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Nigerian commission issues 22 licenses for power generation end-2007
The Chairman and Chief Executive Officer of the Nigerian Electricity
Regulatory Commission (NERC), Dr Ransome Owan has said the commission
issued 22 licenses to prospective companies in the nation's power sector
at the end of 2007 for the generation of over 10,418 MW of electricity
in the country.
He said this was in addition to interim licenses granted 18 successor
companies of the Power Holdings Company of Nigeria (PHCN) in July 2006.
Owan, who made the disclosure when he led NERC commissioners on a visit
to the Cross River State Governor, Senator Liyel Imoke, said the
committee on Power Sector Incentives (PSI), set up when Imoke was
Minister of Power, had also completed its work. He added that the
committee's report on incentives to encourage private investment and
factors mitigating against the high cost of capital was already being
considered by the Federal Government.
Owan said the commission was empowered to issue licenses for generation
of over 1 MW of power and distribution of over 100 kW, adding that it is
conscious of the urgent need for adequate power production in the
country and has therefore taken necessary steps to realize the
objective.
The NERC chairman recalled that the National Integrated Power Plant
(NIPP) program was also inaugurated during the tenure of Imoke as
Minister of Power and said the projects would soon bear the expected
result. He said the state is one of the beneficiaries of the NIPP as one
of the projects is under construction at Ikot Nyong in Odukpani local
government area of the state.
"It is expected that in the next few years when these plants become
operational, the national power demand gap will be bridged
significantly," he said.
Owan also commended the state government for setting up the Cross River
State Electrification Agency (CRSEA), which he said is the first of its
kind in the country, and expressed the hope that the agency would focus
on small to medium scale integrated power projects.
He said given, "the abundant hydro-logical-endowments in the state,
prominent of which are the Qua falls and the Agbokim Waterfalls, among
others, the state is well positioned to harness these to become self
sufficient in power."
He advised the Governor to ensure that the state explores the
opportunities provided by Private Public Partnership (PPP) as viable
options and business models for government to enter the power market in
the face of inadequate fund occasioned by other pressing state needs.
"We would like to convey to the people of the state that there are many
business-to-business opportunities in the power sector that they too can
participate. SMEs can take part in providing accounting, consultancy,
and legal services, as well as the vending of goods and services such as
vouchers for pre-paid meters among others," Owan said.
Addressing the Commission, Imoke said the constitution of the Nigerian
Electricity Regulatory Commission (NERC) as part of initiative put in
place by the Federal Government to bring about lasting and
sustainable solution towards addressing electricity problem in Nigeria.
He said the commission has a more important role to play now than in the
past because the challenge of licensing should translate to the new
capacity being added to the grid which will improve supply as well as
the issue of tariff regulation which will be more meaningfully
addressed, adding that he had confidence that the board was capable of a
addressing the problem of the power sector.
The Governor called on the commission to evolve a well packaged
incentive available to investors to undertake power generation, adding
that it should also work closely with the State Electrification Agency
to deliver electricity to the rural areas in order to create
opportunities for wealth generation.
