The Minister of power, Chief Adebayo Adelabu, has given assurance of improved power supply in the country soon as the Federal is poised to realizing the vision of the 2023 Electricity Act through multiple approaches.
He gave the assurance Thursday in Abuja, while declaring open the Annual workshop organised by the Power Correspondents Association of Nigeria (PCAN) with the theme “Resolving Nigeria’s Power Crisis: The Implication of the Electricity Act 2023”.
Promising that the federal government would explore regional energy potentials, the Minister said, “We will focus on solar energy in the North, mini hydro power plants in the Middle belt and the Southwest, hybridized with solar while our coastal States will be identified for wind energy utilization.
“Taking all the above into consideration, especially with the liberalization of the sector, Nigerians will soon start to experience the objective that led to the Act which is improved power supply across the country.”
While giving insight into the provisions of the Electricity Act 2023, Chief Adelabu said that it encourages the integration of renewable energy technologies into the existing grid system while licensees are expected to meet renewable energy obligations as stipulated by the Nigerian Electricity Regulatory Commission (NERC).
“Among others, the Act also introduced mechanism for incentives for investment in the sector. Such incentives include feed-in-tariffs which guarantees a fixed price for renewable energy fed into the grid and tax incentives for investors.
“In order to ensure a level playing field for all players in the sector and prevent anti-competitive practices, the Act also provides clear guidelines for the licensing , monitoring and supervision for market participants. Furthermore, the Act guarantees assets protection by allowing investors to sell or transfer their undertakings in the event of revocation of licenses or compensation in the event of takeover of such undertakings.
“Therefore, when we consider the totality of the re-enacted electricity Act, it has changed the entire landscape of the power sector. What this implies is that everyone involved in the power sector value chain must contribute meaningfully in ensuring the successes that is envisaged by the enactment of the Act.”
Earlier in a welcome address, PCAN Chairman, Mr. Obas Esiedesa, noted that ten years after privatisation, the time has come for the Federal Government to take a holistic review of the entire Power sector privatization.
However, he maintained that this does not necessarily mean taking away the assets from operators, but finding solutions to the huge challenges facing the industry.
“It is worrying to note that with over 13,000 megawatts of installed capacity, the industry is still struggling to deliver 4,000MW of electricity on a consistent basis”, he lamented.
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