The federal government disclosed Tuesday that it may no longer provide financial bailouts for power generation companies (Gencos) in Nigeria, and will no longer augment their financial shortfalls, adding that the companies must now go out of their way to get customers and sell power generated to them directly under the new eligible customers’ scheme. It said it would no longer cover the financial shortfalls incurred by the Gencos, adding that it will ultimately exit the monthly payments which it covers for the Gencos under the N701 billion Payment Assurance Guarantee (PAG) initiated by the Nigerian Bulk Electricity Trading Plc (NBET) to help cushion the revenue shortfalls on the Gencos’ books.
The PAG was set up in 2017 by the NBET to, among other objectives, mitigate the financial constraints of the Gencos, which as a result of the poor remittances from power distribution companies (Discos), do not get enough money for the power they generate and send to the grid. Speaking at a workshop on the eligible customer regulation organised by the Nigerian Electricity Regulatory Commission (NERC) in Abuja, the Permanent Secretary in the Federal Ministry of Power, Works and Housing, Mr. Louis Edozien, said the Electric Power Sector Reform Act (EPSRA 2005) never intended that the government would continue to pay for shortfalls incurred in the electricity market by operators.
FG commissions N146m Torankawa grid solar power in Sokoto – Daily Trust
The federal government has commissioned a 60 kilowatts (kW) grid-connected solar power plant in Torankawa community of Sokoto state worth N146 million. The Acting Director, Department of Renewable Energy and Rural Power Access at the Federal Ministry of Power, Works and Housing, Engr. Faruk Yabo Yusuf said the plant will provide uninterrupted electricity supply to 350 households with 1,750 people benefitting from it.
“It’s the first of its kind in Nigeria because all other solar projects are an off-grid project,” Yusuf said, adding that the plant which connects to the national grid was a pilot to test the Mini Grid Regulation launched by the Nigerian Electricity Regulatory Commission (NERC) in 2017. He said the plant delivered in three months also provides power to 20 small businesses, five mosques, community irrigation farm and with 50 street lights. It was funded under the Renewable Energy Micro Utility (REMU) project with proceeds from Nigerian Sovereign Green Bond issued in 2017.