WHAT THE ‘CHANGE’ ADMINISTRATION OF GMB
few issues came to the fore, which revealed an inconsistency of policy by the Commission. The writers believe strongly that it was the resultant effect of political interference. Specifically, on Monday March 16, 2015, the Commission indicated that the exchange-rate weakness was likely to lead to a rise in the tariff from around June 2015.
However, by the next day, the Commission announced a fifty per cent (50%) reduction in electric power tariffs. The Commission subsequently explained that the reduction did not apply to residential users who the Commission stated (and MYTO 2.1 does confirm) had been granted a six (6) month reprieve from an increase already imposed on commercial and industrial users with effect from January 1, 2015.
Clearly, the equivocation was not in the nature of the Commission and coming a few weeks before the elections, it appeared (and strongly too) politically motivated. The new administration should avoid the lure of interfering with the duties/functions of the Commission and any regulator for that matter. Regulators should be allowed to perform their functions without any sort of political pressure. Government allowing the regulators do their jobs, gives confidence, amongst other benefits, to would-be investors in the power sector. More Robust Energy MixThere is a need to shift from employing just hydro and gas as sources of fuel for power generation. In order to arrive at a more sustainable and dynamic power supply scheme in both rural and urban areas, a good energy mix is required. Therefore, focus should be placed on other forms of energy and power generation such as solar, coal gasification technologies etc. Nigeria is especially blessed to have areas where solar generation would thrive and to also have reasonably large coal deposits.
Coal Gasification for example, is regarded as the clean energy of the future. With this technology, rather than burning coal directly, gasification breaks down the carbon-based feedstock into basic chemical components. Natural gas extracted from coal gasification can also be transformed into liquefied natural gas. By-products of Coal Gasification include coal tar, coke (which can be used for making smokeless fuel), medicines, etc. Sulfur for instance, can be extracted in solid or liquid form and sold commercially. One of the major advantages of this form of energy is that it can achieve relatively low emissions from burning coal derived gases.
The current administration (working with the Commission) has done quite a bit in encouraging renewable power generation. Some of these steps have included the development of Feed-In-Tariffs (ReFits) for renewable energy (wind, biomass, solar and small hydro) which were included in the Multi Year Tariff Order (MYTO) II issued in June 2012. Recently, the Minister of Power signed a memorandum of understanding with a US company looking to use clean coal technology to generate electricity and the incoming administration should continue to support initiatives of the outgoing administration in the renewable energy space and also provide additional support.
The Ministry of Power, the Bulk Trader and the Commission also need to do more in this regard in terms of policy, completing the development of the template renewable power purchase agreement and the provision of genuine support to prospective investors in the sector. There have been complaints in the past, by certain investors that the Ministry of Power has been hostile and was selective in its support to would-be investors in the renewable energy space. This needs to stop in order to engender investor confidence.
It is the case that Nigeria lies within a high sunshine belt and thus, has enormous solar energy and other solar related potentials. The Northern part of the country, in particular, provides a more viable potential for photovoltaic use, with insolation of up to 7 kWh/ m2/day. Average sunshine hours in Nigeria, are estimated at 6hrs per day. Hence, the country does have rich potentials for renewable energy (solar power production in particular). Given Nigeria’s solar potentials, solar thermal applications should be encouraged and it is strange that hitherto, large parts of the North are not already reaping the benefits of their solar endowment in terms of solar power use. Speak to PatienceBy this, the writers are not referring to ‘Madam Peace’, No! The incoming government must from the onset, inform Nigerians that the things outlined in its power policy, would not happen overnight. In fact, the long term power generation and distribution targets will take a few years to crystalise into to an energy mix that can assure the citizenry decent power supply. Communication is really important so that the citizenry is abreast of the developments taking place in the power sector.