Geogrid woos manufacturers for its 30MW hybrid power plant
Geogrid LighTec Ltd has unveiled plans for a 30 megawatts hybrid power plant to be sited on a 4,500 square-meter space inside Cadbury Nigeria property in Ikeja Industrial cluster and is partnering with Manufacturers Power Development Company to achieve the buy-in of manufacturers.
At a breakfast meeting organised in Lagos on May 16, Geogrid made its case for off-takers to sign Power Purchase Agreements with it after assuaging their concerns about pricing, security of gas feedstock and regulatory bottlenecks.
“No one bears the brunt of poor power supply than manufacturers that is why we are taking initiative to help manufacturers source their own power and deliver it. We have done everything to ensure a smooth operation,” says Dayo Sobitan, managing director of Geogrid LighTec Ltd.
Olubunmi Edun, a director at the company, in a presentation at the event elaborated on how their proposal gives comfort to manufacturers.
“We have secured a license from the Nigerian Electricity Regulatory Commission (NERC) for 30MW of power to be situated in Cadbury for 10 years, the Environmental Impact Assessment (EIA) has been carried out, we are working with Lagos state government on the right of way and all the process required has been fulfilled,” says Edun.
At the cost of $25 million, the proposed plant is billed to run 70 percent on gas and 30 percent on diesel. To ensure that there is no down time; Edun said the engines would be maintained at different times.
The company also said that it has reached a memorandum of understanding with Gaslink for supply of gas and is also talking to offshore gas suppliers to complement the plan.
The proposed plant would deliver power either at 11KVA or 33KVA lines depending on transformers available to the customers. Geogrid’s value proposition is that customers would have the option of take and pay rather than the take or pay option. Both options are industry speak for paying for subscribed power whether you use it or not, or pay as you use, respectively.
“We are prepared to sign the PPAs with them so long as the tariff meet our requirements,” says Reginad Odia, a director at the Manufacturers Association of Nigeria (MAN) who represented the Director General.
Odia further said, “In manufacturing our statistics show that 40 percent of the cost of manufacturing goes to providing power so it is a critical need for us.”
Oweh Mba-Sam, coordinator of the Manufacturers Power Development Company (MPDC) lauded the initiative and said MPDC would ramp up negotiation with its members and also with the Ministry of Power to secure gas at competitive rates.
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