The Minister of Power, Chief
Adebayo Adelabu on Thursday said the objective of making the 2023 Electricity
Act is for improved energy supply. He
vowed that the citizenry will soon record improved power supply nationwide.
He spoke at the 3rd edition
Workshop of the Power Correspondent Association of Nigeria (PICAN) in Abuja.
The theme of the workshop was:
"Resolving Nigeria's Power Crisis: The Implication of the Electricity Act
2023."
He said "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."
The minister noted that a key
part of the 2023 Electricity Act is the development of the Integrated National
Electricity Policy and Strategic Implementation Plan.
He revealed that "On
this, we are working with the National Council on Power (NCP) to develop and
send the implementation strategy to the Federal Executive Council (FEC) for
approval."
He revealed that part of the
Federal Government's in its roadmap, is the emphasis on the bottom-up approach,
unlike the top-down approach of the past.
According to him, the
implication, with the bottom-up approach is that we will prioritize Metering,
Distribution and Transmission infrastructure.
He added that the
administration will focus on Customers down to distribution and transmission infrastructure
in the short term, this is to ensure that a significant portion of what is
generated currently gets to the end users.
Adelabu also said "We
will also pay attention to the generation segment particularly in areas of
distributed (embedded) power from renewable energy sources, while at the same
time, advancing base load power through
thermal and hydro plants in the medium to long term.
"We will further explore
our regional energy potentials. 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."
He tasked the media to stress
advocacy to emphasize against power theft, vandalism and educate consumers
against sabotage.
He also charged them to
amplify that the financial liquidity in the Nigerian Electricity Supply
Industry (NESI) is dependent on customers paying for electricity consumed.
He described the theme as
quite apt, considering the President Bola Tinubu avowed desire to provide
regular supply of electricity across the country by liberalizing the power
sector through the enactment of the 2023 Electricity Act.
He said the 2023 Electricity
Act is a significant part of our country’s energy roadmap as it clearly
signifies the present administration’s commitment to the transformation of the
power sector as clearly stated in the agenda of Mr President as contained in
the Renewed Hope Agenda.
According to him, the Electricity
Act has liberalized electricity generation, transmission and distribution.
Adelabu noted that it has also empowered States, Organisations and
even individuals to generate , transmit and distribute electricity. Under this
Act, the minister said state government can issue licenses to private investors
to operate power plants and mini grids, within the States.
He added that private
investors can also obtain licenses for generation, transmission, system
operations, trading, distribution and supply.
The Act, according to Adelabu,
can also 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).
He added that among others,
the Act also introduced mechanism for incentives for investment in the sector.
He said such incentives
include feed-in-tariffs which guarantees a fixed price for renewable energy fed
into the grid and tax incentives for investors.
The minister said 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.
He further noted that 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.
Adelabu said: "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."
In his remarks, PCAN Chairman, Mr. Obas
Esiedesa, recalled that on November 1, 2013, the Federal Government handed over
the distribution and most generation assets to the private sector, marking the
beginning of private investment into the NESI.
According to him, since then,
expectations raised by the entrance of private entrepreneurs into the sector
have largely remained unmet.
He said 10 years down the line
the time has come for the Federal Government to take a holistic review of the
entire Power sector privatization.
Esiedesa said what is now
expedient is not necessarily taking away the assets from operators, but finding
solutions to the huge challenges facing the industry.
Courtesy:
The Nation
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