…seven generation companies get operational licences
JUNE 11, 2013
Chairman, Nigerian Electricity Regulatory Commission, Mr. Sam Amadi
The Federal Government on Monday issued operational licences to seven electricity generation companies under the National Integrated Power Project.
Each of the companies got an on-grid generation licence for Independent Power Project. The companies include Benin Generation Company Limited in Edo State, which will generate 450 megawatts of electricity; Omotosho GCL, Ondo State, 500MW; Omoku GCL, Rivers State, 250MW; and Gbarain GCL, Bayelsa State, 225MW.
Others are Calabar GCL, Cross River State, 561MW; Geregu GCL, Kogi State, 434MW; and Egbema GCL, Imo State, 338MW.
The NIPPs are to add extra 2,758MW of electricity to the national grid.
Speaking during the presentation of the licences in Abuja, the Chairman/Chief Executive Officer, Nigerian Electricity Regulatory Commission, Mr. Sam Amadi, said the Niger Delta Power Holding Company Limited submitted applications for licences for the seven NIPPs to the commission on April 8, 2012.
He noted that the evaluation of the applications by the commission was based on three major criteria namely: legal, financial and technical.
Amadi stated that the formal presentation of the licence terms and conditions, and the licence certificates marked the end of the licensing process and the beginning of the licensees’ participation in the electricity generation business.
He, however, noted that the commission’s licensing process had never been without challenges, stressing that the unavailability of gas supply to both licensees and prospective licensees had, until now, affected several power projects.
The NERC boss said standard regulatory practice demanded the submission of an executed gas supply agreement or a letter of commitment that the power plant would have the required supply of gas for thermal plants.
“The requirement for a legally binding agreement as evidence of off-take arrangements has, until now, stalled the projects of most grid connected licensees. This particular challenge has been addressed by the establishment of the Nigerian Bulk Electricity Trading Company responsible for the bulk purchase and resale of power,” he said.
Amadi emphasised that the entities being licensed had a very critical role to play in the reform and growth of the power sector.
“The grant of licence entails compliance with the provisions of the Electric Power Sector Reform Act, 2005, the terms and conditions of the licence, the milestone set by the commission, the regulations, codes as well as orders and directives issued by the commission,” he said.
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