- In a coverage memo, the federal government has been suggested to deal with electrical energy consumed as a yardstick for rising capability.
- The earlier deal with electrical energy generated has no affect on general consumption.
- The incoming administration must construct on what the Buhari administration has accomplished already.
In a coverage memo addressing Nigeria’s energy sector challenges, the Managing Director/CEO of New Hampshire Capital Restricted, Mr. Odion Omonfoman urged the federal government to maneuver away from measuring electrical energy era by way of megawatts (MW) and as a substitute deal with incremental megawatt-hours (MWh) generated and consumed.
He emphasised the significance of contemplating the precise quantity of electrical energy delivered and consumed per hour, highlighting the importance of this shift in mindset for electrical energy shoppers in Nigeria.
Explaining additional, Omonfoman stated the federal government ought to cease pondering of put in era capability and begin to suppose by way of the quantity of electrical energy delivered.
Why electrical energy consumed per hour is extra impactful
In accordance with Omonfoman, this is a vital paradigm shift with a constructive affect on the federal government, as having such a coverage mindset adjustments the prioritization and allocation of private and non-private assets to tasks, interventions, and initiatives throughout the electrical energy worth chain.
This alteration in focus will finally improve the vitality output, availability, reliability, and high quality of electrical energy delivered to end-users.
Part of the coverage memo acknowledged:
- “Beneath the brand new paradigm, we anticipate the incoming administration spokespersons to make statements comparable to “we are going to improve the whole electrical energy delivered to Nigerian households and companies from xyz megawatt-hours (MWh) by 100% inside x months”, slightly than the standard assertion saying “we are going to improve era capability to twenty,000 megawatts (MW).
- “Rising era capability to twenty,000 MW with out many of the 20,000 MW being consumed or a corresponding improve in electrical energy consumption is just not solely meaningless but in addition fiscally detrimental to the nation.”
How this may be achieved
Omonfoman wrote that the rise in megawatt-hours delivered to electrical energy prospects will be achieved by way of a seamless conversion and circulate of vitality from the pure gasoline fields to the era stations, and from the era stations to the high-voltage traces that transmit the vitality to the nationwide grid, and finally to medium-voltage and low-voltage traces that distribute the vitality to finish customers.
- So, the Tinubu administration must prioritize fixing the interface points and challenges throughout all the energy sector worth chain (from pure gas-to-electricity interface, generation-to-transmission interface to transmission-to-distribution interface).
- The Tinubu administration additionally must construct on the present initiatives and tasks of the President Muhammadu Buhari authorities, with a strategic goal to optimize the value-for-money outcomes of a variety of these tasks, initiatives, and interventions.