General
NCDMB, Bayelsa Sign Power Purchase Agreement
By Adedapo Adesanya
The Nigerian Content Development and Monitoring Board (NCDMB) and the Bayelsa State Government have signed a Power Purchase Agreement (PPA) for the delivery of electricity from the 10 megawatts gas-fired independent power plant constructed by the NCDMB in partnership with the Nigerian Agip Oil Company at Elebele, Bayelsa State.
The agreement was recently signed in Yenagoa by the Executive Secretary of NCDMB, Mr Simbi Kesiye Wabote, and the Attorney General and Commissioner of Justice of Bayelsa State, Mr Biriyai Dambo and was witnessed by Governor Douye Diri.
The power plant alongside the 17-storey Nigerian Content Tower (NCT) was commissioned by President Muhammadu Buhari on August 14 2020. It was conceived to supply uninterrupted power supply to the NCT, the Oil and Gas Park being developed by the Board at Emeyal 1, Ogbia Local Government Area in Bayelsa State.
In a bid to maximize the utilisation, the board entered into an agreement with the Bayelsa State Government to also supply uninterrupted electricity to key facilities of the state which would be paid for as specified in the PPA.
Speaking at the event, the Executive Secretary noted that the terms of the Power Purchase Agreement would ensure that the power plant would operate on a sustainable basis with the settlement of obligations to the gas suppliers, operation and maintenance contractors, purchase of spare parts and consumables required for timely maintenance.
He noted that “the power supply is not free as all users including NCDMB are expected to make pre-payment deposit for their power requirements just as required by our gas suppliers.
“We were required to make up to six months’ deposit with the Gas Aggregation Company Nigeria before we got the gas supply to the power plant. We believe there will be no default from any party that will trigger unpleasant outcomes in the sustainability of the power plant operations.”
Mr Wabote described the occasion as a major milestone in the collaboration between NCDMB and the Bayelsa State Government, adding that the importance of a reliable power supply to enhance the efficient operation of government activities cannot be overemphasised.
He added that the event also provided a form of inspiration to all Bayelsans that it is possible to provide a reliable power supply to the entire state considering the abundant gas resources available in the state.
On his part, Governor Diri in his comments noted that the state is blessed with abundant gas resources as well as other energy resources, which had been largely under-utilised, stressing that his administration was determined to utilize the resources of the state for the benefit of the people.
He commended the NCDMB management and other partners that made the agreement possible and charged on private investors to explore the abundance of natural gas in the state, assuring that the government was ready to partner with such investors to make power and other amenities available to the people.
By Dipo Olowookere
A $15 million debt facility has been obtained by Watt Renewable Corporation from the AfriGreen Debt Impact Fund to finance hybrid solar power plants to be built and operated by the former, especially in Nigeria.
WATT intends to use the projects to serve commercial and industrial clients in Nigeria, particularly in the telecommunication and financial services sectors.
By integrating solar hybrid solutions, the firm aims to significantly reduce diesel consumption and CO2 emissions, enabling its clients to achieve substantial energy cost savings while promoting environmental sustainability.
As a pioneer in renewable energy solutions, WATT continues to drive innovation in Nigeria’s energy sector.
The company’s robust roll-out plan includes deploying hundreds of hybrid solar power sites nationwide to meet the growing energy demands of commercial & industrial clients.
This strategic expansion aligns with WATT’s vision to revolutionize energy access across Africa, enabling sustainable development and reducing reliance on fossil fuels.
The funds from AfriGreen provide the critical capital needed to accelerate WATT’s ambitious projects, strengthening its market position and empowering businesses with reliable and affordable energy solutions.
Business Post gathered that to mitigate the currency risk for WATT in the event of devaluation of the Nigerian Naira, AfriGreen is offering a local currency facility that matches the payment structure of the power purchase agreements.
“We are thrilled to partner with AFRIGREEN on this transformative journey to expand reliable and sustainable energy solutions across Africa.
“With this support, it enables us to accelerate our shared mission of providing hybrid solar power to businesses, reducing carbon emissions, and supporting economic growth while enhancing energy security for our clients,” the Managing Director of WATT, Mr Oluwole Eweje, said.
“We are delighted to support WATT in rolling out hundreds of hybrid sites across the country.
“This represents another key transaction for AFRIGREEN in Nigeria. The combination of high energy prices, good solar irradiation, and strong demand from industrial and commercial energy users makes this market particularly attractive for companies like WATT.
“By leveraging these favourable market conditions alongside WATT’s exceptional operational performance and a well-structured financing solution, we are setting the stage for a strong and lasting business partnership,” the Managing Director of AfriGreen, Mr Alexandre Gilles, stated.
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has denied issuing a directive that gas supply to power generating companies (GenCos) be halted.
In a statement on Wednesday, the authority also denied instructing wholesale gas suppliers to stop further supply of gas to companies due to failure in payment obligations.
The NMDPRA described reports stating that it has directed the stoppage of gas supply to GenCos over N2 trillion debt as “false and completely unfounded”.
“It has absolutely no bearing on the information shared at a recent stakeholders’ engagement held in Lagos between the Authority, the OPTS, IPPG and other stakeholders in the oil and gas industry,” the NMDPRA said.
“The purpose of the engagement was to sensitise stakeholders on the requirements, opportunities and benefits associated with the implementation of the wholesale supply license as provided by sections 142 and 197 of the Petroleum Industry Act (PIA) 2021.
“It was a follow-up to an earlier stakeholder engagement held at the NMDPRA corporate headquarters in Abuja on November 27, 2024.
“The Authority wishes to reassure all our stakeholders and indeed the general public that at no time was the false statement made at that event and anywhere else, and are advised to completely disregard the publication as every effort is being made to ensure that the supply and distribution of natural gas and petroleum products to end users is seamless and unabated as we head into the festive season and indeed all through the coming year 2025.”
Recall that Nigeria’s national grid experienced another collapse on Wednesday, the 11th time in 2024 as Gencos couldn’t generate enough power, compounding issues facing the Nigerian power sector.
This was the first time in over a month as the last time the nation witnessed a nationwide shutdown in electricity supply was on November 7, 2024.
Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.
By Aduragbemi Omiyale
Nigeria is currently experience a cut in power supply after the national grid collapsed for the 11th time in 2024.
This is the first time in over a month as the last time the nation witnessed a nationwide shut down in electricity supply was on November 7, 2024.
Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.
However, just when Nigerians were thinking they will not witnessed another national grid collapse in the year, it issue reared its ugly head again.
On Wednesday afternoon, most of the energy distribution companies suffered power outage, prompting them to inform their customers of the situation.
One of the DisCos, Ikeja Electric Plc, in a message to electricity consumers under its franchise area, said, “Please be informed that we experienced a system outage today, December 11, 2024, at about 13:32 hours affecting supply within our network.
“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us.”
Recall that on Tuesday, in a report, Google listed national grid as one of the top trending searches by Nigerians this year.
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