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New private sector initiative rescues firms from power shortage
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L-R: Abhimanyu Singh, country representative and director, UNESCO; Adedeji Obe, representing the minister of information and communication, and Ndagene Akwu,national president, Nigerian Union of Journalists, at the World Press Freedom Day celebration.
Negris, an independent power producer and a subsidiary of Energy Company Nigeria (ENCON), is working towards ensuring that electricity consumers have steady power supply and manufacturing concerns run seamless operations.
The company has thus agreed to supply Unilever plc, Agbara, Ogun State and Academy Press plc, Ilupeju, Lagos State with electricity at two of their key locations.
The arrangement allows Negris to generate power and supply it to the two companies at a price that is acceptable to both parties.
Though the two companies are not forthcoming with the tariff, Business Day has gathered that they may pay between N12 and N15 per kilowatt unit. The current cost of electricity is N6 per kilowatt unit, while the production cost is N8.50k.
Under the contract, Negris will build an independent power plant for each company; the plant will be located within the premises or facilities of the companies under a build-own-and-operate (BOO) programme.
The power plants will be fully owned by Negris, but its output will be dedicated fully to the energy requirements of its customers.
The plant being built to serve Unilever is a 6-megawatt (MW) reciprocating gas engines captive power that will provide uninterrupted power for the company’s new factory at Agbara. The plant will be driven by a generator manufactured by Deut power system of Germany.
Academy Press will have a 1.3-megawatt reciprocating gas engine power plant at its Ilupeju complex to power its operations. The project is nearing completion.
The Agbara project will be powered by gas supplied by Shell Nigeria. That of Ilupeju will be linked to the Gaslink pipeline system.
The company through Ewekoro Power Limited , owns and has been operating for over two years ,
The 2.5 MW reciprocating gas engine plant built more that two years ago for Ewekoro Power Limited is solely supplying power to the Ewekoro factory of Larfarge Cement WAPCO Nigeria plc .
Stakeholders say that by the time Unilever and Academy Press projects come up, the two companies will be able to meet their production obligations without any hindrance.
They say this arrangement is the best alternative to the current power problem that has reduced production capacity and, in some cases, increased overhead costs in most companies.
Gas, they say, is cheaper and cleaner than diesel that is currently being used for production. It is believed that the efficiency of the new power system will spur more industrial concerns to buy into the project as an alternative source of power.
According to them, the obvious advantage of this arrangement is the freedom it gives to clients. It allows companies to fully focus on their core operations and leave the challenge of owning and running a power plant to professionals.
Meanwhile, the Niger Delta crisis remains a disturbing issue and the stakeholders say the continuing crisis has grossly affected gas supply to the south-western part of the country.
The arrangement allows Negris to generate power and supply it to the two companies at a price that is acceptable to both parties.
Though the two companies are not forthcoming with the tariff, Business Day has gathered that they may pay between N12 and N15 per kilowatt unit. The current cost of electricity is N6 per kilowatt unit, while the production cost is N8.50k.
Under the contract, Negris will build an independent power plant for each company; the plant will be located within the premises or facilities of the companies under a build-own-and-operate (BOO) programme.
The power plants will be fully owned by Negris, but its output will be dedicated fully to the energy requirements of its customers.
The plant being built to serve Unilever is a 6-megawatt (MW) reciprocating gas engines captive power that will provide uninterrupted power for the company’s new factory at Agbara. The plant will be driven by a generator manufactured by Deut power system of Germany.
Academy Press will have a 1.3-megawatt reciprocating gas engine power plant at its Ilupeju complex to power its operations. The project is nearing completion.
The Agbara project will be powered by gas supplied by Shell Nigeria. That of Ilupeju will be linked to the Gaslink pipeline system.
The company through Ewekoro Power Limited , owns and has been operating for over two years ,
The 2.5 MW reciprocating gas engine plant built more that two years ago for Ewekoro Power Limited is solely supplying power to the Ewekoro factory of Larfarge Cement WAPCO Nigeria plc .
Stakeholders say that by the time Unilever and Academy Press projects come up, the two companies will be able to meet their production obligations without any hindrance.
They say this arrangement is the best alternative to the current power problem that has reduced production capacity and, in some cases, increased overhead costs in most companies.
Gas, they say, is cheaper and cleaner than diesel that is currently being used for production. It is believed that the efficiency of the new power system will spur more industrial concerns to buy into the project as an alternative source of power.
According to them, the obvious advantage of this arrangement is the freedom it gives to clients. It allows companies to fully focus on their core operations and leave the challenge of owning and running a power plant to professionals.
Meanwhile, the Niger Delta crisis remains a disturbing issue and the stakeholders say the continuing crisis has grossly affected gas supply to the south-western part of the country.
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