FG seeks private sector investment to drive power reforms

…eyes additional 120MW to national grid from Genesis Energy

The federal government, in a bid to attract more private investors into the power sector, has promised to provide the enabling environment for their participation, and to ensure that the current reforms being undertaken in the sector yields maximum results.

Adebayo Adelabu, minister of Power, stated this during a facility tour of the Genesis Energy company, at the Port Harcourt refinery, Rivers State.

In a statement issued to Journalists on Wednesday, the minister said that the government alone cannot fund the Nigerian power sector.

He emphasised that the government is commitment creating the conducive environment for the private sector investors to thrive. Adelabu added that the policies of the government will ensure that investors are comfortable with bringing new investment and be assured of recovering of their investment.

Adelabu promised that whatever government needed to do that would make it easy for private sector investors to come in, “we are ready to do it. Because government cannot single-handedly fund the power sector in Nigeria.

“The investment required is too huge for it to be left in the hands of government alone. So we are ready to do everything possible to attract investors, to ensure they support us, so that industries, businesses, households can have uninterrupted, functional and reliable electricity”, he said.

The minister explained that his visit to the plant, which is a partnership between Genesis Energy and the NNPC, was to examine how the excess power being generated in the plant can be fed onto the national grid.

He noted that his visit would accelerate the take-off of the project, adding that the government intends to eliminate the inherent inefficiencies in the plant by ensuring that all excess energy being generated is taken off and given to where it will be used.

According to the Minister, if used as a proof of concept and it works well, the plant have an expansion plan of an additional 120 MW. He noted commitments to build infrastructures, transmission infrastructures, to off-take the new huge energy supply, not only to Port Harcourt DisCo, but to the entire country at large.

“And I believe that once this initial proof of concept is successful, the new expansion will also follow.

“It’s something I believe within 90 to 180 days it can all be concluded. What matters most is to conclude on the infrastructure arrangement to off-take the power from here and supply to the grid.

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“And again, commercial is very important. At what price, at what tariff are they going to be giving to Port Harcourt Disco to ensure that the power is taken up and supplied to end-user customers? Even at a price that will also be comfortable and convenient for the end-user customers. That is all they need to do. I don’t think this should take too long. Since I’m here today, we’ll track the talk and ensure that it takes off very, very soon.

“There are a few things that we are doing as a government to ensure this. Number one is the regulatory environment, I mean the policy environment. You are all aware that we just launched the National Integrated Electricity Policy (NIEP). After two decades, we just have such comprehensive policy. So it is clear now to every investor what are the responsibilities expected of them. What are the things expected of government to ensure that coming into the power sector is quite easy.

“And it is something that will not lead to loss to any of the private sector investors. So we have a comprehensive policy in place for any investor to look through, understand before they come in. Number two is the regulatory environment, which to a large extent is being consistent and quite friendly to new investors,” he said.

Genesis Energy operates 84MW Gas-Fired Power Project at the NNPC Port Harcourt Refinery (PHRC). The facility, powered by three GE TM2500+ gas turbines (25 MW each), is dedicated exclusively to supplying electricity to the refinery, guaranteeing a continuous and stable power supply essential for refining operations.