The Nigerian Bulk Electricity Trading Plc. (NBET) has entered a cooperation agreement with Turkish company Energy Exchange Istanbul (EXIST), seeking transfer of critical experience, business knowledge, and support in the design of a functional trading structure for Nigerian electricity.
Under the partnership, NBET will cooperate with EXIST to broaden its knowledge of power market design for optimal bulk electricity trading, to adopt least cost trading model for energy efficiency and to support renewable.
Details of the partnership were spelt out in a statement released by the Nigerian electricity trading firm yesterday, following last week’s signing in Turkey. It revealed a wide-ranging agreement encompassing technical support and knowledge exchange related to designing the institutional structure of the power market in Nigeria.
The statement said the two parties will work on developing necessary feasibility studies to establish the energy exchange, and will also work towards establishing a renewable energy support scheme like the ‘Turkish experience.’
“The key aspects of the cooperation would see NBET strategically leveraging cutting edge technology to chart a new course in its commercial transactions in the electricity market,” NBET CEO Dr. Nnaemeka Ewelukwa, said, in Turkey, last week.
“The cooperation will ultimately pave the way for more power investments in the country and deepen competition in the market, with greater value delivery to participants in the market,” he added.
According to Dr. Ewelukwa, NBET would synergize with EXIST in developing a framework for up-scaling sustainable investments in renewable energy in line with the Nigeria’s commitment to diversify the country’s energy mix and transition to a low-carbon economy.
NBET, established in 2010, is a government-owned company that seeks to create a competitive wholesale electricity market through bulk purchase of power and ancillary services for resale to distribution companies.
The energy exchange company EXIST, a public-private company established in 2015, operates electricity and natural gas spot and futures markets, and provides ancillary services, in Turkey.