Kasim Sumaina in Abuja
The Nigerian Institute of Electrical and Electronic Engineers (NIEEE) has expressed worry over the persistent crisis in the Nigeria Electricity Supply Industry (NESI) and has called for a redesign of market rules to address issues of reliability and market imbalance in the sector.
President of the Institute, Felix Olu, in a communique issued at the end of the institute virtual meeting, hinted that the problems in the power sector were systemic.
According to him, there is no strict compliance with rule-based market design with strong penalties for defaulters.
He said: “Problems within the power sector include: transmission infrastructure capacity; inefficient quality service; ageing equipment; lack of spare parts; dearth of technical manpower; use of radial networks as against modern network topologies, the unwillingness of distribution companies (Discos) to accept loads; the private investor’s reluctance to invest in the power businesses and astronomical aggregated technical and commercial losses.
“The Electricity Act 2023 is silent on the handling of excess or insufficient power from the individual states and is not explicit on assigned roles for the TCN.
There is no certainty if deregulation of the power sector using end-to-end enterprise communication models solution (such as IoT and AI) is being considered.”
He explained that accurate nationwide electricity demand is yet to be determined.
“NERC has not effectively enforced its statutory role of regulating Discos. Asset sharing may create friction between the States/Private investors and Discos, in view of the new provisions of the Electricity Act 2023.
“The impact of the new Presidential Power Initiative Agreement (Siemens Contract) remains uncertain, despite ongoing investments in NESI. Nigeria’s abundant gas resources have yet to be effectively and adequately harnessed to boost electricity generation and distribution, towards enhancing economic activities and national prosperity.
“There is no clearly defined robust road map for a sustainable bankable power supply programme. The involvement of professional bodies in the unbundling processes and in the entire Power Sector is generally poor. The NIEEE as a professional body is politically neutral; but it is concerned with the perennial power supply problems. The sector involves both technical and economic/commercial issues for reliability and sustainability. NIEEE is willing and ready to support the government in finding lasting solutions to the sector’s challenges. Recommendations: the following recommendations were made for the attention of government and other handlers of the sector: There should be willingness and commitment by the authorities to sanction defaulting parties in the NESI.”
Olu explained that power industry reforms should enlist deep participation of every sector of the economy from the planning stage. “Bottlenecks experienced in Smart Prepaid Meter acquisition and deployment must be removed, including the engagement of local meter manufacturers. Deployment of Smart Prepaid Meters to customers, by Meter Asset Providers (MAP), must be strictly in compliance with relevant statutory regulatory instruments. Technical auditing of all power infrastructure and assets in Nigeria (Gencos, Transco & Discos) must be carried out. Drastic reduction of distribution (ATC&C) and transmission losses to 10 per cent and five per cent respectively by 31st December, 2024 must be achieved,” he added.
He said there must be massive investment in manpower development in the sector and that here should be massive deployment of alternative sources of (renewable) energy in rural communities (including the exploration and use of the run-off river bodies for small hydropower schemes).
He called on government to set up a high-powered technical committee to review the unbundling proposal/policy and draw a workable, homemade road map.
“Technical analysis of TCN unbundling should be handled by team of experienced technocrats which must include engineers.The unbundling of TCN should commence after the “The bid for the unbundled entities should only be open to tested and seasoned investors. The NIEEE commends the States where Electricity Laws have been enacted.
“All States should not only do same, but also identify potential sources of energy including renewable energy using experienced consultants in the sector as well as certified professionals. Clearly defined roles, obligations, and responsibilities must be assigned to each participant in the NESI. Possibility of exporting and importing electricity within the states and national grid must be made easy and seamless,” he said.
Continuing, he opined that wheeling capacity for both transmission and distribution segments must be considerably improved. Review of domestic gas infrastructure available for the sustainability of thermal power projects must be carried out.
“There should be regular stakeholders meeting between System Operators, Market Operators, Gencos, Transcos, Discos and Regulators. Regulatory authorities should enforce compliance, by Gencos, Transco, and Discos, in their daily operations, the use of relevant codes, standards and regulations, in line with the Nigerian Electricity Supply Industry (NESI) requirements.
“There should be sustained synergy and interface between the Honourable Minister, the Ministry of Power, and professionals as represented by the Nigerian Institute of Electrical and Electronic Engineers (NIEEE) in an advisory and consultative mode.We call for professionalism in the electricity market. Without professionalism, there can be no way forward. Engineering experts and Market design professionals are needed to chart the way forward.
Olu noted that observations and recommendations aim to address critical issues within the Power Sector and pave the way for sustainable improvements and that the NIEEE remains committed to supporting the Government in finding lasting solutions to the sector’s challenges.
