African Development Bank (AFDB ) has approved $200million for the development of coal in Nigeria to boost electricity generation. In approving the money, the bank is moved by the low level of electricity generation, coupled with its desire to see Nigeria diversify source of electricity supply. The coal based projects that may benefit from this fund include Zuma Energy Limited based in Kogi State. The company is expected to generate up to 1,000 megawatts of electricity when the project is completed.
Others are Atlas Petroleum which is planning to generate 1000 megawatts through coal in Enugu and First Nation Energy 500mw also in Enugu. Disclosing this at a media chat on its preparation for the effective operation of the Transitional Electricity Market (TEM), Rumundaka Wonodi, managing director and chief executive officer of the Nigerian Electricity Bulk Trading Company( NBET), said that his company is now set to ensure that the operation of the market goes on successfully without hitches.
The Transitional Electricity Market (TEM) which started two months ago is an arrangement whereby NBET would buy electricity from the generating companies and sell the electricity to the distribution companies to avoid unnecessary delay in settling debts between the generation and distribution companies. The TEM is important because it is the first stage in country’s three-step process under which it will gradually liberalise the market. The TEM will introduce competition into the market. A second medium-term phase will then open up the market to wholesale competition, while the third and final stage will allow for full wholesale and retail competition.
He said African Development Bank’s decision is a welcome development since the country is highly deficient in terms of power generation and supply. Such support would complement government efforts at ensuring that Nigerians enjoy steady supply of electricity soon. He said : “NBET functions as a company that is between the generation companies and distribution companies , in order words we buy electricity from the generation companies and sell to distribution companies. Since the establishment of NBET we have been working very hard to carry out the mandate of the company.”.
He said African Development Bank’s decision is a welcome development since the country is highly deficient in terms of power generation and supply. Such support would complement government efforts at ensuring that Nigerians enjoy steady supply of electricity soon. He said : “NBET functions as a company that is between the generation companies and distribution companies , in order words we buy electricity from the generation companies and sell to distribution companies. Since the establishment of NBET we have been working very hard to carry out the mandate of the company.”.
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