Power Generation Companies in the Republic of Nigeria have reportedly lost about N122.79 billion (an equivalent of U.S $315,433,511.94) between January to May this year.
The Guardian quoted Pioneer Executive Secretary of the Association of Power Generation Companies, Dr. Joy Ogaji, as saying that while available capacity generation stood at 8,286.62 megawatts in May, average generation was 4,146.79 MW with stranded generation remaining at 4,140 MW.
A data from January to April, showed that while the generation capacity average was 8000MW, average generation was 3,821, 4,114, 3,912, and 4,099 megawatts for January to April respectively, while stranded generation for the respective months were 3,791, 3,949, 4,406 and 4,489 respectively.
Ogaji said the loses, which remained a risk on the part of the investors discouraged further investment in the sector, since current transmission and distribution infrastructure have continuously failed to wheel the generated electricity.
In her analysis, the supply growth from the takeover date in November 2013 to date shows that available generation capacity which was 4,214.32MW has increased by 48 per cent to 8,145MW (as GenCos recovered 3,930.68MW).
“However, due to system constraints, the generated power is rejected or forced to be reduced to match the infrastructure that transmits and distributes this power to the Customer.
“A case in Point: In Quarter one 2020, despite an available generation capability of 8,145MW, GenCos were only allowed to generate 3,987MW, thus losing an average of 4,159MW daily average generation,” Ogaji stated.
She stressed that the wellbeing of the power generation company goes beyond efficient operations to include its ability to generate income from power generated, adding that with a total available installed generation capacity of more than 7,500MW and maximum wheeling capacity of not more than 5,500MW, there would always be a recurring instance of about 2,000MW idle generation.
According to her, idle generation represents capital investment not able to yield revenue that will hence impact the ability of the GenCos to support efficient operations and service loans used in developing the power plants.
Ogaji disclosed that out of the meagre 5,500MW of transmission wheeling capacity, the DisCos have not proven to be able to distribute more than 4,500MW, continuously leaving yet another 1,000MW of generation capacity unutilised.
She said: “In total, due to the combined technical incapacitation of Transmission Company of Nigeria and the DisCos, the GenCos are unable to deploy a total of 3,000MW of capacity that would ensure sustainable profitable operations. If one considers the fact that the DisCos have in the recent past been operating around 3,500MW or below, this figure escalates to 4,000MW of idle capacity.
“In effect, the GenCos are not able to deploy a total of 4,000MW of idle power, and out of the 5,500MW wheeled by TCN, the DisCos only remit about 25 per cent (875MW) of this power as revenue to NBET, making a total of 6,625MW generation capacity not yielding revenue for the GenCos.
Source:www.energynewsafrica.com
A solar photovoltaic power plant recently commissioned by BECO is now operational in Mogadishu, the capital of Somalia.
Through this project, BECO, Somalia’s main electricity supplier, originally aimed to reduce the costs involved in importing fossil fuels for electricity production.
An added benefit is the reduction of CO2 emissions of the many diesel-powered generators it operates.
The Mogadishu solar photovoltaic power plant has a capacity of 8MWp, which the company plans to increase to 100MWp, with an investment of $40 million.
Pending the expansion of the solar power plant by 2022, the utility will continue to rely on its power generators to supply the Somali capital.
According to BECO, the impact of the solar power plant is already being felt. However, the company’s chief engineer, Mohamud Farah pointed out: “Unless we have batteries to store electricity, we can’t stop using fossil fuels, and the cost per kilowatt-hour when we get to 100MWp will still depend on batteries.”
BECO’s facilities provide a total of 35MW, compared to an estimated demand of 200MW. Somalia does not have a national electricity grid, which collapsed at the start of the civil war in 1991. With the return of peace to the country, the electricity supply is provided by private companies.
BECO provides electricity in the cities of Mogadishu, Balad, Jowhar, Afgooye, Elasha, Kismayu, Barawe and Marka.
According to the US Agency for International Development (USAID), Somalia has an installed capacity of about 106MW, and the majority of power companies to date rely on diesel generators for electricity generation.
A recent study by the African Development Bank (AfDB) estimates that Somalia has the highest renewable resource potential of all African nations, particularly in terms of onshore wind power, and that it could produce between 30,000 and 45,000MW.
Solar energy could potentially generate a surplus of 2,000kWh/m2. According to the World Bank’s 2018 report, more than 64% of the population has no access to electricity.
Two Taxi Driver Unions in the Republic of Ghana have threatened to increase transport fares by 20% today (Monday) over failure of government to reduce the cost of fuel to cushion them.
A statement issued jointly issued by True Drivers Union and the National Concern Drivers Association in Ghana, they accused the Akufo-Addo administration of failing to be sensitive to their plight.
Amongst the measures being introduced by the government to stem the spread of coronavirus included reduction in the number of taken by both taxis and commercial vehicles.
According to the driver unions, they have adhered to the social distancing directive aimed at stemming the spread of Covid-19 by cutting the number of passengers in trotro and taxis, yet government failed to reduce prices of fuel when it hit a record time low price in recent times.
The statement observed that government’s attitude towards them showed disregard and insensitivity.
They further argued that government provided monetary fund for small and medium scale enterprises but drivers were not considered.
“Fuel prices are always increased and they won’t allow us to increase our fares. This is so unfair. We are giving government up to June 8, to reduce the fuel prices, else we will automatically increase our fares by 20%.
They warned that any hindrance will call for a massive demonstration by drivers across the country.
Source: www.energynewsafrica.com
The illegal mining activities which have destroyed water bodies in the Republic of Ghana has taken another dimension as illegal miners are now digging around power transmission lines of GRIDCo in search of gold.
Officials of Ghana’s power transmission company who were on a routine inspection of their transmissions lines in the Western Region discovered that illegal miners at Asawinso Brofoyedru have dug around one of the transmission tower in search of gold.
In a tweet sighted by energynewsafrica.com, GRIDCo, served notice to galamsey miners at Asawinso Brofoyedru in the Western region, to desist from mining close to their power transmission towers.
Officials of the Ghana Grid Company (GRIDCo) have served notice to galamsey miners at Asawinso Brofoyedru in the Western region, to desist from mining close to their power transmission towers or face prosecution. pic.twitter.com/RvOpavtNTn
According to the company, activities of the galamsey miners have become a menace to power supply in the locality.
“Additionally, the proximity of their operations to the transmission towers poses a danger to the lives and safety of the miners and others close to the area.”
Speaking to energynewsafrica.com, Chief Executive Officer of GRIDCo Ing. Jonathan Amoako Baah said the actions of the illegal miners has become a serious worry to the company stating that his outfit has collaborated with security agencies in the area and would hunt the miners and arrest them for prosecution if the activities continue.
“We’re advising all illegal miners in the area to desist from mining around our properties. We will hunt all of them and bring them to book,” he warned.
Source:www.energynewsafrica.com
Two suspected thieves have been arrested for stealing electrical equipment belonging to Kenya Power.
The suspects were nabbed after Kenya Power security officers were informed that a white truck was spotted around the Kamkunji area ferrying copper wires from vandalized transformers and underground cables. Following the tip, police officers in liaison with the Kenya Power security team apprehended the vehicle at the Kariokor round about.
The truck driver, James Maina Mwangi and his turn-boy Paul Kananga Njoroge are currently being detained at the Jogoo Road Police Station.
Vandalism of electrical equipment is considered an economic crime according to the Energy Act and the two could be liable to pay a minimum fine of Kshs.5,000,000 or a minimum jail term of 10 years if convicted.
Kenya Power has intensified surveillance on the grid network as a measure to counter illegal connections and vandalism.
The company is also working closely with other security stakeholders including the Directorate of Criminal Investigations (DCI) and the Kenya Police Service to track down these crimes.
Source:www.energynewsafrica.com
Norwegian oil and gas firm, Aker Energy, has reaffirmed its commitment to finding a solution that will allow for the commencement of a phased development of the Pecan field offshore Ghana.
“In a time when most other E&P companies are putting development projects on the shelf due to the COVID-19 situation and historic low oil prices, Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the government of Ghana, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field,” Håvard Garseth, CEO of Aker Energy said in a statement.
“Although we have an altered timeline, we are on our way to finding a development concept with a breakeven price that is sustainable and resilient also in a low oil price environment,” he added.
In March, Aker Energy announced that a final investment decision (FID) for the Pecan field development project had been placed on hold, postponing the project. While no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.
The phased development of the Pecan field and the utilization of a redeployed FPSO vessel will substantially reduce the CAPEX and, hence, reduce the breakeven cost. In addition, it will increase the possibility of reaching a commercially feasible project that will allow for an investment decision. Aker Energy and partners are currently assessing several FPSO candidates for redeployment, and the final selection will be based on technical capabilities and cost.
While the original field development concept was based on a centralized FPSO supporting the development of the entire Pecan field, as well as tie-ins of all other area resources, the focus has shifted toward a phased development approach. This approach will enable Aker Energy to commence with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources. The first FPSO will be deployed at around 115 kilometers offshore Ghana over a subsea production system installed in ultra-deep waters in depths ranging from 2,400 to 2,700 meters.
“Getting projects like the Pecan field in operation is key toward our mission of making Ghana a major producer in West Africa and Africa as a whole,” Dr. Mohammed Amin Adam, Ghana’s Deputy Minister of Energy in-charge of petroleum said.
On her part Country Director of Aker Energy, Kadijah Amoah, stated that “with our partners, we are optimistic that we will establish a workable concept so that we can finally see first oil in the fourth offshore field in Ghana. We remain committed to Ghana.”
Source:www.energynewsafrica.com
The Indian government is considering the option of privatising the electricity distribution companies (DISCOMs) in the country due to poor performance.
According to report, the outbreak of novel coronavirus which has affected global economy has negatively impacted the revenue stream of electricity distribution companies (DISCOMs) in India forcing government to bail them out.
Apart from the $265 billion economic recovery stimulus package, the Indian government announced $12.5 billion bailout package for state distribution utilities to pay-off their dues to generators.
However, it will be difficult for the government to support the loss-making distribution utilities in the future due to the economic downturn.
Hence, complete privatisation or partial franchising will reduce the burden of the government and will increase competition, improve infrastructure through fresh investments.
It was recently announced that DISCOMS in the eight union territories, which are under the administrative control of the federal government will be privatised, says GlobalData, a data and analytics company.
The distribution companies in India are largely state-owned and subsidy-driven. Regional governments provide direct subsidy payments to make-up utilities’ loss and industrial consumers pay higher tariffs to subsidise agricultural loads.
Somik Das, the senior power analyst at GlobalData, comments: “Privatisation is expected to provide better service to the customers, improve operational efficiency and financial efficiency of the distribution sector. The segment poses tremendous market opportunities for private players provided the state government plays its part and ensures a risk-free business environment.
“Private investments will help better the existing grid infrastructure resulting in reduced amount of losses. Cities like Mumbai, New Delhi, and Kolkata, as well as some smaller towns can be cited as examples, where private participation has led to a reduction in revenue losses and more viable operations.”
Source:www.energynewsafrica.com
The government of Mozambique has directed the national power utility EDM to cut electricity tariffs for this year as part of its response to the COVID-19 pandemic.
According to the Mozambique News Agency, two categories of electricity consumers will see their electricity bills fall.
The report indicated that households who pay the “social tariff” will benefit from a 50% price cut.
These are households which only use a small amount of electricity, up to a maximum of 125kV. EDM says there are 2,964 of them.
The second, and much more significant, cut is a 10% reduction in the general tariff, which will benefit businesses.
Small and medium sized businesses will benefit from this reduction. These are EDM’s large consumers of low voltage power, and of medium voltage power up to 200kVA.
Speaking at a Maputo press conference on Wednesday, EDM spokesperson Luis Amado said a third measure is to allow businesses to defer payment of the fixed fee on their electricity bills.
In addition to paying the general tariff, which varies depending on the number of kilowatt-hours used, these businesses also pay a fixed fee.
Under the package announced by Amado, they can defer payment of the fixed fee for six months.
These measures are all intended to protect businesses and the poorest consumers from the economic impact of the COVID-19 pandemic.
Consumers on the social tariff “have been protected in all the electricity price rises of the last four years”, said Amado. “This is to allow continued expansion in the number of EDM’s clients as we move towards universal access”.
The low voltage clients on the general tariff, he said, are offices, workshops and other small businesses who have installed power of between 19.9 and 39.9kW.
Amado said that, taken together, these price cuts will deprive EDM of about $15 million.
As part of measures to cope with the boom and bust cycle in the global crude oil market and to sustain revenue generation for the Country, the Nigerian National Petroleum Corporation (NNPC) is firming up a bouquet of business portfolios in the power, medical, housing and other sectors that would strengthen the profitability of the National Oil Company.
A statement issued by the NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the corporation’s Chief Operating Officer, Ventures and Business Development, Mr. Roland Ewubare, as saying that the Ajaokuta-Kaduna-Kano (AKK) pipeline network would enable the NNPC to deepen its footprint in the power sector through the establishment of an Independent Power Plant.
The NNPC Chief Business developer made this submission at an appearance on Arise Tv Global business report programme.
Ewubare stated that NNPC would use its network of excellent medical centres across the country to provide innovative healthcare for Nigerians.
“NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that is ongoing. We have got biofuels agreements with some state governments that would soon be activated. We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC that would be expanded through effective collaboration and partnership with the private sectors,” Ewubare informed.
He disclosed that the NNPC had a lot of hectares of land across the country and would soon be partnering with private developers to reduce the housing deficit in the country for the benefit of Nigerians who are the core shareholders of the corporation.
Ewubare explained that NNPC’s aspiration was to achieve a $10 per barrel cost by the fourth quarter of 2021, adding that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.
“When you have a low commodity price regime, as the case now, the only way we are able to squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the GMD’s aspiration to push for a $10 per barrel cost of production. Against this backdrop, the conversation around cost becomes an imperative and urgent one”, Ebuware stated.
The NNPC Chief Business Developer said the corporation was working closely with its partners to commercialize flared gas by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, adding that the gesture would preserve the flora and fauna of the country.
Mozambique LNG – undoubtedly one of Africa’s most talked-about hydrocarbons projects is made up of the Golfinho-Atum gas field development (Area 1) in the deep-water Rovuma Basin and an onshore LNG facility on the Cabo Delgado coast.
In recent weeks, the project has garnered much media coverage – for both positive and negative reasons. In April, Mozambique LNG became the centre of the country’s COVID-19 outbreak, following the first diagnosis on April 1. The project currently remains in lockdown, however, a spokesperson recently said work is expected to resume in June.
Last week, Mozambique LNG again hit headlines when it was announced that the project had secured $15 billion of financing, with a signing scheduled in June. The group of about 20 banks involved in the lending includes Africa Oil Week participants Standard Bank Group and Société Generale, which is reportedly acting as the financial adviser. Notably, the U.S. Export-Import Bank has approved a $4.7 billion loan to back American suppliers for the project, which will reportedly sustain 16,700 American jobs.
So, given current global turbulence, what do the project’s potential outcomes look like? The answer is the same one we’ve been hearing echoed throughout the industry during this pandemic, the future is unclear.
First production on Mozambique LNG is still scheduled for 2024. However, at the end of last month, Upstream reported that well-placed sources had told the publication this date now looks unrealistic, given the project’s challenges related to COVID-19 and construction issues.
According to a Mozambican Finance Ministry forecast, the Area 1 LNG project will generate about $38 billion in revenue for the country’s government over its lifetime. However, with LNG prices in Asia and gas prices in Europe hitting record lows amid weakened demand, it is an uncertain time for gas. According to the International Energy Agency, global gas demand will decline this year for the first time in more than a decade. Meanwhile, the International Gas Union has said that low demand, and the 41.8m tonnes of new capacity already added last year, may prolong the glut into the mid-2020s. If only we had a crystal ball.
Having said this, natural gas is now widely accepted as the bridging fuel of choice which will drive the energy transition and steer us towards a lower-carbon future. With many gas projects in the U.S. recently being put on ice, the world is recognising Africa’s vast potential to become a key player in the global energy transition and Mozambique LNG may just prove to be at the centre of this.
For more on Mozambique LNG, join the Mozambique Showcase Session at Africa Oil Week 2020. In the meantime, watch the latest Africa Oil Week webinar, “The Promise of Mozambique: Updates on Building a Natural Gas Hub” on demand.
Source: Africa Oil Week
Ghana’s Ministry of Energy is inviting members of the general public to make input by way of contributions as the country seeks to review the Renewable Energy Act, 2011 (Act 832).
The review of the Act, the Ministry said, has become necessary due to the current development in the renewable energy sub-sector.
A statement signed by John-Peter Amewu, the sector Minister, added that the aim of the amendment and review is to address the challenges in the industry.
The deadline for the submission of comments or proposals is Friday, June 12, 2020, 17:00hrs GMT.
AMENDMENT OF GHANA’S RENEWABLE ENERGY ACT, 2011 (Act 832)
Barely five years after over 200 people perished in a flood cum fire disaster at a GOIL Filling Station at Kwame Nkrumah Cirle, a suburb of Accra, in the Republic of Ghana, on June 3, 2015, children and relatives of the deceased persons and survivors are yet to receive full compensations from millions of Ghana cedis donated to them as a form of relief.
The incident, which attracted global attention, touched the hearts of many across the globe resulting in droves of people and organisations (both local and foreign) donating into a pool to enable the government support the victims.
Not happy about how the victims have been left helpless after the horrendous incident, One Ghana Movement, a pressure group, filed a suit at the country’s court against GOIL, National Petroleum Authority (NPA) and Accra Metropolitan Assembly for their negligence, which they (plaintiff) claimed contributed to the disaster.
Dead bodies being carried by NADMO officials
In a statement signed by the Acting Executive Director of One Ghana Movement, Emly Kanyir Nyuur said, “The only funds received by victims to date was from a $200,000 donation by the President of Benin which the NADMO and AMA disbursed to the victims in June 2019.”
It lamented, “This begs the question where are the funds that were donated to the victims and why have they not been disbursed even five years after the disaster?”
It observed that since 2017, the One Ghana Movement has taken on a legal project, the ‘Justice for June 3’ victims or ‘J4J3’ campaign, seeking equitable compensation for the victims and to also hold officials liable for their actions and inactions that led to the avoidable fire disaster.
“While the organisation acknowledges that rhe wheels of justice grind slowly, we do believe that the victims have endured significant trauma over the past five years and need to be adequately compensated to enable them afford a quality life and restore faith in the justice system,” the movement said in a statement.
It spelt out its objectives on how to secure equittable compensation for the victims, and hold officials and institutions accountable for their actions and inactions.
The group said the victims and the movement have started a legal action against Ghana Oil (GOIL), the National Petroleum Aurhority (NPA) and the Accra Metropolitan Authority (AMA) for their complicity in the disaster and hope that the right punushments would be meted out to officials who were negligent.
The African Energy Chamber has hailed the appointment of Taelo Mojapelo as the new CEO of oil and gas giant, BP for Southern Africa.
Mojapelo succeeds Priscillah Mabelane who was notably the first woman in South Africa’s oil history to head up a multinational company.
The appointment is an encouraging step towards promoting the inclusion of women in leadership positions in the oil sector, a move strongly supported by the Chamber which is a signatory of Equal by 30, a commitment by public and private sector organizations to work towards equal pay, leadership and opportunities for women in the sector by 2030.
“The appointment of Taelo Mojapelo is a motivating move by BP Southern Africa,” NJ Ayuk, Executive Chairman of the African Energy Chamber stated in a press release.
“At the Chamber, we have been extremely vocal about the increased participation of women in the oil and gas sector, particularly in leadership positions. We applaud BP for its continued commitment to supporting this move and we look forward to seeing other oil companies follow suit.”
Prior to being elected as the new CEO of BP Southern Africa, Mojapelo was the head of optimization and supply at the company and previously held several leadership roles in multinational companies including, Mondelez International, Kellog’s and DHL.
Zambia Electricity Supply Corporation Limited (ZESCO) has launched a Mobile Application (Mobile App) aimed at improving service delivery by allowing customers to easily and quickly access information and get real time responses on services.
The Mobile App which has been developed internally by ZESCO is focused on allowing customers access services through their mobile phones at their convenience at the click of a button.
During the COVID-19 epidemic, the App comes in handy to meet the requirements for electronic engagement in order to maintain social distances.
“The Mobile App will be implemented in two phases and will not only reduce crowding in the walk-in customer centres, but also decongest calls to the National Call Centre. And this will promote real time responses to customer challenges,” a statement signed by Hazel M Zulu, Public Relations Manager for ZESCO Limited said.
The Mobile App will among other things, help customers to report faults and generate complaint numbers, allow checking of prepaid meter tokens in the event of misplacement of receipts, help in locating and identifying customer service centres within customers’ locations, track your new power connection/application status and access information on new connection requirements.
The mobile solution will require customers to download and install the application on their smart phones from distribution platforms such as the App Store (iOS) or Google Play Store (Android).
“We are excited about this App as it makes our mission of ‘making it easy for people to live a better life’ a reality,” the statement concluded.
Source:www.energynewsafrica.com
“While the organisation acknowledges that rhe wheels of justice grind slowly, we do believe that the victims have endured significant trauma over the past five years and need to be adequately compensated to enable them afford a quality life and restore faith in the justice system,” the movement said in a statement.
It spelt out its objectives on how to secure equittable compensation for the victims, and hold officials and institutions accountable for their actions and inactions.
The group said the victims and the movement have started a legal action against Ghana Oil (GOIL), the National Petroleum Aurhority (NPA) and the Accra Metropolitan Authority (AMA) for their complicity in the disaster and hope that the right punushments would be meted out to officials who were negligent.
