Nigeria: Gov’t To Take Delivery Of Transformers Procured From Siemens In September
Nigeria is expected to take delivery of some power transformers ordered by the Federal Government under President Muhammadu Buhari’s Presidential Power Initiative (PPI) from Italy in September 2022.
The transformers, procured through energy firm Siemens, have successfully passed the factory acceptance test in Trento, Italy.
A statement from the office of the Minister for Power, Engr Abubakar D. Aliyu, said the first batch of the transformers is expected to arrive in Nigeria in September 2022.
The Managing Director of Federal Government of Nigeria Power Company (FGN-Power), Mr Kenny Anuwe, who led a delegation which had engineers from Transmission Company of Nigeria (TCN), witnessed the factory acceptance test conducted on 28th July 2022 in Trento, Italy.
The Minister for Power had led a delegation to Germany in April when he paid visits to Siemens Energy factories in Berlin and Frankfurt, where he held meetings with the senior leadership of Siemens Energy on the need to fast-track the delivery of the early orders that would start the transformation of Nigeria’s electricity.
Commenting on the latest feat on the PPI, Engr Aliyu said: “The successful factory acceptance test shows Nigeria’s engagement with Siemens Energy is on track. It also shows the Federal Government’s commitment to addressing Nigeria’s electricity challenges.”
In December 2021, the Minister for Finance, Zainab Ahmed, and the Minister for Power, Engr Abubakar D. Aliyu, secured the approval of the Federal Executive Council of €63 million (Euro) for the procurement of equipment to boost power supply under the Presidential Power Initiative (PPI)—whose first phase would provide 10 mobile power substations and 10 transformers.
In 2018, President Buhari initiated the PPI that would enable Siemens Energy to upgrade Nigeria’s electricity systems.
Source: https://energynewsafrica.com
Ghana: Frustrated Tanker Drivers Declare Nationwide Strike On August 1
Petroleum tanker drivers’ unions in the Republic of Ghana have declared a sit-down strike from Monday, 1st August 2022 to protest poor working conditions and some decisions by the regulator, NPA, which are affecting them.
The tanker drivers’ unions, comprising Gas Tanker Drivers Union, Ghana National Petroleum Tanker Drivers Union, GOIL Tanker Drivers Union and those who transport premix and aviation pointed out that the regulator has fixed two seals namely biometric and cargo tracking seals on each tanker truck.
While the biometric seal determines the number of products in the tanker, the cargo seal enables the regulator, NPA, to monitor the movement of the tanker.
Speaking to energynewsafrica.com, Chairman of the Ghana Petroleum Tanker Drivers Union, George T. Nyaunu, noted that the National Petroleum Authority (NPA) has been sanctioning his members over claims that they have been tampering with the cargo seal.
He said the sanctions the NPA applies range from a one-month suspension from loading and charging transporters for the alleged tampering with the seal.
He said the drivers cannot be bearing the consequences of acts they have not committed, hence, their resolve to embark on a sit-down strike on Monday.
Speaking to energynewsafrica.com on the same issue, the Chairman of Bulk Tanker Drivers Union, Clement Ampadu, blamed the NPA, Ministry of Energy and Transport Ministry for the plight of tanker drivers in the country.
He said it appears both the Energy and Transport Ministries are not interested in helping tanker drivers to resolve their grievances.
Regarding the alleged tampering with the cargo seal, Mr Ampadu said he wrote a letter and personally delivered it to the Ministry of Transport and shared it with the Minister on WhatsApp.
He said for more than one month, he had not received any response from the sector Minister.
In his response to whether he had attempted to meet the Energy Minister in his office regarding their concerns, Mr Ampadu fumed: “As for Napo (about the Minister for Energy), I don’t want to hear his name in my ears. When they get the power, they think we’re fools. We have been to his office more than ten times to go and meet him but we have been unsuccessful. Anytime my secretary and I go there, the Minister’s secretary will tell us to book an appointment which we will do. We will leave and when we don’t hear from them, we will call and go there again. We have been going there more than ten times and they keep telling us to book appointments.
“So we’re going to park our trucks for the owners and the government agencies who don’t value drivers to go and load the products and transport them by themselves,” he said.
When contacted, the Communication Manager of NPA, Mohammed Abdul Kudus, said the issue of the strike had reached their attention and might respond on Monday.
Source: https://energynewsafrica.com
Ghana: Minority’s Claim BOST Head Office Project Cost Gh¢78Million Is Pure Lies- Says BOST
The Bulk Oil Storage and Transportation (BOST) Company Limited has described as false claims by the opposition Minority Members of Parliament that it has inflated the cost of the contract for its head office building project by 100 per cent.
According to BOST, the initial cost of the project, which started in 2016 under the tenure of Mr Kingsley Kwame Awuah Darko during the Mahama administration, was revalued from $39 million to $49.6 million in 2020 but not $78 million.
The Ranking Member of Mines and Energy, John Jinapor, at a news conference on Thursday, claimed BOST had bloated the cost of its head office building project by 100 per cent.
“We noted from recent developments based on documents available to us that the original contract, which was valued at $39,000,000.00 (Thirty-Nine Million Dollars), ballooned to a whopping $78,000,000.00 if the two-tower building is accounted for based on the current cost of the single unit valued at $39,000,000.00 (Thirty-Nine Million Dollars). This means the building has been inflated by 100% over the original contract,” he said.
However, explaining the circumstances leading to the revaluation of the cost of the project, BOST said when the current government took over office in 2017; there were allegations that the contract was bloated so the project was halted for value for money audit to be conducted.
In a statement issued Friday, BOST said the process was completed in August 2020 with a new value of $49.6 million, considering the time value of money amongst other technical considerations.
“In October 2020, the Board of Directors of BOST resolved that due to financial constraints BOST could not afford the twin-towers but rather proceed to negotiate with the contractor to procure a single block.
“The negotiated cost for the single block was $23.5 million (VAT Exclusive).
“In September 2021, we applied and received a no-objection from the Ministry of Finance to procure the funds from an identified bank.
“The 2020 Auditor General’s report on page 6, clause 13 flagged the Procurement Irregularity by the then management so that meant that this current management had to cure the breach on the original contract ($39 million twin-tower in 2015) before any new variation ($23.5 million single tower in 2020) could be submitted to the Public Procurement Authority (PPA) for approval.”
According to BOST, in May 2022, a letter from PPA with reference PPA/CEO/1079/05/22, following a request for ratification by BOST, the ORIGINAL $39 million contract for the twin-tower was finally ratified.
It further said in May 2022, a request was made to PPA to vary the original $39 million twin-tower contract to a $23.5 million single-tower, and it was granted and paved the way to execute an amendment to the original contract and it was done on the 31st of May 2022.
The company said full documentation and explanation on this project were given to the Parliamentary Select Committee on Mines and Energy as per their request on May 17, 2022, with ref: PS/ME/22/40 and “our response on May 27, 2022, with ref:BOST/SCR.40/PARL/OPRE/SF.1/36734.
“BOST is currently occupying rented premises and in our view, securing the single block at the $23.5 million will help to do away with the burden of the rising cost of rent in the current premises. The tower blocks are not the same in terms of the facilities they harbour. The one BOST is acquiring is customized to accommodate the staff of the company based on the corporate structure which existed at the time of the contract. The other block was intended to be rented to raise further income for BOST.
“The two blocks per the valuer’s report in 2020 cost $49.6 million and the simplistic arithmetic of multiplying the original contract cost submitted to the PPA for ratification by 2 to claim the blocks cost $78 million is simply erroneous.
“These are the facts about the BOST Head Office building which started in 2016 and is yet to be occupied by the company.
“We, at this point, will urge the Minority to, at least, seek better understanding and clarification of issues before engaging the press because at some points in time, failure to do due diligence could result in embarrassment. It is the contract signed without resort to due process which by law was submitted for ratification by the PPA before any variation of the terms could be attempted by the current management.
“Money has time value and what costs $39 million in 2015 would most likely cost something higher six years later. These are fundamental principles of finance which cannot be overlooked.
“The current management of BOST has used the Procurement Law to correct the anomalies of the processes and through a transparent process decided to acquire half of the twin towers to house their operations.
“With an independent valuer involved, the figures arrived at were a true and fair reflection of the current pricing of the project and we are confident that the decision is in the best interest of the taxpayer.
“We, therefore, urge the public to ignore the ill-informed allegations of the Minority and be assured that BOST is safe and secure in the hands of the current management.
“The ever-loss-making BOST is set to announce a huge turnaround in the next couple of weeks due to the diligence and hard work of the current management. Our collective interest is secured, and we are working hard to ensure better days of fuel security in the country,” the statement concluded.
Click on the link below for PPA’s document
Approval to BoST for Variation (1)
Source: https://energynewsafrica.com
According to BOST, in May 2022, a letter from PPA with reference PPA/CEO/1079/05/22, following a request for ratification by BOST, the ORIGINAL $39 million contract for the twin-tower was finally ratified.
It further said in May 2022, a request was made to PPA to vary the original $39 million twin-tower contract to a $23.5 million single-tower, and it was granted and paved the way to execute an amendment to the original contract and it was done on the 31st of May 2022.
The company said full documentation and explanation on this project were given to the Parliamentary Select Committee on Mines and Energy as per their request on May 17, 2022, with ref: PS/ME/22/40 and “our response on May 27, 2022, with ref:BOST/SCR.40/PARL/OPRE/SF.1/36734.
“BOST is currently occupying rented premises and in our view, securing the single block at the $23.5 million will help to do away with the burden of the rising cost of rent in the current premises. The tower blocks are not the same in terms of the facilities they harbour. The one BOST is acquiring is customized to accommodate the staff of the company based on the corporate structure which existed at the time of the contract. The other block was intended to be rented to raise further income for BOST.
“The two blocks per the valuer’s report in 2020 cost $49.6 million and the simplistic arithmetic of multiplying the original contract cost submitted to the PPA for ratification by 2 to claim the blocks cost $78 million is simply erroneous.
“These are the facts about the BOST Head Office building which started in 2016 and is yet to be occupied by the company.
“We, at this point, will urge the Minority to, at least, seek better understanding and clarification of issues before engaging the press because at some points in time, failure to do due diligence could result in embarrassment. It is the contract signed without resort to due process which by law was submitted for ratification by the PPA before any variation of the terms could be attempted by the current management.
“Money has time value and what costs $39 million in 2015 would most likely cost something higher six years later. These are fundamental principles of finance which cannot be overlooked.
“The current management of BOST has used the Procurement Law to correct the anomalies of the processes and through a transparent process decided to acquire half of the twin towers to house their operations.
“With an independent valuer involved, the figures arrived at were a true and fair reflection of the current pricing of the project and we are confident that the decision is in the best interest of the taxpayer.
“We, therefore, urge the public to ignore the ill-informed allegations of the Minority and be assured that BOST is safe and secure in the hands of the current management.
“The ever-loss-making BOST is set to announce a huge turnaround in the next couple of weeks due to the diligence and hard work of the current management. Our collective interest is secured, and we are working hard to ensure better days of fuel security in the country,” the statement concluded.
Click on the link below for PPA’s document
Approval to BoST for Variation (1)
Source: https://energynewsafrica.com
Ivory Coast: Eni Drills Baleine East 1X Well And Successfully Tests Block CI-802
Italian oil and gas giant, Eni, has successfully drilled the Baleine East 1X well, the first exploration well in block CI-802 and second discovery on the Baleine structure, offshore La Côte d’Ivoire.
The excellent results have allowed increasing by around 25 per cent in the volumes of hydrocarbons in place of the Baleine Field, which is now estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet (TCF) of associated gas.
Baleine East 1X was drilled in the CI-802 block, operated by Eni (90%), together with its partner Petroci Holding (10%), using the Saipem 12000 drilling ship.
The well reached its final depth of 3,165 m measured depth in a water depth of about 1,150m.
Baleine East 1X is located about 5km east of the Baleine 1X discovery well in the adjacent block CI-101 and represents the first commercial discovery in the CI-802 block, confirming the extension of the Baleine Field.
The well, following an intense data acquisition campaign, confirmed the presence of a continuous oil column of about 48m in reservoir rocks with good properties. From the vertical borehole, a horizontal drain of 850m in length was subsequently drilled into the reservoir to perform a production test that confirmed a potential of at least 12,000bbl/d of oil and 14Mscf/d of associated gas of production from the well Baleine East 1X.
The activities in the Baleine Field will continue with the drilling of a third well which will ensure, together with the other two already drilled, the accelerated start-up of production, confirming first oil in the first half of 2023-about a year and a half from Baleine 1X discovery well and reaffirming the effectiveness of Eni’s phased development model and fast track.
The results of the Baleine East 1X well and its production performances will allow the optimization of the further full field development phases.
In addition to CI-101 and CI-802 blocks on which the Baleine Field extends, Eni owns interests in five other blocks in the Ivorian deepwater: CI-205, CI-501, CI-504, CI-401 and CI-801, all with the same partner Petroci Holding.
Source: https://energynewsafrica.com
Nigeria: Disco Franchising As Panacea To Distribution Challenges In The Power Sector (Article)
By: Adetayo Adegbemle
While many power sector experts and commentators were complaining that the Electricity Distribution Franchise Licensees franchise areas are just too big for these Licensees to manage, maybe with the exceptions of Ikeja Electric and Eko Disco, it has also become incontrovertible that these licensees cannot meet up with basic obligations, namely reducing the aggregated technical, commercial and collection losses in the power sector.
This inability to dent the ATC&C Losses, which is the base standard for which performance can be easily determined in the power sector, can also be traced mainly to the inability of the core investors to bring the necessary sanitation into the operations of the Electricity Distribution Companies.
Interestingly, the Nigeria Electricity Regulatory Commission, NERC, went round the country in 2016 town hall meetings preaching how the Distribution Company Sub-Franchising would be the next best thing after sliced bread, finally releasing the draft regulation in January 2018
In 2016, the promise of Disco Franchising was that “DISCO franchising operations, if well structured, should allow third party operators provide revenue collection and protection services, fault clearance, network operations and maintenance services, meter reading and inspection services and customer services to electricity customers on behalf of the DISCOs.”
Several models of Franchising were pitched to Nigerians, with the most interesting and attractive one giving the Sub-franchisee the ability to “generate power” or source for alternative power, or buy power directly from the national grid”. It was noted, though, that giving the Discos power and initiative to determine which areas or sub-franchise agreement to enter into has greatly limited the effectiveness of the Sub-franchise framework.
It was therefore a general belief that “Franchising Guidelines is laudable and the efficient and effective implementation of franchise arrangements should generally enable the Discos improve service delivery to end-user customers in franchised areas without compromising the obligations of the Discos to the market and the regulators.”
However, Six years later, with the Discos still faltering to meet up with demands of Nigerians, the implementation of the Disco Sub-Franchising, like the Meter Assets Regulation, has refused to bring the spark expected by Advocates and electricity supply industry watchers.
Reports has indicated that some Distribution companies have implemented what “suits their private agenda” in allowing third parties to collect revenues as sub-franchising, the rest of the Sub-franchise Framework has remain largely a tug of war between interested Nigerians, and the Distribution Companies.
Coincidentally, there are two unrelated events that has come together to ask for a shift in the way we do things, and demanded that this matter of Distribution sub-franchising be looked at again, this time seriously, that the initiative be taken away from the Distribution companies.
First event is the final financial meltdown of Core Investors and taking over of their shares by banks they are indebted to. Since December 2021 taking over of the 60percent shares of the Core Investors in Abuja Electricity Distribution Company by UBA, we have since seen similar capitulation of Benin, Kaduna, Kano Distribution Companies to Fidelity Bank, while the tussle for the life of Ibadan Electricity Distribution Company, IBEDC, between the core investors and Assets Management Company of Nigeria, AMCON is still ongoing. The Port Harcourt Electricity Distribution Company too has gone quietly into Administration.
The second interesting event was the announcement by the Nigeria Electricity Regulatory Commission has signed a commercial agreement with the Transmission Company of Nigeria (TCN), Generating Companies ((GENCOs) and the Distribution Companies (DISCOs) to rave-up electric power supply to 5000 MW starting from July 1st 2022.
While the Regulatory Commission has said the 5000MW target is in phases, and that the gas is yet to fully align with this objective, though they are working on, a major and critical aspect they should not overlook in this subtle and coded migration to proper market-based electricity market is the Distribution Sub-franchising.
The present structure for Distribution Franchise as we have it is not efficient and effective enough to move the market to a 50, 000MW in the next 10years.
This is the time to break the large unmanageable geometrical areas into better and efficiently managed areas.
The sub-franchising model is definitely the pathway to ensure that more Nigerians get involved and are able to bring their expertise unto the table, and definitely reduce the ATC&C Losses that has become an albatross for the electricity market.
The Regulatory Commission should also take a leaf from the performance scoresheets of the newly privatized Yola Electricity Distribution Company that has posted the Top 2 results in just six months of new management taking over.
Distribution Sub-Franchising is a sure bet way of introducing and injecting new bloods, funds, effectiveness into the electricity distribution channels. Less geographical coverage area also comes with the benefits of better and effective regulatory oversight, and the ease of “moving blocks” without having too much effect on the larger body.
Electricity Distribution Sub-franchising will definitely facilitate an improvement in the quality-of-service delivery to end-user customers and industries, and address the liquidity challenges in the NESI.
With this, we can finally enter a fully operational electricity market based on Contracts.
Adetayo Adegbemle is a public opinion commentator/analyst, researcher, and the convener of PowerUpNigeria, an Electric Power Consumer Right Advocacy Group, based in Lagos. (Twitter: @gbemle, @PowerUpNg)
Ghana: MP For Lower Manya Krobo Charged For Stealing Power
A Ghanaian legislator Ebenezer Okletey Terlarbi has been charged by the Electricity Company of Ghana (ECG) for engaging in illegal connections and consuming power freely.
Ebenezer Okletey Terlarbi, a Member of Parliament for Lower Manya Krobo, in the Eastern Region of Ghana, according to a letter sighted by energynewsafrica.com, has been charged for tampering or interfering with ECG’s meter and unauthorised service connection.
The power distribution company, weeks ago, started the installation of pre-payment meters in the Lower and Manya Krobo area as part of an effort to prevent the continuous accumulation of bills owed to the former by electricity consumers in the area.
ECG, according to our sources, replaced the MP’s postpaid meter last Saturday afternoon after the MP had allegedly granted ECG officials access to his premises to install the meters.
However, a few days after the installation, the MP held a press conference and accused ECG of disrespecting his office by not informing him before going to his premises.
He argued that though he would not have resisted the exercise, notifying him of their coming would have fostered trust among both sides.
According to energynewsafrica.com‘s sources, ECG officials returned to the MP’s house on a routine check only to discover that the prepaid meters had been removed.
Surprisingly, the MP had illegally reconnected his house with power contrary to LI 165(1999) and LI 1702 (2002) which criminalise the act.
The letter stated that the MP is required to report to the ECG office within 72 hours of the issuance of the letter.
Per the reading on the MP’s postpaid meter, the MP consumed power to the tune of Gh¢5,510.31 from January 2022 to date.
Already, the MP is owing ECG an outstanding electricity bill to the tune of Gh¢30,209.42 between 2017 and 2021.
Attempts to reach the MP on his mobile phone and through text messages have proven futile.
Source: https://energynewsafrica.com
The letter stated that the MP is required to report to the ECG office within 72 hours of the issuance of the letter.
Per the reading on the MP’s postpaid meter, the MP consumed power to the tune of Gh¢5,510.31 from January 2022 to date.
Already, the MP is owing ECG an outstanding electricity bill to the tune of Gh¢30,209.42 between 2017 and 2021.
Attempts to reach the MP on his mobile phone and through text messages have proven futile.
Source: https://energynewsafrica.com Nigeria: Central Bank Of Nigeria Seeks Order To Freeze Accounts Of Ten Companies Over ‘Diversion Of Funds For Prepaid Meters’
Nigeria: Central Bank Of Nigeria Seeks Order To Freeze Accounts Of Ten Companies Over ‘Diversion Of Funds For Prepaid Meters’
The Central Bank of Nigeria (CBN) has filed a suit at a High Court in Lokoja in Kogi state to freeze 157 accounts of Meter Asset Providers (MAPs) for allegedly diverting funds meant for the procurement of prepaid meters.
According to a report by the Cable, the apex bank is seeking to restrict the account of 10 companies that received power sector intervention funds under the National Mass Metering Programme (NMMP) for 180 days pending the outcome of its investigation.
The companies identified by the CBN include Mojec Meter Asset Management Company Limited, Integrated Power Nigeria Limited, Holley Metering Limited, Protogy Global Services Limited and Turbo Energy Limited.
Others are G Unit Engineering Limited, Koby Global Engineering Services Limited, FLT Energy Systems Limited, Smart Meters Asset Provider Company Limited and Cresthill Engineering Limited.
“The Central Bank of Nigeria reviewed the activities of twelve (12) including the defendants herein Meter Asset Providers (MAPs) alleged to have diverted the Central Bank of Nigeria’s power sector intervention funds under the National Mass Metering Programme (NMMP),” the apex bank said.
“The review was aimed at ascertaining the flow of the funds made available to the MAPs, covering the period 1st January, 2020 to 15th March, 2022. The preliminary review revealed that the defendants diverted a substantial portion of the funds for other uses through related entities and individuals/companies connected to the electricity distribution companies (DisCos) and the defunct Power Holding Company of Nigeria (PHCN).
“The diversion of the power sector intervention funds under the National Mass Metering Programme (NMMP) provided by the applicant’s banks, has further occasioned grave instability in the power sector and sustained the estimated billing regime which the federal government is making frantic efforts to make a thing of the past.
“The diversion of the said funds through the bank accounts of the defendants has continually undermined the applicant’s bank intervention system of supporting various sectors of the Nigerian economy.
“The diversion of the said funds and sustained instability in the power sector is capable of causing significant economic and financial loss to investors, as well as the entire systems and the Nigerian economy in general, if not curtailed.”
On April 3, 2018, the Nigerian Electricity Regulatory Commission (NERC) introduced the MAP regulation to new investors to fast-track the rollout of meters through the engagement of third-party investors.
The DisCos were expected to engage the services of the MAPs within 120 days from the effective date to achieve a three-year metering target prescribed by NERC.
Despite the late start over lack of cooperation by DisCos as regards engaging licensed firms, the meter asset firms were issued permits to begin the rollout of new meters by May 1, 2019. To boost the new policy, the federal government provided a N37 billion grant for the supply of the meters.
In October 2020, the federal government flagged off the National Mass Metering Programme to close the metering gap in the NESI by December 2021.
Speaking a week after the launch of the programme, Engr. Sale Mamman, former minister of power, said there would be an installation of at least one million meters for electricity consumers through the mass metering programme by December 2020.
In June, the NERC said it will begin the second phase of the National Mass Metering Programme (NMMP) in August 2022.
The latest data from the 2021 third-quarter report of the NERC shows that of the 11,069,200 registered energy customers as of September 2021, only 4,753,027 (42.93%) have been metered.
Source: https://energynewsafrica.com
Kenya: More Power For Kenyans As 86MW Geothermal Power Plant Commissioned
Kenyan President Uhuru Kenyatta has commissioned KenGen’s Olkaria 1 Additional Unit 6 Geothermal power plant, injecting an additional 86 megawatts (MW) into the national grid further advancing Kenya’s green energy agenda.
The power plant propels KenGen’s total installed energy capacity to 1,904MW while its geothermal capacity now stands at 799MW.
Speaking during a brief ceremony to commission the plant, President Uhuru commended the KenGen team and stakeholders involved in undertaking the project which was implemented during the Covid-19 peak periods in 2020 and 2021.
The President noted that the commissioning of the power plants was aligned with the Least Cost Power Development Plan (LCPDP) in support of the Government’s Big Four Agenda.
“This is indeed a great milestone for not only KenGen but the rest of Kenyans as far as developing clean energy is concerned. Clean and safe energy is increasingly becoming vital in energy development, and it is through this approach that we shall attain universal access to electricity in our nation and meet key energy needs,” said Uhuru.
While expressing satisfaction with the country’s clean energy development milestones, the Head of State noted that his government has put in place robust plans to ensure the country attains a 100 per cent transition to clean energy by 2030.
During the event, Cabinet Secretary, Ministry of Energy, Monica Juma, noted that the Ministry would continue to fulfil its mandate of providing clean and affordable energy for the nation with a focus on countering climate change.
“The completion of this project marks another milestone in Kenya’s efforts towards achieving energy security as well as accelerating economic growth through improved energy access. It represents an important moment in our efforts to reduce the country’s reliance on fossil fuels and create a more sustainable future for us all,” said the CS.
For his part, KenGen Board Chairman, Samson Mwathethe, said: “This project is vital for our nation because considering that adequate supply of electricity is undeniably a primary enabler for our economic development.”
His sentiments were echoed by KenGen Managing Director and CEO, Rebecca Miano, who noted that the company’s geothermal agenda was to increase production in line with the growing demand for power while also ensuring that the business lives up to the expectations of shareholders.
Source: https://energynewsafrica.com
“This is indeed a great milestone for not only KenGen but the rest of Kenyans as far as developing clean energy is concerned. Clean and safe energy is increasingly becoming vital in energy development, and it is through this approach that we shall attain universal access to electricity in our nation and meet key energy needs,” said Uhuru.
While expressing satisfaction with the country’s clean energy development milestones, the Head of State noted that his government has put in place robust plans to ensure the country attains a 100 per cent transition to clean energy by 2030.
During the event, Cabinet Secretary, Ministry of Energy, Monica Juma, noted that the Ministry would continue to fulfil its mandate of providing clean and affordable energy for the nation with a focus on countering climate change.
“The completion of this project marks another milestone in Kenya’s efforts towards achieving energy security as well as accelerating economic growth through improved energy access. It represents an important moment in our efforts to reduce the country’s reliance on fossil fuels and create a more sustainable future for us all,” said the CS.
For his part, KenGen Board Chairman, Samson Mwathethe, said: “This project is vital for our nation because considering that adequate supply of electricity is undeniably a primary enabler for our economic development.”
His sentiments were echoed by KenGen Managing Director and CEO, Rebecca Miano, who noted that the company’s geothermal agenda was to increase production in line with the growing demand for power while also ensuring that the business lives up to the expectations of shareholders.
Source: https://energynewsafrica.com
Ghana: I Can’t Pay Your Electricity Bills For You-ECG MD To Krobos
The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Masubir Mahama, has told residents of Lower and Manya Krobo in the Eastern Region to be willing to pay for the power they are consuming, saying, he cannot pay for their electricity bills.
Consumers in the area have consumed power to the tune of Gh¢168 million (US$19,622,400 ) for a period of five years without payment.
Led by the United Krobo Foundation, the residents held series of street protests, claiming they were promised free electricity some years ago the by Volta River Authority when the Akosombo Hydro-Electric Power dam was being constructed.
This claim, however, had been shot down by both VRA and the Krobo Traditional Council.
ECG has held series of stakeholders’ engagement in a bid to resolve the impasse by giving the consumers in the Kroboland a period of five years to pay their outstanding debts.
Recently, ECG started the installation of pre-payment meters in the area under the supervision of the military in a bid to curtail continuous accumulation of electricity bills by the residents.
While some have embraced the installation of the pre-payment meters, others are still kicking against it.
Speaking to a section of journalists in Accra, Wednesday, the Managing Director of ECG, Samuel Mahama, said the Krobos’ decision not to pay bills cannot continue to overburden the company and the rest of the population.
According to the ECG MD, ongoing pre-paid meter installations are the only option for the company to recover cost and reduce losses.
“The only reason anyone will refuse the pre-paid meter installation is that the person doesn’t want to pay bills. I can’t pay that bill for them and I know other citizens are also not ready,” he added.
Source: https://energynewsafrica.com
South Africa: Cyril Ramaphosa Announces Plans To Improve Power Supply
South African President Cyril Ramaphosa has announced plans and interventions to improve the power supply and generate more power for the national grid.
The President held consultations with the government, stakeholders and energy experts outside government to find a collective solution to the energy crisis.
“During the past three weeks, severe load shedding has disrupted all of our lives and caused immense damage to our economy.
“The daily power cuts we have been experiencing have inconvenienced millions of households and have presented huge challenges for businesses,” Ramaphosa said during a press briefing on Monday.
He announced various interventions that the government has developed to respond to the crisis immediately.
Firstly, to improve the performance of Eskom’s existing fleet of power stations.
Secondly, to accelerate the procurement of new generation capacity.
Thirdly, intention to massively increase private investment in generation capacity.
Fourthly, is a design to enable businesses and households to invest in rooftop solar.
Finally, fundamentally transforming the electricity sector and positioning it for future sustainability.
Ramaphosa said over the next 12 months, Eskom would increase its budget towards extensive maintenance of these power stations, adding that the red tape around the procurement of maintenance spare parts would be relaxed.
The long list of measures also includes Eskom importing and purchasing excess power from neighbouring countries in the SADC region, hiring former plant managers who left the power utility and recruiting skilled personnel including former engineers and plant managers to drive Eskom forward, cutting red tape and buying power from private producers.
After years of state capture and mismanagement, a capable and effective management team is working hard to turn the utility around and reverse years of decay, Ramaphosa said.
However, he cautioned, as things stand, that the country is still faced with an electricity shortage of up to 6,000MW.
On Eskoms’ huge debt of R400 billion, Ramaphosa said it continues to be a huge burden on Eskom’s ability to address its many challenges.
“The National Treasury is working to finalise a sustainable solution to Eskom’s debt. The Minister for Finance will outline how the government will effectively deal with this matter when he presents the Medium-Term Budget Policy Statement in October,” he said.
The measures announced by Ramaphosa, along with the steps taken thus far, are expected to stabilise energy security in the country and help encourage investment in South Africa and create jobs.
Source: https://energynewsafrica.com
Nigeria: NNPC Limited Has Not Sacked 500 Workers
Nigerian National Petroleum Company (NNPC) Limited has dismissed media reports suggesting that it sacked about 500 workers a few days after it changed its name.
NNPC limited described the report as the handiwork of mischief makers.
According to a report filed by The Daily Sun, Garba Deen Muhammad, who is the Group General Manager, Public Affairs Department of NNPC, said the report was misleading, stressing that the Petroleum Industry Act (PIA) insulates workers from the arbitrary sacking and salary cuts in the implementation of the Act.
He further explained that the NNPC management had proposed early retirement for workers due to exit between now and 2024 and gave them what was due to them.
He added that such an action is taken to energise the system via the injection of new hands and proper placement and must not be mischievously misconstrued to mean anyone was sacked, as nothing of such happened.
“We didn’t sack anyone. Even the PIA doesn’t allow that. Somebody sat somewhere and wrote what he felt like. If it were true, by now the labour unions would have threatened fire and brimstone. Everywhere would be tensed. For the atmosphere to be calm simply means the sack report is not true.
“It should be disregarded,” he said.
Source: https://energynewsafrica.com
Russian Gas Cut To Europe Hits Economic Hopes, Ukraine Reports Attacks On Coastal Regions
Russia said it will cut gas supplies to Europe from Wednesday (today) in a blow to countries that have backed Ukraine, while missile attacks in Black Sea coastal regions raised doubts about whether Russia will stick to a deal to let Ukraine export grain.
The first ships from Ukraine may set sail in days under a deal agreed on Friday, the United Nations said, despite a Russian missile attack on the Ukrainian port of Odesa over the weekend, and a spokesman for the military administration in the saying another missile had hit the Odesa region on Tuesday morning.
Soaring energy costs and the threat of hunger faced by millions in poorer nations show how the biggest conflict in Europe since World War Two, now in its sixth month, is having an impact far beyond Ukraine.
European Union countries are set to approve a weakened emergency proposal to curb their gas demand as they try to wean themselves off Russian energy and prepare for a possible total cut-off.
The Ukrainian military on Tuesday reported Russian cruise missile strikes in the south and that Ukrainian forces had hit enemy targets.
Serhiy Bratchuk, a spokesman from the military administration in Odesa, told a Ukrainian television channel that a missile fired from the direction of the Black Sea had struck the region, but gave no information on casualties.
East of Odesa along the Black Sea coast, port infrastructure at Mykolaiv was damaged by an attack, according to the mayor Oleksandr Senkevich.
Russia’s defense ministry did not immediately reply to an out-of-hours request for comment.
A major fire broke out at an oil depot in the Budyonnovsky district of Russian-backed Donetsk People’s Republic in eastern Ukraine after Ukrainian troops shelled the province, Russia’s TASS reported, quoting a reporter at the scene. No casualties or injuries have been reported.
Russian energy giant Gazprom, citing instructions from an industry watchdog, on Monday said gas flows to Germany through the Nord Stream 1 pipeline would fall to 33 million cubic metres per day from Wednesday.
That is half of the current flows, which are already only 40% of normal capacity. Prior to the war, Europe imported about 40% of its gas and 30% of its oil from Russia.
The Kremlin says the gas disruption is the result of maintenance issues and Western sanctions, while the European Union has accused Russia of energy blackmail.
Politicians in Europe have repeatedly said Russia could cut off gas this winter, a step that would thrust Germany into recession and hurt consumers already hit by soaring inflation.
Moscow says it is not interested in a complete stoppage of gas supplies to Europe.
Source: Reuters
Egypt: Construction Of First Nuclear Power Plant Begins In El-Dabaa
Egypt has started the construction of the country’s first nuclear power plant, energynewsafrica.com can report.
The North African country hopes to construct 4.8Gigawatts capacity (4,800MW) of nuclear power in four units with Unit 1 which has a capacity of 1.2GW commencing last week.
Egypt signed an agreement with the Russian state nuclear energy corporation, Rosatom, which was the lead developer five years ago, but construction was delayed until just last month when Rosatom received approval from the Egyptian regulator to begin the project.
The launch, marked by a ceremony at the site, some 300 kilometres northwest of Cairo, was attended by the Egyptian Electricity Minister, Mohammed Shaker, and Rosatom Chief Executive, Alexey Likhachev.
A joint statement posted by Rosatom and Egypt’s Nuclear Power Plants Authority (NPPA) gave some information on the plant but lacked details on cost or time frame.
According to their joint statement, the El-Dabaa plant will consist of four units with a generating capacity equivalent to 1.2GW per unit using generation III+VVER-1200 reactors.
The pressurized water reactors are similar to those built in Russia and Belarus in recent years. Rosatom will build the plant and deliver Russian nuclear fuel for its entire life cycle.
The Russian state company will support the operation and servicing of the plant during its first 10 years of operation.
It will also build a special storage facility and deliver casks for storing spent nuclear fuel.
Mohammed Shaker was quoted as saying the pouring of concrete for the first unit marked a “historic event” for Egypt, made possible by Egyptian-Russian cooperation. It is the largest joint infrastructure project undertaken by the two countries in Egypt since the building of the Aswan High Dam in the 1960s.
Egypt has been planning an entry into the nuclear energy field for decades. It founded its NPPA in the 1970s and has been conducting research since then.
The nuclear plant will add to the country’s rapidly expanding power generation capacity.
In conjunction with Siemens, it has built large gas-fired plants during the past ten years and now plans to begin or expand electricity exports to several Middle Eastern countries.
Egypt also continues to expand its fleet of renewable energy from wind and solar plants, largely along the Gulf of Suez coast.
The country wants to raise the share of its power generation capacity from renewable sources to 40 per cent by 2030 and 42 per cent by 2035.
The site of the nuclear plant, near the farming town of El-Dabaa, is adjacent to a new six-lane motorway, about 40 kilometres west of New Alamein, a new coastal city, which serves as the government’s summer seat and includes a presidential residence.
Currently, South Africa is the only African country with nuclear power. However, according to the International Atomic Energy Agency, six other African countries are considering adopting it. The UAE recently started the first nuclear power plant in the Arabian Peninsula; its Barakah nuclear power plant began operations in 2020 and will have a 5.4GW capacity when its four reactors are fully operational.
Source: https://energynewsafrica.com
Nigeria: Electricity Workers Issue Strike Notice Over Banks’ Take-Over Of Discos
Power sector workers in Nigeria have issued a strike notice to the Federal Government, rejecting the take-over of some Electricity Distribution Companies (DisCos) by banks among others.
Under the aegis of the National Union of Electricity Employees (NUEE), the workers have issued 14 days ultimatum to the Buhari administration to act or face their wrath.
“The owners of these DisCos would not have obtained loans from banks with the DisCos/facilities as collateral Pre-Privatization and there is no way the banks will seize DisCos, GenCos or any other company before take-over under the pretence that they were indebted to them.
“It does not make both technical and socio-economic sense for the Federal Government to indirectly hand over the operations of Electricity Companies to banks.”
The strike notice, signed by the NUEE’s General Secretary, Joe Ajaero, among others, expressed concerns over the Union, termed “the alarming developments in the Power Sector where banks are practically taking over Distribution Companies (DisCos) and other power facilities in the country based on perceived defaults to repay loans allegedly borrowed by the DisCos.
“It is on record that the Union sounded a note of warning to the Federal Government and the nation at large over the lack of financial capacity of these companies to buy into the 18 Unbundled Companies in the Power Sector preparatory to its privatization.”
Unfortunately, the warning went unheeded, with the Federal Government giving them these companies based on loans presumably collected from Commercial Banks.
“The Federal Government made us understand that the investors had the financial and technological muscles to drive the Sector.
“Now that the ‘chicken has come home to roost’, it has been discovered that most of these private investors cannot probably refund the loans obtained from the banks. Owners of these companies (DisCos) would not have obtained loans from banks; with the distribution companies/facilities as collateral pre-privatization and there is no way the banks will seize DisCos, GenCos or any other company before take-over under the pretence that they were indebted to them.”
According to the NUEE, “Before now, we had called for the review of the privatization process with its manifest imperfections. It does not make both technical and socio-economic sense for the Federal Government to indirectly hand over the operations of Electricity Companies to banks.
‘’This has partly contributed to the near collapse of the Power Sector. It is also unbelievable that the Federal Government is contemplating further privatization in the Power Sector. We are on standby.
“Given these developments and since the jobs of our members are being threatened with job loses, none payment of salaries/allowances coupled with the increasing difficulty in running these business concerns daily and the general disquiet characterizing the sector, we call for the exit of banks (whose presence has been a distraction) from these power facilities without further delay.
“Premised on the foregoing, the Union issues a 14-day notice for these and other issues including the obnoxious letter by the Head of Service for which notice has been given and expired; to address these issues or our services will no longer be guaranteed. This is not a threat.”
Meanwhile, the Federal Government, through the Permanent Secretary, Ministry of Power, in a response letter dated July 20, among others, explained that “the recent change in the equity ownership of some of the Electricity Distribution Companies (DisCos) was a lender action, stepping in to take over the shares of the associated core investors largely as a result of failure to honour debt obligations.
“It is noteworthy that this is not on account of a debt owed by DisCos as separate legal entities. The involvement of the banks at the Board level is, therefore, a consequence of the ownership and corporate governance of the DisCos.
“We wish to reassure the leadership of your Union that the Central Bank of Nigeria, as the regulator of the Banking Industry, has already assured that it would ensure that the banks do not hold the shares in perpetuity. In this regard, there would be an early exit of banks in these public utilities to allow for the sale of the shares to other competent operators in line with subsisting government policy on the reform agenda, and the oversight of the relevant government agencies for such transactions.
“The overriding objective is to ensure the provision of adequate and reliable electricity service to consumers in a manner that will not cause disruptions to the DisCos. In this regard, the staff of the utilities are essential partners towards the achievement of the aforementioned objectives.’’
Source: https://energynewsafrica.com