Guardian

THE Federal Government is turning to renewable energy sources for electricity supply in Nigeria, officials have said.

In addition to projects in coal and solar, efforts to boost generation through the large, medium and small hydros with a total capacity of 4,234MWs have kicked off. These include Zungeru - 700MW, Mambilla- 3,050MW, Itsi-40MW, Small Hydro Power 84MW.

In an interview with The Guardian, Minister of Power, Prof. Chinedu Nebo stressed that government was retooling the Ministry of Power to focus more on renewable energy sources including hydro, water and solar.

According to him: “The ministry has to learn to retool because it is no longer business as usual. Things are changing within the ministry. This will go more into policy formulation, encouragement of research, strengthening regulation and mechanisms as well as developing other vistas and ensuring that other issues like rural electrification, energy conservation and renewable energy that all of them come into play so that eventually a firm government policy on power will be established firm enough to include a good energy mix proportion.  It is not a good thing just to have gas and hydro driven plants, we need coal to power. We need solar and wind. Nigeria has an immense potential for renewable energy and even waste to power.”

Indeed, construction for the 700MW Zungeru Hydroelectric Power Plant, which has been challenged by different circumstances since 1982, formally took off last week with President Goodluck Jonathan assuring that the nation’s children would not live in a future where they would procure their own private generators.

With the funding challenges that had stalled the implementation of the plant, consisting of 4x175 units of tribune generators, now resolved, the project is expected to be ready in four years.

Jonathan, who performed the ground breaking ceremony at the project site yesterday, announced that the challenges to private sector participation have been removed while various incentives such as a robust regulatory framework, tax and cost holiday and cost reflective tariff for power sale have been put in place to attract more private investment to the sector.

The construction of the plant is part of efforts to diversify the Nation’s energy mix in the amidst of uncertainty associated with thermal (gas) plants.

The project will be the fourth major dam to be constructed in Nigeria and would be constructed at the cost of one hundred and sixty two billion, nine hundred million Naira (162.9 billion) with a completion period of four (four years).

Similar take off ceremony for the 3,050MW Mambila Hydro Electric Power Project is also expected soon.

The project is being financed through a long-term credit from Exim Bank of China on a Debt Equity ratio of 75:25. The Federal Ministry of Finance has secured this funding at two percent (two per cent) and the federal government has paid its equity portion of twenty-five (25 per cent) of the total fund, according to officials.

Chief Representative of the consortium in Nigeria, Ju Shiquan said that construction work would commence immediately after the official ceremony.

Minister of Power, Prof Chinedu Nebo: “ Today, we have in place not just the designs, but the funding mechanism of all the major hydro schemes in the country. With the recent approval of $1.72 billion counterpart funding for the sector by the National Economic Council, not just for Zungeru, but Mambilla Dam in Taraba and Gurara 11 Dam in Suleja, Niger State will soon see the light of the day.

“With these and many other efforts in place, the Electricity Roadmap and the Power Sector Reform Programme is fully on course. “

He said: “ I should add that already in place are the necessary regulatory and financial institutions for the operations of the emerging electricity market. These include a credit worthy Bulk Trader (NBET) supported by the World Bank Partial Risk Guarantees, he Nigerian Electricity Regulatory Commission (NERC) and Nigerian Electricity Liability Management Company (NELMCO) to issue licenses and regulate the industry.”

He assured that the National Integrated Power Projects (NIPP) was fully on course.

In 1982, the then National Electric Power Authority (NEPA) identified a potential hydroelectric dam site in Zungeru, some 77km downstream of Shiroro hydroelectric dam and some 43 kilometers northwest of Minna. The proposed dam will be surrounded by Zungeru, Minna and Kuta in the South and Alawa in the North.

In 1992, the engineering design, preparation of tender documents, evaluation report, construction management and supervision of the project was awarded in four of Hydroservice Engengharia Ltd of Brazil and G.F Appio and Associates/ Water and Dam Service Company. The design and tender documentations for the project were completed.

Based on the tender documents of 1992, the Federal Executive Council in May 2007, approved a contract for the construction of the 950MW Zungeru Hydroelectric Power Project in Favour of Messrs China National Equipment Corporation (CNEEC) with a completion period of sixty months. Implication was stalled due to financial challenges.

The Federal Executive Council at its November 22nd, 2012 approved the engineering procurement and construction of the 700MW Zungeru Hydro-Electric project in Favour of Messrs Sinohydro Corporation/ China National Electrical Engineering Corporation.

Zungeru, which hosts the plant, is birthplace of Nnamdi Azikiwe and Odumegwu Ojukwu, and also saw the amalgamation of the Southern and Northern Protectorates in 1914,