REA tasks developers on prompt delivery of power projects
The Rural Electrification Agency (REA) has enjoined Private Power Developers under the Energising Economies Initiative (EEI) to try and live up to their obligations in project delivery in spite of challenges.
The agency gave the charge during a roundtable meeting held with the developers at its Corporate Headquarters on March 24, 2022, according to a statement issued Wednesday by its director, Promotions, Mr Ayang Ogbe.
Discussions at the roundtable were centred on identifying implementation gaps, improving service delivery and strengthening the initiative to achieve the desired goal of providing constant and reliable electricity in economic clusters across the Federation.
In the course of discussions at the roundtable, the setbacks faced by the developers as stated by their representatives include; technical and legal solutions to customer bypass, funding constraints, gas unavailability, power shortage and system collapse due to system capacity, inadequate provision of metering, electricity vending system issues and challenges with customer service delivery.
While acknowledging the challenges faced by the developers, the agency reiterated the need for them to deliver on their obligations as enshrined in their bilateral and tripartite agreements, stressing that some obligations are not being met by the developers going by the performance of their projects.
The REA pointed out that it is currently conducting a Monitoring, Evaluation and Learning (MEL) exercise on the EEI markets. The output of the work will help inform REA on how best to support the initiative as well as existing projects.
“In addition, some of these challenges are externally induced (such as gas availability constraints). However, many of these challenges are within the developers’ control and they must do more to mitigate these and get their projects back on track.
“The federal government is keen on the success of the initiative and the REA plans to create an enabling environment where the Private Sector Developer handles all the project delivery steps from inception to conclusion.
Deployment is currently ongoing in markets under Phase 1 of the EEI,” the statement noted in part.
According to the agency, the Phase 2 rollout plans are currently in view and conversations have begun between the developers, state governments and other key stakeholders. Baseline Surveys and Energy Audits are currently being conducted for 98 Markets across the country, even as it is also exploring ways to secure concessionary finance and Technical Assistance to further support EEI developers.
The private developers agreed to step up towards ensuring the issues are addressed and services improved in all affected markets, while such efforts will further service as mitigation measures in upcoming EEI projects.
EEI is an initiative of the Federal Government of Nigeria being implemented by REA – its implementing agency under the Ministry of Power. The focus is to electrify economic clusters in Nigeria – which include markets, shopping plazas/complexes and industrial clusters in line with the FGN’s goal of increasing electricity access.
REA’s mandate is to implement the initiative through Technical Assistance to private project developers; this includes identification and audit of economic clusters, facilitation of engagement with key stakeholders and technical support for project development and operation.
Over 300 clusters have been identified for electrification across the country in different phases. So far, over 12,000 shops are now receiving clean, safe, reliable and affordable electricity supply.
Following its launch, the Pilot Phase of the Energizing Economies Initiative has commissioned the Sura Shopping Complex Independent Power Project in Lagos State powering 1,047 shops, as well as the Ariaria International Market (Independent Power Project), Aba, Abia State, powering over 4,000 shops. Also, launched were over 6,000 energized shops at Sabon Gari market, Kano State with more connections in the pipeline.
The EEI developers were sufficiently represented at the roundtable, with representatives from Ariaria International Market Energy Solutions (AMES) Limited, Solad Integrated Power Solutions Limited, Rensource Energy Limited and Green Village Electricity (GVE) Projects Limited all present at the REA.
In 2019, a Tripartite Agreement between Abuja Electricity Distribution Company (AEDC), Green Village Electricity (GVE) and Wuse Market Association was signed for the development of a 1MW Interconnected Mini-grid.
