Nigerian firms to build power grids

All On, a global energy player and three Nigerian renewable energy companies have signed agreement that would see to the setting up of mini electric off-grids across the Niger Delta.

He said the companies would have access to funds for setting up and expanding off-grid renewable energy solution to end perennial shortage of electricity supply in the country.

“As we know, Nigeria has one of the most significant energy gaps in the world. The 5,000 to 7,000 megawatts the country currently generates is grossly inadequate.

“Our research shows that 120 million Nigerians have either no power from the grid or less than four hours of power a day,” he said.

Boer said that the Federal Government has taken a realistic step to addressing acute shortage of electricity supply in the country.

“The current regulation that Nigerian government has just put out imply that companies are now free to generate power and sell power to whoever they want to.

“So, the companies that All On is investing in are companies that are actually trying to address that gap from the bottom up rather than current method that is being used.

“So, we have three deals that we signed today and all of them are focused on helping with the energy access problems in the country, particularly in the Niger Delta,” he said.

Boer said the three companies had potentials to improve the current power system in the country, adding that Lumos alone was currently providing 600,000 Nigerians with constant electricity.

He said that Nigeria with its population and size needed about 180 megawatts of electricity to join the league of industrialized nations of the world.

According to him, the privatization of the power sector five years ago has not yielded result as the approach was expensive and long term.

“So, the off-grid companies are saying that instead of waiting forever for Generation, Transmission and Distribution companies to power homes that let each household and communities power their homes through the sun.

“I think what will happen in Nigeria is that we are going to see new business development models that we haven’t really seen anywhere in the world,” he pointed out.

Boer said there were several investors willing to invest hundreds of millions of dollars in the nation’s off-grid energy market.

Mr Ashipa Olufemi, Vice President of Lumos Nigeria; Ifeanyi Orajaka, Managing Director of GVE Projects and the Founder of ColdHubs, Nnaemeka Ikegwuonu, expressed delight with the partnership.

They promised to deliver 24 hours electricity supply to willing customers in the Niger Delta.