CodeTemplar:
Lekki toll.

CodeTemplar:
Thank you. Solution will be to build a large scaled power plant with good scale of economy to drive down price of the power that will be eventually sold to industries. Another point of note is being careful not to overprice the power sold and therefore kill off businesses with high power cost. Lagos already has the printing industry of West Africa for example and it will be so unwise to choke them off with high power rate.

AZeD1:

I don't get what you mean by large scale power plant with good scale of economy. Power prices doesn't depend on the size of the power station. A gas fired power station would depend on the price of gas so a bigger power station would actually consume more gas.

Also note that the price of power is regulated and set by NERC although I believe Lagos has asked for some relief/exemption to reflect the true cost of production.

Also the Lagos state model is to build small power plants close to were they would be supplying so as to minimize energy loss from the ineffective distribution system we have.

AZeD1:

I don't get what you mean by large scale power plant with good scale of economy. Power prices doesn't depend on the size of the power station. A gas fired power station would depend on the price of gas so a bigger power station would actually consume more gas.

Also note that the price of power is regulated and set by NERC although I believe Lagos has asked for some relief/exemption to reflect the true cost of production.


Also the Lagos state model is to build small power plants close to were they would be supplying so as to minimize energy loss from the ineffective distribution system we have.

CodeTemplar:
Please google çcgt (combined cycle gas turbine) and read it up.


https://en.m.wikipedia.org/wiki/Combined_cycle

CodeTemplar:


The bold isn't true. Research it please. Transmission systems do benefit from scale of economy also.

AZeD1:

Nigeria currently has a Transmission capacity of 7500MW. It doesn't matter if you build power plant of 10000MW or 10 1000MW plants you cannot transmit more than the 7500MW available.

Like I said earlier, cost of power is regulated, so it doesn't matter if you have a big plant or a small one, you would still sell at the same price.

AZeD1:

I know what a combined cycle gas turbine is.

I don't get what you mean by large scale power plant with good scale of economy. Power prices doesn't depend on the size of the power station. A gas fired power station would depend on the price of gas so a bigger power station would actually consume more gas.

CodeTemplar:
Read the OP please. This thread is about Lagos state planning to build up around 3 GigaWatt over the next 5 years. The Transmission of 4 GigaWatt in Lagos is a different ball game entirely to the transmission of 10000MW in 36 states Some states have a single local government as big as Lagos alone. Now do the maths.

AZeD1:


Lagos is not building a new Transmission network, they are working with the two discos (Ikeja and Eko) to utilize their current infrastructure.

deji17:
Eko oni baje o. Whoever plans to destroy Lagos, their vehicle will break down before Ore...For the enemies within, they will travel home but will not it back.

CodeTemplar:
That's because I showed it to you l. If you knew and understood it before you wouldn't have made this comment earlier:

CodeTemplar:
You must be a Cameroonian immigrant to say Lagos will utilize FG infrastructure. That statement is against the run of play in Nigerian politics.
Plus that statement will be a paradox when compared to your earlier submission that a Transmission System of 7000MW can't handle a 10 000 MW load.

CodeTemplar:
You must be a Cameroonian immigrant to say Lagos will utilize FG infrastructure. That statement is against the run of play in Nigerian politics.
Plus that statement will be a paradox when compared to your earlier submission that a Transmission System of 7000MW can't handle a 10 000 MW load.

AZeD1:

Do you know the difference between the infrastructure belonging to TCN and the one that belongs to Distribution companies?

Even the article states that its embedded power.

AZeD1:

Erm no
Power of scale doesn't apply except you don't know the meaning of power of scale.

The price of power is fixed, you are charged based on your consumption not on your buying capability.
Power cannot be stored, so any power not evacuated is lost forever and you cannot get that money again hence power producers would not generate more than necessary.
Also power is kind of a limited monopoly, you are under a particular disco whether you like it or not, its not like regular products that you can change suppliers when you like

I grew up in a power station, there's probably no power station I don't have at least on Engineer friend working.

CodeTemplar:
Embeded Power doesn't mean the ttansmission infrastructure is limitless,l.

TheCabal:
I always ask myself why people are against APC and Buhari/Osinbajo.

Our situation can only get better, from the way policies are designed. It is unfortunate that our security problems, real or stage-managed have received more media time than the strides the government has taken.

If we miss Osinbajo as president after Buhari, due to the religious and ethnic hatred aimed towards the Buhari regime, Nigeria would fall back into PDP's hands and as usual, PDP will provide Nigerians the entertainment they so crave while they loot the coffers dry.

CodeTemplar:
Stop being emotional like a sisi and start being more logical and analytical.

What was the outcome of numerous IPPs in time past? Why did they fail?

CodeTemplar:
Lol . . It is economy of scale and not power of scale brother.

You are so funny.

It is a well known effect of scale of production. It applies to virtually all commercial ventures. Read the CCGT well again and stop being so naive sir.

AZeD1:

Erm no
Power of scale doesn't apply except you don't know the meaning of power of scale.

The price of power is fixed, you are charged based on your consumption not on your buying capability.
Power cannot be stored, so any power not evacuated is lost forever and you cannot get that money again hence power producers would not generate more than necessary.
Also power is kind of a limited monopoly, you are under a particular disco whether you like it or not, its not like regular products that you can change suppliers when you like

I grew up in a power station, there's probably no power station I don't have at least on Engineer friend working.

AZeD1:

Power doesn't follow regular economics.
Other companies can follow economy of scale because consumers would buy e.g I'd rather buy in bulk because its cheaper than individually because its cheaper, but that won't work in power because my power consumption is determined by my appliances.
Would you buy an extra washing machine or put a TV in your toilet because power is cheaper?

YOU CANNOT STORE POWER

CodeTemplar:
Oga please stop misfiring. Power can be stored but it is not so economical on a large scale. That fact is a direct result of negative scale of economy if you grasp it. There are powerful battery cells out there so stops saying power cannot be stored.
What you should have said is that power storage on a large or commercial scale is not yet economical due to technological limitations.

For your info I am a serious power system enthusiast. Stop parading you ignorance by claiming your proximity to power stations will growing up.

CodeTemplar:
What device are you typing from? If it is a mobile device with rechargeable battery, then you just contradicted yourself already with the capitalized part of your post.

SuperS1Panther:


“The overall objective of the gas reform is to open the Lagos gas market to local and international players in order to make the Niger Delta gas less critical to future of Lagos economy (the ultimate goal is to make Lagos State to be fully independent of Niger Delta gas in three to five years,” he said.

www.tribuneonlineng.com/lagos-to-begin-embedded-power-project-in-july-2018/

AZeD1:

Do you know the difference between the infrastructure belonging to TCN and the one that belongs to Distribution companies?

Even the article states that its embedded power.

AZeD1:
Nope you are the ignorant one here.
You are like those people who compared the privatization of PHCN with the telecommunication sector claiming competition would bring down the price.

Now you are claiming economy of scale in power sector forgetting that a tv would consumer 55 watts no matter how much the cost of power is.

It doesn't matter how cheaper you make your power my consumption is limited by my applicances.

Desyner:
Can you explain further sir. How can power usage remain same even at a large scale of generation.?

AZeD1:

If I have only one TV in my house, it doesn't matter how much electricity is sold, I would only pay for what my TV uses.
This is unlike airtime, where if a company does promo I can keep on loading my phone and use the airtime later or cement or any other physical item that can be hoarded. With power, if I don't use it now, it's wasted, so no matter how cheap electricity becomes I would not buy another TV because of that.

In developed countries, power is cheaper at night so as to encourage people to use power during off peak periods which then leaves power for those who need it during the day.

I could decide to use my washing machine by 2pm but the power company would prefer I do it by 11pm so as to reduce the load on their systems during on peak periods and also to ensure their machines are not idling during off peak periods.

Another thing to note is power plants are designed to run non stop and it's more profitable that way so power companies tend to build what they can sell. If demand increases, they'll increase capacity.