Analysts advocate guided investment drive to tackles energy crisis
Amid the absence of workable solution to adopt in solving the prevailing power sector hiccups in the country, power sector analysts have harped on the need for Nigeria to seek local solution to her Local power challenges.
They maintained that the idea of adopting power sector models that would serve as an investment guide to promote other sources of energy such as coal; gas; solar and more hydro to deliver on their expectations to resolve the power sector challenges.
Wumi Iledare, Director of Emerald Energy Institute, University of Port Harcourt, Rivers State is of the view that Nigeria as the second largest economy in Africa by GDP need to begin to ensure that anyone who sells Power models to her also incorporate into the model a strategic local institutions to be part of the modelling framework to address the problems so as to make the model framework pragmatic for Nigeria environment.
Iledare observed that the Nigeria’s energy industry compared to emerging economies is still relatively primitive and it would need a proactive NERC to stimulate service delivery.
“NERC must find local solutions to our local problems and depart from this Ideal that if It works in Brazil or Columbia, the same Thing we work in Nigeria”. He said.
He urged the distribution companies (Disco) to invest in meters to collect revenue, which can help to expand the market base and introduce even demand management.
Ayodele Oni an energy expert and lawyer reiterated the need for distribution companies to aggressively step up their collection processes, especially through the installation of pre-paid meters and cutting edge technology to reduce electricity theft.
He observed that the sector already faces a liquidity gap estimated at N1trillion. Meeting this gap through additional investment will be difficult as the industry is currently unattractive to potential investors or even lenders, and increases in tariffs are likely to be incredibly unpopular as consumers have already experienced price hikes. Short of real government intervention it is likely to be a hard year for the power sector.
According to him, “2017 may be the year when the Federal Government will need to reconsider privatisation as the cure to Nigeria’s power woes. The plants that generated power produced a measly 3.9 Mw of power. This is problematic when you consider that the distribution networks themselves are facing high ATC losses.
“I expect to see an increase in captive and other forms of off-grid generation. I also expect to increasingly see a diversification of energy supply” he added.
Chijioke Mama, CEO/Founder of Energy Datar a Lagos-based advisory firm a local solution that would see a power distribution space that is well metered should be encouraged, in addition to an up to date infrastructure and well represented in the expanding solar mini grid space in Nigeria.
KELECHI EWUZIE