April 21, 2024

Shettima embarks on power sales roadshow, as NDPHC, EnerixOne set to power Agbara industrial cluster with 200MW in 6 months

VP Shettima at Agbara in Ogun State

Oredola Adeola

 

The Niger Delta Power Holding Company Limited (NDPHC) in partnership with EnerixOne, a power solutions company, has announced the plans to power the Agbara industrial cluster with 200MW out of over 3000 stranded powers from its eight operational power plants within six months.

 

Kashim Shettima, Vice President, who doubles as the Board Chairman of NDPHC made this known on Thursday during the NDPHC/Agbara Industries Bilateral Energy Sales Roadshow tagged “Light Up Nigeria Programme.”

 

 

The Vice President in his address at the event stated that the project represented a remarkable partnership between the private sector and our state-owned power company which he described as the realization of President Bola Tinubu’s pledge to reinvigorate our nation’s infrastructure framework.

 

 

He said, “This collaboration embodies progress, teamwork, and our commitment to fostering synergy to enhance the productivity of our businesses and institutions. It not only aligns with our vision to transform our nation into a premier investment destination but also to serve as an industrial benchmark in this part of the world.

 

 

“The launch of this strategic collaboration between our company NDPHC and its key partners for the design, development, and operation of projects to supply dedicated, steady, and quality power to major industrial and commercial clusters in Nigeria echoes President Tinubu’s pledge.

 

 

“The choice of Agbara, Ogun State, as the pilot site of this owes to its function as an artery of Nigeria’s industrial structure.  This is our resolve to breathe new life into the enterprises that sustain our economy.

 

“It’s one thing to invite investors to the country; it’s another to get them to stay.  Finding a solution to the supply deficit in the Nigerian Electricity Supply Industry (NESI) is an intervention that seeks to undo the generational setbacks that businesses with immense promise have endured.

 

 

“For too long, some of these ventures were forced to pack up, their potential stifled by the persistent energy constraints. Today, we embark on a journey of empowerment, a journey aimed to rekindle the flames of enterprise and ensure that the promise of prosperity prevails over the darkness of past hindrances” VP Shettima said.

 

The Board Chairman of NDPHC further noted that the Nigerian Government has gone a full cycle in the search for solutions to the country’s energy crisis. He added that the government has unbundled and privatized the power assets in generation, transmission, and distribution.

 

 

He said, “We have also implemented the National Integrated Power Project through NDPHC. But we have accepted the past as a lesson in designing a new path for a robust power sector. These historical mistakes that have brought our great nation to this point are rather an inspiration to work harder.

 

“We are complementing the historical efforts with new and innovative solutions, delivering the infrastructure and financing required to solve the key constraints that have caused the supply gap in the NESI to persist.

 

 

“I know that our partners are on the same page as us and prepared to join us in delivering tangible wins to Nigerians. I believe this initiative marks the commencement of a promised opportunity for our nation” he said.

 

 

Shettima further stated that the FG aimed to provide a consistent, reliable, and high-quality power supply to specific customer clusters with substantial capacity demands, by mobilizing private capital, harnessing the generation portfolio of NDPHC, and utilizing the existing power delivery infrastructure.

 

 

He said, “This effort has initiated an industrial revival of significant magnitude. In essence, it implies that, after a considerable period, the NESI will experience a substantial increase in supply levels without the necessity of injecting public funds, delivering nearly continuous power precisely where it’s most critical for our economy.

 

 

“Agbara stands as a compelling testament to what private sector investment, innovation, and entrepreneurship can accomplish in the economic and infrastructural development of a nation. The other clusters planned for this initiative across the country share a similar capacity to demonstrate how private capital can drive industrial development and foster economic prosperity.

 

 

“We are not only committed to providing the institutional and policy support necessary to enable, promote, and sustain this private sector-led initiative but also to paving the way for the emergence of synchronized development in transmission and distribution infrastructure, aligned with the demands of industrial customers.

 

 

“This infrastructure is designed for the efficient and reliable transmission of power from NDPHC’s plants. We will deploy the appropriate technology to ensure the efficient operation of the networks and to minimize commercial, collection, and technical losses that have plagued the industry,” Shettima said.

 

The Vice President therefore assured the customers in the Agbara industrial cluster of FG’s commitment to providing the necessary institutional and policy support to ensure the successful delivery of the project, which he claimed will not only facilitate their businesses but also safeguard their investments in the Nigerian economy.

 

 

Shettima who doubles as the Board Chairman of NDPHC, assured that he will hold every relevant official accountable and closely monitor the progress achieved in this project, saying “We owe Nigerians this success story.”

 

 

Chiedu Ugbo, Managing Director/Chief Executive Officer, NDPHC earlier in his statement said that his company is committed to aggressively supplying about 200MW of power from its facility and achieving 24 power supply to the industrial cluster in Agbara within 6 months.

 

 

According to him, “NDPHC is a wholly owned government company responsible for implementing the National Integrated Power Project (NIPP) has successfully constructed eight power plants with a combined capacity of approximately 4000 MW, as well as various transmission and distribution infrastructure.

 

 

“We are assuring the businesses in Agbara that times are changing, and the power sector revolution is coming. We are providing end-to-end power solutions. NIPP with about 4000MW capacity constructed and a lot of them are stranded in the power plants because of the myriad of issues.

 

 

“But we are leveraging the evolving regulatory framework in NESI, to identify the challenges of willing buyers(customers) who can take this stranded power into their system.

 

 

“What we want to do is to clear the last mile in terms of network challenges and ensure that they get the electricity. There is no better place than industrial clusters, like Agbara industrial area where they can take up to 200MW of electricity.

 

“We are prepared to serve them. We are partnering with the TCN, and EKEDC to ensure that we work together to clear the network challenges and flow the power from our power plant to the customers.

 

“If they pay at least N100/kilowatt which compares with about N350/kilowatt for self-generation, that is going to be a win-win solution for the companies under the clusters.

 

“NDPHC, though a generation company, has been intervening in generation projects, but we intervene in the provision of transmission services, and distribution projects. We are good and understand what is required to deliver the project within a very short period.

 

“Before now, we were doing a project all over the country, but the Board has instructed us to target the power to clusters where the result can be better appreciated and seen immediately. So, we can deliver.

 

“We will work tirelessly to achieve the timeline given by the Chairman of the Board, Vice President Kashim Shettima. We are also working to ensure that we achieve 95 percent of the power supply to residential apartments.

 

 

“The timeline is to aggressively achieve 24 power supply to the industrial cluster in Agbara within 6 months.

 

 

“We started this eligible customer’s power drive by marketing to the companies, some of whom were skeptical initially, but we are serious and that is why the Vice President has championed this marketing roadshow himself to assure the companies of the seriousness of the initiative.

 

“Before now, we have signed up with over 40 companies totaling about 50MW, but I am sure that we should be able to do up to 200MW with the level of interest shown today. We want to power all the industries in the Agbara Industrial cluster,” he said.

 

 

The CEO of NMDPHC stated that EnerixOne is the financial partner responsible for raising the capital needed to procure substation expansion infrastructure, transformers, transmission, and distribution lines.

 

 

He mentioned that EnerixOne conducted the marketing and brought NDPHC because of its large portfolio in the value chain, adding that there is no worry about the failure of the project.

 

 

Ugbo further stated that the NDPHC has an installed capacity of about 4000MW, with 10 power plants, eight of which are already on the grid, and two are under construction.

He however stated that due to challenges in the sector, the call-up to the grid is between 500MW to 700MW. The TCN can still give up to 975MW. 
“The issue is due to the gas challenge and several factors including cost associated with distribution losses, collection inefficiency, tariff shortfalls, and several challenges are being borne by the Nigerian Bulk Electricity Traders (NBET) and these seats on the Federal Government balance sheet.

Speaking on the Eligible Customer Program, Ugbo said that NDPHC will supply electricity directly to customers, who will then pay for it. He emphasised that if power is contracted directly with end-users, the Federal Government will not have any business with the commercial arrangement.

 

 

He said, “The NDPHC will put a system in place to allow them to collect tariffs directly and ensure the security of supply and payment. We have an arrangement for the supply of 100MW with EKEDC, a direct bilateral arrangement with the Lekki Resident Association, and other targeted groups of customers and clusters around the country.

 

 

“The Eligible Customer programme will ensure that technical, escalation and commercial losses are eliminated. NDPHC is committed to providing power supply despite being owed billions of naira for electricity generated and put on the grid.

 

 

“This is a network business from power generation to transmission and distribution network which feeds the end users, it is as simple as that. Our private partners would bring the funding and the business would pay for all,” Ugbo said.

 

 

 

Speaking about affordability, the MD of NDPHC stated that customers who used to pay somewhere around N350/kilowatt for self-generation, are now allowed to pay N90/KW with the guarantee of 95 percent availability.

 

 

He said, “The business will reduce operational costs for the company and promote the efficiency of their services.”

 

 

Ugbo however encouraged the Lagos and Ogun state governments to take ownership of their share of the Eligible Customer Program in the Agbara Industrial cluster, adding that the Nigeria Electricity Act supports greater investment of NDPHC, with about 53 percent ownership by the state governments.

 

 

He further emphasised that the Nigerian Electricity Act is expected to promote a better business environment in Nigeria, improve access to electricity, better livelihood, and attainment of the Sustainable Development Goals (SDG).