Why On Grid Solar Power Generation Is Yet To Take Off In Nigeria.

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“In as much as the FG won’t pay the price difference between solar power electricity and power generated from hydro and gas turbine plants , FG should not force the privately owned solar power investors to feed National Grid with the Solarpower electricity.

“Many Nigerians keep wondering why not a single one of the 14 solar powered corporations that entered into PPA with FG on July 21, 2016 in the Front-Runner Solar Power Purchase Agreements (PPAs) worth $2.5 billion to build 1200 Megawatts (MW) on-grid renewable power supply in the country is yet to take off…. It seems that there was premature termination of the 1,200MW signed agreement on the Solar Power due to absence of corporate governance from power sector operators, absence of a definite policy statement on cost reflective tariff which is pending in court with uncertainty about rate of the tariff regime in the sector as Solar Power private investors had expected investment reflective tariff in the energy industry.

Obviously, no market discipline” “When you bring an alternative ideas for solutions to the common chronic problems in Nigeria, instead of considering the new concept, Nigerian govt get defensive and jettison the ideas. “Power Epilepsy In Nigeria: Lack of will-power to embrace alternative concepts plus non-affordability. “Not a single completion of any of the solar farm by any of the 14 solar companies going to 12 months after.” WHY? Private Investors will NOT invest to loss. They will NOT invest in Nigeria out of passion to lose money but for Return On Investment (ROI) on a win-win model.

Personally, I disagree with Minister for Power, Babatunde Fashola on the very first day I heard him talking about Solar Belt Zone to Northern Nigeria to generate to feed National Grid… “Every single state in Nigeria have abundant sun ray way more than anywhere in Europe and North America for solar energy to power each state off-grid!” No need supplying to National grid from solar farms. If residential estates and industrial zone in Ogun State agree to buy solar power electricity from my company at an agreed rate, why won’t I set up solar farm close to the zone and generate and sell to them instead of feeding National grid ??? Instead of generating 20MW or 50MW blindly and feed National Grid when am not sure of ROI ? In fact, many of the existing GENCOs are lamenting on pile up of billions of Naira debt from unpaid electricity generated to National Grid which the DISCOs through NBET is yet to pay!

We must not forget that new private investors in power sectors (foreign or local) read such discouraging news. The same National grid is being fed from hydro and gas turbines which ain’t same price as solar power My alternative opinion: Decentralize, FRAGMENT AND encourage off grid solutions. Generate in Kaduna, feed Kaduna people, Generate in Ekiti , feed Ekiti people Put less emphasis on the national “greed”….That is greedy inefficient I expect minister for Trade and Investment and Mr Fashola to team up and listen to the plights of potential foreign investors for power sector investments… Government that is financially chocked cannot afford to be too rigid… flexibility is crucial

If investors want to invest in off-grid, government shouldn’t force them on on-grid That’s why I wish $1bn loan that world bank wants to loan Nigeria for power sector investment should have been loan to Lagos State government to invest into Lagos power since Nigeria FG cannot meet the condition set for the loan by the WorldBank. If Lagos is able to achieve 3000 to 4000MW exclusively within Lagos, other 35 states can continue to battle the epileptic national grid… FG through NERC should allow every investors free hands, to invest in any community of their choice, the government should only regulate the industry . We don’t need solar power feeding National grid! The investors will LOSE….

Source: Aledeh

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