NIGERIA – A consortium of Western Investors have committed to invest up to US$5 billion in Nigeria’s power sector with a major focus on renewable energy, Nairametrics has reported.
According Nairametrics The Ministry of Power was currently engaging the Western Investors led by Mr. Ron Verraneult to come up with a framework that will guide the mega investment into the country’s energy sector.
According to Verraneault, the group of investors intends to deliver 1000MW capacity of Hybrid solar power within 24 months and partner in grid infrastructure development across Nigeria.
Nigeria is currently faced by power sector inefficiencies which according to the Ministry of Power cost the country losses of at least US$1.21 billion in the first eight months of the year.
Due to deep-rooted power sector inefficiencies, Nigeria with an installed electricity capacity of 12,000MW, only produces an average of 3000 to 4000MW.
In rare instances it surpasses the 5,000MW mark, a feat that is highly celebrated by the Transmission Company of Nigeria.
This power generation in a country of over 200 million is insufficient to meet demand, creating a scenario of frequent black out and low electricity penetration particularly in the country’s rural areas.
The government has however partnered with Siemens in ambitious project to expand the the country’s national grid capacity to 25,000MW to enhance efficiency in electricity transmission and distribution.
The over US$2 billion project will involve construction of new power substations, installation of new electricity equipment and stations, and extensive upgrades and expansions in both generation, transmission and distribution.
This electricity capacity expansion has been seen by nay stakeholders in Nigeria’s electricity sector as a new era in transforming the sector which has been under performing for decades.
With enhanced capacity and increased efficiency, investment in the electricity becomes attractive to investors and may have played a role in influencing the western investors to inject billions of dollars into the sector.
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