The Federal Government will require about N544 billion or 3.4 billion dollars to increase power generation from 4,800mw to 20,000mw by 2016.
Prof. Chinedu Nebo, the Minister of Power, announced this on Monday at the Presidential Power Reform Transaction signing ceremony in Abuja.
Mr. Nebo said that there would be massive power increase from the current wheeling capacity of about 4,800mw, noting that the Federal Government planned to achieve 10,000mw in 2014 and 20,000mw in 2016.
“A total sum of 3.4 billion U.S. dollars is needed to achieve this target to bring the nation’s transmission grid to the level at which it can evacuate all the generated power.’’
Mr. Nebo explained that the current installed available generation capacity had risen to 6,000mw while generation capability had increased to 5,228mw with peak generation above 4,500mw.
He said that government was expecting an additional 2,200mw from the National Integrated Power Projects.
The minister said that 1,896mw was expected from Independent Power Producers (IPPs), while 292mw and 514mw were expected from the Federal Government legal assets before the end of 2013.
He said the Federal Government was also investing heavily to boost generation through the large, medium and small Hydro plants with the total capacity of over 4,234mw.
Mr. Nebo listed the Hydro generation plants to include Zungeru, 700mw; Mambilla, 3050mw; Gurara second phase, 360mw; Itsi, 40mw and small Hydro plant, 84mw.
He observed that the Power Reform Sector had not been all that smooth due to the labour issues which had setback the reform.
Mr. Nebo, however, said that before the end of 2013, the Federal Government would have addressed all the labour issues.
He said that the sale of Afam Power Plant and Kaduna Distribution Companies was now on-going.
The minister explained that an enabling environment had been created by government in the Electricity Power Sector Reform Act of 2005 to protect both local and foreign investors.
He said government had empowered the Nigerian Electricity Regulatory Commission as the sector regulator to ensure that “there is fair tariff for both consumers and suppliers of power’’.
Mr. Nebo added that government had initiated policies such as the review of Electricity Power Policy to establish and implement policies on Renewable Energy. (NAN)