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The Federal Government has unveiled plans to establish 3 Gigawatts of solar energy sources across 25 states of the federation.
Minister of Power, Adebayo Adelabu, disclosed this at a power sector stakeholders interactive dialogue/workshop organised by the House of Representatives Committee on Power, themed ‘Confronting Nigeria’s Power Challenge as the Nation Migrates to a Multi-tier Electricity Market: A Legislative Intervention,’ on Tuesday.
He explained that the proposed facilities would be established in the North and South West geopolitical zones of the country.
“We have investment proposals for establishing 3 Gigawatts, which is 300 Megawatts of solar energy sources across the 25 states in the North and the South West. This is novel and we believe it will go a long way to solve our power problem,” he said.
While expressing optimism that the approach will go a long way to solve the endemic power problems bedevilling the country, the minister encouraged subnational governments to invest in power generation within their localities.
Adelabu also disclosed Federal Government’s resolve to deploy hydro energy sources to coastal cities.
While noting that most of the infrastructure dates back to 1960s, he affirmed that the country has witnessed incessant collapse of transmission which is caused by lack of adequate infrastructure.
In his remarks, Vice President Kashim Shettima urged state governments to play a leading role in attracting investments into the electricity sector with a view to recapitalise distribution companies, and to ensure a steady flow of investments towards increasing electricity access.
Represented by his Special Adviser on Power, Engineer Sadiq Wanka, said the dialogue was timely as there is widespread recognition that the country is underperforming across all four pillars of providing electricity supply–reliable, affordable, environmentally sustainable and available to all Nigerians.
“Indeed, by some estimates, less than 20% of Nigerians have access to reliable energy for more than 12 hours per day. Fourty five per cent of Nigerians have no access to any form of electricity. As a result, households and industries have been dependent on self-generation that is both more expensive and more polluting.
“The Electricity Act 2023 that was passed by the National Assembly and signed into law by President Bola Ahmed Tinubu seeks to overhaul the structure of the Nigeria electricity supply industry. It proposes a structure that promotes more competition and greater scope for tailoring power solutions to local needs while transitioning to a market structure that would attract much-needed investments and promote environmental sustainability.
“The wholesale structural shift that the Electricity Act 2023 (as amended) and the associated constitutional amendment usher in, means we need to double down on ensuring an orderly transition to the new national electricity market framework.
“Having the power to regulate electricity activities also means there is a need to build the capacity to ensure competent and independent regulators in each state market.
“It means states need to take a leading role in attracting investments to recapitalise distribution companies and to ensure a steady flow of investments towards increasing electricity access.
“While state governments can now regulate all electricity value chain activities within their borders, these new powers come with non-trivial responsibilities.
‘Having the power to set tariff policy within state borders also comes with the responsibility of paying tariff shortfalls and subsidies that emanate from these policies. It comes with the responsibility of state governments to guarantee payments to the national wholesale electricity market,” he said.