The Nigerian Bulk Electricity Trading Plc has signed an agreement with a Turkish Energy firm, Energy Exchange Istanbul, (EXIST), aimed to boost investment in Nigeria’s electricity sector.
NBET explained via a statement issued yesterday in Abuja that the agreement which was signed in Maslak, Turkey was geared towards liberalising the electricity market in Nigeria.
The deal according to the statement will also boost cooperation and knowledge exchange between the two countries.
Turkey as a country has a generation capacity of 100 Gigawatts, that is 100,000 Megawatts of electricity.
Turkey is Europe’s sixth largest electricity market and the 14th largest in the world. Approximately 54 per cent of Turkey’s electric power generation capacity comes from renewable energy, including hydroelectric, wind, solar, geothermal, and biomass power plants, making Turkey the 5th largest generator of renewable energy in Europe and the 12th largest in the world.
The country is well advanced in electricity infrastructure and cross-border trading. There is a lot of optimism in this new partnership, especially as the government of Turkey has shown keen interest in strengthen bilateral relations between both countries.
The signing ceremony was witnessed by the minister of Finance, Budget and National Planning Mrs Zainab Shamsuna Ahmed, who is also chairman of NBET Board of directors, NBET CEO Nnaemeka Ewelukwa on behalf of NBET and EXIST CEO Ahmet Türkolu on behalf of EXIST.
While speaking during the ceremony, Finance minister, Mrs Zainab Shamsuna Ahmed, said, ” EXIST has reached an admirable stage. We also want to establish electricity markets by providing the necessary transformation in our country. We want to cooperate with you on this journey by walking hand in hand.”
On his part, the CEO of NBET, Dr Ewelukwa, expressed optimism that the cooperation agreement with EXIST would go a long way in re-positioning NBET for enhanced performance in the Nigerian electricity market and consolidate on its accomplishments.
Dr Ewelukwa stated that, “The key aspects of the cooperation would see NBET strategically leveraging on cutting edge technology to chart a new course in its commercial transactions in the electricity market.
It 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.”
According to him, NBET would also synergise with EXIST in developing a framework for upscaling sustainable investments in renewable energy in line with the federal government’s commitment to diversify the country’s energy mix and transition to a low-carbon economy.
The corporation also ties in neatly with NBET’s long-term plan of leading Nigeria’s renewable energy push in line with its mandate.
The cooperation agreement covers the transfer of experience and business knowledge, and the design of a functional trading structure for the Nigerian Electricity Supply Industry.
Turkey has a large and growing manufacturing base which requires an increasing amount of power generation.
The annual growth rate in additional power generation capacity has been around five per cent due to the increasing economic activity and a rising population in Turkey.
With this partnership, the NESI can leverage on the EXIST experience towards the design and implementation of policy frameworks that will ramp up energy solution to the manufacturing sector and other vital economic sectors towards increasing the GDP of Nigeria and improving living condition of its people.
The agreement also aims to liberalize the current market in Nigeria; simultaneously, for the cooperation, the parties have agreed to establish a partnership to support the optimisation of NBET’s current energy portfolio and identify sustainable means to scale up energy generation and supply in Nigeria.
Concerning areas of cooperation, the parties also agreed to ensure knowledge development and share cross-visits to learn from each other’s experiences. Both parties have committed to further research and development in relevant areas that are beneficial for enhancing the energy sector in Nigeria.
In addition, EXIST shall also assist NBET in the design and implementation strategy and plan that would enable optimal bulk electricity trading that adopts a least cost trading model for energy efficiency.
In fulfilling the conditions, EXIST shall assist NBET in understudying the Turkish experience and energy transition to adapt successfully to the Nigerian context. NBET currently manages a portfolio of over 13,000 Megawatts of Electricity.
Further to this plan, “the two parties will work towards establishing a renewable energy support scheme like the Turkish experience. Furthermore, both parties will work on developing necessary feasibility studies to establish the energy exchange”.
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