Answer to our current energy crisis is Hydrogen.

It is highly combustible, cheaper to generate and distribute. It is non-toxic; hence, the use of Hydrogen as alternate source of energy automatically solves Global Warming Problem.

OrlandoOwoh:

If the process is not good then privatization in Nigeria is a charade and should be done away with. Who are the people that bided and got the DISCOs? Does the release of billions by the FG to DISCOs it claimed it privatized the power sector not defeat the aim of privatization.

I believe the billions represent FG's liabilities.

If this power issue can be fixed, I believe the incoming would have gone a long way to reduce poverty to a minimum.

I no come here to read all this long article, all I need is improvement, all these stories no go take us anywhere, just give us atleast 18hrs of light daily or see my pvc in action next 4yrs

@shellboy, gas still remains the cheapest energy source we can use to power turbines. World over it is the norm. In Nigeria it is a logistic problem. If generating companies can invest in gas storage facilities, it can enhance their productivity.

EnergyWA:


How will this work? Many barely get enough to run their generators.

They already receive gas through the pipeline, its just that it is not reliable. Why not invest in a storage facility that can serve as backup.

OrlandoOwoh:

If the process is not good then privatization in Nigeria is a charade and should be done away with. Who are the people that bided and got the DISCOs? Does the release of billions by the FG to DISCOs it claimed it privatized the power sector not defeat the aim of privatization.

As things stand, tariffs are not enough to cover the cost of running Discos and Gencos. That is why the government gave a loan over ten years at 10% interest rate to stabilise the market.

veuttoutlemonde:


They already receive gas through the pipeline, its just that it is not reliable. Why not invest in a storage facility that can serve as backup.

The problem is there will be nothing to store. An investor would want to be sure of the benefits of a project before carrying it out. i do not think it pays anyone to pour money into a gas plant just for storage.

I luv 'cluelessness'=transformation
i hate 'change'=#onechance

EnergyWA:


The problem is there will be nothing to store. An investor would want to be sure of the benefits of a project before carrying it out. i do not think it pays anyone to pour money into a gas plant just for storage.

Improving the generation capacity without adding new turbines will help the economy in the short term. New turbines take time to take off even excluding civil works. I think solutions are needed to run the existing turbines at full capacity without the encumbrance of poor gas supply.

veuttoutlemonde:


Improving the generation capacity without adding new turbines will help the economy in the short term. New turbines take time to take off even excluding civil works. I think solutions are needed to run the existing turbines at full capacity without the encumbrance of poor gas supply.

That is why we must solve the problem with gas.

Best topic, best op, best write up, on nairaland. God bless the op


I pray say one of buhari's aides go dey read am ooooo.


Buhari do electricity and watch me vote for ur 2nd term even. If u r 100 yrs old sef I go vote

EnergyWA:


That is why we must solve the problem with gas.

Do you mean using another energy source? Gas remains the cheapest to use in a Nigerian environment where it is abundant. Poor gas supply is a logistic problem which can improve. Total pipeline surveillance is an expensive business. Mind you all the gas guzzling power generating companies already have a form of storage or holding chamber, but it is not enough. They need to invest in bigger storage that can hold more than 3 months of gas requirement.

eazisky:


Not really, he'll always send someone

i like ur respnse but we dnt knw if d president elect is being sent by God,dats y we shuld pray for anyone dat God chooses as our leader

veuttoutlemonde:


Do you mean using another energy source? Gas remains the cheapest to use in a Nigerian environment where it is abundant. Poor gas supply is a logistic problem which can improve. Total pipeline surveillance is an expensive business. Mind you all the gas guzzling power generating companies already have a form of storage or holding chamber, but it is not enough. They need to invest in bigger storage that can hold more than 3 months of gas requirement.

I mean, solve the challenges faced with gas..

Stable power is prime in the development of Nigeria.
Hoping the new administration will get it right.
Amen!

EnergyWA:


As things stand, tariffs are not enough to cover the cost of running Discos and Gencos. That is why the government gave a loan over ten years at 10% interest rate to stabilise the market.

For tariffs to rise, they need to show that we can have 24 hours electricity supply and we subsequently apply our savings from not purchasing fuel to paying electricity bills. What we have now is people looking for risk free business models. They want to supply 2 hours of light daily and expect the customers to pay enough for that 2hrs to cover their staff costs and turn them a profit. Give me 24hours electricity supply and I won't mind doubling my current electricity bill. But don't double the bill and give me 2hours.

It's d same scenario we are having with the oil marketers. They are bearing zero risks. Government pays exchange rate differentials, they pay bank interests on loans collected by the marketers and the marketers keep all the profit.

Look at them. They are talking of gas, this and that but did not bother where the gas is gotton from. All they will say is we are one country besides, they form minority. There is nothing they can do even if we take every thing from them. Idiots, you people cannot continue to take away the gas and oil and jubilate. The time is near when it will stop. By then we would have gone our ways

deletrue:
Look at them. They are talking of gas, this and that but did not bother where the gas is gotton from. All they will say is we are one country besides, they form minority. There is nothing they can do even if we take every thing from them. Idiots, you people cannot continue to take away the gas and oil and jubilate. The time is near when it will stop. By then we would have gone our ways

The gas is gotten from the earth. It's not your father or your father's father that put it there. So stfu

chemali:


For tariffs to rise, they need to show that we can have 24 hours electricity supply and we subsequently apply our savings from not purchasing fuel to paying electricity bills. What we have now is people looking for risk free business models. They want to supply 2 hours of light daily and expect the customers to pay enough for that 2hrs to cover their staff costs and turn them a profit. Give me 24hours electricity supply and I won't mind doubling my current electricity bill. But don't double the bill and give me 2hours.

It's d same scenario we are having with the oil marketers. They are bearing zero risks. Government pays exchange rate differentials, they pay bank interests on loans collected by the marketers and the marketers keep all the profit.

Currently the tariffs are lower than cost even with epileptic power. For power to improve significantly, tariffs will have to rise. But i agree that most people will not accept it unless they see visible improvement in power.

Akposkool:
You know it's surprising to know that we give Ghana electricity and that company doing the supply to Ghana is in sapele delta state where I live. Do you know that sapele light is being rationed and the situation is so bad? This company is in the town, they give other countries steady light and the community where they operate is suffering. I think something must be checked. It is either the community collected collateral in cash, or the company signed an undertaking. The Nigerian electricity has been a subject of debate for like ever. I won't be surprised if it doesn't change but I will be disappointed if it doesn't improve. Nigerian government must wake up because we can't depend on just oil. We must diversify our economy and the major force to do that us stability of electricity. Thank you

go get your facts right. The only thing Nigeria in terms of power generation is gas. Of which the Nigerian gov has not met supply demand over the years

EnergyWA:


Currently the tariffs are lower than cost even with epileptic power. For power to improve significantly, tariffs will have to rise. But i agree that most people will not accept it unless they see visible improvement in power.

No... For power to improve significantly, the players will need to invest significantly and then can raise tariffs. Every business is a risk. They should stop looking for risk free business. The demand is certain, it's the supply that's not certain. The demand is technically inelastic. They should just make the damned investment.

deletrue:
Look at them. They are talking of gas, this and that but did not bother where the gas is gotton from. All they will say is we are one country besides, they form minority. There is nothing they can do even if we take every thing from them. Idiots, you people cannot continue to take away the gas and oil and jubilate. The time is near when it will stop. By then we would have gone our ways

The gas is doing more harm in the area it is flared. I think its better evacuated to power the turbines.

EnergyWA:


Currently the tariffs are lower than cost even with epileptic power. For power to improve significantly, tariffs will have to rise. But i agree that most people will not accept it unless they see visible improvement in power.

The people cannot be responsible for their inefficiencies. Rise in bills will stiffle the economy more.

chemali:


No... For power to improve significantly, the players will need to invest significantly and then can raise tariffs. Every business is a risk. They should stop looking for risk free business. The demand is certain, it's the supply that's not certain. The demand is technically inelastic. They should just make the damned investment.

If you create a free market for gas production, which i think is needed to improve gas efficiency then generators will incur more cost as gas prices are likely to increase which will translate to tariff rise.

If you involve Transcos, access charge to lines will probably increase, that will be passed to consumers.

That is why regulation is required to keep changes moderate.

@ OP,

God bless you!!!!!

you gave a well articulate, organized and experience information on the power sector.

Tts seems you are a profesional and highly resourceful.


This is the kind of brains Nairaland needs, not the usual bashing,tribalistic, and protection-seeking threads.

I wish GMB can have S.A on youth and info who will be a nairalander , cos this is where you get the pulse of Nigerians

veuttoutlemonde:
The people cannot be responsible for their inefficiencies. Rise in bills will stiffle the economy more.

It is not necessarily as a result of inefficiency (ofcourse they have their inefficiencies), there are still many challenges to those in the system.

chemali:


The gas is gotten from the earth. It's not your father or your father's father that put it there. So stfu

Damn too elementary to attract my response.

AWONEYAN:
@ OP,

God bless you!!!!!

you gave a well articulate, organized and experience information on the power sector.

Tts seems you are a profesional and highly resourceful.


This is the kind of brains Nairaland needs, not the usual bashing,tribalistic, and protection-seeking threads.

I wish GMB can have S.A on youth and info who will be a nairalander , cos this is where you get the pulse of Nigerians

Thank you, sir..

God bless you too

EnergyWA:


If you create a free market for gas production, which i think is needed to improve gas efficiency then generators will incur more cost as gas prices are likely to increase which will translate to tariff rise.

If your involve Transcos, access charge to lines will probably increase, that will be passed to consumers.

That is why regulation is required to keep changes moderate.

Creating a free market now will only result in further impoverishment of Nigerians. The income of an average nigerian cannot meet the demands of a free market. You need to grow production capacity by making investments. This growth will then translate to a rise in income. As income rises, the market can then be liberalized gradually which will somehow maintain the status quo (the rise in income won't make us richer, neither will the rise in prices make us poorer).

In my own opinion, the investment should come first and then prices can rise. Regulation should be tight as we go through these transitions. The challenge as you have put it though is government doesn't want to subsidize and private companies don't want to invest until they have a price guarantee. My advice is the private companies should step aside for other companies willing to take the risk. Dangote is investing in a refinery today, yet the downstream sector is corruption riddled and market is heavily subsidized. However, without doubt, he would turn a profit when it comes on stream because the demand is there. The market will one way or the other adjust to meet his price.

This opinion doesn't take into account the man made sabotage caused by vandalism. The solution to this is political and I hope the change we've ushered in will drive this.

chemali:


Creating a free market now will only result in further impoverishment of Nigerians. The income of an average nigerian cannot meet the demands of a free market. You need to grow production capacity by making investments. This growth will then translate to a rise in income. As income rises, the market can then be liberalized gradually which will somehow maintain the status quo (the rise in income won't make us richer, neither will the rise in prices make us poorer).

In my own opinion, the investment should come first and then prices can rise. Regulation should be tight as we go through these transitions. The challenge as you have put it though is government doesn't want to subsidize and private companies don't want to invest until they have a price guarantee. My advice is the private companies should step aside for other companies willing to take the risk. Dangote is investing in a refinery today, yet the downstream sector is corruption riddled and market is heavily subsidized. However, without doubt, he would turn a profit when it comes on stream because the demand is there. The market will one way or the other adjust to meet his price.

This opinion doesn't take into account the man made sabotage caused by vandalism. The solution to this is political and I hope the change we've ushered in will drive this.

If power improves significantly, there will be a ripple effect felt through out the economy, more jobs and better standard of living. The regulator can ensure that the pains are not felt as the power rises, so an increase can be phased.

Investors are moved mainly by the prospect of profit, nothing else. The market must be made attractive for them.

EnergyWA:


If power improves significantly, there will be a ripple effect felt through out the economy, nore jobs and better standard of living. The regulator can ensure that the pains are not felt as the power rises, so an increase can be phased.

Investors are moved mainly by the prospect of profit, nothing else. The market must be made attractive for them.

Exactly... There would be ripple effect which means guaranteed profits as demand will rise both by individuals and by industries. The profit is certain. It's just the timing. Nigerians want their profits by the next financial year after making the investment. Electricity is not that kind of investment. You may not turn a profit until 3 years.
However, if that's what's needed to get me 24hrs of electricity, then raise the prices. I've not seen an electricity price increase strike before.

The problem is actually multifaceted. Price increases is just one of it.