774MW Generation Licenses For Solar & Gas

Four licences were issued yesterday by The Nigerian Electricity Regulatory Commission (NERC) that will generate about 774megawatts (mw) electricity using solar and gas.
Granting the licences in its Abuja Headquarter, the commission said it is reviewing the status of 124 power generation licenses it had issued since inception in 2006 and would revoke inoperative ones on verification, noting that those licences ought to have generated 30,000mw.

NERC handed the licences to the four beneficiaries including Pan Africa Solar Limited which ought to build 24mw solar plant at Kankia in Katsina state while Nigeria Solar Capital Partners would also build 100mw solar power in Ganjuwa, Bauchi state.
Others are Proton Energy intending to build 150mw gas Independent Power Plant (IPP) at Ogorode in Delta State just as Turbine Drives is working on generating 500mw at Ajaokuta in Kogi state, thereby raking in $150,000 (about N29.842million) from the licence fees.

Speaking on the significance of the licences’ issuance, NERC Chairman, Dr. Sam Amadi said “These new licenses are here pledging to develop new power, different amounts of megawatts to the grid. That is really solving the customers’ problem. If we were a 10, 000mw market, the experience of consumers will be different.”
Amadi said the licence comes with expectations and that the companies and investors should embrace the cost reflective tariff which the commission has set as incentive for doing power business.

In his address, NERC’s Commissioner for Engineering Standards and Safety, Dr. Abba Ibrahim reminded the companies that the licences come with the challenge of achieving the goals.
He said, “Each license comes with milestones and key performance indicators that must be achievedin the process to review and revoke licenses that it had issued but are inoperative. We want to tighten the screw and we have no choice but to revoke non-performing licenses.”

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The Commissioner for Licensing and Legal, Dr. Steven Andzenge noted that 124 licences have been issued since it started in 2006 adding that, “they ought to have given us 30gigawatts (30,000mw) but that is not the case today.”