Eko Electricity Distribution Company Limited, EKEDC, has signed deals worth millions of naira with 10 companies for embedded power.
Managing Director/Chief Executive Officer, EKEDC, Oladele Amoda, revealed this at the 19th monthly Power Sector Operators meeting hosted by the company in Lagos on Monday.
Although Amoda did not reveal the names of the companies, however, he did mention that the contracts had already reached “closure”.
According to the CEO, EKEDC will commence supply to the companies once the Nigerian Electricity Regulatory Commission, NERC, implements the latest reviewed tariff rates.
“Right now we have about 10 companies who have reached closure for embedded power but, we are still waiting for the new tariffs from NERC to be implemented. The tariff review has been done already. This is what has been delaying the projects because nobody will want to do what will not enable them to recoup their money. We are going on willing buyer, willing seller.”
Incessant vandalism of key power infrastructures across the country, gave rise for the need for state governments, local governments and communities, to invest in embedded power.
Embedded power is a situation where a generator is directly connected to the distribution network. It consists of smaller or modular generators that use a variety of generation technologies such as solar, wind, biomass, diesel, fuel oils, crude oil and small hydro. It is also a useful means of dedicating power to state and local government, eligible customers and others.
It would provide reliability for supply of energy critical for viable industrial activities and peak shaving, high power quality or voltage control, that is, provision of high quality power necessary for sensitive industrial equipment. It would also minimise line losses and voltage sag, closeness to load results in more efficient power transmission.
Other qualities of embedded generation include substitute for main supply, source of power in area without grid supply, that is, rural areas; backup standby generation ensures regular supply and provision of ancillary services such as voltage or frequency control.
Also, the embedded generation will help the electricity distribution companies (DISCOs) to get supply of electricity faster and cut down their dependence on the Nigerian Bulk Electricity Trading Company (NBET), which ensures that power evacuated from the Electricity Generation Companies (GENCOs) are readily paid for by the DISCOs.
In 2014, chairman NERC, Sam Amadi, said embedded power is one of the options to improving electricity supply in the country.
Same 2014, the NERC chairman, issued license for embedded power generation to the Bauchi State government.
The Lagos State government has also tapped into this initiative after concluding plans to attain 24-hour power supply through embedded power generation of 3,000 Megawatts electricity by 2022.