…As experts propose regional grid

The Clean Energy Working Group have cautioned the federal government against the proposed amendments on the Electricity Act 2023, which empowered states to generate, transmit, and distribute electricity.

They warned that by re-centralizing control under the federal government, the bill could slow investment, limit renewable energy growth, and reduce affordable access for Nigerians.

The expert further warned that the proposed bill could slow investment, limit renewable energy growth, and reduce affordable access for Nigerians, adding that the Provisions restricting states from selling surplus power across borders may further weaken competitiveness and discourage investment.

They called for the establishment of regional electricity grids across Nigeria, saying the country’s dependence on a single national grid poses serious security and reliability risks.

The National Coordinator of the Clean Energy Legal Working Group Barrister Michael Karikpo during a press conference yesterday in Abuja said the Working group comprising of consortium of civil society organizations, law firms, energy lawyers, academia, and experts had spent the last three years reviewing the power sector and came up with 3 different reports

He posited that the introduction of smaller and smarter regional grids would be cheaper to build and could provide electricity to specific regions while reducing the risks associated with the existing centralised system.
Karikpo said despite the privatisation of the electricity sector in 2012, there had been no significant new investments in generation and distribution.

“What you have is a consolidation of the investments that are available. So Sahara Energy is taking over most of the gas-fired power plants. Heirs Energy is also doing the same, and then the dams are also being consolidated under a particular company,” he said.

He said Nigeria could not effectively power a population of about 230 million people with only about 5,000 megawatts of electricity.

The expert said unclear policies and regulatory frameworks had discouraged investors from entering the sector, stressing that strengthening the frameworks would encourage fresh investments.

He said Nigeria had alternative sources of electricity, including utility-scale solar power, but lacked the smart-grid infrastructure required to integrate additional generation capacity into the national grid.

“Our grids are very old. They are changing them right now. But most of the grid is old. If you put more than 5,000 megawatts of electricity on that grid, it will collapse,” he said.

On electricity tariffs, the expert said consumers who could afford commercial rates should be allowed to pay tariffs that would enable energy suppliers to recover their costs.

He however called for free or highly subsidised basic electricity for poor and vulnerable households, saying such support should provide enough electricity for basic needs, including lighting homes, enabling children to study at night, charging phones and listening to the radio.

The expert also called for amendments to some provisions of the Electricity Act, arguing that certain sections give the Federal Government excessive powers over state electricity markets.

He specifically called for the deletion of Section 2(4) and Section 2D, while urging that Section 2(3) be redrafted because of its broad provisions.

According to him, the provisions could undermine investment in clean and renewable energy at the state level.

He also raised concerns about provisions requiring the Nigerian Electricity Regulatory Commission (NERC) and state electricity regulatory agencies to develop a national framework for access to basic electricity.

He argued that with the decentralisation of the electricity sector, state regulatory agencies should be responsible for administering subsidies to vulnerable households within their jurisdictions, while operating under a national framework.

He further called for a review of Sections 230A and 228A-C, among others, to address what he described as conflicts between the Electricity Act and the 2023 constitutional amendment that gave states powers over electricity generation, distribution and transmission within their jurisdictions.