Management and Strategic Leadership expert, Biodun Ogunleye has said that intelligence gathering and integration are some of the available opportunities in Nigeria’s electricity sector. He said this during the July 22 power sector webinar organized by Nairametrics.
According to Mr. Ogunleye, the new Electricity Act creates a lot of business opportunities for individuals and businesses because the Act is recreating the way business has been conducted in the electricity market across the value chain.
Reacting to a previous statement that the Act is creating 37 new electricity markets made by a fellow speaker, Onyinye Nzelu, the head of Mini-grids at Engie Energy Access, Mr. Ogunleye said he does not see 37 new markets.
He stated further that some states have electricity viability issues, so, it may not be possible to have 37 new electricity markets.
However, some states may need to come together to do business in the sector, so there is a possibility that the country may end up with over 20 new electricity markets, following the power given to states to generate, and distribute electricity in their terrain.
According to Mr. Ogunleye, every problem that the country’s electricity sector has seen represents an opportunity for all manner of investments, improvements, and partnerships/collaboration to take place between owners of capital, people with business interests, and engage with those who are currently holding the franchise in certain areas.
He provided the following opportunities available in the electricity sector:
Monitoring and intelligence – According to Mr. Ogunleye, Nigeria’s electricity sector value chain needs intelligence, He highlighted the use of the Internet of Things (IoTs) and data analytics.
He said that vandalism and electricity theft happen because of the lack of intelligence. He said:
- “If we have gadgets and equipment that can be accessed in real-time, a lot of energy theft that takes place will not occur. Energy theft is also happening due to a lack of the use of cutting-edge data analytics in the electricity value chain.”
Sale of excess electricity – Mr. Ogunleye said that there are a lot of companies in Nigeria, that operate only between 7 am and 7 pm.
According to him, some of these companies have up to 50 to 100 megawatts (MW) sitting idle in their possession, meanwhile, they can make some good money from the sale of that excess electricity and the system will benefit.
Integration between existing and new infrastructure – He pointed out that it is time to start looking at solution infrastructure as things that the distribution companies (DisCos) must provide.
He also said that the facilities can be franchised and can also be developed by a third party who collects a toll fee and ensures that they are always available.
If payments are being made according to availability, they might end up doing a better job than is currently being done.
Use of live data at state transmission stations – Mr. Ogunleye also highlighted the fact that under the Electricity Act, each state is expected to implement regulations that will suit their environment and situation, so if that is done, stability will be achieved, and investor fears will be allayed.
He also noted that transmission network operators and market operators do not supply the sector with live data, so, it will be good if any particular state picks up the challenge to supply live data on what is happening at all the transmission stations.
He said that the franchisees can also provide live data on what is happening at all the sub-stations. Once everything goes live, states can reduce theft and vandalism, and the incentives will come once losses are reduced.
