Investment in super grid as option to boost power sector growth
Nigeria the second largest oil producer in Africa may have marked her 56 Independence anniversary over the weekend, what is however obvious is the fact that the country’s power sector still grapples with infrastructure challenges as it concern national grid.
It is against this backdrop that industry stakeholders observes that such efforts glaring challenges and subsequent efforts by government to address it may not seen the light of the day unless it create a incentivised investment climate that will support the development of super grid.
A SuperGrid is a wide area transmission network that makes it possible to trade high volumes of electricity across great distances.
Industry operators advocate that with support of the government through the right policy to aid investment, the power sector is expected to be a prime beneficiary of this idea post independence celebration.
Ayodele Oni, a specialist in international energy investment law & policy observe that method will normally connect electric power plants and major substations, while ensuring that electricity of various forms and frequencies, generated in one place can be utilised by persons elsewhere.
He insists that for a successful functioning of the SuperGrid in Nigeria, a major technology upgrade is required to guarantee its realistic operation and an assured benefit to its beneficiaries saying that there is need to work towards having a SuperGrid which makes it possible to trade high volumes of electricity across great distances.
The energy expert maintains that the development of the SuperGrid will positively influence investment decisions, change perception of market opportunities and also ensure coordination between governments, regulators and licensees.
“The SuperGrid network will reduce wastage, as surplus energy not used but produced can be transmitted or transported to other areas where they can be utilised by other persons. Without a SuperGrid, it will not be possible to take advantage of the large amounts of energy that may be obtained from alternative sources of renewable energy such as wave farms, tidal lagoons and concentrated solar power”. He said.
Oni further observes that among the other advantages of a SuperGrid are that it will influence investment decisions at a corporate level and encourage private participation in the power sector.
“These sources of renewable energy, although they can be quite remote, can also be produced large scale and this will assist in a mass transmission of electrical power to more people who need to utilise such power”. He added.
Analysts maintain that to adequately reach the capacity of the power plants and meet the distribution needs of end users, it is germane that the generation, transmission and distribution equipment are updated to meet international industry standards which SuperGrid is pose to solve.
In the opinions of not a few industry players, the current administration needs to do a lot to improve the ease of doing business in Nigeria by not just speaking, but taking decisive action that would ensure that foreign direct investment does actually find its way easily in Nigeria and have the clarity and certainty of government policy amongst other vital ingredients of ensuring that business can be very easily done in Nigeria.
They maintain that irrespective of the role played by the private sector to improve power supply, it is pertinent that the Federal Government of Nigeria and State Governments too, also invest in improvement of road infrastructure. Alternative transportation modes like the cable cars being developed may serve as a plausible means of transporting the LNG or compressed natural gas”.
Analysts believe that with investments in the electric power sector, especially by foreign investors, capable of boosting investor confidence and triggering improved liquidity which helps cushion the effects of the current recession.
KELECHI EWUZIE