1,653MW Power Generation Licences Risk Cancellation

  •  Niger, Benin Republics pay $159m electricity debt to Gencos, TCN

 Chineme Okafor in Abuja

About nine electricity generation permits to add 1,653 megawatts (MW) to the grid could be revoked by the Nigerian Electricity Regulatory Commission (NERC) for failing to be put to use or were not renewed after 10 years of their issuance, THISDAY has learnt.

THISDAY gathered from the list of the generation and distribution permits issued in the past by the NERC to operators and would-be investors in the country’s privatised electricity market that while a good number of the generation permits issued so far have largely remained idle and some of them renewed, these nine have either expired or would soon expire with their owners yet to renew them.

The findings also came at time the Nigerian Bulk Electricity Trading Plc (NBET) disclosed that two countries – Niger and Benin Republics who owe electricity companies in Nigeria millions of dollars in electricity debts have paid $159,773,116.61 which is part of the total debt to it, with a balance of $92,315,986.20 still being owed.

According to the NBET, the payment was for electricity generated and transmitted to the two countries through their respective electricity agencies – Société Nigérienne d’Electricité (NIGELEC) and Communauté Electrique du Bénin (CEB).

The list of power generation licences holders however indicated that NERC might have cancelled two licences which were not renewed by their owners when they expired in April.

The licences included a 90MW generation license held by Anita Energy Limited which was to be sited in Agbara area of Lagos, as well as another 90MW licence held by Bresson A.S. Nigeria Ltd for an on-grid generation project in Magboro, Ogun State.

The list also showed that between May and September 2017, another set of licences would be up for revocation by the regulator if their holders fail to renew them.

On this list are three generation licences held by First Independent Power Co. Ltd for 95MW capacity power plant in Eleme, 150MW capacity plant to be sited in Omoku, and 136MW plant at Trans-Amadi, all in Rivers State.

Others include a licence held by Ibafo Power Station Ltd for the construction of an on-grid 200MW plant in Ibafo, Ogun State, a 150MW license of Hudson Power Station Ltd for its plant in Warawa, Ogun State, as well as Shell Petroleum Development Co. Limited generation licence for 642MW Afam VI plant in Afam, Rivers State.

A 100MW power generation license held by Agbara Shoreline Power Co. Ltd would also be up for revocation in September the list further showed. The project is planned to be sited in Agbara, Lagos State.

Meanwhile, the NBET told operators in the power sector at their last monthly meeting in Jos, that the payments made by NIGELEC and CEB have been duly remitted to the generating companies and service providers who provided the generation and transmission services to them.