The Nation Newspaper

Category: Energy

  • Oil marketers, govt dialogue over subsidy arrears

    Oil marketers, govt dialogue over subsidy arrears

    Oil marketers, including Oando and Mobil, have adopted moral suasion to woo the Federal Government to pay their fuel subsidy arrears.

    The Chief Operating Officer, Oando Marketing Company, a subsidiary of Oando Plc, Mrs. Williams Olaposi, gave this indication on the sidelines of the inauguration of Oando Truck Marshalling Yard 2, and Sapara Road project in Apapa, Lagos.

    She said the firms that were approved by the Federal Government to collect subsidies are law- abiding, and prefer dialogue to protest on the payment of subsidies arrears owed them by the government.

    She said oil marketing companies are corporate entities, which place the interest of the nation above personal interest, and would, therefore, not want to do anything that would affect the generality of the people.

    Olaposi said: “We (marketers) are corporate organisations; we are not going to down tools because we have not been paid subsidies by the government. We would continue to push for our subsidies until we are paid. We would not suffer the community, the good people of Nigeria, on the issue. We would not stop importing because that would amount to grounding the country to a halt.”

    She said the marketers  employed dialogue as part of efforts to identify with the resolve of the government of President Muhammad Buhari to fix the economy. Olaposi said the Chief Executive officers (CEOs) of oil marketing companies have been going to Abuja, the nation’s Federal Capital, to meet people who can considerably assist them in persuading the Federal Government to pay the subsidy arrears they have spent on importing fuel into the country.

    “We (marketers) meet with the Federal Government regularly on the issue of payment of subsidy arrears, which the government owes us. Our Chief Executive officers always in Abuja to meet the helmsmen of the Nigerian National Petroleum Corporation (NNPC); we are speaking with the think-tanks in the Presidency on the issue,” she added.

    Also, the Managing Director, Mobil Oil Nigeria Plc, Tunji Oyebanji said there was no where the major oil marketers had held the country to ransom over non-payment of their subsidy arrears. Fielding questions from reporters on why marketers still import fuel despite the huge subsidy arrears owed them, Oyebanji said the marketers are hopeful that the government would meet its debt obligations to them some day.

    He said the Mahammadu Buhari administration has promised to pay marketers their subsidy arrears.

  • Schneider, partners build mini-grid solar systems

    Schneider Electric in partnership with Green Village Electricity (GVE) Projects Limited, Arnergy Solar Limited and Bank of Industry Nigeria Limited have inauguarated pilot low-cost, off-grid solar energy solutions in two states in addition to four states across the country.

    The project, according to the company, is designed to provide 24kw of PV solar based off-grid electricity system to rural communities in six states.

    They include Gombe, Kaduna, Anambra, Delta, Osun and Niger. The system will supply electricity to about 200 clients (residential and commercial) in  the communities through a 2km 230VAC, 50Hz mini-grid electricity distribution network.

    With an average household size of seven, the estimated direct impact of the project is about 7,000 people, while an additional 500 people will be impacted through the cottage businesses and street lighting components also attached to the project.

    Schneider Electric and GVE Projects Limited inaugurated the mini-grid solar project in Bisanti, Niger State and will be partnering with Anergy Solar Limited on for the inauguration of the project in Osun State. Schneider Electric’s Conext (Xantrex) Solar Hybrid solutions were used in these two states.

    Following a few years of capacity building, the project has now entered into the implementation phase with a focus on the deployment of low-cost, off-grid solar energy solutions for rural communities either as a stand-alone or micro-grid system. The project explores partnerships that will promote the implementation of renewable energy solutions and provide linkages for enterprise development, especially for the rural communities in the country.

    The Country President, Schneider Electric, Anglophone West Africa, Walid Sheta, said: “We believe access to energy is a basic human right. We want homes in Nigeria to have access to reliable, safe, efficient, and sustainable energy. At Schneider Electric, we are committed to innovative solutions that address this energy paradox, balancing our planet’s carbon footprint and supporting the undisputable right of everyone to quality energy.”

    GVE Projects Limited Managing Director,, Ifeanyi B. Orajaka, said: “The project will create about 20 direct and 30 indirect jobs during the implementation, and create an estimated N5million in wealth in each of the beneficiary community through construction, survey, labour and other related implementation expenditures.

    ‘’The project will offset an estimated 1000 metric tons of CO2 annually in the communities thereby preserving the natural environment while enhancing the standard of living of the inhabitants.”

  • Debt cripples gas supply to power

    Debt cripples gas supply to power

    The huge debt incurred by operators in the gas value chain, is hindering electricity generation and distribution in the country, the Group Managing Director, Aiteo Power, Dr Ransome Owan has said.

    He said stakeholders were only looking at the issue of perennial gas scarcity from the angle of pipeline vandalism, without considering the financial bottlenecks affecting the transportation and utilisation of gas in the power sector.

    He said the issue of payment for gas used in firing turbines is becoming a challenge among stakeholders especially the gas producers, and power plants owners.

    Owan, who spoke during a stakeholders’ forum in Lagos, said gas producers, power generation companies (GenCos) and power distribution companies (DisCos) have stories to tell on the issue of payment for gas supplied and utilised.

    He said: “If you ask gas producers how much they are being owed by power generation firms, they would tell you it is a lot of money. Also, the gas powered plants are being owed by DisCos, which do not have enough money to pay for the electricity they buy from GenCos. Based on this, the issue of debt affects all stakeholders in the value chain.

    “This means that gas pipeline vandalism is not the only critical problem in the power sector. The issue of debt, arising from inability of the operators to pay for gas is another major problem besetting the growth of the sector.”

    Also speaking, the Managing Director,  Frontier Oil Limited, Thomas Dada, said further investment is required in the gas sector in order to ensure availability of the product to improve power generation.

    He said there are whole lots of problems affecting the growth of the power sector, advising the Federal Government, gas producers, and other stakeholders to work together in order to make the gas market stronger and competitive.

  • ’97m Nigerians don’t access grid electricity’

    No fewer than 97 million out of 175 million Nigerians have no access to grid electricity.  The remaining 78 million people who are connected to the grid face substantial power interruptions, the Energy Savers Nigeria, a non-governmental organisation (NGO) has said.

    In a paper titled: “The Nigerian Power Sector, A Performance Appraisal under the Buhari Administration” Moses Nasamu, a  member of Board of Trustees of Energy Savers Nigeria, said about 56 per cent of the population are connected to the grid, while 44 per cent  are not.

    He said an estimated 41  per cent of Nigerian businesses generate their own power supply to augment supply from the grid, in line  with the recent World Bank report on electricity situations in Nigeria, adding that the problem was caused by poor generation and distribution system and other systemic issues in the sector.

    It said Nigeria lags behind other developing nations in terms of grid- based electricity consumption with 126 kilowatts hour(kwh) per capita, stressing that electricity consumption is expected to be five times higher than what it is today in Nigeria, if we  consider the country’s Gross Domestic Product( GDP) alongside other countries globally.

    The paper said 25 per cent of Nigeria’s 12, 522 megawatts (Mw) of electricity installed reach the end user. “Widespread inefficiency means that only 3, 879Mw of this capacity is operational, with 3,600Mw transmitted and 3,100 distributed. Most of the shortfalls, which were about 5,381Mw, is capacity that is unavailable due to obsolete equipment and poor maintenance or due to ongoing maintenance and repair activities at existing power plants. Also, about 3,262Mw of electricity is non-operational primarily due to gas, water, high frequency, and transmission line constraints.”

    According to the paper, the sector has recorded some operational improvements, mainly driven by increased availability of gas since May 29th, 2015, when the Buhari/Osinbajo led government started.

    The paper stated that in August 2015, Nigeria hits historical highs as both peak generation and total energy generated across the system stood at 4,811Mw and 4,213 megawatts hour (mwh) respectively. It said transmission losses fell by 10 per cent between June and August 2015, compared to the first four months of the year.

    “Nigerians would recall that at the commencement of Buhari/Osinbajo’s administration in May this year, the sector was plagued with challenges,  which included under-utilisation of generating plants partly due to insufficient gas availability occasioned by  frequent vandalism of gas distribution assets, inadequate transmission infrastructure, high distribution losses, liquidity problem, among others,” the group added.

    They said electricity generation and distribution has improved relatively, despite the fact that the problems still exist in the sector. “The Buhari government has helped in restoring confidence in the sector through its decision to fast-track execution of the first set of World Bank partial risk guarantees, and granting of sovereign immunity waiver which aimed at increasing the rate of growth of the first tranche of project-financed Independent Power Projects (IPPs) and the interim execution of the contracts undertaken by the management of Transmission Company of Nigeria (TCN).

    On solution, the group urged the successor distribution companies to improve on their revenues in order to enable them fund what they described as ‘Wholesale Obligations,’ cater for their operating expenditure requirements,  invest in new and modern capacity, and ensure cost- effective tariff is provided for the teeming consumers of electricity in Nigeria.  They said when these measures are well implemented, power supply would improve and industrial activities will improve also.

  • Schneider Electric, GVE, BoI partner on solar solutions

    Schneider Electric, GVE, BoI partner on solar solutions

    Schneider Electric in partnership with Green Village Electricity (GVE) Projects Limited, Arnergy Solar Limited and Bank of Industry (BoI)  have commissioned pilot low-cost, off-grid solar energy solutions in two states in addition to four states across the country.

    The project, according to the company, is designed to provide 24kw of PV solar based off-grid electricity system to rural communities in six different states of Nigeria (Gombe, Kaduna, Anambra, Delta, Osun and Niger). The system will supply electricity to around 200 clients (residential and commercial) in each of the communities through a 2km 230VAC, 50Hz mini-grid electricity distribution network. With an average household size of seven, the estimated direct impact of the whole project is about 7,000 people, while an additional 500 people will be impacted indirectly through the cottage businesses and street lighting components also attached to the project.

    Schneider Electric in partnership with GVE Projects Limited commissioned the mini-grid solar project in Bisanti, Niger State and will be partnering with Anergy Solar Limited  for the commissioning of the project in Osun State. Schneider Electric’s Conext (Xantrex) Solar Hybrid solutions were used in these two states.

    Following a few years of capacity building, the project has now entered into the implementation phase with a focus on the deployment of low-cost, off-grid solar energy solutions for rural communities either as a stand-alone or micro-grid system. The project explores partnerships that will promote the implementation of renewable energy solutions and provide linkages for enterprise development, especially for the unserved and the underserved rural communities in the country. Speaking at the commissioning ceremony, the Country President, Schneider Electric, Anglophone West Africa, Walid Sheta said: “We believe access to energy is a basic human right. We want homes in Nigeria to have access to reliable, safe, efficient, and sustainable energy.

    At Schneider Electric, we are committed to innovative solutions that address this energy paradox, balancing our planet’s carbon footprint and supporting the undisputable right of everyone to quality energy.”

    The Managing Director, GVE Projects Limited, Ifeanyi B. Orajaka, said: “The project will create about 20 direct and 30 indirect jobs during the course of implementation, while creating an estimated N5million in wealth in each of the beneficiary community through construction, survey, labour and other related implementation expenditures. The project will offset an estimated 1000 metric tons of CO2 annually in the communities thereby preserving the natural environment while enhancing the standard of living of the inhabitants.”

     

     

     

  • Sahara urges investment in alternative energy

    The attainment of affordable energy through investments in alternative sources will enhance socio-economic growth in rural communities across the globe by 2030, Executive Director, Sahara Group, Mr. Tonye Cole has said.

    He spoke  at a meeting dedicated to Sustainable Development Goals (SDGs) at the just concluded 70th United Nations General Assembly in New York, United States.

    Cole who represented Sahara Group – a leading African Energy, Power and Infrastructure Conglomerate – on the Advisory Board of the Sustainable Development Goals Fund (SDG-F), told delegates that governments in developing nations need to explore more partnership platforms with the private sector in the quest for alternative energy sources.

    The meeting, which focused on Sustainable Development Goal 7 (ensure access to affordable, reliable, sustainable and modern energy for all) was attended by President of the World Bank,  Mr. Jim Yong Kim, Foreign Minister of Denmark,  Mr. Kristian Jensen, Prime Minister of Benin,  Mr. Lionel Zinsou, European Commissioner for International Cooperation and Development, Mr. Neven Mimica and President of the African Development Bank,  Mr. Akinwumi Adesina, among others.

    “Substantial investments are required to achieve affordable and sustainable energy in developing nations. Wind and solar energy are possible options that can be harnessed in rural communities where consumption is relatively low. With the right strategy and unwavering commitment from all stakeholders, we will be setting solid foundations for deploying alternative energy sources to transform lives and small businesses for disadvantaged communities across the globe,” Cole said.

    Cole said governments and power companies need to collaborate on sensitising the populace on the value chain of the power sector to ensure support for policies as well as address incidences of energy losses and theft that disrupt energy availability in developing nations.

    Delegates at the meeting were unanimous in urging the development of location specific action plans as the world seeks to achieve SDG 7. World Bank President, Kim said following its collaboration with the UN on the Millennium Development Goals (MDGs), the World Bank was excited about SDG 7 and further partnership with the private sector in a bid to ensure universal access to affordable, reliable and modern energy for all by 2030.

    Adesina urged African nations to take ownership of the process of taking affordable energy to rural communities, adding that his tenure at the ADB would focus on promoting sustainability and maximum impact for all interventions midwifed by the institution.

    Sahara Group has among other initiatives and collaborations, been promoting alternative energy sources through the “Sahara Light Up Nigeria Challenge,” a capacity building competition that seeks to produce inventions that support renewable, alternative and sustainable sources of power supply.

    The competition, which the company hosts through Sahara Foundation, inspires students of higher institutions of learning across Nigeria to explore opportunities for achieving sustainable power supply within their environment.  Sahara is exploring opportunities of replicating the project across other locations where it operates.

    In 2015, some students from the winning institution, Kaduna Polytechnic, invented a self-running hydro-power system that runs solely on the kinetic energy of water. The energy produced is stored in a 75-litre enclosed water tank that houses a pump and other materials required to drive generation of electricity. The technology is made from locally modified and recycled parts to ensure that it is environmentally friendly. The development of this project has brought about an alternative to electricity generation for small businesses, a health care centre and a school within the impact area of the project.

  • Debt cripples gas supply to power

    The huge debt incurred by operators in the gas value chain, is hindering electricity generation and distribution in the country, the Group Managing Director, Aiteo Power, Dr Ransome Owan has said.

    He said stakeholders were only looking at the issue of perennial gas scarcity from the angle of pipeline vandalism, without considering the financial bottlenecks affecting the transportation and utilisation of gas in the power sector.

    He said the issue of payment for gas used in firing turbines is becoming a challenge among stakeholders especially the gas producers, and power plants owners.

    Owan, who spoke during a stakeholders’ forum in Lagos, said gas producers, power generation companies (GenCos) and power distribution companies (DisCos) have stories to tell on the issue of payment for gas supplied and utilised.

    He said: “If you ask gas producers how much they are being owed by power generation firms, they would tell you it is a lot of money. Also, the gas powered plants are being owed by DisCos, which do not have enough money to pay for the electricity they buy from GenCos. Based on this, the issue of debt affects all stakeholders in the value chain.

    “This means that gas pipeline vandalism is not the only critical problem in the power sector. The issue of debt, arising from inability of the operators to pay for gas is another major problem besetting the growth of the sector.”

    Also speaking, the Managing Director,  Frontier Oil Limited, Thomas Dada, said further investment is required in the gas sector in order to ensure availability of the product to improve power generation.

    He said there are whole lots of problems affecting the growth of the power sector, advising the Federal Government, gas producers, and other stakeholders to work together in order to make the gas market stronger and competitive.

  • Schneider Electric, GVE, BoI partner on solar solutions

    Schneider Electric, GVE, BoI partner on solar solutions

    Schneider Electric in partnership with Green Village Electricity (GVE) Projects Limited, Arnergy Solar Limited and Bank of Industry (BoI)  have commissioned pilot low-cost, off-grid solar energy solutions in two states in addition to four states across the country.

    The project, according to the company, is designed to provide 24kw of PV solar based off-grid electricity system to rural communities in six different states of Nigeria (Gombe, Kaduna, Anambra, Delta, Osun and Niger). The system will supply electricity to around 200 clients (residential and commercial) in each of the communities through a 2km 230VAC, 50Hz mini-grid electricity distribution network. With an average household size of seven, the estimated direct impact of the whole project is about 7,000 people, while an additional 500 people will be impacted indirectly through the cottage businesses and street lighting components also attached to the project.

    Schneider Electric in partnership with GVE Projects Limited commissioned the mini-grid solar project in Bisanti, Niger State and will be partnering with Anergy Solar Limited  for the commissioning of the project in Osun State. Schneider Electric’s Conext (Xantrex) Solar Hybrid solutions were used in these two states.

    Following a few years of capacity building, the project has now entered into the implementation phase with a focus on the deployment of low-cost, off-grid solar energy solutions for rural communities either as a stand-alone or micro-grid system. The project explores partnerships that will promote the implementation of renewable energy solutions and provide linkages for enterprise development, especially for the unserved and the underserved rural communities in the country. Speaking at the commissioning ceremony, the Country President, Schneider Electric, Anglophone West Africa, Walid Sheta said: “We believe access to energy is a basic human right. We want homes in Nigeria to have access to reliable, safe, efficient, and sustainable energy.

  • Debt cripples gas supply to power

    Debt cripples gas supply to power

    The huge debt incurred by operators in the gas value chain, is hindering electricity generation and distribution in the country, the Group Managing Director, Aiteo Power, Dr Ransome Owan has said.

    He said stakeholders were only looking at the issue of perennial gas scarcity from the angle of pipeline vandalism, without considering the financial bottlenecks affecting the transportation and utilisation of gas in the power sector.

    He said the issue of payment for gas used in firing turbines is becoming a challenge among stakeholders especially the gas producers, and power plants owners.

    Owan, who spoke during a stakeholders’ forum in Lagos, said gas producers, power generation companies (GenCos) and power distribution companies (DisCos) have stories to tell on the issue of payment for gas supplied and utilised.

    He said: “If you ask gas producers how much they are being owed by power generation firms, they would tell you it is a lot of money. Also, the gas powered plants are being owed by DisCos, which do not have enough money to pay for the electricity they buy from GenCos. Based on this, the issue of debt affects all stakeholders in the value chain.

    “This means that gas pipeline vandalism is not the only critical problem in the power sector. The issue of debt, arising from inability of the operators to pay for gas is another major problem besetting the growth of the sector.”

    Also speaking, the Managing Director,  Frontier Oil Limited, Thomas Dada, said further investment is required in the gas sector in order to ensure availability of the product to improve power generation.

    He said there are whole lots of problems affecting the growth of the power sector, advising the Federal Government, gas producers, and other stakeholders to work together in order to make the gas market stronger and competitive.

  • Sahara urges investment in alternative energy

    The attainment of affordable energy through investments in alternative sources will enhance socio-economic growth in rural communities across the globe by 2030, Executive Director, Sahara Group, Mr. Tonye Cole has said.

    He spoke  at a meeting dedicated to Sustainable Development Goals (SDGs) at the just concluded 70th United Nations General Assembly in New York, United States.

    Cole who represented Sahara Group – a leading African Energy, Power and Infrastructure Conglomerate – on the Advisory Board of the Sustainable Development Goals Fund (SDG-F), told delegates that governments in developing nations need to explore more partnership platforms with the private sector in the quest for alternative energy sources.

    The meeting, which focused on Sustainable Development Goal 7 (ensure access to affordable, reliable, sustainable and modern energy for all) was attended by President of the World Bank,  Mr. Jim Yong Kim, Foreign Minister of Denmark,  Mr. Kristian Jensen, Prime Minister of Benin,  Mr. Lionel Zinsou, European Commissioner for International Cooperation and Development, Mr. Neven Mimica and President of the African Development Bank,  Mr. Akinwumi Adesina, among others.

    “Substantial investments are required to achieve affordable and sustainable energy in developing nations. Wind and solar energy are possible options that can be harnessed in rural communities where consumption is relatively low. With the right strategy and unwavering commitment from all stakeholders, we will be setting solid foundations for deploying alternative energy sources to transform lives and small businesses for disadvantaged communities across the globe,” Cole said.

    Cole said governments and power companies need to collaborate on sensitising the populace on the value chain of the power sector to ensure support for policies as well as address incidences of energy losses and theft that disrupt energy availability in developing nations.

    Delegates at the meeting were unanimous in urging the development of location specific action plans as the world seeks to achieve SDG 7. World Bank President, Kim said following its collaboration with the UN on the Millennium Development Goals (MDGs), the World Bank was excited about SDG 7 and further partnership with the private sector in a bid to ensure universal access to affordable, reliable and modern energy for all by 2030.

    Adesina urged African nations to take ownership of the process of taking affordable energy to rural communities, adding that his tenure at the ADB would focus on promoting sustainability and maximum impact for all interventions midwifed by the institution.

    Sahara Group has among other initiatives and collaborations, been promoting alternative energy sources through the “Sahara Light Up Nigeria Challenge,” a capacity building competition that seeks to produce inventions that support renewable, alternative and sustainable sources of power supply.