Big win for electricity consumers as DISCOs partner renewable energy companies
New forms of partnerships between electricity distribution and renewable energy companies is set to change Nigeria’s electricity supply industry and consumers will be better off as a result.
One such partnership happened recently when the Benin Electricity Distribution Company (BEDC) took steps towards realigning its power solutions with renewable energy options and as it signed a memorandum of understanding with Colorado-based Rocky Mountain Institute and Rubitec Nigeria Limited to provide mini-grid electricity to its customers.
This will connect all communities in its franchise states without electricity supply. Based on this, BEDC is expected to facilitate the choosing of locations for mini-grid solar power.
With an estimated population of 190 million people approximately 60 million rural dwelling Nigerians still lack access to electricity. It is estimated that over N2 trillion Naira will be required to close the rural electricity access gap, in line with Vision 2020.
In this light, the tripartite MoU agreed by Funke Osibodu, the Managing Director/CEO, BEDC, Bolade Soremekun, Rubitec CEO, and James Sherwood, RMI Manager, at the BEDC head office in Benin, recently, breaks new grounds that benefit consumers.
According to the MoU, Rubitec is expected to construct solar mini-grid facilities within BEDC’s licensed area of coverage, while RMI will provide expertise in developing renewable electrical solutions and advise implementation of a pilot mini-grid in the chosen location.
Funke Osibodu said the initiative was aimed at bridging the service gaps for areas within the company’s network with an existing but poorly supplied or non-functional distribution system or those without an existing distribution system.
Osibodu said the mini-grid initiative was also necessitated by the need to reduce dependency for power supply to customers through the Transmission Company of Nigeria (TCN) source, saying that one community in Edo State would be used as a pilot for the project before it is extended to other locations.
According to her, the project will entail an interconnected mini-grid using BEDC distribution lines in the selected locations to distribute solar power to the residents in the communities who are also expected to sign contract agreement with the suppliers.
The agreement will be completed after the joint visitation by a combined team of BEDC staff and officials of the partnering firms to assess the situation on ground at the locations and determine the feasibility and commencement date of the project.
Bolade Soremekun, CEO of Rubitec said “Collectively, Rubitec and our partners are proud to execute the pilot project to provide more knowledge and insight to the interconnected mini-grid space so as to enable more rapid scaling of the concept and model all over Nigeria.”
The mini grid sector in Nigeria started to develop only recently. Most operators were established in the past five years. Today, eleven private mini grids operate in Nigeria. These mini grids serve about 9,100 people, with a cumulated capacity of about 236kW, according to a World Bank study.
Efforts at developing a legal and institutional framework for mini grids have also just started. In 2017, the Nigerian Electricity Regulatory Commission (NERC) adopted the Regulations for Mini Grids (‘the Regulations’). Also in 2017, the Rural Electrification Fund (REF) issued its first call for expression of interest for off-grid projects; the Fund was established to develop on-grid and off-grid electrification in rural areas, including mini grids, through financial support and technical assistance.
STEPHEN ONYEKWELU