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Nigeria : NERC reexamines operational licences to Rescind Inoperative Grants
Publish Date : 20-Jun-2015
The Nigerian Electricity Regulatory Commission (NERC) was reexamining the existing state of the operational licences it had given to investors for constructing power generation plants in the country, with an objective to rescind those licences that have remained inoperative since they were awarded.
NERC had passed out 4 new operational licenses to four different firms for the development of two solar and two thermal power plants across the country.
Pan-Africa Solar Limited, Nigeria Solar Capital Partners, Proton Energy and Turbine Drives are the beneficiary companies. These firms are planning to construct 24MW solar powered Independent Power Plant (IPP) at Kankia, Katsina State, 100MW solar powered IPP at Ganjuwa, Bauchi State, 150MW gas IPP at Ogorode, Sapele, Delta State and 500MW gas IPP at Ajaokuta, Kogi State respectively.
$150,000 has been shoveled in by the commission for the four licenses it gave to the companies.
NERC’s Commissioner for Engineering Standards and Safety, Dr. Ibrahim Abbah, “While I congratulate you for meeting the requirements for the commission’s licence, I want you to know that each license comes with milestones and key performance indicators that must be achieved. NERC has begun the process to review and revoke licences that it had issued but are inoperative. We want to tighten the screw and we have no choice but to revoke non-performing licences”.
He further added,“We have to tidy up the whole process to encourage real investments in the sector and that is why we developed and put out a competitive power purchase framework which is expected to bring about efficiency. NERC no longer accepts unsolicited application expect for coal, solar and some small hydro power projects.”
As per Andzenge, “Since 2006, we have issued about 124 generation licences that ought to have given us 30 gigawatts (30,000MW) but that is not the case today.”“In the past, these promoters complained about their inability to sign power purchase agreements and we ensured that a bulk trader is licensed to procure power in bulk. We have the NBET now but nothing has changed. What we are saying is that if you have a license that is not functional, there is no need to continue to have you in our record and website as a licensee”.
He continued, “What I think we should guide against is being demoralised and cynicism especially in this period when the efforts we have put in have not yet started yielding fruits.
