AEDC sees 70% cost reduction in clean energy adoption

THE rising cost of fossil fuelpowered generators should encourage corporate organisations in Nigeria to adopt cleaner energy and see a reduction of over 70 per cent in energy cost, Abuja Electricity Distribution Company ( AEDC) said yesterday.

Managing Director of the organisation, Christopher Ezeafulukwe, speaking at the signing of a tripartite agreement of AEDC, Daystar Power and The Wood Factory, said the pact would see the development of about 18 hours of electricity daily to the organisation.

Ezeafuluke noted that amidst the challenges of the national grid collapse, there is a need to deploy an energy mix that would enable the country to meet carbon footprint reduction targets, reduce operating expenses and enjoy energy security.

“We are challenging the status quo regarding grid power. We are questioning the way we're supplying electricity and the way we are distributing it. We're also questioning the composition of the energy sources that we're using.

“On the impact, energy savings for this transaction is about 40 per cent and for cost savings, it is almost 70 per cent. You find out that that helps you to manage the cost of scaling up if you're to serve the wide spectrum of customers that we have within our network,” he stated.

About 10 years after Nigeria privatised the electricity sector, the power on the grid remains at about 4,000 megawatts even as the grid is grossly unreliable for most corporate organisations.

At least, 80 per cent of electricity users in Nigeria are residential households while a meagre 20 per cent goes to manufacturers and corporate organisations.

Ezeafuluke stressed the need for partnership to reduce dependence on diesel- powered generators, adding that the development would be a win- win situation.

He said the need to encourage cleaner energy is sacrosanct, adding that there are no options than to begin to prioritise environmental- friendly energy sources.

Ezeafuluke noted that the distribution company is undergoing transformation and sees sustainable energy sources as key areas that would provide alternative and cost savings for businesses.