The Minister of Power, Adebayo Adelabu, has raised concerns about large electricity consumers opting to generate their own power rather than relying on the national grid. Speaking at the board retreat of the Nigeria Electricity Liability Management Company (NELMCO) in Lagos, Adelabu emphasized that the national grid provides a more dependable power source compared to captive power plants currently utilized by these bulk consumers.
Captive power refers to a generation facility exclusively used to supply electricity for a specific customer’s operations without selling any generated power to the national grid or other external entities. Adelabu expressed regret that despite Nigeria’s record power generation of 5,155 megawatts (MW), the increased capacity is not being fully utilized. He noted that industries, as major bulk electricity users, are off the grid due to lack of trust and confidence in the past, opting for captive power plants within their facilities, which are more expensive.
Efforts will be made to encourage bulk consumers to reconnect to the national grid, as Adelabu highlighted that relying on captive power instead of grid electricity is more costly. He pointed out that the average cost of generating captive power is approximately N350 to N400 for those using gas, around N950 for diesel, and about N550 for petrol. As consumers and industries witness the trust, confidence, and stability the grid offers, they would be motivated to return to it for a more affordable power supply.
In a recent development, the Nigerian Electricity Regulatory Commission granted permits for mini-grid electricity generation to Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and several other entities. This move aims to diversify the sources of power generation and provide more options for consumers.
In related news, the Nigeria Employers Consultative Association (NECA) has expressed concern over rising electricity tariffs, stating that it negatively impacts businesses and the general public. NECA’s director general, Adewale Smatt-Oyerinde, explained in an interview that the tariff hike has resulted in higher costs for goods and services, urging a reconsideration of the decision.
As the debate continues on the best approach to power generation and distribution in Nigeria, it is essential for stakeholders to collaborate and find solutions that ensure reliable, affordable, and sustainable electricity supply for all. The government, industry players, and consumers must work together to address the challenges and maximize the potential of the national grid for the benefit of the country’s economic growth and development.
