As part of efforts to solve the power challenges in the manufacturing sector, operators have turned to power firms to develop small capacity Independent Power Plants in industrial clusters across the nation.
Disclosing this during the signing of a Memorandum of Understanding on land provision for the proposed Manufacturers Association of Nigeria’s independent power project, the Chairman, Board of Directors, MAN Power Development Company, Ibrahim Usman, said the action was necessary to alleviate the challenge of poor power supply from the national grid, which was taking a toll on the manufacturing sector in the country.
He said, “The small-scale IPPs are not only faster to implement, but even more cost-effective to maintain. The projects will begin with pilot schemes that will enable MAN to gain first-hand experience and later strategize to explore other options in the power mix like solar, wind, waste to energy and biomass in capacities between five megawatts and 15 megawatts.
“It is expected that the small capacity IPPs will be easier to finance and the risks lower compared to the bigger projects of 25MW, 50MW and above.”
According to Usman, the MAN IPP pilot scheme will start in areas where gas is available like Lagos, Ogun and Rivers states.
“Talks are ongoing with strategic partners to deploy Liquefied Petroleum Gas/Liquefied Natural Gas in locations like Abuja, Kano, Ibadan, Enugu and Nnewi. There are foreign technical partners willing to establish smaller capacity solar farms of 5MW to 10MW, even as waste energy will not be left out,” he stated.
He added that off-taker industries would be full financial members of the association, which would have the opportunity to enjoy friendly tariff, especially where multi-lateral donor agencies sponsor some key elements of the projects, adding that subscribing members would have to show proof of capability and credibility to pay for the energy that they would consume.
“The MPDC will go into partnership with credible and capable IPP developers. Among other things, the MPDC will provide land and governance documents, including guaranteeing the power off-take.”