FG needs to explore off-grid generation option in 2017
Federal Government need to provide more incentives and clear policies on off-grid generation to ensure more investment in the power sector through off-grid means energy expert have stressed.
Analyst in the energy space insists that to achieve the desired economic growth driven by efficient and inexpensive power supply government needs to encourage investment through implementation of the right policies.
Ayodele Oni, an energy expert observed that the idea of Off-grid generation implies stand-alone power generation system whilst mini-grids are typically power systems/ networks which provide smaller communities such as industrial clusters or residential estates with electricity through independent electricity distribution networks.
Oni maintains that the idea of the mini-grids/ independent electricity distribution networks is to have smaller generators connect to local distribution networks without going through the challenges of connecting to the transmission network. This would enable distribution companies procure lesser volume power and dedicate same to ring-fenced customers who could pay slightly higher price for power supply almost 100 percent of the time.
To him, the concept could also work in a way that factories, industries and production units within a cluster could form a Special Purpose Vehicle with equity and third party financing to construct a small plant (not exceeding 10-20mw) that will sell power to the local distribution company which serves them with the guarantee that a portion of the power distributed is sold exclusively to them.
“As long as many of these plants are gas-fired, challenges; particularly those related to gas, could still slow down things. Hence, plants which utilize renewable sources such as solar may be more appropriate such that beyond by-passing the national grid, one also does not suffer problems underscored by the gas challenge”.
Oni further added that as is always stated by commentators in the power space, the larger the number of persons on a network or co-pulling power, the cheaper same would be and where there is a reasonable number of persons interested in such mini-grid arrangements, the more likely a project is, to be bankable.
Further, there is need to work towards having a SuperGrid which makes it possible to trade high volumes of electricity across great distances. A SuperGrid 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. 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.
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 advantages of a SuperGrid, amongst others, are that it will influence investment decisions at a corporate level and encourage private participation in the power sector. 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.
KELECHI EWUZIE