How Nigeria can ensure sustainability in power sector
• MESL begins expansion of Kainji Hydropower Plant
CHAIRMAN, Mainstream Energy Solutions Limited Sani Bello has said there was need for urgent measures to ensure the sustainability of the country’s power sector.
Speaking at the groundbreaking ceremony for the expansion of Kainji Hydropower Plant - Units 1G3 & 1G4, Bello said the sector must adopt policies that would unlock and guarantee liquidity within the value chain to enable investors as well as financing institutions to make adequate return on investments.
According to him, the sector is capital intensive and as such requires policies that aid commercial viability, sanctity of contracts and timely payments.
Bello added that the sector must aggressively focus on infrastructure rehabilitation and in certain areas complete rebuild.
“We must also adopt new technology, and stakeholders must note that rehabilitation and expansion is a dire necessity with no short
ing foreign exchange against a largely Naira- based cut across the entire value revenue makes rehabilitachain. If this is done, we can tion, operations, and mainguarantee a strengthened tenance costs ver y expeninfrastructure for another sive.
40 years,” he noted. “Also, payment of regulato
Bello said while most of the r y fees due to government equipment required for the denominated in foreign currehabilitation, installation rency further impacts operaand continued maintetors’ finances negatively in a nance in the indust ry are volatile foreign exchange largely produced abroad, market.” the foreign exchange The chairman said the requirements remained industry has been faced challenging. with huge bottlenecks in
Bello said: “Sourcing forobtaining regulatory pereign exchange is ver y diffimits, licenses, and waivers, cult. The volatility of sourc- adding that ease of doing business in the sector must be expedited given the magnitude of the task ahead.
According to him, the power sector is vital to the growth of the economy and development; therefore, the regulators and stakeholders must not waiver in their efforts to remove regulations that will hinder commercial viability.
Managing Director of the company, Lamu A udu said in keeping to its Concession Agreement with the Federal Government, the company has recovered 542MW from Kainji and Jebba hydropower plants, bringing on a total available capacity to 1002MW.
“The company has also signed contracts for the overhaul of Jebba Unit 2G5 ( 96.4MW). There are ongoing rehabilitation works for Jebba Unit 2G6 ( 96.4MW) to be delivered in March of 2023, and the rehabilitation of Kainji Unit 1G9 ( 80MW) to be delivered by December 2023. To complete the Recover y Programme, processes are ongoing for the rehabilitation of Units 1G8 & 1G10 ( 160MW)”, he added.
According to him, the installation of units 1G3 & 1G4 will add 220MW to the national grid.
He said the project is expected to be completed within 44 months from the commencement date at a cost over $ 89 million approximately, bringing the firm’s combined total investments in Capacity Recovery & Expansion Programme to over $ 240 mil
lion.