Minister of Power, Adebayo Adelabu, yesterday reiterated that the recently signed Nigerian Electricity Act, 2023, will play a fundamental role in transforming the power sector. He said it will unlock the potential of the energy mix and promote the integration of renewable energy technologies into the grid system.
He spoke at the ongoing Nigeria Energy conference and exhibition in Lagos. According to him, the Act aims to create an environment that supports sustainable growth and investment in the power industry by focusing on accelerated private investment and the promotion of renewable energy sources.
“As a game-changer that reformed the NESI, the Electricity Act will, undoubtedly, engender increased access to electricity and regulatory oversight, clean energy transition, improved service delivery, and infrastructural developments. In particular, the act will stimulate economic growth by creating a conducive environment for investment and competition. It will generate job opportunities, encourage entrepreneurship, and attract foreign direct investments,” Adelabu said.
He called on operators in the power sector to intensify their efforts towards improving communication with the general public, emphasising that the Nigerian masses have a lot of roles to play in safeguarding power infrastructure.
According to him, issues such as vandalism, passing of meters, and damage to TCN and DisCo infrastructure must be addressed holistically to make significant gains in the power sector. Adelabu emphasised that the power sector is a cornerstone for economic growth in the country and that the gains made over the years in the power sector can only be consolidated by unlocking equity investments and funds for power development.
He said: “Of course, a lot of investment is required in the power sector. In three weeks, I’ve seen humongous investments that have come into this sector. But what are the steps that are required for those investment opportunities to reap the benefit of those investments, additional investments in the form of equity and capex need to come into this industry.
“The power sector is not an industry for short-term players to invest in less than two to three years and expect to make maximum benefits. The industry requires medium to long-term investments. Investors must understand that the moment we can break even, we will start making profits in the power sector,” he said.
Adelabu also urged operators in the NESI value chain to improve their service delivery, adding that Nigeria’s energy expansion plan of 60,000 Megawatts by 2060 is an achievable target. He therefore called on gas companies, GenCos, TCN, and DIScO to showcase their success stories in generating and transmitting power to the last mile that pays for all the segments of operators in the value chain. He emphasised that it is not enough to generate power, but also to transmit at least 80 per cent of what is generated to the end users of electricity.
Source: https://thenationonlineng.net/electricity-act-will-transform-power-sector/