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NERC amends Zuma Energy’s 1,200mw power plant licences

By EDITOR
17 February 2015   |   11:00 pm
THE Nigerian Electricity Regulatory Commission (NERC) has issued four on-grid licenses to Zuma Energy Nigeria Limited to operate a combined 1,200 Megawatts (MW) power plant at Itobe, Kogi state. Each unit of the power plant has capacity to generate 300MW.   This brings to two such licenses issued for coal power generation this year.  …

THE Nigerian Electricity Regulatory Commission (NERC) has issued four on-grid licenses to Zuma Energy Nigeria Limited to operate a combined 1,200 Megawatts (MW) power plant at Itobe, Kogi state. Each unit of the power plant has capacity to generate 300MW.

  This brings to two such licenses issued for coal power generation this year.

  Zuma’s licence is an amendment to an earlier one issued in 2011. The amendment is to enable it assign the licence to four different special purpose vehicles (SPVs) and ease of project finance.

  NERC’s Chairman /Chief Executive, Dr Sam Amadi said that Zuma Energy was a major stakeholder and a pathfinder in coal-powered generation which is guiding Nigeria towards diversifying electricity generation.

  “The beauty of Zuma licence is that it is guiding Nigeria towards diversifying power generation,” Amadi said.

  In line with the Transitional Electricity Market stage recently declared by the Commission, Amadi urged Zuma Energy to work towards securing a power purchase agreement through the Nigeria Bulk Electricity Trading so that it could commence operations in not too distant time.

  He advised the company to expedite actions on its construction work with the same vigour with which it pursue its licences and make electricity available to Nigerians through the power plants. 

  The four entities are Itobe 1, 300mw; Itobe 2, 300mw; Itobe 3, 300mw and Itobe 4, 300mw all are coal powered plants. 

  Managing Director, Zuma Energy Power Ltd., Dr. Innocent Ezuma in his response said that the amendment to an earlier licence which led to issuance of four different licences was for ease of implementation.

   “With this subdivision, it means we can commence work on two plants simultaneously.”

  Responding to questions from media men over environment issues, Ezuma assured that the company was adopting the latest clean coal technology which has less smoke emission and has minimal impact on the environment.

  Four Commissioners of NERC who were present at the award ceremony, Dr. Steven Andzenge- Legal, Licensing and Enforcement; Engr. Mrs Mary Awolokun- Engineering Standards and Safety; Dr. Abba Ibrahim- Government and Consumer Affairs; and Mr. Patrick Umeh- Finance and Management Services took turn to advise the company on the need to expedite action in realising the economic value of the licences.