STATES FREE TO BUILD OWN POWER PLANTS – FASHOLA
source : http://www.eyesoflagos.com/2017/09/states-free-to-build-own-power-plants.html

The federal government yesterday said it is not against state governments developing their own power projects to support development and supply of incremental power.
Eyes Of Lagos gathered that, Minster of Power, Works and Housing, Babatunde Fashola, stated this on Thursday at a meeting of the National Council on Power (NACOP) in Jos.
He said: “I heard statements to the effect that Federal Government should allow the states to develop their own power projects.
“The truth is that federal government is not standing on the way of any state; the laws do not stand in the way of any state to develop power projects.
“Because as governor, we built seven power plants, government did not stop us; what we could not do is to do commercial distribution which the law actually allows under license through Nigerian Electricity Regulatory Commission (NERC).”
The federal government also urged state governments in the country to wake up to the call of paying electricity bills at the state and local government level promptly while ensuring that plans are put in place towards offsetting all verifiable debts owed the electricity distribution companies (DisCos) as soon as possible.
The Minister who hailed the Electric Power Sector Reform Act (EPSRA) 2005, describing as the best thing ever to have happened to the sector said the Act also made provisions for investors to make harmless profit.
He however expressed regret that it has been discovered that the bulk of the MDAs’ debts being claimed by the DisCos were incurred at the state and local government level.
“For example, out of the estimated MDA debts of about N90Billion claimed by the DisCos, only about N27Billion has been verified as debts owed by the FGN.
“There are invoices which show that other parts of the debt are attributable to service points at States and local governments.
“I will urge first that states and local governments insist that their buildings are metered so that they can budget for and pay for energy they use. It will turn out to be cheaper than diesel generated power and also help reduce loss of income by DisCos.
“Furthermore, I urge state governments to set up small teams with audit capacity to verify debts owed by them and their local governments, ascertain the quantum and develop a payment plan which can then be budgeted for. This will help to reduce the liquidity issues and contribute to the reforms,” the Minister said.
Fashola equally urged state governments to invest more in power as the law empowers any willing investor, saying “it is only logical and necessary for states and local Governments to own and participate in the implementation of the 2005 Law and the PSRP.”

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That's was never the issue

State should be allowed to build their own plans and have their own mini grid

mrvitalis:
That's was never the issue

State should be allowed to build their own plans and have their own mini grid

. I need further explanation on this please.

I know they are free to build theirs but will they be allowed to use it for the state alone or be forced to add it to the national grid?

hmmmmm

azimibraun:
. I need further explanation on this please.

State have been allowed to produce power right from time ,but after they do they would have to transfer such power to the national grid which is controlled by the federal government to share


So a state can produce 1000mw and gets only 50 distributed in the state

A typical example is rivers state

Rubbish. Of what benefit will it be to the tax payers whose money was used to build it but can't be used by same tax payers because such is expected to be thrown back into the National grid

Amberon11:
I know they are free to build theirs but will they be allowed to use it for the state alone or be forced to add it to the national grid?

he has already stated it that it must not go for commercialise, this simply means any state that want her people to benefit from this most connect it to national grid.

Is ok


State like Abia state will b having 25 hours power supply, because only geometric plant has over 1000 mw

Nigeria is the only country where nothing works. because some poor muslim follow in the northern contraption holding every other people back. they don't have what it takes to move forward and they don't want others that have it to move forward. they delayed the progress of my people down south.

The whole idea is for the richer states in thee South to generate power for national grid freely so that North will benefit cheaply.

FGN would now be building new power project across the North only with Oil Money from the South.

It's all Oppression of the South Continua....

Building power plants have never been the problem, the problem is forcing power plants to feed the National grid by fire by force

eyesoflagostv:
STATES FREE TO BUILD OWN POWER PLANTS – FASHOLA
source : http://www.eyesoflagos.com/2017/09/states-free-to-build-own-power-plants.html


“Because as governor, we built seven power plants, government did not stop us; what we could not do is to do commercial distribution which the law actually allows under license through Nigerian Electricity Regulatory Commission (NERC).”

The perception was that states had to feed whatever power they generated into the national grid, but he is saying that states can commercially distribute the electricity that they generate (they don't have to feed it to the national grid). All they need is a license from NERC.

ZKOSOSO:
The whole idea is for the richer states in thee South to generate power for national grid freely so that North will benefit cheaply.

FGN would now be building new power project across the North only with Oil Money from the South.

It's all Oppression of the South Continua....

hence why One Nigeria is a scam

Oga that's not the issue... Some states are doing that already. But when they build power plants with tax payers money, they will have to transfer to the national grid. That's where the madness is!

Decentralize power and I bet you, a state like Lagos would boost of 24hrs power in the shortest possible time.

Raziii:
Oga that's not the issue... Some states are doing that already. But when they build power plants with tax payers money, they will have to transfer to the national grid. That's where the madness is!

Decentralize power and I bet you, a state like Lagos would boost of 24hrs power in the shortest possible time.

That's actually what he's saying here. He said that states were previously prevented from distributing electricity (they had to transfer it to the national grid), but he has studied the law and it does not prevent states from distributing electricity. All they need is a license from the NERC and they can sell directly to consumers instead of transfering it to the national grid.

eyesoflagostv:
STATES FREE TO BUILD OWN POWER PLANTS – FASHOLA
source : http://www.eyesoflagos.com/2017/09/states-free-to-build-own-power-plants.html


“Because as governor, we built seven power plants, government did not stop us; what we could not do is to do commercial distribution which the law actually allows under license through Nigerian Electricity Regulatory Commission (NERC).”

Raziii:
Oga that's not the issue... Some states are doing that already. But when they build power plants with tax payers money, they will have to transfer to the national grid. That's where the madness is!

Decentralize power and I bet you, a state like Lagos would boost of 24hrs power in the shortest possible time.

In fact, based on the fact that states no longer need to inject the electricity they generate into the national grid, Lagos State Government has announced plans to generate 3,000mw and to sell directly to Eko and Ikeja distribution companies (i.e. the electricity generated will not go to the national grid).

https://www.nairaland.com/3631085/ambode-targets-3000mw-24hr-power

naptu2:


That's actually what he's saying here. He said that states were previously prevented from distributing electricity (they had to transfer it to the national grid), but he has studied the law and it does not prevent states from distributing electricity. All they need is a license from the NERC and they can sell directly to consumers instead of transfering it to the national grid.

Oh then that's very good. That's the way to go really. Thanks bro for the clarification

Joel3:
Nigeria is the only country where nothing works. because some poor muslim follow in the northern contraption holding every other people back. they don't have what it takes to move forward and they don't want others that have have it to move forward. the delayed the progress of my people down south.

The summary of the whole truth.

The bigger concern has to do with guarantees? How does the State intend to secure the requisite guarantees required to secure investor commitments?

naptu2:


That's actually what he's saying here. He said that states were previously prevented from distributing electricity (they had to transfer it to the national grid), but he has studied the law and it does not prevent states from distributing electricity. All they need is a license from the NERC and they can sell directly to consumers instead of transfering it to the national grid.

Chai!? Wehdon Sir.

I can see u. U actually understand his message..

Private individuals should also be free to build power plants

naptu2:


In fact, based on the fact that states no longer need to inject the electricity they generate into the national grid, Lagos State Government has announced plans to generate 3,000mw and to sell directly to Eko and Ikeja distribution companies (i.e. the electricity generated will not go to the national grid).

https://www.nairaland.com/3631085/ambode-targets-3000mw-24hr-power

stop fooling yourself. getting licence from NERC is more harder than Biafra succession. how many state that is generating power distributing it at the moment.

nairanaira12:
Private individuals should also be free to build power plants

They are. 31 private companies got licenses to build power plants when Obasanjo was president. Unfortunately they did not build anything. However, since then other companies have taken up the challenge. There's the Geometric Power Plant in Aba and Dangote plans to build a power plant to go with his refinery.

The government has also sold some of its power plants.
https://www.nairaland.com/3820877/privatized-power-companies-nigeria-owners

naptu2:


They are. 31 private companies got licenses to build power plants when Obasanjo was president. Unfortunately they did not build anything. However, since then other companies have taken up the challenge. There's the Geometric Power Plant in Aba and Dangote plans to build a power plant to go with his refinery.

The government has also sold some of its power plants.
https://www.nairaland.com/3820877/privatized-power-companies-nigeria-owners

Which means someone like me can build power plant and probably sell/rent/distribute electricity?

Big Generators?

The distribution grid is the issue for now, if a state is taking off significant portion of its area from National grid it will affect the economy of the existing DisCoy.

Like if Lagos generates power capacity for Victorial Island, will it be distributed through Eko Electricity Plc or Lagos DisCo?

If it's Eko Electricity, that means the distribution problem would still exist.

mrvitalis:
That's was never the issue

State should be allowed to build their own plans and have their own mini grid

Having a mini grid makes little sense. Instead let the national grid prioritize supply to generating states. For example if a state generates 500MW it should be given 80% (400MW) for local use.

nairanaira12:


Which means someone like me can build power plant and probably sell/rent/distribute electricity?

Read this http://geometricpower.com/projects/aba-phase-i/

https://www.vanguardngr.com/2017/01/electricity-geometric-power-generate-1140mw-2017-nnaji/