations, which include the Mando area of Kaduna, Birnin-Kebbi in Kebbi and Sokoto in the North-West of Nigeria. Interestingly, the Sokoto project is backed by one of the 14 PPA signatories. Set to drive the Federal Government’s target of 75 per cent of the nation’s citizens gaining access to electricity by 2020, the projects, which according to Phanes Group, would contribute to the government’s ambition to generate 2,000MW of power from renewable sources by 2020, would start coming on stream from 2018. In fact, according to a statement, the company is targeting to connect the first 50MW of the Sokoto project by Q1 2018, and the project is expected to be completed by the end of 2018.
The Kebbi and Kaduna projects will be delivered under a joint venture between the solar developer and its Nigerian partners, and are due for completion before the end of 2019.
It is noteworthy, perhaps, that the Government, in partnership with Japanese International Cooperation Agency (JICA), has, indeed, built the first grid Solar Energy Plant in Abuja.
The 1.407MW capacity plant called Clean Energy Photovoltaic System, supplies 24-hour power to the Lower Usman Dam Water Treatment Plant, the main source of portable drinking water to Abuja. Other renewables expected to start coming to conclusion by the end of this year include the 215 MW Kaduna Power Plant, 40 MW Kashimbilla Hydro Power Plant, 40 MW Gurara I Hydro Power, 40 MW Dadin Kowa Hydro Power and the 10 MW Katsina Wind Power Plant. Kainji, Jebba and Shiroro hydro plants have also increased the number of functional turbines which enabled them to produce 300 MW extra powers during last year’s Rainy Season.
Also a new Solar Farm in Jigawa State to add a minimum of 1,000MW to the grid is currently under procurement and planning stage. Government has also nearly concluded the contract pricing and negotiations for the over 3,000MW Mambila Power Plant and hopefully construction will start this year. Also significant progress has been made in on-going talks with two Coal Developers with the aim of getting some coal energy on the Grid. And aside these efforts, Government is also encouraging individuals and businesses to also partake in the construction of small captive solar systems.
The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, launched one such initiative recently with the MTN Group.
The Vice President also commissioned one at the Wuna Village. Given all these on-going projects, the prospect of putting 30 per cent renewable energy on the National Grid by 2030 is already looking bright. Added to the 70 per cent expected from gas plants, Nigeria is certainly heading North in her quest for steady and uninterrupted power even before 2030.
However, the transmission arm of the power supply value chain has been tagged the weakest link of the chain by operators who insinuate that transmission capacity is limited to 5,000MWs. But again, Government has consistently stated that transmission capacity is dynamic. Although the administration inherited over 100 uncompleted transmission projects, it has embarked on the rehabilitation of many of them while new ones are being built across the country to improve transportation of power. According to the Transmission Company of Nigeria (TCN), the agency handling transmission on behalf of government, more than 20 of such projects have been completed already. They include those in Gwagwalada and Apo in Abuja, Kaduna, Afam and Lekki in Lagos and Omotosho in Ondo State. Recently also, the Minister commissionedthe 287-kilometre double circuitIkot-Ekpene-Alaoji-Ugwuaji Switching Station and Transmission Line towards solving the problem of evacuating stranded power in Calabar, Afam VI, Ibom and Alaoji Power Plants. The energizing of the project will not only increase transmission grid capacity but will provide transmission capacity to enable the power plants along the lines to produce to full capacity.
This, of course, is in line with the Federal Government’s five-year plan to boost power transmission capacity from 5,500MW to 10,000MW in the next three years. The plan targets transmission capacity of 8,200MW by 2018 and 10,000MW by 2019. Currently, 59 expansion projects are being worked on with the aim of wheeling 10,000MW by 2019. Also all the transmission projects under the National Integrated Power Project (NIPP) are being completed. With the on-going projects, the government certainly will be able to achieve the 10,000MWs expected by 2019.
Commenting on this recently in a media chat, the Minister disclosed, “Mr. President has given us a minimum mandate of 10,000MW by 2019 and I believe it is achievable if we can deploy our installed capacity which is in excess of 10,000MW”. Happily, also, policies are being put in place to solve the problems of insufficiency of gas, firm liquidity issues, personnel and governance as well as tariff issues.
MAC DURUGBO writes from Abuja
