Transcript Slide 1

Keynote Address by:
Engr. Beks Dagogo-Jack FNSE
Chairman, Presidential Task Force on Power
Member, Presidential Action Committee on Power
Federal Republic of Nigeria
Presented at:
The 9th CII EXIM Bank Conclave on India – Africa Project Partnership,
Taj Palace, New Delhi India.
17 - 19th March 2013
PTFP
http://www.nigeriapowerreform.org
[email protected]
Outline
 The Reform Agenda
 Timeline & Introduction
 Delivery of Reform Milestones.
 Service Delivery.
 Current and Prospective Opportunities (in the Nigerian Electricity Market)
 Generation
 Transmission
 Off-Grid
 Other
 The Political Will
 Reconstitution of PACP
 Outstanding Milestones
 Role of the PTFP
Presidential Task Force on Power
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The Reform Agenda: Timeline & Introduction
Before Power Sector Reform:
 Vertically integrated government-owned monopoly entities in the power value
chain .
 Growing inefficiencies and leakages; annual capital drain from the federal
budget
 Uncoordinated investments in generation, transmission and distribution.
 Huge widening gaps between demand & supply ; massive industry flight
leading to worsening unemployment .
 High suppressed demand throughout Nigeria
Presidential Task Force on Power
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The Reform Agenda: Timeline & Introduction
The Power Sector Reform has two broad missions :
Service Delivery :
Relying mostly on the completion of the new NIPP projects & the recovery of
installed capacities in the up, mid and downstream , grow the availability , supply
and reliability of electricity in Nigeria to an acceptable short term level during the
divestment.
Reform:
Move the sector from the position of government ownership/management of the
assets to a private-sector driven Nigerian Electricity Supply Industry in line with the
EPSR Act 2005. .
Presidential Task Force on Power
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The Reform Agenda: Timeline & Introduction
Presidential Road Map on Power – a short history.
Pre – May 2010
The Electric Power Sector Reform Act enacted ( EPSRA 2005 ).
NEPA unbundled into Successor companies with PHCN as the holding company
Nigerian Electricity Regulatory Commission NERC created .
A multi-billion dollar National Integrated Power Projects ( NIPP) started and later
stalled
Reform stalls until President Goodluck Jonathan assumes office in May 2010.
Post – May 2010
President Jonathan chooses Power as one of his cardinal programmes .
The stalled NIPP program resumes in earnest .
President Jonathan inaugurates the Presidential Task Force on Power & the
Presidential Action Committee on Power .
President Jonathan launches the Nigeria Power Sector Reform RoadMap in
August 2010.
Presidential Task Force on Power
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The Reform Agenda: Delivery of Reform Milestones
Milestones from RoadMap 2010
Achievement
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
100
%
þ
Establishment of cost-reflective tariff
G
G
G
G
G
G
G
G
G
G
þ
Establishment/ operationalising the Nigerian Bulk Trader
G
G
G
G
G
G
G
G
G
G
þ
Provision of FGN Credit Enhancement to the Bulk
Trader
G
G
G
G
G
G
G
G
þ
Operationalizing the NELMCO
G
G
G
G
G
G
G
G
G
G
þ
Reconstitution of NERC to strengthen regulatory regime
G
G
G
G
G
G
G
G
G
G
A
-------------------------------------------------------------------------------þ
Substantial increase in quantum of power delivered
A
A
A
A
A
A
A
A
þ
Ensure that power supply is steady and predictable
G
G
G
G
G
G
G
G
þ
Double the Aug-10 power supply by Dec-13
A
A
A
A
A
A
A
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Engage Management Contractor for the TCN
G
G
G
G
G
G
G
G
G
G
þ
Execute privatisation of generation and distribution
Presidential Task Force on assets
Power
G
G
G
G
G
G
G
G
G
G
6
The Reform Agenda: Service Delivery
Presidential Task Force on Power
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Current & Prospective Opportunities: Generation
Power projection is underpinned by several MoUs with the following organisations.
General Electric
• Facilitating and promoting private sector investment up
to 10,000MW
Siemens AG
• Facilitating and promoting private sector investment up
to 10,000MW
Electrobras
• Facilitating and promoting private sector investment up
to 10,000MW
Daewoo
• Facilitating the development, financing, procurement,
manufacture, commissioning and operations of
10,000MW
EDF/ETDE
• Promoting power sector investments by sponsoring
feasibility studies for approved projects.
Multilateral G-to-G Agency Support
• Promoting the development of small / medium hydropower plants as embedded generation for rural
communities
Presidential Task Force on Power
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Current & Prospective Opportunities: Generation
Privatisation of NDPHC Power Plants
• 10 medium-sized power generation plants under
construction by government – rated to produce 4771
MW of power – to be privatised after completion of
construction program.
• 6 plants to be completed by 2013; remaining 4 by
2014
Development of IPPs
• 3 IPPS currently active in country – date pre-Reform
• Project-finance IPP development pipeline now well in
progress.
• PPAs with government-backed electricity buyer
• Securitisation with World Bank Partial Risk
Guarantee program under development
Captive & Embedded Generation
• Small IPPs dedicated to captive clients. Power plants
sited at Free Trade Zones and various Industrial
Zones/ Parks around the country.
• “NERC Regulation on Embedded Generation 2012“
defines market rules for selling power to (soon-to-bedivested) Electricity Distribution Companies
• “NERC Regulation forPresidential
IEDN 2012”
defines
market
Task Force
on Power
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Current & Prospective Opportunities: Transmission
Contractor-Financed Infrastructure
• The transmission network will require significant
investment to keep pace with the expected growth
of the soon-to-be-privatised generation and
distribution power sectors. For the next 5 years,
approximately 1 to 1.5 Bn USD will be required per
annum to turn the grid from the current weak radial
system to the robust mesh network presented
below.
• Financing models being currently investigated
include EPC contractor-financed infrastructure
where investment will be paid back over a predetermined period of time upon completion and
handover of transmission asset to the governmentowned Transmission Company of Nigeria (TCN).
Framework to be established 2013-Q2 to allow for
important network gap-closure projects to begin in
2014 for 2016 delivery
Presidential Task Force on Power
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Existing (2012) 330 kV Radial Grid
Niamey
REPUBLIC
OF
CHAD
Weak system with high risk of collapse
NIGER
SOKOTO
Sokoto
132 kV
Katsina
Birnin
Kebbi
BORNO
Gusau
KATSINA
Damaturu
MW transfer ability
(Est. 5,630 MW)
ZAMFARA
KEBBI
YOBE
Hadejia
JIGAWA
REPUBLIC
OF BENIN
Potiskum
Kano
Maiduguri
KANO
KADUNA
BAUCHI
Limited hydro generation
Bauchi
Kaduna
KAINJI
2
SHIRORO
NIGER
Northern Region
Jos
Gombe
Low Generation
Poor Voltage Profile
2
2
~60% total load
KWARA
ADAMAWA
GOMBE
2
Minna
JEBBA/GS
Yola
Abuja
JEBBA/TS
PLATEAU
Jalingo
ABUJA
IIorin
OYO
Lafia
3
NASSARAWA
NIGERIA
REPUBLIC
OF CAMEROON
TARABA
Lokoja
Osogbo
OGUN Olorunso
go
~50% total generation
AJAOKUTA
EKITI
OSUN
MAKURDI
Bali
BENUE
KOGI
Abeokuta
Mambila
Akure
Aliade
2
ALAGBADO
TO SAKETE
Makurdi
Ado
Ekiti
Ibadan
TRANSMISSION LINE LEGEND
ONDO
ENUGU
EGBIN
P/ST.
EDO
2
Ikeja
Benin
LAGOS
EBONYI
Enugu
Akwa
Asaba
ONITSHA
4
Abakaliki
AN AMBRA
SAPELE
P/ST.
IMO
DELTA
POWER ST.
DELTA
Umuahia
CROSS
RIVER
2
330KV LINES (EXISTING) – MULTIPLE CIRCUITS
2
330KV LINES (FGN) – MULTIPLE CIRCUITS
2
330KV LINES (NIPP) – MULTIPLE CIRCUITS
2
330KV LINES (PROPOSED PROJECT)
– MULTIPLE CIRCUITS
330KV LINES - EXISTING
ABIA
330KV LINES - FGN
Owerri
330KV LINES - NIPP
RIVERS
Port
Harcourt
Uyo
2
BAYELSA
330KV LINES - PROPOSED PROJECT
Calabar
AKWA
IBOM
330 KV BULK SUPPLY POINT
H
HYDROELECTRIC POWER STATION
AFAM
POWER ST.
ATLANTIC OCEAN
THERMAL POWER STATIONS
11
MESH GRID STRUCTURE BY 2020
Niamey
132 kV
JIGAWA
Gusau
4
Birnin
Kebbi
Improved northern voltage
YOBE
Hadejia
BORNO
KATSINA
Sokoto
Damaturu
2
ZAMFARA
Potiskum
Kano
KEBBI
Maiduguri
KANO
2
2
REPUBLIC
OF BENIN
2
KADUNA
BAUCHI
Bauchi
Kaduna
KAINJI
Many major loops
improve reliability
2
SHIRORO
NIGER
Jos
2
Gombe
2
2
2
KWARA
2
Minna
JEBBA/GS
Yola
Abuja
JEBBA/TS
PLATEAU
2
2
OYO
Jalingo
2
ABUJA
IIorin
2
Lafia
NASSARAWA
3
NIGERIA
REPUBLIC
OF CAMEROON
2
TARABA
Lokoja
Osogbo
Makurdi
Ado
Ekiti
Ibadan
OSUN
OGUN Olorunsogo
AJAOKUTA
EKITI
2
MAKURDI
ALAGBADO
ONDO
EGBIN
P/ST.
2
ENUGU
2
EDO
2
Ikeja
Mambila
Aliade
2
2
Bali
BENUE
2
Akure
2
4
2
KOGI
Abeokuta
TO SAKETE
ADAMAWA
GOMBE
2
1
Benin 1
Asaba
LAGOS
4
ONITSHA
1
Abakaliki
IMO
2
2
330KV LINES (FGN) – MULTIPLE CIRCUITS
2
330KV LINES (NIPP) – MULTIPLE CIRCUITS
330KV LINES (PROPOSED PROJECT)
– MULTIPLE CIRCUITS
330KV LINES - EXISTING
330KV LINES - FGN
ABIA
330KV LINES - NIPP
Owerri
2
330KV LINES (EXISTING) – MULTIPLE CIRCUITS
CROSS
RIVER
Umuahia
2
DELTA
POWER ST.
2
2
4
AN AMBRA
SAPELE
P/ST.
DELTA
EBONYI
Enugu
Akwa
TRANSMISSION LINE LEGEND
RIVERS
Port
Harcourt
2
2
2
2 Uyo
2
2
BAYELSA
330KV LINES - PROPOSED PROJECT UNDER STUDY
330KV LINES - PROPOSED PROJECT
Calabar
330 KV
AKWA
IBOM
BULK SUPPLY POINT
H
HYDROELECTRIC POWER STATION
AFAM
POWER ST.
ATLANTIC OCEAN
MW capacity
(Est. 28,000 MW)
THERMAL POWER STATIONS
12
Current & Prospective Opportunities: Off-grid
Background
• Remote and off-grid
projects are to be
implemented in locations
where it is technically and
commercially unviable to
implement
grid extension
Off-Grid
Generation
projects
• Pre-feasibility & feasibility
• studies
The Rural
for Electrification
remote and offAgency
(REA) was
grid
locations.
established
via
• Load
profilesin&2006,
forecasts
EPSR
Act-2005.
for
remote
and off-grid
Presidential Task Force on Power
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Current & Prospective Opportunities: Market Services
Training/ NAPTIN
• The un-bundling of the
Power Holding Company of
Nigeria has aggregated all
previous training services
into a single body National
Power Training
of
Technical
SupportInstitute
Services/
Nigeria
EMS (NAPTIN). This
hasaffected
a well-defined
• body
Similarly
in the
footprint
of facilities
unbundling
were theacross
the
country
but no support
common
technical
monopoly.
Opportunities
services – such
as meter
Presidential Task Force on Power
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Current & Prospective Opportunities: Market Services
Products and Services
• PTFP is co-sponsoring 2013 NIGERIA POWER
SECTOR INVESTOR SUMMIT:
• “Connecting Investors to Emerging Opportunities in
Nigeria's Privatised Power Sector”
• Eko Hotel & Suites, Lagos, Nigeria, September 18 20, 2013
“….a gathering of investors to explore potential commercial
opportunities in Nigeria’s privatized power sector; discuss policies
guiding the sector and discover government programmes that
support private investment in the sector. It is anticipated that the
soon-to-be concluded privatisation process will increase competition
in the Power sector, which will make the eventual owners of the
power companies to focus on their core businesses and outsource
the non-core businesses.”
Technical Consultancy and
Advisory
• 11 Distribution Companies
and 7 Generating
Companies are being
privatised. Requirements
Presidential Task Force on Power
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Political Will: Reconstitution of PACP/PTFP Sep-2012
 Reform of the Sector in line with the provisions of the EPSR Act of 2005
Mandate
 Monitor the performance of the MDAs charged with the day-to-day
responsibility for ensuring that Service Delivery levels remain “steady
and relatively predictable” and that there is a “noticeable increase” in the
average number of hours of electricity supplied to consumers.
“One Leadership, One Sector, One Mission” the imperatives of which are laid out below:
ONE LEADERSHIP
ONE SECTOR
ONE MISSION
Policy Consistency
&
Programme Control
Political Will
&
Mandate
Performance
Management for
Timely Delivery of
Roadmap Targets
Federal Ministry of
Power
Presidential Action
Committee on Power
(PACP)
Presidential Task
Force on Power
(PTFP)
Hon. Minister of
Power
Mr. President
Chairman
Presidential Task Force on Power
16
Political Will: Outstanding Milestones
Achievement
Current Status of Outstanding Reform Milestones as at Sep
2012
Divestment of Successor Companies
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
100
%
þ
Conclude on Preferred Bidders
G
G
G
G
G
G
G
G
G
G
þ
Sign Share-Sale Agreements
G
G
G
G
G
G
G
G
G
G
þ
Conclude Negotiations with Preferred Bidders
A
A
A
A
A
A
A
A
þ
Payment of 25% Share Purchase Price
G
G
þ
Conclude on Labour issues associated with Divestment
A
A
A
A
A
A
A
A
A
þ
Receive full 100% Payment & Handover
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
100
%
G
G
G
Conditions Precedent to Transition Electricity Market
þ
Sign Industry Agreements - GSAs, GTAs, PPAs, Vesting
Contracts
G
G
G
G
G
G
G
þ
System Operations: Systems and Processes implemented
G
G
G
G
G
G
G
þ
Ring-fence System Operations and Market Operations
G
Presidential Task Force on Power
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Political Will: Role of PTFP
By the end of 2013, the majority of components of the Power Sector Reform are
expected to be completed. At which time, the PTFP’s job would be essentially
completed: “Delivering The Reform”.
At this point, The Nigerian Electricity Market will be a commercially-focused, contractdriven market led principally by private sector participants. The Government would
have withdrawn from its traditional roles to focus on the critical roles of Policy and
Regulation
In this year, 2013, the work of the PTFP is as critical as ever as it is necessary that
the infant market starts off in the right direction. The PTFP is currently conducting a
review of the original RoadMap to assess what was achieved, to record what was
learnt and to propose a path for the Power Sector into 2020 ensuring that what was
started will be sustained.
Presidential Task Force on Power
18
Thank You
PTFP
http://www.nigeriapowerreform.org
[email protected]
19