Ariria Market gets 9.5MW embedded generation licence

The Nigerian Electricity Regulatory Commission (NERC) has granted a 9.5megawatts embedded electricity generation and Independent Electricity Distribution Licences to Ariaria Market Independent Power Plant Limited.

The licences, issued in line with Section 71(6) of the Electric Power Sector Reform (EPSR) Act 2005 were granted after careful consideration of the applications in public interest to promote access to common goods and to promote commercialisation and industrialisation for which Ariaria, a leading commercial hub in the country is reputed for.

The Commission said in a statement on Tuesday that the licences granted to Ariaria were affirmation of the Commission’s commitment and response to the long-time yearnings of the market for a stable, reliable and sustainable electricity supply to improve quality of goods and services by Nigerian enterprises and entrepreneurs.

‎Chuks Nwani an energy Lawyer told BusinessDay that the development would support small and medium scale industries in the area,such as those manufacturing shoes,bags and other ancillary items.

He suggested a situation where the government would provide a subsidy for Gas to enable the power to be cheaper for the industrialists which would enable their products compete fairly both within and outside the country.

“The cost of production could be made cheaper if there is a a form of subsidy for the Gas production .As at now,they have not agreed on what the cost of Gas is by NERC. NERC should ensure that this parties should have a firm power purchase agreement to have a fixed price,” Nwani adds further.