Post on 12-Jan-2016
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Power Sector Opportunities in Nigeria
Dolapo Kukoyi, Partner (Power)
UKTI TRADE DELEGATION TO LONDON – SESSION WITH BRITISH EXPERTISE AND
THE CITY UK
11th FEBRUARY, 2013
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1. Brief History of the Nigerian Power Sector
2. Nigerian Power Sector Outlook
3. Power Sector Opportunities
4. Legal, Regulatory and Contractual Framework
Outline
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Brief History of the Nigerian Power Sector
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A monopoly run by a single government owned utility company handling generation, transmission and distribution of Electricity.
Single Utility Company progressively incapable of handling power demands with rising population.
By 1999, NEPA at the time had an imminent complete system failure
Power Sector Reforms in 2005; creation of PHCN, unbundling of Generation, Distribution and Transmission businesses and creation of successor companies and regulatory framework
Privatization Process suspended in 2007 restarted in August 2010
Brief History of the Power Sector
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Nigerian Power Sector Outlook
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Gombe
Kogi
Plateau
Abia
Akwa-Ibom
OndoOgun
Lagos
Edo
Delta
Bayelsa Rivers
Cross River
,bDKDKO
Power GenerationLegend
FGN Gencos
Non Operating IPPs
Enugu
Niger
Operating NIPPs
Imo
Non Operating NIPPs
TARABA
Operating IPPs
FGN NON OPERATING GENCOS
EMBEDDED GENERATION
KADUNA
BORNO
YOBEJIGAWA
KASTINA
ZAMFARA
SOKOTO
KEBBI
KWARA
OYO
OSUN
EKITI
ABUJA
NASARAWA
BAUCHI
ADAMAWA
BENUE
FUEL SOURCESSOKOTO
ZAMFARA
KASTINA
JIGAWA
YOBE
BORNO
KEBBI
NIGER
KADUNA BAUCHI
GOMBE
Plateau ADAMAWAKWARA
ABUJA
NASARAWA
TARABA
BENUE
KOGIOYO
OSUNEKITI
ONDOOGUN
LAGOS
EDO
DELTA
ENUGU
CROSS RIVERIMO ABIA
BAYELSARIVERS
AKWA IBOM
ANAM- BRA
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Alternative Fuel Sources Legend
Coal Deposits
Hydro Projects
Colours:
Water
Coal
Gas
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Nigerian Power Sector Outlook – National
Power Sector Road Map aspiration – 40,000 MW by 2020
Presidential Taskforce on Power – 30,669 MW by 2020
Daily Peak Delivery as at December 2012 – 4300 MW ( ± ),
32 Licensed On -Grid IPPs with a total installed capacity of ±1879 MW total licensed capacity 12,324 MW
21 Licensed Off – Grid IPPs with a total installed capacity of ±111.15 MW; total licensed capacity 284.5 MW
3 EG Licenses with a total licensed capacity of 263 MW – All Non-Operational
4 NIPP Projects currently operative with a total installed capacity of 5,625MW,
Generating Capacity of 4 NIPPs 1,687.5 MW – Dec 2012;
7 FGN Successor Generation Companies (Hydro and Thermal Stations) with a total installed capacity of 5,980 MW
3 big Hydro projects (Gurara, Zungeru and Mambilla) at different stages of development proposed capacity of 3,300 MW
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Nigerian Power Sector Outlook – Hurdles
Access to gas, gas prices and gas supply framework
Transmission Network – Losses and dilapidated Infrastructure
Bulk Trader – Credibility , Standard PPA Template
Cost Reflective Tariff
Maintenance/ Turnaround of existing FGN Discos
Funding for NIPP Projects
Liquidity and Regulatory Risks -World Bank Partial Risk Guarantee
Financing for IPPs
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Power Sector Opportunities
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Power Sector Opportunities Investing in Power Privatization (Commercial, Technical and Financial)
Power Transmission Infrastructure
Gas Transportation Infrastructure
Technology and Engineering
Independent Power Projects (on grid and off grid)
Embedded Generation
Independent Electricity Distribution Networks
Technical capacity and Knowledge – capacity, standards, contracts.
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Power Sector Opportunities – Lagos State
Population as at 2012 – 20.5 million
2,000 industrial complexes, 10,000 commercial ventures and 22 industrial estates.
Requires over 12,000 MW of electricity
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Power Sector Opportunities - Lagos State
No Area No. of Location
s
No. of Sectors Installed Capacity
(MW)
Number of Generators
1 Somolu Printing Community 271 15 11 300
2 Matori Industrial Estate 148 20 40 105
3 Ilupeju Industrial Estate 144 18 25 105
4 Ikorodu Industrial Estate 11 4 135 31
5 Lagos Island (broad street & Marina only)
599 25 100 252
6 Ikeja GRA 789 31 68 8047 Oba Akran 516 32 69 5488 Agindingbi 645 36 70 8209 Omole 1 936 10 13 8910 Omole 11 1531 12 43 241011 Dolphin Estate 1544 12 22 1089
Source: Presentation on Power Sector Development: Lagos State Economic Summit April 23-25 2012
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Legal, Contractual & Regulatory Structure
Ministry Of Power
Energy Commission of
Nigeria
Nigeria Electricity Reg Commission
Min of Water Resources
National Inland
Waterways
Gas Aggregation Co of Nigeria
Nigerian Bulk Electricity Trading Plc
Nigerian Elect Liability
Mgt Co
Niger Delta Power Holding
Co
Independent Power
Producers
Successor Generation Companies
National Integrated
Power Projects
Successor DistributionCompanies
Independent Elect Dist. Networks
Off Grid On Grid Embedded FGN Plants
NGC GTC IOCS
GO
VERN
MEN
T EN
ABLE
RSPO
LICY
&
REG
ULA
TIO
NS
IND
UST
RY P
ARTI
CIPA
NTS
Level 1
Level 2
Level 3
Transmission Co of Nigeria
M.O S.O TSP
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Enabling Legislation for Power Sector Reforms
Independent Regulator – NERC
Licensing Framework
Tariff Framework – MYTO I & II
Robust Regulatory Framework – Regulations and Codes
Bulk Trader set up and funding in progress
Contractual Framework in progress
Gas Contractual Framework in progress
Notable Milestones
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The Nigerian Power Sector is bursting with opportunity
Challenges exist but can be overcome
Consistent Government political will is evident in the current privatisation process
Conclusion
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BREAKING NEWS!!!!!
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Thank You for Listening