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Setting Power Sector Agenda For The Incoming Administration

by Adetayo Adegbemle
2 years ago
in Opinion
Power Sector
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I have read a number of write-ups, trying to set agenda for the new administration of the Bola Ahmed Tinubu, but many of them have fallen short of addressing the major issues facing the power sector.

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While it must be said clearly that President Muhammadu Buhari has built on the progress of the power sector, there is also the need to build and consolidate on the successes, and review a couple of decisions here and there.

There is the continued call for a truly independent regulatory commission, devoid of political interference, and one of the best ways to achieve this is to bring in individuals who has shown commitment to the growth of the power sector in one capacity of the other. The era of making political appointments and then expecting a quick delivery on key performance indicators should be dispelled with. Proper interview and presentation on what challenges facing the power sector should be done, and the best candidate be given the political powers to turn around the fate of the sector.

Once this can be achieved with NERC, it will send clear message and tone to whatever follows in the power sector.

One of the structures to be clearly made away with is the Presidential Power Initiative, which at best, should function as a Desk in the Ministry of Power, who should handle such bilateral relationships with companies like the Siemens. Keeping such “agency” like the PPI is just increasing our overhead unnecessarily, duplicating tasks and command chains, and asking questions of the professionals in the Ministry of Power.

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With the success recorded by the President Muhammadu Buhari in deepening our fuel/energy mix, we should be having more Generation Capacity coming mainstream, our focus should therefore be on how to align the new wheeling capacity being achieved by the Transmission Company of Nigeria and their numerous projects, with the off-takers in the Discos. Focus should also be on harnessing the present over 50billion naira the Manufacturers Association of Nigeria spends on alternative energy into the national grid.

All the funds being expended on TCN projects would come to noughts if Electricity Distribution Companies@(DISCOS) are not able to utilize these capacities.

Market liquidity has become a perennial problem for the power sector, but our policy makers are not considering the root cause, and in dealing with the issue, how to solve this effectively. The truth remains that unless the issue of Metering is resolved, we would continue to experience stunted growth in the power sector.

This Metering covers every interface in the power sector. From the Generators interface with Transmission, to Transmission’s interface with the Distributors, and ultimately to the Distributors interface with final Consumers.

In solving this problem, I have been advocating for an establishment of the local Metering Ecosystem and a local Metering Standards. This will ultimate lead to deepening our Local Meter manufacturing capacities, removing the Foreign Exchange components in Meter pricing, increasing/creating employment, and ultimately solving our local metering problems. Beyond encouraging local meter manufacturing ecosystem, we need to also establish local Transformers manufacturing and repairs, we need to develop this local capacity.

Resolving our huge local metering challenge will automatically also a more accurate figure of the number of Connections that we have to the national grid, thereby helping with a more accurate data for national planning.

Without knowing what our demands looks like will only make us to continue to make abstract plans that will continue to fail. I have heard many commentators saying that a nation of over 200 million people should have access to over 100, 000MW of electricity, but we cannot, and should not continue to extrapolate with scientific data to make sensible decisions.

Yes, this can be achieved in 4 years if we have the political will to proceed, and if in making appointments, factors like what their earlier contributions has been.

I will continue to hammer on National Interest First as the basis to make appointments and forming policies. Without this, the power sector will continue in its doldrums, with potential to be great unachieved.

– Adegbemle is a public opinion commentator/analyst.

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