Electricity: Improved access will enhance businesses, development — FGN Power Company
By Eyo Nsima
The Managing Director/CEO, FGN Power Company, Kenny Anuwe, has expressed Federal Government commitment to addressing transmission and distribution issues as a strategy to enhance supply and development in the nation.
According to him, an adequate and steady supply of electricity will also boost economic activities, especially through small, medium, and micro-enterprises across the country.
Speaking at the commencement of the Power System Simulations, PSS for Nigeria, System Development Studies and Training in Abuja, he said: “It is important to stress that the benefits of constant and reliable electricity will boost economic activities; improve the lives of small, medium and micro-enterprises across and deliver the much-needed power supply across the country. I want to assure you that FGN Power Company will do its best to deliver on this project to ensure greater success and sustainability.
“This project is in line with the FGN Power Company’s mandate and Federal Government’s Next Level agenda to resolve the existing bottlenecks in transmission and distribution networks, which will increase electricity access across Nigeria. I am humbled to be a part of such a laudable project that will transform our power sector.
“It is important to stress that the benefits of constant and reliable electricity will boost economic activities; improve the lives of small, medium, and micro-enterprises across and deliver the much-needed power supply across the country. I want to assure you that FGN Power Company will do our best to deliver on this project to ensure greater success and sustainability.”
According to the government, the first phase of the Presidential Power Initiative, PPI, will provide over 40 million people with reliable electricity supply and create 11,000 direct and indirect jobs for Nigerians.
Recently, Anuwe had said: “The FGN Power Company was incorporated in August 2020, as a special purpose vehicle by His Excellency, President Muhammadu Buhari to execute the PPI Mandate. Mr. President also appointed the executive management team to lead the process of securing the contractual and financial agreements necessary to coordinate the PPI delivery.
“FGN Power Company and Siemens Energy have made significant progress towards the implementation of the PPI. The pre-engineering contract for distribution systems that were executed between FGN Power Company and Siemens in February 2021 was completed in December 2021.”
“This is meant to provide the engineers working for the utility companies and TCN with capacity building on power system simulation, network studies, and system planning skills. FGN Power Company has already deployed the simulation software to all utilities. The training commences in Q1, 2022.
“FGN Power Company has conducted a scope validation exercise with DisCos and TCN. This is aimed to align viable projects, to avoid duplication of projects and redundancy while also ensuring that the target 2GW will be unlocked from the selected projects. The scope of work has been approved by the Regulator, NERC.
“Procurement of Mobile Units (Transmission Substations and Power Transformers): The Federal Executive Council (FEC) on December 16th, 2021 approved the procurement of Mobile Units (Transmission Substations and Power Transformers) for early works of Phase 1 of PPI. The Contract of award for the Procurement of Ten (10) mobile transformers and Ten (10) mobile substations was awarded to Siemens in December 2021 by FGN Power Company.
“Africa Finance Corporation was appointed transaction advisor for the PPI in December 2021. Through their support, the discussions with financiers for the PPI are now in advanced stages in tandem with commercial discussions with Siemens.
“FGN Power Company was incorporated in August 2020 and is mandated to coordinate the implementation of the PPI, with Phase 1 delivering 2,000MW in the first two years by focusing on “quick wins” measures to increase end-to-end operational capacity to 7,000MW from the current capacity of about 5GW. Phase 2 aims at expanding the capacity of the transmission and distribution system to enable evacuation up to 11,000MW, whilst Phase 3 targets power grid expansion up to 25,000MW through further expansion of generation, transmission, and distribution systems.
“The pandemic caused delays and it was necessary to set up the FGN Power Company as means to ensure the sustainability of the project, which took some time. However the implementation arrangements are well underway and Nigerians can rest assured that from 2022, and over the next 18 months, they will be enjoying additional 2,000 Megawatts and much more thereafter.
“The PPI is a complex and large project, with over 200 projects across distribution and transmission. If anything, we are working with our stakeholders to align on requirements and to expedite the various arrangements to successfully deliver on the PPI without compromising the objectives, statutory requirements, and standards expected of such a monumental initiative.”
He had added: “There are some critical things that have been put in place to achieve success. First, Mr. President has appointed African Finance Corporation (AFC) as transaction advisors for FGN Power Company. A world-class Project management Office (PMO) management office constituted across multiple disciplines and agencies of government to ensure there is a clear alignment to avoid delays. Moreover, the FGN Power Company ensures engagement and alignment with key stakeholders necessary to drive the PPI forward as seamlessly as possible.
