The federal government intends to disburse $800 million for the construction of substations and distribution lines under the Presidential Power Initiative, according to a statement made by Minister of Power Adebayo Adelabu
This was made clear in a statement the government released on Sunday.
The minister reportedly revealed this while on a tour of the TBEA Southern Power Transmission and Distribution Industry facilities in Beijing, China, according to the statement.
According to the Minister, $400 million would be set aside for each of the two lots’ substation and distribution line construction. Lot 2 will receive substations.
The Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise territories are covered by Lot 2, and the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas are covered by Lot 3.
In China at the China-Africa Cooperation Summit, the Minister was present.
According to him, the generation peaked on Friday, August 30, at 5,170 megawatts; however, because the DISCOs were unable to handle the supply, the generation had to be lowered by 1,400 megawatts.
“Given that the government plans to raise generation to 6,000 megawatts by the end of the year, this is really unfortunate,” he stated.
Nigeria’s Minister of Energy, Adelabu, has expressed the federal government’s commitment to working with world-class organizations like TBEA to achieve President Bola Tinubu’s Renewed Hope vision for the power sector in Nigeria. The minister highlighted the challenges in the sector, including the outdated transmission and distribution infrastructure, which has led to a historical epileptic supply of power to households, industries, and businesses. Over 59% of Nigeria’s industries are off the grid, and many now operate their own captive, self-generated power. Adelabu emphasized the administration’s determination to transform the power sector, stating that several initiatives have commenced to restore confidence in the sector and among power sector consumers, particularly industries. He recalled that Nigeria’s power generation reached 2,000 megawatts in 1984, but it took over 35 years to add an additional 2,000 megawatts.
We inherited about 4 gigawatts (4,000 megawatts) of power when this administration took office last year, but in only a year, we reached a milestone of 5,170 megawatts, adding roughly 1,000 megawatts of power in the first year. Although it might not seem like much, considering the history of the nation, this is admirable.
By the end of the year, we want to generate 6,000 megawatts of electricity using a combination of gas-fired and hydroelectric power facilities. Additionally, by 2030, we want to generate, transmit, and distribute 30 gigawatts of power, with 30% coming from renewable sources.
The Minister stated that a mix of solar energy, wind farms powered by onshore and offshore winds, and hydroelectric electricity from minor dams would supply the renewable energy portion.
The Minister said that the current national grid is unable to fulfill the power sector’s objectives, hence the need for the super grid.
“It is evident that our current network on the national grid cannot sufficiently support our ambition for the electricity sector when we consider its age, strength, and capacity. This is why building the Eastern and Western megagrids was necessary.
“The President fully supports this initiative, even though we have been working on it since I took office, as it will enhance our transmission network, stabilize the grid, and increase the national grid’s capacity and flexibility.”
He continued by saying that TBEA is not new to Nigeria, pointing out that the company presently collaborates with the Niger Delta Power Holding Company-owned Omotosho Power Plant in Ondo State.
Hanjie also expressed his appreciation for the Minister’s contributions to the electricity industry, pointing to the increased generation and transmission that have occurred since he took office.
Recognizing the short-term goal of improving to 6 gigawatts by December 2024 and the target of 30 gigawatts by 2030, he stated that TBEA is willing to collaborate with the Nigerian government to achieve this vision and contribute to the ongoing power sector revolution in the country. Additionally, Hanjie highlighted TBEA’s commitment to utilizing innovative technologies and sustainable practices in their projects to help achieve these ambitious goals. He emphasized the importance of a strong partnership between the public and private sectors in driving progress in the energy sector.
