Energy

Grid collapse: CBN earmarks N104bn to stabilise electricity supply

The Minister of Power, Abubakar Aliyu, has said that the Central Bank of Nigeria (CBN) has provided N104 billion ($250 million) for the rehabilitation and strengthening of critical transmission and distribution infrastructure interfaces to increase and stabilize electricity supply in the country.

According to the minister, the $250 million project being funded by the CBN was in addition to the Siemens Presidential Power Initiative (PPI) which was expected to bring in additional $2billion to the national power grid.

He said: “It is almost $4 billion secured by this administration to augment the Grid. It should be noted that many of these funds are being actively spent and the results will be felt over time.

“The interface projects along others already being embarked upon by TCN brings ongoing projects in the transmission segment alone to 135 ongoing projects with 30 completed key Substation Projects and 12 transmission Lines.”

Speaking on the development, the Market Operator at Transmission Company of Nigeria (TCN), Edward Eje, who noted that the project was aimed at providing quick solutions at transmission/distribution interfaces experiencing challenges said: “It is a laudable measure to achieve a seemless and a hitch-free power transmission from the Transmission Stations to the Distribution network.”

On his part, the Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Company (NBET), Dr. Nnaemeka Eweluka, stated that CBN was able to identify critical projects that if quickly addressed, would restore normalcy.

“The CBN is working with TCN and the DisCos. CBN basically asked what are those critical projects that if they are addressed today can quickly yield results in the sector. This is even as the Federal Government government is doing this Siemens project and TCN is implementating the report, what are those critical projects that if they are done today, will unlock additional megawatts quickly.

“And so the DISCOs and TCN worked together to come up with a list of some critical projects and I can’t be specific on the amount, maybe we can furnish that subsequently but that is what is happening. CBN decided to find those critical interventions so that there could be some quick wins even as the bigger project is being implemented,” Eweluka said.

However, an energy expert, Bode Fadipe, who maintained poor liquidity was a fundamental issue in the power sector, noted that the gains of the DisCo/TCN funded interface project was huge, adding that it would help to bring more load into the national grid to enable more people receive electricity for use.

The Star